Document:

Exhibit 10.45

 

ASSET PURCHASE AGREEMENT

 

This ASSET PURCHASE AGREEMENT (this “Agreement”) dated
as of October 3, 2007, is entered into by and among Averion International
Corp., a Delaware corporation and IT&E International, Inc., a California
corporation (together, the “Seller”) on the one hand; and IT&E, Inc., a
Pennsylvania corporation (“Buyer”), and Phil Clarke and Harvey F. Greenawalt
(individually, a “Shareholder,” and collectively, the “Shareholders”) on the
other hand.

 

RECITALS

 

A.                                   Capitalized
terms not otherwise defined as they are referenced herein shall have the
meanings ascribed to such terms in Section 13.1 below.

 

B.                                     Seller
operates a business known as the staffing services operating segment of Seller,
which provides staffing and regulatory compliance and validation services to
life sciences companies (the “IT&E Business”).

 

C.                                     Seller
desires to sell to Buyer, and Buyer desires to purchase from the Seller, the
Purchased Assets that relate to the IT&E Business at the price and under
the specified terms and conditions as set forth herein.

 

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, the parties hereto agree as follows:

 

ARTICLE I

PURCHASE AND SALE OF ASSETS

 

1.1.                              Assets
to be Transferred.    Subject to the terms and
conditions of this Agreement, on the Closing Date, Seller shall sell, transfer,
convey, assign, and deliver to Buyer and Buyer shall purchase and accept, the
following assets of Seller, in each case that are used solely in the IT&E
Business, together with all rights, privileges and goodwill associated with
such assets, other than the Excluded Assets, free and clear of all Encumbrances
(collectively the “Purchased Assets”):

 

(a)                                  Tangible
Personal Property.      All machinery,
equipment, computers, hardware, tools, supplies, furniture and all other fixed
assets owned, utilized or held for use by Seller solely in or for the IT&E
Business on the Closing Date.

 

(b)                                  Contracts.    All
of Seller’s rights in, to and under all contracts to which it is a party and
that relate solely to the IT&E Business, other than the Excluded Contracts
(hereinafter the “Assumed Contracts”). To the extent that any Assumed Contract
for which assignment to Buyer is provided herein is not assignable without the
consent of another party, this Agreement shall not constitute an assignment or
an attempted assignment thereof if such 

 

 

assignment or attempted assignment would constitute a
breach thereof. The Seller and Buyer agree to use their commercially reasonable
efforts (without any requirement on the part of Seller or Buyer to pay any
money or agree to any change in the terms of any such Assumed Contract) to
obtain the consent of such other party to the assignment of any such Assumed
Contract to Buyer in all cases in which such consent is or may be required for
such assignment. Buyer shall be primarily responsible for obtaining each such
required consent, and Buyer shall report to Seller on a weekly basis after the
Closing Date as to the status of obtaining each such consent if all such
consents are not obtained prior to the Closing. Each “Excluded Contract” (as
defined in Section 2.2(b)) shall be set forth on Schedule 2.2(a).

 

(c)                                  Accounts
Receivable.    All accounts receivable, fees earned and
accrued and other rights to payment arising from the conduct of the IT&E
Business, in whatever form, which arise or accrue before the Closing Date, an
aged schedule of which is attached hereto as Schedule 1.1(c).

 

(d)                                  Rights
in “IT&E” Name.    Subject to Section 1.2(c)
below, all right, title and interest of Seller, if any, in and to the name “IT&E”
and any and all derivatives thereof, including, without limitation, any domain
names, together with all goodwill associated therewith, rights thereunder,
remedies against infringers or any other rights or claims related thereto or
arising therefrom.

 

(e)                                  Leased
Real Property.    The leases of real property described
on Schedule 1.1(e) (the “Real Property Leases”) with respect to the real
property described thereon (the “Leased Real Property”) as well as any cash
security deposit related to any such Real Property Lease, it being understood
that the only Real Property Lease being assigned to and assumed by the Buyer is
that which relates to the Pottstown, Pennsylvania location.

 

(f)                                    Personal
Property Leases.     All leases of machinery,
equipment, vehicles, furniture and other personal property leased by Seller
solely for the IT&E Business and that are set forth on Schedule 1.1(f)
(the “Personal Property Leases”).

 

(g)                                 Records;
Databases.     All books, records, ledgers, databases
(including, without limitation the Customer Relationship Management Database of
the IT&E Business), data and files of Seller related solely to the IT&E
Business of every kind including, without limitation, client and investor
lists, agreements with all clients, operating and marketing plans, advertising
and promotional materials, accounting records, personnel and payroll records,
and all other documents, tapes, discs, programs or other embodiments of
information of the Seller, provided that Seller may keep a copy of any such
records necessary for audit, litigation or other legitimate business purposes.

 

1.2.                              Excluded
Assets.    The provisions of Section 1.1
notwithstanding, the Purchased Assets shall not include, and Seller shall not
sell, transfer, assign, convey or deliver to Buyer, and Buyer will not purchase
or accept, the following assets of Seller (collectively, the “Excluded Assets”):

 

(a)                                  Cash.   Any
and all cash and cash equivalents of Seller in existence or accrued prior to
the Closing Date, including, without limitation, any cash that relates to the
IT&E Business, including, without limitation, the Purchase Price, but
excluding any account receivable contemplated by Section 1.1(c) to the extent
the same may be deemed a cash equivalent.

 

2

 

(b)                                  Organizational
Documents.     (i)  Seller’s charter documents, taxpayer and other
identification numbers, minute books, capitalization tables and other documents
relating to the organization, maintenance and existence of IT&E
International, Inc., a California corporation, (ii) any qualification to do
business in any state, or (iii) any of the rights of Seller under this
Agreement (or any related agreement between Seller, on the one hand, and the
Buyer, on the other hand, entered into on or after the date of this Agreement).

 

(c)                                  Limited
Use of “IT&E” Name.     Seller shall have and
retain the right to use and display the name “IT&E” and its derivatives in
connection with descriptions of Seller in which the phrase “formerly known as
IT&E International Group” or similar wording is reasonably required, and
Buyer hereby grants Seller the right to so use and display such name for such
purpose. In addition, the parties acknowledge and agree that IT&E
International, Inc. shall continue to exist as a wholly-owned subsidiary of
Seller after the Closing and that Seller may continue to own, operate and
display the name IT&E International, Inc. until such time as the same may
be dissolved in accordance with applicable laws and without resulting in any
adverse tax consequence or other Liability to Seller, provided that Seller does
not use IT&E International, Inc. or its name in a manner that is
inconsistent with this Agreement or to engage in any activity expressly
precluded pursuant to Section 11.7.

 

ARTICLE II

ASSUMPTION OF LIABILITIES

 

2.1.                              Liabilities
to be Assumed.    On the Closing Date, Buyer will
assume and agree to discharge any and all Liabilities related to or otherwise
associated with the IT&E Business, except the Excluded Liabilities
(collectively the “Assumed Liabilities”). The Assumed Liabilities shall
include, but not be limited to, the following:

 

(a)                                  Obligations
under Assumed Contracts.     All obligations under the
Assumed Contracts, including without limitation, obligations:  (i) to furnish goods, services, and other
non-cash benefits to a third party after the Closing, (ii) to pay for goods,
services or other non-cash benefits that a third party will furnish after the
Closing, or (iii) to indemnify any third party pursuant to the terms of any
such Assumed Contract.

 

(b)                                  Obligations
under Real Property Leases.     All obligations under
the Real Property Leases arising after the Closing Date, including, without
limitation, any letter of credit required by the Landlord thereunder for future
performance.

 

(c)                                  Accounts
Payable.     All accounts payable and other payment obligations
to third parties arising from or related to the IT&E business, in whatever
form, which arise or accrue prior to the Closing Date, an aged schedule of
which is attached hereto on Schedule 2.1(c) (collectively, the “Accrued
Accounts Payable”).

 

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2.2.                              Excluded
Liabilities.    Buyer is not assuming the following
Liabilities of the IT&E Business or Seller which shall be and remain the
responsibility of Seller  (collectively,
the “Excluded Liabilities”):

 

(a)                                  Excluded
Contracts.     Any and all Liabilities under the
agreements and contracts listed on Schedule 2.2(a) and any contract that
does not relate solely to the IT&E Business (the “Excluded Contracts”).

 

(b)                                  Michael
Watts Dispute.     Any Liability that may become due or
owing to Michael Watts arising out of the current dispute with Mr. Watts.

 

(c)                                  Evonne
Portland Dispute.     Any Liability that may become due
or owing to Evonne Portland arising out of the current dispute with Ms.
Portland.

 

(d)                                  Relocation
Expenses.     Any Liability related to any relocation
expenses claimed by any former officer or director of Seller.

 

(e)                                  Governmental
Investigations.     Any Liability associated with any
action brought by a governmental entity with respect to the activities of the
IT&E Business.

 

(f)                                    Shareholder
Actions.     Any Liability arising from any action by a
stockholder of the Seller for actions or conduct relating to this Agreement or
action undertaken by any officer or director of the Seller which is not disclosed
on Schedule 2.2(f).

 

ARTICLE III

PURCHASE PRICE - PAYMENT

 

3.1.                              Purchase
Price.    The aggregate purchase price for the
Purchased Assets and assumption of the Assumed Liabilities shall be $2,275,000
which amount shall be paid as set forth in this Article III (the “Purchase
Price”).

 

3.2.                              Payment
of Purchase Price.    The Purchase Price shall be paid
by Buyer as follows:

 

(a)                                  At
the Closing, Buyer shall deliver to Seller such documents and instruments as
are reasonably required to evidence the assumption of the Assumed Liabilities.

 

(b)                                  At
the Closing, Buyer shall make a cash payment to Seller in the aggregate amount
of Four Hundred Fifty-Five Thousand Dollars ($455,000) payable by wire transfer
of immediately available funds to an account or accounts designated by the
Seller in writing at least two (2) days before the Closing.

 

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(c)                                  Buyer
shall pay the Seller an additional Two Hundred and Fifty Thousand Dollars
($250,000) in cash by wire transfer of immediately available funds to a bank
account identified by Seller in accordance with the following:

 

(i)                                     Eighty
Three Thousand Three Hundred Thirty-Three Dollars ($83,333) shall be paid on or
before January 31, 2008;

 

(ii)                                  An
additional Eighty Three Thousand Three Hundred Thirty-Three Dollars ($83,333)
shall be paid on or before April 30, 2008; and

 

(iii)                               An additional Eighty
Three Thousand Three Hundred Thirty-Four Dollars ($83,334) shall be paid on or
before July 31, 2008.

 

(d)                                  At
the Closing, Buyer shall deliver to Seller an originally executed promissory
note in the form attached hereto as Exhibit C (the “Term Note”), in
principal amount of Eight Hundred Thousand Dollars ($800,000).

 

(e)                                  At
the Closing, Buyer shall deliver to Seller an originally executed promissory
note in the form attached hereto as Exhibit D (the “Interest Only Note”),
in principal amount of Seven Hundred Seventy Thousand Dollars ($770,000).

 

3.3.                              Allocation
of Purchase Price.    Seller shall prepare an
allocation of the Purchase Price (and all other capitalized costs) among the
Purchased Assets in accordance with Section 1060 of the Internal Revenue Code
of 1986, as amended, and the Treasury regulations thereunder (and any similar
provision of state, local or foreign law, as appropriate). Seller shall deliver
such allocation to the Buyer within sixty (60) days after the Closing Date. Buyer
shall report, act and file tax returns (including, but not limited to Internal
Revenue Services Form 8594) in all respects and for all purposes consistent
with such allocation. Buyer shall not take any position (whether in audits, tax
returns or otherwise) that is inconsistent with such allocation unless required
to do so by applicable law.

 

ARTICLE IV

CLOSING

 

4.1.                              Closing.    The
closing of the transactions contemplated by this Agreement (the “Closing”),
shall take place at 10:00 a.m. (PDT) at the offices of Foley & Lardner LLP,
402 W. Broadway, Suite 2100, San Diego, California  92101, on or before October 3, 2007, unless
another date or place is agreed to in writing by the parties hereto. The date
on which the Closing actually occurs is hereinafter referred to as the “Closing
Date.”

 

4.2.                              Documents
to be Delivered by Seller.    At the Closing, Seller
shall deliver the following documents, in each case duly executed by each of
the parties thereto or otherwise in proper form:

 

(a)                                  Bill
of Sale.     A bill of sale for all of the Purchased
Assets described in Section 1.1 substantially in the form attached
hereto as Exhibit A (the “Bill of Sale”);

 

(b)                                  Assignment
and Assumption Agreement.     An assignment and
assumption agreement for the Assumed Contracts (including the Real Property
Leases) substantially in the form attached hereto as Exhibit B (the “Assignment
and Assumption Agreement”).

 

5

 

4.3.                              Documents
to be Delivered by Buyer.    At the Closing, Buyer
shall deliver the following documents, in each case duly executed or otherwise
in proper form:

 

(a)                                  Assignment
and Assumption Agreement    The Assignment and
Assumption Agreement;

 

(b)                                  Certified
Resolutions.    A certified copy of the resolutions of
the board of directors and shareholders of the Buyer authorizing and approving
this Agreement and the consummation of the transactions contemplated by this
Agreement;

 

(c)                                  Term
Note.   The Term Note;

 

(d)                                  Interest
Only Note.    The Interest Only Note;

 

(e)                                  Evidence
of Line of Credit.    Evidence of the existence of the
Secured Debt (as that term is defined in Section 11.1 below) in a form
reasonably satisfactory to Seller and Seller’s counsel; and

 

(f)                                    IT&E
Employee Acknowledgments.    Seller shall have received the
requisite acknowledgments from each Hired IT&E Employee (as that term is
defined in Section 7.1 below) as set forth in Section 7.5 hereof.

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF SELLER

 

Seller hereby represents and warrants to Buyer as of
the date hereof as follows:

 

5.1.                              Organization,
Standing and Authority.    Seller is a corporation duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or formation. Seller has all requisite
company, corporate or partnership, as applicable, power and authority to
conduct the IT&E Business as presently conducted and to execute and deliver
this Agreement and the documents contemplated hereby and to perform and comply
with all of the terms, covenants and conditions to be performed and complied
with by it hereunder and thereunder.

 

5.2.                              Authorization
and Binding Obligation.    The execution, delivery and
performance of this Agreement and each Transaction Document by Seller have been
duly authorized by all necessary company, corporate or partnership action on
the part of Seller. This Agreement and each applicable Transaction Document
have been duly executed and delivered by Seller and, assuming the due
authorization, execution and delivery of this Agreement by Buyer, constitute
the legal, valid and binding obligations of Seller enforceable against Seller
in accordance with their terms, except as the enforceability hereof may be
limited by bankruptcy, insolvency, reorganization or similar laws relating to
or affecting creditors’ rights generally, or by general equity principles
(whether applied in a court of law or a court of equity and including
limitations on the availability of specific performance or other equitable
remedies).

 

6

 

5.3.                              No
Representations or Warranties with Respect to Purchased Assets or the IT&E
Business.    EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT,
THE SALE OF THE PURCHASED ASSETS IS “AS IS,” “WHERE IS,” AND “WITH ALL FAULTS”
IN THEIR PRESENT CONDITION WITHOUT ANY RECOURSE, WARRANTY OR REPRESENTATION OF
ANY KIND, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY IMPLIED
WARRANTY OF MERCHANTABILITY, TITLE OR FITNESS FOR A PARTICULAR PURPOSE.

 

ARTICLE VI

REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer hereby represents and warrants to Seller as of
the date hereof as follows:

 

6.1.                              Organization,
Standing and Authority.    Buyer is a corporation duly
organized, validly existing and in good standing under the laws of the state of
its organization. Buyer has all requisite company power and authority to
conduct its business as presently conducted to execute and deliver this
Agreement and the documents contemplated hereby and to perform and comply with
all of the terms, covenants and conditions to be performed and complied with by
Buyer hereunder and thereunder. Buyer is duly qualified or licensed to do
business as a foreign company, and is in good standing, in every jurisdiction
where failure to be so qualified or licensed could have a Material Adverse
Effect on Buyer.

 

6.2.                              Authorization
and Binding Obligation.    The execution, delivery and
performance of this Agreement and the Transaction Documents by Buyer have been
duly authorized by all necessary company action on the part of Buyer. This
Agreement and each applicable Transaction Document have been duly executed and
delivered by Buyer and, assuming the due authorization, execution and delivery
of this Agreement by Seller, constitute the legal, valid and binding obligation
of Buyer, enforceable against Buyer in accordance with their terms, except as
the enforceability hereof may be limited by bankruptcy, insolvency,
reorganization or similar laws relating to or affecting creditors’ rights
generally, or by general equity principles (whether applied in a court of law
or a court of equity and including limitations on the availability of specific
performance or other equitable remedies).

 

ARTICLE VII

EMPLOYEES - EMPLOYEE BENEFITS

 

7.1.                              IT&E
Business Employees.    Buyer may, in its sole
discretion, offer employment to each employee employed in the IT&E Business
(each, an “IT&E Business Employee”), except as otherwise agreed to in
writing between the parties prior to the Closing Date. Buyer shall hire those
IT&E Business Employees to whom it makes offers effective as of the Closing
Date, at which time each such IT&E Business Employee will become an “at
will” employee of the Buyer. At the time such IT&E Business Employee
becomes an employee of 

 

7

 

Buyer, such
IT&E Business Employee will be eligible to participate in Buyer’s benefit
plans and programs to the same extent available to other similarly situated
employees of Buyer. The IT&E Business Employees actually hired by Buyer on
the Closing Date shall be referred to herein as “Hired IT&E Employees.”  Buyer shall be responsible for paying any
wages or salaries for work performed by each Hired IT&E Employee after the
Closing, accrued vacation pay or other earned time off and severance benefits
due to each Hired IT&E Employee, and Buyer shall assume, and shall give
each Hired IT&E Employee credit for all accrued vacation and other earned
time off, which assumption is intended to discharge any obligation that the
Seller may have with respect to such vacation pay and other earned time off as
to each such Hired IT&E Employee.

 

7.2.                              Buyer
Benefit Plans.    With respect to any plans, programs
and arrangements of Buyer in which any Hired IT&E Employee is eligible to
participate on or after the Closing Date (“Buyer Employee Plans”), Buyer shall:
(i) waive all pre-existing conditions, exclusions and waiting periods with
respect to participation and coverage requirements applicable to any such
employees and their eligible dependents under any Buyer benefit plans in which
such employees and their eligible dependents may be eligible to participate
after the Closing Date, except to the extent such pre-existing conditions, exclusions
or waiting periods would apply under the analogous Seller benefit plan; (ii)
provide each Hired IT&E Employee and their eligible dependents with credit
for any co-payments and deductibles paid prior to the Closing Date (to the same
extent that such credit was given under the analogous Seller benefit plan prior
to the Closing Date) in satisfying any applicable deductible or out-of-pocket
requirements under any Buyer Employee Plans in which such employees may be
eligible to participate after the Closing Date; and (iii) recognize all service
of the Hired IT&E Employees with Seller and its respective affiliates, for
all purposes (including, purposes of eligibility to participate, vesting
credit, entitlement to benefits, and, except with respect to defined benefit
pension plans, benefit accrual) in any Buyer Employee Plans in which such
employees may be eligible to participate after the Closing Date, to the extent
that such service was credited under the analogous Seller benefit plan prior to
the Closing Date; provided that the foregoing shall not apply to the extent it
would result in duplication of benefits. In addition, the parties shall
cooperate with each other and take those actions reasonably necessary in order
to transfer each Hired IT&E Employee’s 401(k) account to an analogous plan
sponsored by the Buyer. On or before the Closing Date, Seller will pay all
employer 401(k) matching contributions that are due as of the Closing Date and
Buyer assumes no obligation with respect to any such employer contributions
that were due prior to the Closing Date.

 

7.3.                              Retained
Responsibilities.    Seller agrees to satisfy, or cause
its insurance carriers to satisfy, all claims for benefits, whether insured or
otherwise (including, but not limited to, workers’ compensation, life
insurance, medical and disability programs), under its employee benefit
programs brought by, or in respect of, IT&E Business Employees who do not
become Hired IT&E Employees. Buyer agrees to satisfy, or cause its
insurance carriers to satisfy, all claims for benefits, whether insured or
otherwise (including, but not limited to, workers’ compensation, life
insurance, medical and disability programs), under its employee benefit
programs brought by, or in respect of, Hired IT&E Employees. If any action
on the part of any Seller prior to the Closing, or if the transactions
contemplated by this Agreement shall result in any liability for severance
payments or termination benefits, such liability shall be the sole
responsibility of the Seller, and the Seller shall indemnify, defend and hold
harmless Buyer against such liability.

 

8

 

7.4.                              Payroll
Tax.    Seller shall make a clean cut-off of payroll
and payroll tax reporting with respect to each Hired IT&E Employee paying
over to the federal, state and city governments those amounts respectively
withheld or required to be withheld for periods ending on or prior to the
Closing Date. Seller shall issue, by the date prescribed by IRS Regulations,
Forms W-2 for wages paid through the Closing Date to each such Hired IT&E
Employee. Buyer shall be responsible for all payroll and payroll tax
obligations after the Closing Date with respect to each Hired IT&E
Employee.

 

7.5.                              Employment
with Buyer.    No later than two (2) days prior to the
Closing, each Hired IT&E Employee shall execute an acknowledgment of
employment with Buyer to be effective at the Closing, acknowledging, among
other things, that: (i) the employee’s employment with the Seller has
terminated and that such employee has no carry over rights with respect to any
and all employee benefits relating to any former employment with the Seller,
including, without limitation, any accrued vacation or other paid time off, all
of which shall be and remain the sole responsibility of the Buyer and that such
employee has been paid all wages or other cash remuneration due or owing to
such employee as of the Closing Date and that Seller has made all 401(k)
matching contributions with respect to such employee that are due as of the
Closing Date; (ii) such employee has ninety (90) days to exercise the vested
portion of such employee’s options to purchase Seller common stock, if any,
after which time such options shall immediately terminate and be of no further
force or effect, (iii) upon execution of the appropriate documentation, such
employee will be fully covered under the Buyer’s standard health insurance
benefits; (iv) demotion and transfer of such employee may occur in the sole and
absolute discretion of Buyer at any time, with or without cause and/or notice;
and (v) employment with Buyer is “at-will.”

 

7.6.                              No
Third-Party Rights.    Nothing in this Agreement,
express or implied, is intended to confer upon any of Seller’s employees or
former employees, collective bargaining representatives, job applicants, any
association or group of such persons any rights or remedies of any nature or
kind whatsoever under or by reason of this Agreement, including, without
limitation, any rights of employment.

 

ARTICLE VIII

CONDITIONS PRECEDENT TO BUYER’S OBLIGATIONS

 

8.1.                              Conditions
to Obligations of Buyer to Consummate the Transactions.    The
obligation of Buyer to consummate the transactions contemplated by this
Agreement shall be subject to the satisfaction of the following conditions,
unless waived in writing prior to the Closing by Buyer:

 

(a)                                  The
Seller shall have performed, in all material respects, all obligations and
complied with all covenants required by this Agreement to be performed or
complied with by it prior to the Closing.

 

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(b)                                  Each
of the documents or other items to be delivered by the Seller at the Closing
pursuant to Section 4.2 shall have been delivered.

 

(c)                                  All
consents, approvals, authorizations, orders and action of any governmental
entity required to permit the consummation of the transactions contemplated by
this Agreement shall have been obtained, made or waived and shall be in full
force and effect.

 

(d)                                  No
action shall have been taken, and no statute, rule, regulation, executive
order, judgment, decree, or injunction shall have been enacted, entered,
promulgated or enforced (and not repealed, superseded, lifted or otherwise made
inapplicable), by any court or governmental or regulatory agency of competent jurisdiction
which restrains, enjoins or otherwise prohibits the consummation of the
transactions contemplated by this Agreement (each party agreeing to use its
reasonable best efforts to avoid the effect of any such statute, rule,
regulation or order or to have any such order, judgment, decree or injunction
lifted).

 

ARTICLE IX

CONDITIONS PRECEDENT TO SELLER’S OBLIGATIONS

 

9.1.                              Conditions
to Obligations of the Seller to Consummate the Transactions.    The
obligation of Seller to consummate the transactions contemplated by this
Agreement shall be subject to the satisfaction of the following conditions,
unless waived in writing prior to the Closing by Seller:

 

(a)                                  Buyer
shall have performed, in all material respects, all obligations and complied
with all covenants required by this Agreement to be performed or complied with,
in all material respects, by it prior to the Closing.

 

(b)                                  Each
of the documents and other items to be delivered by the Buyer at the Closing
pursuant to Section 4.3 shall have been delivered.

 

(c)                                  All
consents, approvals, authorizations, orders and action of any governmental
entity required to permit the consummation of the transactions contemplated by
this Agreement shall have been obtained, made or waived and shall be in full
force and effect.

 

(d)                                  No
action shall have been taken, and no statute, rule, regulation, executive
order, judgment, decree, or injunction shall have been enacted, entered,
promulgated or enforced (and not repealed, superseded, lifted or otherwise made
inapplicable), by any court or governmental or regulatory agency of competent
jurisdiction which restrains, enjoins or otherwise prohibits the consummation
of the transactions contemplated by this Agreement (each party agreeing to use
its reasonable best efforts to avoid the effect of any such statute, rule,
regulation or order or to have any such order, judgment, decree or injunction
lifted).

 

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ARTICLE X

INDEMNIFICATION

 

10.1.                        Pre-Closing
Liabilities.    Subject to the terms and conditions of
this Article X, Seller hereby agrees to indemnify, defend and hold harmless
Buyer from and against all Claims asserted against Buyer by any third party
arising out of or resulting from the IT&E Business (other than the Assumed
Liabilities), but in each case solely to the extent such Claim is based on
facts or circumstances in existence prior to the Closing Date. Notwithstanding
the foregoing or anything to the contrary set forth herein, Buyer shall be
solely responsible for the performance and/or payment in full of any Assumed
Liability, including, without limitation, the Accrued Accounts Payable, and may
not seek indemnity hereunder with respect to any such Assumed Liability. In
addition, notwithstanding anything to the contrary herein, Seller shall be
responsible for the payment in full of any Excluded Liability and to the extent
a Claim is asserted against Buyer which is an Excluded Liability, then Seller
shall indemnify, defend and hold harmless Buyer from such Excluded Liability Claim
in accordance with this Article X but without reference to the cost and payment
sharing provisions of Section 10.3 or the limitations set forth in Section
10.4. As used in this Article X, the term “Claim” shall include (i) all
demands, claims, suits, actions, causes of action, proceedings and assessments
brought by any third party; and (ii) all costs and expenses (including, without
limitation, interest (including prejudgment interest in any litigated or
arbitrated matter), court costs and fees and expenses of attorneys and expert
witnesses) of investigating, defending or asserting any of the foregoing or of
enforcing this Agreement.

 

10.2.                        Indemnification
Procedure.

 

(a)                                  Notice
and Defense. With respect to any claim submitted or received after the
Closing Date, the Buyer will give the Seller written notice of any such Claim
with sufficient time to enable the Seller to effectively defend such Claim (a “Valid
Notice”), and the Seller will undertake and pay for the defense thereof through
representatives and counsel selected by the Seller. Seller shall have no
obligation to indemnify the Buyer unless and until a Valid Notice is provided. If
a notice is provided in a manner that materially prejudices either Buyer’s or
Seller’s rights with respect to a Claim, then such notice shall be deemed not
to be a Valid Notice, and the Seller shall have no obligation to indemnify the
Buyer with respect to such Claim.

 

(b)                                  Failure
to Defend. If the Seller, within a reasonable time after receipt of a Valid
Notice, fails to defend such Claim actively and in good faith, the Buyer will
(upon further notice to the Seller) have the right to undertake the defense of
such Claim, provided that Buyer will not settle, compromise or consent to the
entry of a judgment with respect to such Claim without the prior written
consent of the Seller (such consent not to be unreasonably withheld or
delayed).

 

10.3.                        Payment.    Subject
to the limitations set forth in this Article X, upon judgment, determination,
settlement or compromise of any third party Claim, the Buyer shall pay directly
to the third party the full amount so determined by judgment, determination,
settlement or compromise (unless in the case of a judgment an appeal is made
from the judgment), at which 

 

11

 

time the
Seller shall promptly reimburse the Buyer in an amount equal to: (i) one-half
of the amount actually paid by Buyer to such third party, less (ii) an amount
equal to one-half of the costs and expenses of Seller in connection with
defending such Claim (unless in the case of a judgment an appeal is made from
the judgment). If the Buyer or the Seller desires to appeal from an adverse
judgment, then the Buyer or the Seller, as the case may be, shall post and pay
the cost of the security or bond to stay execution of the judgment pending
appeal. Upon completion of the initial defense of the applicable Claim, whether
successful or not, Buyer shall promptly reimburse Seller for one-half of the
costs and expenses incurred by Seller in defending such Claim. In the
alternative, Seller, in its sole option, may offset any such amount against any
amount Seller may owe Buyer pursuant to the first sentence of this Section
10.3.

 

10.4.                        Limitations
on Indemnification.

 

(a)                                  Time
Limitation.   No claim or action shall be brought by Buyer
against Seller under this Article X after the lapse of twenty-four (24) months
following the Closing Date.

 

(b)                                  Amount
Limitation.   The Seller shall not have any obligation to
indemnify the Buyer under this Article X to the extent the aggregate amount of
the third party Claims exceed an amount equal to an aggregate of nine hundred
and ten thousand dollars ($910,000).

 

10.5.                        Reduction
in Principal of Term Note or Interest Only Note.   If the
Term Note or Interest Only Note is still outstanding on the date the Seller is
required to make any payment to Buyer under this Article X, then, in lieu of
any such payment required under this Article X, Seller may reduce the amount of
the outstanding principal balance under the Term Note or Interest Only Note, as
the case may be and at Seller’s option (which note shall then be appropriately
reamortized over the remaining life of the Term Note or Interest Only Note, as
the case may be), by the amount of any such required payment, which shall be
deemed satisfaction in full of Seller’s obligations under this Article X with
respect to such Claim.

 

ARTICLE XI

 

COVENANTS

 

11.1.                        Secured
Debt and Letter of Credit. Buyer has obtained third party financing to fund
a portion of the Purchase Price in the form of a secured line of credit in the
amount of Seven Hundred Fifty Dollars ($750,000) from New Century Bank (the “Secured
Debt”). Seller agrees to subordinate its rights as to repayment to such Secured
Debt under the Term Note or Interest Only Note. Buyer hereby covenants and
agrees that it will not violate, breach or default under the terms of any
document evidencing such Secured Debt. Buyer hereby acknowledges and agrees
that any violation, breach or default under any document evidencing such
Secured Debt shall be deemed a breach of this Agreement and shall automatically
and immediately accelerate all payments due hereunder and under the Term Note
and under the Interest Only Note. In addition, in the event the Secured Debt is
increased by any amount, the Buyer shall cause New Century Bank to issue a
stand-by letter of credit with respect to all such increased amounts up to Two
Hundred Fifty Thousand Dollars ($250,000) in favor of Seller for 

 

12

 

the purpose of
securing Buyer’s payment obligations under Section 3.2(c) hereof. Further,
Buyer hereby covenants and agrees that for so long as the Term Note or the
Interest Only Note are outstanding or there remains a payment obligation under
this Agreement, unless concurrent with the closing of the applicable
transaction all outstanding payment obligations under each of the Term Note,
the Interest Only Note and this Agreement are satisfied in full, it will not:

 

(a)                                  amend any of its charter documents or bylaws
in a manner that may materially and adversely affect the Seller;

 

(b)                                  issue any shares of capital stock of the
Buyer from any existing class or series of capital stock or otherwise
authorize, create or issue any new class or series of securities; other than
issuances of shares of existing capital stock to employees, officers, directors
or consultants of the Buyer pursuant to equity incentive plans or other
arrangements approved by Buyer’s board of directors in connection with services
provided by such individuals; provided, however that all such issuances
together do not constitute a change of control of Buyer.

 

(c)                                  agree to or effect any sale, liquidation,
winding up, or merger of the Buyer or any other transaction or series of
transactions in which the Buyer’s assets are transferred;

 

(d)                                  effect any material acquisitions of, or
investments (whether by merger, consolidation or otherwise) in, any other
person or entity or make any material capital expenditures;

 

(e)                                  declare or pay any dividend on or make a
distribution with respect to any capital stock of the Buyer, or repurchase or
redeem any capital stock of the Buyer;

 

(f)                                    enter into any debt or lease transaction or
otherwise incur any indebtedness other than trade payables incurred in the
ordinary course of business;

 

(g)                                 make any loans or loan guarantees;

 

(h)                                 pledge or grant a security interest in any
assets of the Buyer (other than with respect to the Secured Debt);

 

(i)                                    establish or invest in any subsidiary or
joint venture;

 

(j)                                    engage in any action which would materially
and adversely affect the rights of Seller under any Transaction Document;

 

(k)                                effect any transaction with any affiliate,
officer, director, employee or shareholders or change any senior officer of the
Buyer;

 

(l)                                    effect any material change to the Buyer’s
line of business in effect as of the date hereof; or

 

(m)                              increase
the total cash compensation of any Buyer officer, director, employee or
consultant calculated as of the date immediately preceding the date hereof or
pay any cash bonus or other cash remuneration to any of the foregoing;
provided, however, that the Buyer shall be permitted to make customary cost of
living increases to such cash
compensation on an annual basis; provided, however, that the Buyer may make
distributions to its owners solely in an amount necessary to cover payments
owed by such owner to taxing authorities based on the income of the Buyer.

 

13

 

11.2.                        Right
of First Refusal.   For so long as the Term Note, the Interest
Only Note or any payment obligation under this Agreement remain outstanding,
Seller shall have a right of first refusal with respect to (i) any sale or
other transfer of the Buyer as a whole, or (ii) any sale or other transfer of
all or substantially all of the assets comprising the IT&E Business by the
Buyer, or (iii) the sale or transfer of any equity security by any Shareholder,
in each case to any third party. If any Shareholder proposes to sell or
otherwise transfer all or any portion of any equity securities then held by
such Shareholder (whether by merger, reorganization, sale of stock or other
similar transaction or series of transactions) or the Buyer proposes to sell
all or substantially all of its assets in one transaction or a series of
transactions, the applicable party shall give the Seller notice of its
intention, describing the terms of such sale or transfer, the price and the
terms and conditions upon which such transaction would be effected. Seller
shall have forty-five (45)  days after the
receipt of such notice to agree to purchase all of such equity securities to be
sold or such assets to be sold as described in the notice and for the price and
upon the terms and conditions specified in the notice by giving written notice
to the Buyer or the relevant Shareholder(s). If the Seller fails to exercise
its rights of first refusal within such forty-five (45) day period, the Buyer
or the applicable Shareholder(s) shall have ninety (90) days thereafter to sell
such equity securities or assets, as the case may be, at a price and upon
general terms and conditions not materially more favorable to the purchasers
thereof than specified in the original notice to Seller. If the equity
securities or assets have not been sold within such ninety (90) day period, the
Buyer or the relevant Shareholder(s), as the case may be, shall not thereafter
sell or otherwise transfer any equity securities of Buyer or any assets of
Buyer, without first offering the same to the Seller in the manner provided above.

 

11.3.                        Board
Seat or Observer Rights.

 

(a)                                  For  so long as the Term Note, the Interest Only Note or any
payment obligation under this Agreement remain outstanding, Seller, at its sole
option, shall be entitled to appoint one director to the Buyer’s board of
directors who shall be an employee of Seller mutually agreed to by Buyer and
Seller. Buyer hereby covenants and agrees to undertake those acts necessary to
enable such appointment. If the Seller elects not to appoint a director to the
Buyer’s board of directors, Buyer shall allow one representative designated by
the seller to attend all meetings of the Buyer’s board of directors in a
nonvoting capacity, and in connection therewith, the Buyer shall give such
representative copies of all notices, minutes, consents and other materials,
financial or otherwise, which the Buyer provides to its board of directors;
provided, however, that the Buyer reserves the right to exclude such
representative from access to any material or meeting or portion thereof if the
Buyer believes upon advice of counsel that such exclusion is reasonably
necessary to preserve the attorney-client privilege.

 

14

 

(b)                                  To
the extent Seller elects to appoint one director to the Buyer’s board of
directors the following voting provisions shall apply:

 

(i)                                     All
shares of outstanding voting capital stock of the Buyer now held or
subsequently acquired by each of the Shareholders shall be subject to the
provisions of this Section 11.3 (including shares of capital stock
issued in respect of shares now held or subsequently acquired as a result of
conversion, stock splits, stock dividends or otherwise). For so long as the
Term Note, the Interest Only Note or any payment obligation under this
Agreement remain outstanding, each Shareholder, in his/her/its capacity as a
shareholder of the Buyer, agrees to vote all shares of capital stock of Buyer
now or hereafter directly or indirectly owned (of record or beneficially) by
such Shareholder to maintain the authorized number of members of the Board of
Directors of the Buyer at no more than five (5) directors.

 

(ii)                                  For
so long as the Term Note, the Interest Only Note or any payment obligation
under this Agreement remain outstanding, each Shareholder agrees to vote (in
accordance with the voting provisions of the Buyer’s charter documents) all
shares of capital stock of Buyer now or hereafter directly or indirectly owned
(of record or beneficially) by such Shareholder, in such manner as may be
necessary to elect (and maintain in office):

 

(1)                                  one
(1) member of the Buyer’s board of directors designated by the Seller, in
Seller’s sole discretion (the “Averion Director”); and

 

(2)                                  four
(4) members of the Buyer’s board of directors designated by a majority in
interest of the Buyer’s outstanding voting stock (the “Shareholder Directors”).

 

(iii)                               In the event of the
resignation, death, removal or disqualification of:

 

(1)                                  the
Averion Director, Seller shall promptly nominate a new director (or promptly
inform Buyer that it elects not to so appoint a new director at that time),
and, after written notice of the nomination has been given by such parties to
the other parties, each Shareholder shall vote its shares of capital stock of
Buyer to elect such nominee to the board of directors; or

 

(2)                                  a
Shareholder Director, a majority in interest of Buyer’s voting stock shall
promptly nominate a new director, and, after written notice of the nomination
has been given by such parties to the other parties, each Stockholder shall
vote its shares of capital stock of Buyer to elect such nominee to the board of
directors.

 

11.4.                        Effect
on Transferees.  Each and every transferee or assignee of any shares
of capital stock of the Buyer from any Shareholder shall be bound by and
subject to the terms and conditions of this Agreement that are applicable to
the transferor or assignor of such shares, including, without limitation, Sections
11.2 and 11.3 hereof, and Buyer shall require, as a condition
precedent to the transfer of any shares of capital stock of Buyer subject to
this Agreement, that the transferee agrees in writing to be bound by, and
subject to, all the terms and conditions of this Agreement.

 

15

 

11.5.                        Legend.
The Shareholders agree that all Buyer share certificates now or hereafter held
by them that represent shares of capital stock of Buyer subject to this
Agreement will be stamped or otherwise imprinted with a legend to read as
follows:

 

“THE
SHARES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO AGREEMENTS AND RESTRICTIONS
WITH REGARD TO THE VOTING OF SUCH SHARES AND THEIR TRANSFER, AS PROVIDED IN THE
PROVISIONS OF AN ASSET PURCHASE AGREEMENT DATED AS OF EVEN DATE HEREWITH, A
COPY OF WHICH IS ON FILE IN THE OFFICE OF THE SECRETARY OF THE CORPORATION.”

 

11.6.                        Basic
Financial Information and Reporting.

 

(a)                                  The Buyer will keep accurate books of record
and account for itself pertaining to the Buyer’s business and financial
condition and such other matters as the Seller may from time to time request in
which true and complete entries will be made in accordance with generally
accepted accounting principles (“GAAP”) consistently applied and, upon request
of and reasonable notice by the Seller, will permit any officer, employee,
attorney or accountant for the Seller to audit, review, make extracts from or
copy any and all corporate and financial books and records of the Buyer at all
reasonable times during ordinary business hours on reasonable advance notice,
to discuss the affairs of the Buyer with any of its directors, officers,
employees or agents and to conduct a review of the Buyer’s books and records.

 

(b)                                  For so long as the Term Note, the Interest
Only Note or any payment obligation under this Agreement remain outstanding,
Buyer will provide to Seller weekly reports containing a current aging of all
of Buyer’s accounts receivable, accounts payable and a complete and accurate
representation as to back log as of the applicable date and such other
information as the Seller may request reasonably from time to time.

 

(c)                                  For so long as the Term Note, the Interest
Only Note or any payment obligation under this Agreement remain outstanding,
Buyer will furnish Seller: (i) at least thirty (30) days prior to the
beginning of each fiscal year an annual budget and operating plans for such
fiscal year (and as soon as available, any subsequent written revisions
thereto); and (ii) as soon as practicable after the end of each month, and
in any event within twenty (20) days thereafter, a balance sheet of the Buyer
as of the end of each such month, and a statement of income and a statement of
cash flows of the Buyer for such month and for the current fiscal year to date,
including a comparison to plan figures for such period, prepared in accordance
with GAAP consistently applied, with the exception that no notes need be
attached to such statements and year-end audit adjustments may not have been
made.

 

(d)                                  For so long as the Term Note, the Interest
Only Note or any payment obligation under this Agreement remain outstanding,
Buyer will provide to Seller copies of all notices, consents, materials,
financial or otherwise, and any other information provided to any holder of
Secured Debt at the same time any such material or information is provided to
any such holder of Secured Debt.

 

16

 

11.7.        Covenant Against
Competition. Seller covenants and agrees that, for a period of one (1) year
after the Closing Date, Seller will refrain from engaging in a business that is
competitive with the IT&E Business within the territorial limits of the
United States other than certain arrangements, understandings and agreements
with certain of its existing customers and clients and services provided to
customers in the ordinary course of the Seller’s contract research organization
business. Seller and its officers, directors and representatives will also
refrain for a period of one (1) year after the Closing Date from actively
soliciting or encouraging any employee of the Buyer to terminate such
employment with Buyer for the purpose of entering into an employment
arrangement with the Seller, provided that nothing herein shall prevent Seller
from offering employment to any person who is responding to a general
advertisement related to employment that is widely circulated.

 

ARTICLE XII

TERMINATION

 

12.1.        Right of Termination Without Breach. This
Agreement may be terminated without further liability of any party at any time
prior to the Closing:

 

(a)           by
mutual written agreement of Buyer and each Seller; or

 

(b)           by
either Buyer or each Seller if the Closing shall not have occurred on or before
October 15, 2007, provided the terminating party has not, through breach of a
representation, warranty or covenant, prevented the Closing from occurring on
or before such date.

 

12.2.        Termination for Breach.

 

(a)           Termination
by Buyer. If (i) there has been a material violation or breach by Seller of
any of the agreements, representations or warranties contained in this
Agreement which has not been waived in writing by Buyer, or if such breach has
not been cured by Seller, within ten (10) business days following receipt of
the notice of such breach or on the date immediately preceding the scheduled
Closing Date, whichever is earlier; or (ii) there has been a failure of
satisfaction of a condition to the obligations of Buyer which has not been so
waived; or (iii) Seller shall have attempted to terminate this Agreement under
this Article XII or otherwise without grounds to do so, then Buyer may, by
written notice to Seller at any time prior to the Closing that such violation,
breach, failure or wrongful termination attempt is continuing, terminate this
Agreement with the effect set forth in subsection (c) hereof.

 

(b)           Termination
by Seller. If (i) there has been a material violation or breach by Buyer of
any of the agreements, representations or warranties contained in this
Agreement which has not been waived in writing by Seller, or if such breach has
not been cured by the Buyer within ten (10) business days following receipt of
the notice of such breach or on the date immediately preceding the scheduled
Closing Date, whichever is earlier; or (ii) there has been a failure of
satisfaction of a condition to the obligations of Seller which has not been so
waived; or (iii) Buyer shall have attempted to terminate this Agreement under
this Article XII or otherwise without grounds to do so, then Seller may, by
written notice to Buyer at any time prior to the Closing that such violation,
breach, failure or wrongful termination attempt is continuing, terminate this
Agreement with the effect set forth in subsection (c) hereof.

 

17

 

(c)           Effect
of Termination. Termination of this Agreement pursuant to this Article XII
shall not in any way terminate, limit or restrict the rights and remedies of any
party hereto against any other party which has violated, breached or failed to
satisfy any of the representations, warranties, covenants, agreements,
conditions or other provisions of this Agreement prior to termination hereof.

 

ARTICLE XIII

MISCELLANEOUS

 

13.1         Certain
Definitions; Rules of Construction. Definitions shall apply equally to both
the singular and plural forms of the terms defined. Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and
neuter forms. All references herein to Articles, Sections, Exhibits and
Schedules shall be deemed to be references to Articles and Sections of, and
Exhibits and Schedules to, this Agreement unless the context shall otherwise
require. All Exhibits and Schedules attached hereto shall be deemed
incorporated herein as if set forth in full herein and, unless otherwise
defined therein, all terms used in any Exhibit or Schedule shall have the
meaning ascribed to such term in this Agreement. The words “include,” “includes”
and “including” shall be deemed to be followed by the phrase “without
limitation.”  The words “hereof,” “herein”
and “hereunder” and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and not to any particular provision of this
Agreement. Unless otherwise expressly provided herein, any agreement, plan,
instrument or statute defined or referred to herein or in any agreement or
instrument that is referred to herein means such agreement, plan, instrument or
statute as from time to time amended, modified or supplemented, including (in
the case of agreements or instruments) by waiver or consent and (in the case of
statutes) by succession of comparable successor statutes and references to all
attachments thereto and instruments incorporated therein. For the purposes of
this Agreement, the following terms shall have the following meanings:

 

“Affiliate” as used in this Agreement, shall
mean and include all directors and officers of any Person; the spouse of any
such Person; any Person who would be the heir or descendant of any such person
if he or she were not living; and any entity in which any of the foregoing has
a direct or indirect interest (except through ownership of less than five
percent (5%) of the outstanding shares of any entity whose securities are
listed on a national securities exchange or traded in the national over-the-counter
market).

 

“Encumbrance” means any lien, claim, charge,
security interest, mortgage, pledge, easement, conditional sale or other title
retention agreement, defect in title, covenant or other restrictions of any
kind.

 

“Liabilities” means any direct or indirect
indebtedness, liability, claim, loss, damage, deficiency or obligation or
responsibility, known or unknown, fixed or unfixed, choate or inchoate,
liquidated or unliquidated, secured or unsecured, accrued, absolute, contingent
or otherwise, whether or not of a kind required by GAAP to be set forth on a
financial statement or in the notes thereto.

 

18

 

“Material Adverse Effect,” as used in this
Agreement, shall mean any change, effect, event or occurrence that is
materially adverse to the condition (financial or otherwise), assets,
properties, business or operations of such party and its subsidiaries, taken as
a whole.

 

“Person” means any individual, corporation,
partnership, limited liability company or partnership, joint venture,
association, joint-stock company, trust, unincorporated organization or
government (including any agency or political subdivision thereof).

 

“Transaction Documents” means this Agreement,
the Term Note, the Interest Only Note and any other certificate, document or
agreement required pursuant to any of the foregoing.

 

13.2.        Further Assurances. The parties hereto
agree to use all reasonable good faith efforts to take all actions and to do
all things necessary, proper or advisable to fulfill the conditions to Closing
set forth in this Agreement and consummate the transactions contemplated hereby.
In addition, each party hereto agrees to execute reasonable  supplemental or additional documents, to
execute reasonable amendments to documents delivered at Closing, to re-execute
documents delivered at Closing and to take any other reasonable actions as are
necessary or reasonably appropriate to fully carry out and consummate the
transactions contemplated herein or to correct errors or omissions, if any, in
any document delivered at Closing. In addition, Buyer hereby agrees to provide
Seller with access to and/or copies of Buyer’s books and records upon
reasonable advance notice in order to enable Seller to fulfill its obligations
under this Agreement or for any other legitimate business purpose of Seller.

 

13.3.        Public Announcement. Neither the Seller
nor Buyer or any of their Affiliates shall, without the approval of the other,
which approval shall not be unreasonably withheld or delayed, make any press
release or other public announcement concerning the transactions contemplated
by this Agreement, except as and to the extent that any such party shall be so
obligated by law or by the rules, regulations or policies of the Securities
Exchange Commission.

 

13.4.        Assignment; Parties in
Interest.

 

(a)           Assignment.
Except as expressly provided herein or in a Transaction Document, the rights
and obligations of a party hereunder may not be assigned, transferred or
encumbered without the prior written consent of the other parties.

 

(b)           Parties
in Interest. This Agreement shall be binding upon, inure to the benefit of,
and be enforceable by the respective successors and permitted assigns of the
parties hereto. Nothing contained herein shall be deemed to confer upon any
other Person any right or remedy under or by reason of this Agreement.

 

13.5         Law
Governing Agreement. This Agreement shall be construed and interpreted
according to the internal laws of the State of Delaware, without regard to
principles of conflict of laws.

 

19

 

13.6         Amendment
and Modification. Buyer and Seller may amend, modify and supplement this
Agreement in such manner as may be agreed upon by them in writing.

 

13.7         Notice.
All notices, requests, demands and other communications hereunder shall be
given in writing and shall be:  (i)
personally delivered; (ii) sent by telecopier, facsimile transmission or other
electronic means of transmitting written documents; or (iii) sent to the
parties at their respective addresses indicated herein by registered or
certified U.S. mail, return receipt requested and postage prepaid, or by private
overnight mail courier service. The respective addresses to be used for all
such notices, demands or requests are as follows:

 

(a)           If
to Buyer, to:

 

IT&E, Inc.

1610 Medical Drive

Pottstown, PA  19484

Attention:                              

Telephone: (     )                    

 

With a required copy to:

 

Gary A. Hurwitz

March Hurwitz &
DeMarco

17 West Third Street

Media, Pennsylvania 19063

Telephone: (610) 565-3950

 

or to such other person or address as Buyer shall
furnish to Seller in writing.

 

(b)           If
to Seller, to:

 

Averion International
Corp.

225 Turnpike Road

Southborough, MA 01772

Attention: Chris
Codeanne, CFO

Telephone: (508) 597-5887

 

With a required copy to:

 

Foley & Lardner LLP

402 W. Broadway

21st Floor

San Diego, CA 92101

Attention: Adam Lenain,
Esq.

Facsimile: (619) 234-3510

 

or to such other person or address as Seller shall
furnish to Buyer in writing.

 

20

 

If personally delivered, such communication shall be
deemed delivered upon actual receipt; if electronically transmitted pursuant to
this paragraph, such communication shall be deemed delivered the next IT&E
Business day after transmission (and sender shall bear the burden of proof of
delivery); if sent by overnight courier pursuant to this paragraph, such
communication shall be deemed delivered upon receipt; and if sent by U.S. mail
pursuant to this paragraph, such communication shall be deemed delivered as of
the date of delivery indicated on the receipt issued by the relevant postal
service, or, if the addressee fails or refuses to accept delivery, as of the
date of such failure or refusal. Any party to this Agreement may change its
address for the purposes of this Agreement by giving notice thereof in
accordance with this Section.

 

13.8         Expenses.
Regardless whether or not the transactions contemplated hereby are consummated,
each of the parties hereto shall bear their own respective expenses and the
expenses of its counsel and other agents in connection with the transactions
contemplated hereby.

 

13.9         Attorneys’
Fees. The parties agree that the prevailing party in any action brought
with respect to or to enforce any right or remedy under this Agreement shall be
entitled to recover from the other party or parties all reasonable costs and
expenses of any nature whatsoever incurred by the prevailing party in
connection with such action, including without limitation attorneys’ fees,
expenses and prejudgment interest.

 

13.10       Entire Agreement; Enforceability. This
Agreement, including all the Exhibits and Schedules, and the Transaction
Documents:  (i) constitute the entire
agreement among the parties with respect to the transactions contemplated
herein and supersedes all prior agreements and understandings, both written and
oral, among the parties, with respect to the subject matter hereof and thereof,
including, without limitation, that certain letter of intent dated June 18,
2007, by and among the parties, and (ii) shall be binding upon, and are solely
for the benefit of each party hereto and nothing in this Agreement is intended
to confer upon any other Person any rights or remedy of any nature whatsoever
hereunder or by reason of this Agreement or any of the Transaction Documents.

 

13.11       Severability. Any term or provision of
this Agreement which is invalid, illegal or unenforceable in any jurisdiction
shall, as to that jurisdiction, be ineffective to the extent of such
invalidity, illegality or unenforceability without rendering invalid, illegal
or unenforceable the remaining terms and provisions of this Agreement or
affecting the validity or enforceability of any of the terms or provisions of
this Agreement in any other jurisdiction. If any provision of this Agreement is
so broad as to be unenforceable, the provision shall be interpreted to be only
so broad as is enforceable.

 

13.12       Counterparts. This Agreement may be
executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument. This Agreement shall become effective when one or more counterparts
have been signed by each of the parties and delivered (by facsimile or
otherwise) to the other parties, it being understood that all parties need not
sign the same counterpart. Any counterpart or other signature delivered by
facsimile shall be deemed for all purposes as constituting good and valid
execution and delivery of this Agreement by a party.

 

21

 

13.13       Headings. The headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement. Section, subsection, preamble,
recital and party references are to this Agreement unless otherwise stated. No
party or its counsel shall be deemed the drafter of this Agreement for purposes
of construing its provisions, and all language in all parts of this Agreement
shall be construed in accordance with its fair meaning, and not strictly for or
against any party. The parties waive any rule of law or judicial precedent that
provides that contractual ambiguities are to be construed against the party who
shall have drafted the contractual provision in question. The word “including”
shall mean “including without limitation.”

 

[Signature
Page to Asset Purchase Agreement Follows]

 

22

 

IN WITNESS WHEREOF, the parties
have executed this Agreement as of the date and year first above written.

 

	
  “Buyer”

  	
  IT&E, Inc.,

  a Pennsylvania corporation

  
	
   

  	
   

  

 

	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Harvey F. Greenawalt,
  Jr.

  
	
   

  	
  Name:

  	
  Harvey F. Greenawalt,
  Jr.

  
	
   

  	
  Title:

  	
   President

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip D. Clark

  
	
   

  	
  Name:

  	
  Philip D. Clark

  
	
   

  	
  Title:

  	
   V.P., Business Development

  
	
   

  	
   

  
	
   

  	
   

  
	
  “Seller”

  	
  Averion International Corp.,

  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip T. Lavin, Ph.D.

  
	
   

  	
  Name:

  	
  Philip T. Lavin, Ph.D. 

  
	
   

  	
  Title:

  	
    Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IT&E International, Inc.,
  

  a California corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip T. Lavin,
  Ph.D.

  
	
   

  	
  Name:

  	
  Philip T. Lavin, Ph.D. 

  
	
   

  	
  Title:

  	
    President

  
	
   

  	
   

  
	
   

  	
   

  
	
  “Shareholders”

  	
  /s/ Phil Clarke aka
  Philip D. Clark

  
	
   

  	
  Phil Clarke

  
	
   

  	
   

  
	
   

  	
  /s/ Harvey F.
  Greenawalt, Jr.

  
	
   

  	
  Harvey F. Greenawalt

  
					

 

 

[Signature
Page to Asset Purchase Agreement Follows]

 

 

EXHIBIT A

FORM OF BILL OF SALE

 

1

 

BILL OF SALE

 

This Bill of Sale dated October 3, 2007, is being
entered into pursuant to and in accordance with that certain Asset Purchase
Agreement entered into by and among Averion International Corp., a Delaware
corporation, and IT&E International, Inc., a California Corporation
(together, the “Seller”), on the one hand, and IT&E, Inc., a Pennsylvania
corporation (the “Buyer”) and the Shareholders, on the other hand, dated as of
October 3, 2007 (the “Purchase Agreement”). Capitalized terms not otherwise
defined herein shall have the meanings ascribed to such terms in the Purchase
Agreement.

 

KNOW ALL MEN BY THESE PRESENTS, that Seller, for good
and valuable consideration, the receipt of which is hereby acknowledged,
effective as of the date set forth below, hereby irrevocably sells, conveys,
transfers and assigns unto Buyer, its successors and assigns, all of the right,
title and interest of Seller in and to the Purchased Assets, free and clear of
all Encumbrances;

 

TO HAVE AND TO HOLD the same unto Buyer, its successors
or assigns, forever, and Seller does hereby covenant and agree that it will
from time to time, if requested by Buyer or its successors and assigns,
execute, acknowledge and deliver, or will cause to be done, executed and
delivered to Buyer or its successors or assigns, such and all further acts,
transfers, assignments, deeds, powers and assurances of title, and additional
papers and instruments, and to cause to be done all acts or things as often as
may be proper or necessary for better assuring, conveying, transferring and
assigning all of the Purchased Assets hereby sold, conveyed, transferred or
assigned, and effectively to carry out the intent hereof, and to vest in the
entire right, title and interest of Seller in and to all of the said Purchased Assets.

 

 

[Signature
Page Follows]

 

2

 

IN WITNESS WHEREOF, the Seller
has caused this instrument to be executed by its duly authorized officers as of
the date and year first above written.

 

 

	
  “Seller”

  	
  Averion International Corp.,

  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Philip T. Lavin,
  Ph.D.

  
	
   

  	
  By:

  	
     Philip
  T. Lavin, Ph.D. 

  
	
   

  	
  Title:

  	
   Chief Executive
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IT&E International, Inc.,

  a California corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Philip T. Lavin,
  Ph.D.

  
	
   

  	
  By:

  	
     Philip.
  T. Lavin, Ph.D. 

  
	
   

  	
  Title:

  	
   President

  
	
   

  	
   

  
				

 

 

[Signature Page to Bill of Sale]

 

3

 

EXHIBIT B

FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

 

1

 

THIS
ASSIGNMENT AND ASSUMPTION AGREEMENT (the “Agreement”) is made
as of October 3, 2007, by and among Averion International Corp., a Delaware
corporation, and IT&E International, Inc., a Delaware limited liability
company (together, the “Assignor”), on the one hand, and IT&E, Inc., a
Pennsylvania corporation, on the other hand (the “Assignee”). Unless otherwise
indicated, capitalized terms used herein but not otherwise defined herein shall
have the meaning ascribed to such terms in that certain Asset Purchase
Agreement dated on even date herewith, by and among the Assignor, on the one
hand, and Assignee and Harvey F. Greenawalt and Phil Clark, on the other hand
(the “Asset Purchase Agreement”).

 

WHEREAS,
pursuant to the Asset Purchase Agreement, the Assignor has agreed to assign and
Assignee has agreed to assume all rights in, to and under all contracts to
which the Assignor is a party and that relate solely to the IT&E Business,
which shall include the Real Property Leases and the Personal Property Leases,
all of which are identified in the Asset Purchase Agreement as the Assumed
Contracts, other than those Excluded Contracts set forth on Schedule 2.2(a) of
the Asset Purchase Agreement.

 

NOW,
THEREFORE, for and in consideration of the foregoing
premises, and the mutual covenants set forth below and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Assignor and Assignee agree as follows:

 

1.             The
Assignor hereby bargains and irrevocably conveys, transfers, assigns, delivers
and sets over to Assignee, the Assumed Contracts, including, without
limitation, the Real Property Leases and the Personal Property Leases, and
Assignee purchases and assumes all of the Assignor’s rights, title and
interests in and to the Assumed Contracts, and assumes the obligations under
the Assumed Contracts.

 

2.             To
the extent that any Assumed Contract for which assignment to Assignee is
provided herein is not assignable without the consent of another party, this
Agreement shall not constitute an assignment or an attempted assignment thereof
if such assignment or attempted assignment would constitute a breach thereof. The
Assignor and Assignee agree to use their commercially reasonable efforts
(without any requirement on the part of Assignor or Assignee to pay any money
or agree to any change in the terms of any such Assumed Contract) to obtain the
consent of such other party to the assignment of any such Assumed Contract to
Assignee in all cases in which such consent is or may be required for such assignment.
Assignee shall be primarily responsible for obtaining each such required
consent, and Assignee shall report to Assignor on a weekly basis after the
Closing Date as to the status of obtaining each such consent if all such
consents are not obtained prior to the Closing.

 

3.             Assignee
hereby accepts the transfer and assignment of the Assumed Contracts, including,
without limitation, the Real Property Leases and Personal Property Leases, and
assumes all obligations in connection with such Assumed Contracts.

 

4.             This
Agreement may be executed in any number of counterparts and all so executed
shall constitute one Agreement, binding on the Assignors and Assignee, 

 

2

 

notwithstanding that the Assignors and Assignee are
not signatories to the original or the same counterpart. This Agreement may be
executed by facsimile.

 

5.             The
provisions of this Agreement are severable. If any article, section, paragraph,
provision or clause of this Agreement shall be unenforceable, illegal or
invalid, it shall not affect the enforceability, legality or validity of any
one or more of the other articles, sections, paragraphs or provisions of this
Agreement.

 

6.             This
Agreement is deemed to have been entered into and executed in the State of
Delaware, and all questions with respect to the construction of this Agreement
and the rights and liabilities of the parties shall be determined in accordance
with the provisions of the internal laws of the State of Delaware, without
regard to conflicts of laws principles.

 

 

[Remainder
of Page Intentionally Left Blank]

 

3

 

IN
WITNESS WHEREOF, the undersigned have caused their duly authorized officers to
execute and deliver this Agreement on the day and year first above written. 

 

	
  “Assignor”

  	
  Averion International Corp.,

  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip T. Lavin,
  Ph.D.

  
	
   

  	
  Name:

  	
  Philip T. Lavin, Ph.D. 

  
	
   

  	
  Title:

  	
    Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IT&E International, Inc.,

  a California corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip T. Lavin,
  Ph.D.

  
	
   

  	
  Name:

  	
  Philip T. Lavin, Ph.D. 

  
	
   

  	
  Title:

  	
    President

  
	
   

  	
   

  
	
   

  	
   

  
	
  “Assignee”

  	
  IT&E, Inc.,

  a Pennsylvania corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Harvey F.
  Greenawalt, Jr.

  
	
   

  	
  Name:

  	
  Harvey F. Greenawalt,
  Jr.

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip D. Clark

  
	
   

  	
  Name:

  	
  Philip D. Clark

  
	
   

  	
  Title:

  	
  V.P., Business
  Development

  
						

 

 

[Signature
Page to Assignment and Assumption Agreement]

 

4

 

EXHIBIT C

FORM OF TERM NOTE

 

 

[see
attached]

 

1

 

EXHIBIT D

FORM OF INTEREST ONLY NOTE

 

 

[see
attached]

 

1Exhibit 10.46

 

SECURITIES PURCHASE AGREEMENT

 

BY AND BETWEEN

 

AVERION INTERNATIONAL CORP.,

 

AND

 

CEREP S.A.

 

DATED AS OF OCTOBER 31, 2007

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page No.

  
	
   

  	
   

  	
   

  
	
  ARTICLE I THE PURCHASE AND SALE

  	
  1

  
	
  1.1.

  	
  The Purchase
  and Sale

  	
  1

  
	
  1.2.

  	
  Purchase Price
  Adjustment

  	
  2

  
	
  1.3.

  	
  Closing;
  Effective Time

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE II REPRESENTATIONS AND WARRANTIES
  OF THE SELLER

  	
  4

  
	
  2.1.

  	
  Organization
  and Qualification

  	
  4

  
	
  2.2.

  	
  Authority to
  Execute and Perform Agreement

  	
  5

  
	
  2.3.

  	
  Binding
  Effect

  	
  5

  
	
  2.4.

  	
  Capitalization

  	
  5

  
	
  2.5.

  	
  Financial
  Statements

  	
  6

  
	
  2.6.

  	
  Absence of
  Certain Developments

  	
  7

  
	
  2.7.

  	
  Accounts
  Receivable and Back Log

  	
  7

  
	
  2.8.

  	
  Legal
  Proceedings

  	
  8

  
	
  2.9.

  	
  Assets;
  Title to Properties; Absence of Liens

  	
  8

  
	
  2.10.

  	
  Compliance
  with Laws

  	
  9

  
	
  2.11.

  	
  Intellectual
  Property

  	
  10

  
	
  2.12.

  	
  Non-Contravention

  	
  10

  
	
  2.13.

  	
  Consents and
  Approvals

  	
  11

  
	
  2.14.

  	
  Employee
  Benefit Plans

  	
  11

  
	
  2.15.

  	
  Company
  Contracts

  	
  12

  
	
  2.16.

  	
  Taxes

  	
  13

  
	
  2.17.

  	
  Environmental
  Matters

  	
  14

  
	
  2.18.

  	
  Real
  Property

  	
  15

  
	
  2.19.

  	
  Broker’s
  Fees

  	
  15

  
	
  2.20.

  	
  Insurance

  	
  15

  
	
  2.21.

  	
  Labor and
  Employment Matters

  	
  16

  
	
  2.22.

  	
  Bank
  Accounts

  	
  16

  
	
  2.23.

  	
  Interested
  Party Transactions

  	
  17

  
	
  2.24.

  	
  No
  Alternative Transaction

  	
  17

  
	
  2.25.

  	
  Minute Book
  Contents

  	
  17

  
	
  2.26.

  	
  Full
  Disclosure

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE III REPRESENTATIONS AND WARRANTIES
  OF THE SELLER

  	
  18

  
	
  3.1.

  	
  Marketable
  Title

  	
  18

  
	
  3.2.

  	
  No Liens

  	
  18

  
	
  3.3.

  	
  No
  Preemptive Rights

  	
  18

  
	
  3.4.

  	
  Entire
  Ownership Interest

  	
  18

  
	
  3.5.

  	
  No Conflicts

  	
  18

  
	
  3.6.

  	
  No Other
  Agreements with Respect to the Shares

  	
  18

  
	
  3.7.

  	
  Foreign
  Seller

  	
  18

  

 

i

 

	
  ARTICLE IV REPRESENTATIONS AND WARRANTIES
  OF PURCHASER

  	
  18

  
	
  4.1.

  	
  Organization
  and Qualification; Subsidiaries

  	
  19

  
	
  4.2.

  	
  Authority to
  Execute and Perform Agreement

  	
  19

  
	
  4.3.

  	
  Binding
  Effect

  	
  19

  
	
  4.4.

  	
  Broker’s
  Fees

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE V ADDITIONAL AGREEMENTS OF THE
  PARTIES

  	
  19

  
	
  5.1.

  	
  Filing of
  Tax Returns; Payment of Taxes

  	
  19

  
	
  5.2.

  	
  Notification
  of Certain Matters

  	
  20

  
	
  5.3.

  	
  Exclusivity.
  Prior to the Closing Date:

  	
  20

  
	
  5.6.

  	
  Confidentiality

  	
  21

  
	
  5.7.

  	
  Reasonable
  Efforts

  	
  22

  
	
  5.8.

  	
  Further
  Assurances

  	
  22

  
	
  5.9.

  	
  Public
  Disclosure

  	
  22

  
	
  5.10.

  	
  Intercompany
  Contracts and Assets

  	
  22

  
	
  5.11.

  	
  Letter of
  Credit

  	
  23

  
	
  5.12.

  	
  Election of
  New Board and Discharge of Former Board

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI CONDITIONS TO CLOSING

  	
  23

  
	
  6.1.

  	
  Conditions
  to Each Party’s Obligations to Consummate the Transaction

  	
  23

  
	
  6.2.

  	
  Conditions
  to Obligations of Purchaser to Consummate the Transaction

  	
  23

  
	
  6.3.

  	
  Conditions
  to Obligations of the Seller to Consummate the Transaction

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII INDEMNIFICATION

  	
  25

  
	
  7.1.

  	
  Survival of
  Representations and Warranties

  	
  25

  
	
  7.2.

  	
  Indemnification

  	
  26

  
	
  7.3.

  	
  Claims for
  Indemnification

  	
  26

  
	
  7.4.

  	
  Challenge of
  Third Party Claims

  	
  27

  
	
  7.5.

  	
  No
  Contribution

  	
  27

  
	
  7.6.

  	
  Limitation
  on Indemnification; Right to Offset

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII TERMINATION

  	
  28

  
	
  8.1.

  	
  Termination

  	
  28

  
	
  8.2.

  	
  Effect of
  Termination

  	
  28

  
	
  8.3.

  	
  Expenses

  	
  29

  
	
  8.4.

  	
  No
  Rescission

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX MISCELLANEOUS

  	
  29

  
	
  9.1.

  	
  Certain
  Definitions; Rules of Construction

  	
  29

  
	
  9.2.

  	
  Arbitration

  	
  34

  
	
  9.3.

  	
  Waivers and
  Amendments

  	
  34

  
	
  9.4.

  	
  Governing
  Law

  	
  34

  
	
  9.5.

  	
  Notices

  	
  34

  
	
  9.6.

  	
  Section
  Headings

  	
  35

  
	
  9.7.

  	
  Counterparts

  	
  35

  
	
  9.8.

  	
  Assignments

  	
  35

  
	
  9.9.

  	
  Entire
  Agreement; Enforceability

  	
  35

  
	
  9.10.

  	
  Equitable
  Relief

  	
  36

  

 

ii

 

	
  9.11.

  	
  Severability

  	
  36

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A PROMISSORY NOTE

  	
  1

  
	
   

  	
   

  
	
  EXHIBIT B FORM NET WORKING CAPITAL
  CERTIFICATE

  	
   

  

 

iii

 

SECURITIES PURCHASE AGREEMENT

 

THIS
SECURITIES PURCHASE AGREEMENT (this “Agreement”), dated as of October 31, 2007,
is entered into by and between Averion International Corp., a Delaware
corporation (the “Purchaser”), on the one hand, and Cerep S.A., a French
corporation (the “Seller”) and on the other hand.

 

W I T N E S S E T H:

 

WHEREAS,
the capital stock of Hesperion Ltd., a Swiss corporation (the “Company”),
amounts to CHF 140,000.00 (divided into 140,000 registered shares with a par
value of CHF 1.00 each);

 

WHEREAS,
Seller owns all of the outstanding capital stock of the Company, and the
Company owns all of the outstanding capital stock of each of its Subsidiaries
(each a “Company Subsidiary”);

 

WHEREAS,
Purchaser desires to purchase and Seller desires to sell all of the outstanding
capital stock of the Company (collectively, the “Shares”), in accordance with
the terms of this Agreement (the “Transaction”);

 

WHEREAS,
the parties hereto desire to make certain representations, warranties,
covenants and agreements in connection with the Transaction and to prescribe
various conditions to the completion of the Transaction, all as more fully set
forth herein; and

 

WHEREAS,
capitalized terms not otherwise defined in the Section referencing such term
shall have the meanings ascribed to such terms in Section 9.1.

 

NOW
THEREFORE, in consideration of the mutual representations, warranties,
covenants and agreements contained herein, and intending to be legally bound
hereby, the parties hereto agree as follows:

 

ARTICLE I

 

THE PURCHASE AND SALE

 

1.1.                              The
Purchase and Sale.  Subject to the
terms and conditions hereof, including, without limitation, Section 1.2 and
Article VII below, at the Closing (as hereinafter defined) Seller hereby agrees
to sell and transfer to the Purchaser, and the Purchaser hereby agrees to
purchase and acquire from Seller, the Shares for an aggregate purchase price of
Twenty Five Million Euros (€25,000,000) (the “Purchase Price”) payable as
follows:

 

(a)                                  Twenty Million Euros (€20,000,000) to be paid
in cash at the Closing as follows: a net sum of €20,000,000 shall be received
by Seller on its bank account at BNP Paribas – Sud Atlantique in Poitiers IBAN
n° FR 76 3000 4003 5700 0205 8077 067; and

 

(b)                                 Five Million Euros (€5,000,000) to be paid
within thirty (30) days after the Closing Date as follows:  (i) Purchaser shall issue a promissory note
in the form 

 

 

attached hereto as Exhibit A
(the “Note”) to Seller in the principal amount of Five Million Euros
(€5,000,000) that is secured by an irrevocable and on demand stand-by letter of
credit (a “LOC”) issued by a reputable international bank selected by the
Purchaser and reasonably acceptable to the Seller; or (ii) Purchaser shall (x)
issue a Note to Seller in the principal amount of Two Million Five Hundred
Thousand Euros (€2,500,000), and (y) make a cash payment to Seller in the
amount of Two Million Five Hundred Thousand Euros (€2,500,000).

 

1.2.                              Purchase Price Adjustment.

 

(a)                                  The Purchase Price assumes that the Company
will transfer negative Net Working Capital at the Closing Date of no more than
One Million One Hundred Thousand Swiss Francs (CHF 1,100,000) (the “Estimated
Net Working Capital”). The Purchase Price shall be adjusted on a dollar-for-dollar
basis to reflect any increase or decrease in the Estimated Net Working Capital
above or below the Threshold Amount (as defined below) as of the Closing Date.
For purposes of this Agreement, the term “Net Working Capital” shall be
determined by subtracting current liabilities of the Company on a consolidated
basis, including trade accounts payable, prepayments (unearned or deferred
revenue and customer advances), accrued expenses, short-term liabilities and
charges, and other payables, from current assets of the Company on a
consolidated basis, including cash and cash equivalents, gross trade accounts
receivable net of provision for bad debts, work in progress (or unbilled
accounts receivable), and other receivables, all as defined by the
International Financial Reporting Standards (“IFRS”) adopted by the
International Accounting Standards Board (IASB).

 

(b)                                 Not later than ten (10) Business Days after
to the Closing Date, the Seller shall prepare and deliver to the Purchaser a
certificate (the “Seller Closing Statement”), in the form attached hereto as
Exhibit B-1, certifying the Seller’s good faith estimate of the Net Working
Capital as of the Closing Date (the “Closing Net Working Capital”), and the
resulting final Purchase Price determined with respect thereto (which shall be
calculated with reference to the adjustment provisions set forth in subsection
1.2(e) below), together with copies of such working papers (whether generated
by the Seller or its representatives or accountants) related to those calculations
as may be reasonably necessary to permit the Purchaser to review in detail the
manner in which such Seller Closing Statement was prepared and the final
Purchase Price was calculated.

 

(c)                                  Not later than fifteen (15) days following
the Closing Date, the Purchaser shall prepare and deliver to the Seller the
Purchaser’s closing statement (the “Purchaser Closing Statement”) certifying
the Purchaser’s good faith calculations of the Closing Net Working Capital and
the resulting final Purchase Price determined with respect thereto (which shall
be calculated with reference to the adjustment provisions set forth in
subsection 1.2(e) below), together with copies of such working papers (whether
generated by the Purchaser or its representatives or accountants) related to
those calculations as may be reasonably necessary to permit the Seller to
review in detail the manner in which the Purchaser Closing Statement was
prepared and the final Purchase Price was calculated.

 

(d)                                 The Seller shall then have ten (10) days
following its receipt of the Purchaser Closing Statement to notify the
Purchaser in writing of any objections as well as any proposed adjustments to
the Purchaser Closing Statement (the “Seller’s Adjustment Notice”) it may
request. The Seller shall be deemed to have agreed with all items and amounts
contained 

 

2

 

in the Purchaser Closing
Statement that are not expressly objected to in the Seller’s Adjustment Notice,
and if the Seller’s Adjustment Notice is not delivered to Purchaser within such
ten (10) day period, then the Seller shall be deemed to have agreed with the
entire Purchaser Closing Statement. The Purchaser will promptly modify the
Purchaser Closing Statement with such of the items contained within the
Seller’s Adjustment Notice as the Purchaser accepts (or as they otherwise are
determined to be correct by the procedures set forth in this Section). For
avoidance of doubt, the failure of the Seller to deliver the Seller’s
Adjustment Notice within such ten (10) day period shall constitute approval by
the Seller of the Purchaser Closing Statement and the amounts stated therein
shall be conclusive and binding upon all of the parties. If at any time the
Purchaser and Seller are in agreement as to the final Purchase Price and (i) a
Closing Surplus (as hereafter defined) exists, then the Purchaser shall pay to
the Seller the Closing Surplus as set forth in Section 1.2(e), or (ii) a
Closing Deficit (as hereafter defined) exists, then the Seller shall pay to the
Purchaser the Closing Deficit as set forth in Section 1.2(e). The Purchaser and
the Seller shall use their commercially reasonable efforts to resolve any
differences in writing with respect to the Seller’s Adjustments, if any. In
furtherance thereof, following delivery of any Seller’s Adjustment Notice, the
parties shall be permitted to review the working papers and books and records
relating to the preparation of the other party’s certificate as may be
reasonably necessary to permit it to review in detail the manner in which such
certificate was prepared. If the Purchaser and the Seller are unable to reach
agreement within ten (10) days following the delivery of the Seller’s
Adjustment Notice to the Purchaser, the Purchaser and the Seller shall promptly
submit the Seller Closing Statement, the Purchaser Closing Statement and the
Seller’s Adjustment Notice to a mutually agreed upon independent public
accounting firm (the “Accountants”) for final determination of such disputed
amounts. The Parties hereby agree that such Accountant shall be Mr Jürg Zürcher
Ernst & Young Audit  located at
Aeshengraben n°9 – 4002 Basel – Switzerland. In making such calculation, such
Accountants shall consider only those items or amounts as to which the parties
have disagreed; except to the extent consideration of other matters or
supporting records is necessary to determine the items or amounts as to which
the parties have disagreed. In each case, the Accountants shall calculate the
disputed items of Closing Net Working Capital, final Purchase Price, and
Closing Deficit or Closing Surplus in accordance with the terms of this
Agreement. The parties will cooperate with the Accountants during the term of
their engagement and provide them access to such supporting documents and books
and records as they may request. In resolving any matters in dispute, the
Accountants may not assign a value to any item in dispute greater than the
greatest value for such item assigned by the Purchaser or the Seller or less
than the smallest value for such item assigned by the Purchaser or the Seller.
The Accountants shall deliver to the Purchaser and Seller a report setting
forth such calculations, as promptly as practicable, but no later than thirty
(30) days after receipt by the Accountants of the disputed items. In the
absence of fraud or manifest error, the parties agree that the Accountants’
determination shall constitute the final determination of the Closing Net
Working Capital, final Purchase Price, and Closing Deficit or Closing Surplus,
and shall be binding upon all of the parties hereto. Judgment may be entered
upon the determination of such Accountants in any court having jurisdiction
over the party against which such determination is to be enforced. The fees and
expenses of the Accountants incurred as a result of this Section shall be
borne equally by the parties.

 

(e)                                  The Closing Net Working Capital amount
determined in accordance with Section 1.2(d) (the “Actual Working
Capital”) shall be used to determine adjustments to the Purchase Price in order
to arrive at the final Purchase Price. If the Actual 

 

3

 

Working Capital is greater
than the Estimated Net Working Capital by more than Two Hundred and Fifty
Thousand Swiss Francs (CHF 250,000) (the “Threshold Amount”), the Purchase
Price shall be increased by the amount by which the difference between the
Actual Working Capital and the Estimated Net Working Capital exceeds the
Threshold Amount (the “Closing Surplus”) and if the Actual Working Capital is
less than the Estimated Net Working Capital (i.e., a greater negative Net
Working Capital) by more than the Threshold Amount, the Purchase Price will be
decreased by the amount by which the difference between the Actual Working
Capital and the Estimated Net Working Capital exceeds the Threshold Amount (the
“Closing Deficit”). Any amount of Closing Surplus that is expressed in Swiss
Francs shall be converted into Euro (using the applicable exchange rate set
forth in the Wall Street Journal, Eastern Edition
on the day such payment is due) and paid in Euro. Any amount of Closing Deficit
that is expressed in Swiss Francs shall be converted into United States Dollars
(using the applicable exchange rate set forth in the Wall Street Journal, Eastern Edition on the day such payment
is due) and paid in United States Dollars. Payment of the Closing Deficit or
Closing Surplus shall be made by wire transfer of immediately available funds
not later than ten (10) days after the final determination of the Actual Working
Capital pursuant to this Section.

 

1.3.                              Closing; Effective Time.  Subject
to the satisfaction or waiver of all the conditions to Closing contained in
Article VI, the closing of the Transaction (the “Closing”), shall take place at
the offices of the Company on October 31, 2007 after the satisfaction or waiver
of the conditions to Closing contained in Article VI (other than those
conditions that by their nature are to be satisfied at the Closing, but subject
to the fulfillment or waiver of those conditions), unless another date or place
is agreed to in writing by the parties hereto. The date on which the Closing
actually occurs is hereinafter referred to as the “Closing Date.”

 

ARTICLE II

 

REPRESENTATIONS AND WARRANTIES OF THE SELLER

 

The
Seller (on behalf of itself and, with respect to those representations and
warranties relating to the Company, on behalf of the Company in its capacity as
sole shareholder thereof), hereby represents and warrants to Purchaser as of
the date hereof and as of the Closing Date (subject to such exceptions or
qualifications as are disclosed in writing in the disclosure schedule certified
by the Seller and supplied by the Seller to Purchaser dated as of the date
hereof, which schedules shall provide an exception to or otherwise qualify only
those representations and warranties contained in the section of this
Agreement, references disclosure schedule to sections of this Agreement or to
other documents are inserted for convenience only and the disclosures made in
the disclosure schedule, whether made generally or by reference to a particular
section, are disclosures made for the purpose of all the representations and
warranties which are qualified accordingly. The Purchaser shall not be entitled
to claim that any fact or matter has not been disclosed to it by reason of the
relevant disclosure not being specifically related to any particular section or
paragraph of this Agreement (the “Disclosure Schedule”) and as updated pursuant
to Section 6.2(f)) as follows:

 

2.1.                              Organization
and Qualification.  The Company and
each Company Subsidiary is a corporation duly incorporated or organized,
validly existing and in good standing under the laws of its jurisdiction of
incorporation or organization, has requisite power and 

 

4

 

authority and
governmental approvals to own, lease and operate its properties and to carry on
its business as currently conducted. The Company and each Company Subsidiary
has delivered to Purchaser true and correct copies of its Certificate of
Incorporation or other organizational and charter documents, as amended to
date. The Company and each Company Subsidiary is duly qualified or licensed to
do business and is in good standing in each jurisdiction in which the ownership
or leasing of its property or the conduct of its business requires such
qualification or licensing, except where the failure to be so qualified or
licensed or in good standing would not, individually or in the aggregate, have
a Company Material Adverse Effect. Except as set forth on Schedule 2.1, the
Company does not have any Company Subsidiaries.

 

2.2.                              Authority
to Execute and Perform Agreement.  The
Seller has the requisite power and all authority required to enter into,
execute and deliver this Agreement and the Transaction Documents to which it is
a party, to perform its obligations hereunder and thereunder and to consummate
the transactions contemplated hereby and thereby. The execution, delivery and
performance by each of the Seller of this Agreement and the consummation by the
Seller of the Transaction have been duly authorized by all necessary corporate
action.

 

2.3.                              Binding
Effect.  This Agreement and the
related Transaction Documents has been, or will be, validly executed and
delivered by the Seller and, assuming the due execution and delivery hereof by
Purchaser, constitutes, or will constitute, a legal, valid and binding
obligation of the Seller, as the case may be, enforceable against the Seller in
accordance with its terms, except to the extent such enforceability may be
limited by (i) bankruptcy, insolvency, reorganization, moratorium or other
similar laws of general applicability affecting or relating to enforcement of
creditors’ rights generally, (ii) general equitable principles (regardless of
whether such enforceability is considered in equity or at law), and (iii)
principles of public policy with respect to the enforcement of any
indemnification or contribution provisions contained in this Agreement and the
related Transaction Documents.

 

2.4.                              Capitalization.

 

(a)                                  As of the date hereof, 140,000 registered
shares of Company common stock are authorized, all of which are issued,
outstanding and owned by the Seller. All issued and outstanding common stock
has been duly authorized, validly issued and is fully paid and non-assessable,
and none of which is subject to preemptive rights or rights of first refusal
created by statute, the Company’s organizational or charter documents or any
agreement to which the Company or Seller is a party or by which either is
bound. The Company has no other authorized, issued or outstanding class of
capital stock. All outstanding securities issued by the Company and each
Company Subsidiary were issued in compliance with all applicable laws. Neither
the Company, nor the Seller, is bound by any contract or other agreement
pursuant to which it is or may become obligated to repurchase, redeem or
otherwise acquire any outstanding shares of Company capital stock. All Company
Subsidiaries are wholly-owned subsidiaries of the Company and no securities of
any Company Subsidiary are held by any Person other than the Company.

 

(b)                                 There are no existing options, rights,
subscriptions, warrants, unsatisfied preemptive rights, calls or commitments
relating to (i) the authorized and unissued capital stock of the Company or any
Company Subsidiary, or (ii) any securities or obligations 

 

5

 

convertible into or
exchangeable for, or giving any Person any right to subscribe for or acquire
from the Company or any Company Subsidiary, any shares of capital stock of the
Company or any Company Subsidiary, as the case may be, and no such convertible
or exchangeable securities or obligations are outstanding. There are no
contracts, commitments or agreements relating to voting, purchase or sale of
any Company capital stock between the Company and the Seller or any third
party. Neither the Company nor any Company Subsidiary has any stock option
plan, stock purchase plan or other equity incentive plan.

 

2.5.                              Financial Statements.

 

(a)                                  The Company has delivered to Purchaser its
audited consolidated balance sheet as of December 31, 2006 and December 31,
2005 and the audited consolidated statements of income and cash flow for the
twelve month period ended on December 31, 2006 and the twelve month period
ended on December 31, 2005 (the “Annual Financial Statements”). The Annual
Financial Statements and any notes related thereto comply as to form in all
material respects with applicable accounting requirements and have been
prepared in accordance with  IFRS applied
on a consistent basis throughout the periods involved, except as may be
indicated in the notes thereto and are complete and accurate and fairly present
in all material respects the financial position of the Company and its
consolidated Company Subsidiaries as at the dates thereof and the results of
its operations and cash flows for the periods then ended. The Company maintains
a standard system of accounting and internal controls established and administered
in accordance with good business practices sufficient to permit the preparation
of consolidated financial statements in accordance with IFRS. All of the
Company’s accounts receivable and accounts payable as of the date of the Annual
Financial Statements are reflected on the balance sheet included with the
Annual Financial Statements. All underlying ledgers, journals, and books of
account, are accurate, complete, true and correct in accordance with IFRS.

 

(b)                                 The Company has delivered to Purchaser its unaudited
consolidated balance sheet of the Company for the nine (9) month period ended
as of September 30, 2007, and the unaudited consolidated statements of income
and cash flow for the period ended as of September 30, 2007 (collectively, the
“Interim Financial Statements” and together with the Annual Financial
Statements, the “Financial Statements”). The Interim Financial Statements and
any notes related thereto comply as to form in all material respects with
applicable accounting requirements and have been prepared in accordance with
IFRS applied on a consistent basis throughout the periods involved, except as
may be indicated in the notes thereto, or except as otherwise permitted for
interim financial statements, and are complete and accurate and fairly present
in all material respects (subject, in the case of the unaudited interim
financial statements, to the absence of footnotes and to normal, recurring
year-end adjustments none of which are or will be material in amount,
individually or in the aggregate) the financial position of the Company and its
consolidated Company Subsidiaries as at the dates thereof and the results of
its operations and cash flows for the periods then ended. All of the Company’s
accounts receivable and accounts payable as of the date of the Interim
Financial Statements are reflected on the balance sheet included with the
Interim Financial Statements. All underlying ledgers and journals are accurate,
complete, true and correct in all material respects in accordance with IFRS.

 

(c)                                  Neither the Company nor any Company
Subsidiary has any direct or indirect indebtedness, liability, claim, loss,
damage, deficiency or obligation or 

 

6

 

responsibility, known, fixed
or unfixed, choate or inchoate, liquidated or unliquidated, secured or
unsecured, joint or severed, due or to become due, vested or unvested,
executory, determined, determinable, accrued, absolute, contingent or otherwise
(“Liabilities”), that were not fully and adequately reflected or reserved
against on the Financial Statements. Neither the Company nor any Company
Subsidiary has any Knowledge of any circumstance, condition, event or
arrangement that may hereafter give rise to any Liabilities which are
reasonably likely to have a Company Material Adverse Effect.

 

2.6.                              Absence
of Certain Developments.  Since the
date of the unaudited consolidated balance sheet of the Company, and the
unaudited consolidated statements of income and cash flow for the period ended
as of June 30, 2007,

 

(a)                                  The Company and each Company Subsidiary has
conducted its businesses in the ordinary course, consistent with past practice,
and there has been no: (i) change in the business, properties, assets,
prospects, operations or condition (financial or otherwise) of the Company or
any Company Subsidiary which has resulted or reasonably could be expected to
result in or which the Company or any Company Subsidiary has reason to believe
could reasonably be expected to result in a Company Material Adverse Effect, and
the Company has no Knowledge of any such change that is threatened, nor has
there been any damage, destruction or loss affecting the business, properties,
assets, prospects, operations or condition (financial or otherwise) of the
Company or any Company Subsidiary, which has resulted or reasonably could be
expected to result in or which the Company has reason to believe could
reasonably be expected to result in a Company Material Adverse Effect; (ii)
change in accounting methods or practices (including any change in depreciation
or amortization policies or rates) by the Company or any revaluation by the
Company of any Company asset; or (iii) increase in or modification or
acceleration of the compensation or benefits paid, payable or to become payable
by the Company or any Company Subsidiary to any of its officers, directors or
employees, pursuant to any Benefit Plan, stock option plan, stock option
agreement or any other agreement or arrangement.

 

(b)                                 Neither the Company nor any Company
Subsidiary has (i) declared, accrued, set aside or paid any dividend or made
any other distribution in respect of any shares of capital stock, (ii)
repurchased, redeemed or otherwise reacquired any shares of capital stock or
other securities,  (iii) sold, issued or
granted, or authorized the issuance of, (A) any capital stock or other
security, (B) any option, warrant or right to acquire any capital stock or any
other security, (C) any instrument convertible into or exchangeable for any
capital stock or other security, (iv) made any capital expenditure or purchase
commitment which exceeds CHF120,000 or, when added to all other capital
expenditures or purchase commitments made on behalf of the Company or any
Company Subsidiary since the date of the unaudited consolidated statements as
of June 30, 2007, exceeds CHF 300,000 in the aggregate, (v) made any material
Tax election, (vi) terminated, or received termination of any Company Material
Contract, or (vii) agreed to do any of the foregoing.

 

2.7.                              Accounts Receivable and Back Log.

 

(a)                                  All accounts receivable of the Company and
each Company Subsidiary that are reflected on the balance sheet included within
the Interim Financial Statements or on the accounting records of the Company or
any Company Subsidiary

 

7

 

(collectively, the “Accounts
Receivable”) represent or will represent valid obligations arising from sales
actually made or services actually rendered in the ordinary course of business.
Unless paid prior to the Closing Date, the Accounts Receivable are or will be
as of the Closing Date current and collectible net of the respective reserves
shown on the balance sheet included within the Interim Financial Statements or
on the accounting records of the Company and each Company Subsidiary adequate
in accordance with IFRS. Subject to such reserves, each of the Accounts
Receivable has been or is expected to be (and neither the Seller nor the
Company have any reason to believe that any such Accounts Receivable will not
be) collected in full, without any set-off, within ninety (90) days after the
day on which it first becomes due and payable. Schedule 2.7(a) contains a
complete and accurate aged schedule of accounts receivable as of the date of
the balance sheet included within the Interim Financial Statements and as of
the date hereof, which schedule shall be updated as of the Closing Date in
accordance with Section 6.2(f) hereof.

 

(b)                                 Schedule 2.7(b) is a complete and accurate
schedule of all back log, as of the Closing Date, defined as follows: the value
(i.e., expected revenues) of Company and Company Subsidiary services, exclusive
of any pass through costs, of all executed and signed agreements with
customers, and where the value can be reasonably calculated, less the revenues
already recognized in prior periods for such agreements with such customers
(“Back Log”). All Back Log
represents or will represent valid obligations arising from sales actually made
or services actually rendered in the ordinary course of business. No event has
occurred or circumstance exists that (with or without notice or lapse of time)
has resulted in or may result in any stoppage, delay, termination or other
change with respect to any work performed or to be performed with respect to
any Back Log which will constitute a Company Material Adverse Effect. Neither
the Seller, the Company nor any Company Subsidiary has given nor has any of
them received from any other Person any notice regarding any actual, alleged,
possible or potential stoppage, delay, termination or other material change
with respect to any work performed or to be performed with respect to any
Material Contract included in the Back Log.

 

2.8.                              Legal
Proceedings.  Except as set forth on
Schedule 2.8, there are no civil, criminal judicial, governmental,
administrative or arbitral actions, suits or proceedings or investigations
(collectively, “Legal Proceedings”) pending or, to the Knowledge of the
Company, threatened against or involving the Company or any Company Subsidiary
or any of their respective properties, assets, officers or directors (in their
capacities as such) or that challenges, or may have the effect of preventing,
delaying, making illegal, or otherwise interfering with the transactions
contemplated by this Agreement. There are no outstanding orders, judgments,
injunctions, awards or decrees of any court, governmental or regulatory body or
arbitration tribunal against or involving the Company or any Company
Subsidiary.

 

2.9.                              Assets;
Title to Properties; Absence of Liens. 
The assets (whether tangible or intangible) of the Company and the
Company Subsidiaries constitute all the assets necessary to conduct the
Company’s business as currently conducted. The Company or the Company
Subsidiary, as the case may be, has good and marketable title to all of its
assets (whether tangible or intangible) and properties, whether real, personal
or fixed, that are used in the conduct of the Company’s business or that are
reflected in the most recent balance sheet included in the Financial
Statements, free and clear of all Liens, except (i) for Liens set forth on
Schedule 2.9, (ii) for Liens for Taxes not yet due and payable or which the
Company or a Company Subsidiary is contesting in good faith and for which
adequate reserves have been 

 

8

 

established,
and (iii) for such properties and assets as may have been sold since the date
hereof in the ordinary course of business (collectively, “Permitted Liens”).
The tangible assets of the Company and each Company Subsidiary are in good
operating condition and repair, except for reasonable wear and tear that does
not materially affect the use or operation of such asset.

 

2.10.                        Compliance with Laws.

 

(a)                                  Each of the Company and each Company
Subsidiary is in compliance with all Applicable Laws, and to the Knowledge of
the Company is not in violation of, default under, or conflict with, any
applicable order, judgment, injunction, award, decree or writ of any
Governmental Body or court of competent jurisdiction (collectively, “Orders”).

 

(b)                                 No event has occurred or circumstance exists
that to the Knowledge of the Company 
(with or without notice or lapse of time) (A) may constitute or result
in a violation by the Company or any Company Subsidiary of, or a failure on the
part of the Company or any Company Subsidiary to comply with, any Applicable
Law, or (B) may give rise to any obligation on the part of the Company or any
Company Subsidiary to undertake, or to bear all or any portion of the cost of,
any remedial action of any nature.

 

(c)                                  Neither the Company nor any Company
Subsidiary has received, at any time since January 1, 2005, any notice or other
communication from any Governmental Body or any other Person regarding (A) any
actual, alleged, possible, or potential violation of, or failure to comply
with, any Applicable Law, or (B) any actual, alleged, possible, or potential
obligation on the part of the Company or any Company Subsidiary to undertake,
or to bear all or any portion of the cost of, any remedial action of any nature,
except to the extent such notice or other communication has not had, or is not
reasonably likely to have, individually or in the aggregate, a Company Material
Adverse Effect.

 

(d)                                 Schedule 2.10(d) contains a complete and
accurate list of each material consent, license, permit, grant or other
authorization from each Governmental Agency or Governmental Body that is
required or necessary for the operation of the Company’s or any Company
Subsidiary’s business as presently conducted (each, a “Company Authorization”),
except for such Company Authorizations the lack of which could not reasonably
be expected, individually or in the aggregate, to result in a Company Material
Adverse Effect. Each Company Authorization listed or required to be listed on
Schedule 2.10(d) is valid and in full force and effect.

 

(e)                                  The Company and each Company Subsidiary is,
in full compliance with all of the terms and requirements of each Company
Authorization.

 

(f)                                    To the Knowledge of the Company no event has
occurred or circumstance exists that may (with or without notice or lapse of
time) (A) constitute or result directly or indirectly in a violation of or a
failure to comply with any term or requirement of any Company Authorization or
(B) result directly or indirectly in the revocation, withdrawal, suspension,
cancellation, or termination of, or any modification to, any Company
Authorization. To the Knowledge of the Company, no specific authorization is
required to have a pharmacy in Russia as the Company Subsidiary does in Russia.

 

9

 

(g)                                 Neither the Company nor any Company
Subsidiary has received, at any time since January 1, 2005, any notice or other
communication (whether oral or written) from any Governmental Body or any other
Person regarding (A) any actual, alleged, possible, or potential violation of
or failure to comply with any term or requirement of any Company Authorization,
or (B) any actual, proposed, possible, or potential revocation, withdrawal,
suspension, cancellation, termination of, or modification to any Company
Authorization.

 

(h)                                 All applications required to have been filed
for the renewal of each Company Authorization have been duly filed on a timely
basis with the appropriate Governmental Body, and all other filings required to
have been made with respect to such Company Authorizations have been duly made
on a timely basis with the appropriate Governmental Body.

 

2.11.                        Intellectual Property.

 

(a)                                  Except as set forth on Schedule 2.11(a): (i)
To the Knowledge of the Company, none of the Intellectual Property owned or
controlled by the Company or any Company Subsidiary, or products or services
owned, used, sold or licensed by the Company or any Company Subsidiary
infringes upon or otherwise violates or conflicts with the use or registration
of any Intellectual Property rights of any third party, and to the Knowledge of
the Company, no other Person’s operations or activities infringe upon or
otherwise violates or conflicts with the use or registration of the Intellectual
Property owned or controlled by the Company or any Company Subsidiary; (ii)
neither the Company nor any Company Subsidiary has received notice of any Claim
contesting the right of the Company or any Company Subsidiary to use or sell,
license or make available to any Person any of the Company’s or any Company
Subsidiary’s products or services, and to the Knowledge of the Company, no such
Claim has been threatened against the Company or any Company Subsidiary; (iii)
the Company or a Company Subsidiary owns the Intellectual Property owned by the
Company or such Company Subsidiary, as the case may be, free and clear of all
Liens, except for Permitted Liens.

 

(b)                                 To the Knowledge of the Company, the Company
and each Company Subsidiary has at all times used reasonable efforts to protect
its proprietary information and trade secrets and to prevent the same from
being released into the public domain. To the Knowledge of the Company, no
person currently or formerly employed by the Company or any Company Subsidiary,
as the case may be, has  any claim, right
or interest with respect to any Intellectual Property owned by the Company or
any Company Subsidiary.

 

2.12.                        Non-Contravention.  The execution and delivery of this Agreement
and the Transaction Documents by each of the Seller and the Company, the
performance by each of the Seller and the Company of their respective
obligations hereunder and thereunder, and the consummation of the Transactions
by each of the Seller and the Company will not (with or without notice or lapse
of time) (i) violate or conflict with any provision of any charter or other
organizational document of the Seller, the Company or any Company Subsidiary,
in each case as amended as of the Closing Date or any resolutions adopted by
the board of directors or shareholders of either of the Seller or the Company;
(ii) except as set forth on Schedule 2.12 and subject to obtaining the
consents, approvals and authorizations or making such filings or giving such
notices referred to in Section 2.13 and on Schedule 2.13, the execution and
delivery of the Transaction Documents by the Seller and the Company and the
performance by each of them of 

 

10

 

their
respective obligations set forth thereunder will not violate, conflict with or
result in the breach of any provision of, or result in a modification of or
otherwise entitle any party to terminate, accelerate, amend, cancel or
constitute (whether after the filing of notice or lease of time or both) a
default under or impair or alter the rights of the Company or any Company
Subsidiary or any third party under, any Material Contract to which the Company
or any Company Subsidiary is a party or by which or to which any of the
Company’s or any Company Subsidiary’s assets or properties may be bound or
subject (each, a “Company Material Contract”); (iii)subject to the exceptions
set forth in Section 2.13 and on Schedule 2.13, violate, conflict with or
contravene any Applicable Laws; (iv) violate or result in the revocation or
suspension of any Company Authorization or give any Governmental Body the right
to revoke or cancel any Company Authorization; or (v) result in the creation or
imposition of any Lien upon any of the Shares or the property or assets of the
Company or any Company Subsidiary.

 

2.13.                        Consents
and Approvals.  Except for (i) those
consents, approvals, authorizations, filings or notices set forth on Schedule
2.13; and (ii) applicable requirements of applicable securities laws in the
jurisdiction of the Seller and the Company, no consent, approval or
authorization of, filing with, or notice to, any Governmental Body or any third
party is required by the Company or any Company Subsidiary in connection with
the execution, delivery and performance by the Company of this Agreement, each
and every agreement contemplated hereby, and the consummation by the Company of
the Transactions.

 

2.14.                        Employee Benefit Plans.

 

(a)                                  Set forth on Schedule 2.14(a) is a true and
complete list of each Benefit Plan sponsored, maintained, or contributed to, or
required to be contributed to by the Company or any Company Subsidiary, in
which present or former employees of the Company or any Company Subsidiary
participate, or with respect to which the Company or any Company Subsidiary has
any liability, whether direct or indirect, actual or contingent, whether formal
or informal, and whether legally binding or not (each, a “Company Benefit
Plan”).

 

(b)                                 Except as disclosed on Schedule 2.14(b): (i)
each of the Company Benefit Plans has been maintained and is in compliance with
the terms of such Benefit Plans and all Applicable Laws; (ii) none of the
Company Benefit Plans is being investigated or has been notified of an
investigation by any Governmental Body or Governmental Agency; and (iii) no Governmental
Body or Governmental Agency is assessing or proposing to assess any penalties
or interest in connection with the operation of any of the Company Benefit
Plans.

 

(c)                                  Except as disclosed on Schedule 2.14(c) or as
required by applicable law or regulation, no Company Benefit Plan provides, or
reflects or represents any liability to provide, post termination or retiree
life insurance, health or other employee welfare benefits to any person for any
reason, and neither the Company nor any Company Subsidiary has ever
represented, promised, or contracted (whether orally or in writing) to any
employee (either individually or to employees as a group) or any other person
that such employee(s) or other persons would be provided with life insurance,
health or other employee benefits after termination or retirement.

 

(d)                                 Except as disclosed on Schedule 2.14(d), to
the Company’s and each Company Subsidiary’s Knowledge, no officer, executive
management team member or 

 

11

 

operational team member
(referred to as “EMT” and “OMT” members in the Company chart and organization)
has informed the Company of her/his intention to terminate his or her
employment with the Company or any Company Subsidiary for any reason.

 

(e)                                  Except as set forth on Schedule 2.14(e) or as
required by applicable law, the Company is not a party to any agreement with
respect to which the execution and delivery of this Agreement, the Transaction
Documents or the consummation of the Transaction or any termination of
employment or service in connection therewith will: (i) result in any payment
(including severance, golden parachute, vacation, sick leave, bonus or
otherwise), becoming due and payable to any employee or former employee of the
Company or any Company Subsidiary, (ii) result in any forgiveness of
indebtedness payable by any employee or former employee to the Company or any
Company Subsidiary, (iii) materially increase any benefits otherwise payable by
the Company or any Company Subsidiary, or (iv) result in the acceleration of
the time of payment or vesting of any such benefits.

 

2.15.                        Company
Contracts.  A complete and accurate
list of all Company Material Contracts is set forth on Schedule 2.15.1. Except
as set forth on Schedule 2.15.2, none of the Company Material Contracts is a
Loss Contract. To the Knowledge of the Company each Company Material Contract
is the legal, valid, binding and enforceable agreement of the Company or a
Company Subsidiary, as the case may be, in full force and effect, except to the
extent such enforceability may be limited by (A) bankruptcy, insolvency,
reorganization, moratorium or other similar laws of general applicability
affecting or relating to enforcement of creditors’ rights generally, and (B)
general equitable principles (regardless of whether such enforceability is
considered in equity or at law). Neither the Company nor any Company Subsidiary
is in default under any Company Material Contract, nor does any condition exist
that, to the Knowledge of the Company, with notice or lapse of time, or both,
would constitute a default thereunder. Each of the Company and each Company
Subsidiary is in compliance with all terms and requirements of each Company
Material Contract under which the Company or such Company Subsidiary has any
obligation or liability or by which the Company’s or any Company Subsidiary’s
asset is bound. Each other Person that has or had any obligation or liability
under any Company Material Contract under which the Company or any Company
Subsidiary has any rights is, in compliance with all applicable terms and
requirements of such Company Material Contract. Notwithstanding the parties
execution and delivery of the Transaction Documents and the consummation of the
Transaction contemplated thereunder and without regard to the same (it being
understood that any conflict, violation, breach or other contradiction
resulting therefrom is referenced and disclosed pursuant to Section 2.12,
above), no event has occurred or circumstance exists  that (with or without notice or lapse of
time) may contravene, conflict with, or result in a violation or breach of, or
give the Company or any Company Subsidiary or any other Person the right to
declare a default or exercise any remedy under, or to accelerate the maturity
or performance of, or to cancel, terminate or modify any Company Material
Contract. Neither the Company nor any Company Subsidiary has given to or to the
Knowledge of the Company received from any other Person, any notice regarding
any actual, alleged, possible or potential violation or breach of, or default
under, any Company Material Contract. To the Knowledge of the Company no event
has occurred or circumstance exists that (with or without notice or lapse of
time) has or may result in any stoppage, delay, termination or other change
with respect to any work performed or to be performed under any Company
Material Contract. Neither the Company nor any Company Subsidiary has given to
or to the Knowledge of the Company received from any other Person, any notice
regarding any 

 

12

 

actual,
alleged, possible or potential stoppage, delay, termination or other material
change with respect to any work performed or to be performed under any Company
Material Contract. Except as otherwise mentioned in Schedules 2.15.1 and
2.15.2, there are no renegotiations of, attempts to renegotiate, or outstanding
rights to renegotiate any material amounts paid or payable to the Company or
any Company Subsidiary under any current or contemplated Company Material
Contract, and no such Person has made a written demand for such renegotiation.
Except as separately identified on Schedules 2.14(a), 2.14(b), 2.14(c), 2.14(d)
and 2.14(e), no approval or consent of any Person is needed in order that each
Company Material Contract continue in full force and effect following the
consummation of the Transaction.

 

2.16.                        Taxes.  Except as set forth in Schedule 2.16:

 

(a)                                  Filing of Tax Returns. The Company and each Company Subsidiary has
timely filed, or has had timely filed on its behalf, with the appropriate
taxing authorities all Tax Returns in respect of Taxes required to be filed by
the Company and each Company Subsidiary, as the case may be. The Tax Returns
filed (including any amendments thereof) are complete and accurate in all
material respects. The Company and each Company Subsidiary has on file all
material documents and records legally required to be established with respect
to such Taxes and Tax Returns. Except as set forth on Schedule 2.16(a), neither
the Company nor any Company Subsidiary has requested any extension of time
within which to file any Tax Return in respect of any Taxes, which Tax Return
has not since been filed in a timely manner. No claim has ever been made in
writing by any taxing authority in a jurisdiction where the Company or any
Company Subsidiary does not file Tax Returns, or has Tax Returns filed on its
behalf, that it is or may be subject to taxation by that jurisdiction, or
liable for Taxes owing to that jurisdiction. Except as set forth on Schedule
2.16(a), the Company and each Company Subsidiary (other than Hesperion Inc.) is
classified as a separate legal entity for tax purposes and Hesperion Inc. is
classified as a “C corporation” within the meaning of the Code (and any
comparable provisions of any applicable national or local tax laws).

 

(b)                                 Payment of Taxes. All Taxes owed by the Company and each
Company Subsidiary (whether or not shown as due on any Tax Returns for the
Subsidiary in the United States) have been paid in full and on time or adequate
reserves on the books and/or records have been established (for avoidance of
doubt, such reserves include, without limitation, all liability for Taxes
accruing in the nine (9) month period ended September 30, 2007). The Company
and each Company Subsidiary has withheld and paid all Taxes required to have
been withheld and paid in connection with amounts paid or owing to any
employee, independent contractor, creditor, shareholder, or other third party.
Where applicable, the Company and each Company Subsidiary has made all required
estimated Tax payments sufficient to avoid any underpayment penalties. The
unpaid Taxes of the Company or any Company Subsidiary (A) do not, as of the
Closing Date, exceed the reserve for Tax liability (rather than any reserve for
deferred Taxes established to reflect the timing differences between book and
Tax income) set forth on the face of the Company’s most recent consolidated
balance sheets (rather than any notes thereto) and (B) do not exceed that
reserve as adjusted for the passage of time through the Closing Date in
accordance with the past custom and practice of the Company or the applicable
Company Subsidiary in filing, or having filed on its behalf, its Tax Returns.
The charges, accruals and reserves on the books of the Company and each Company
Subsidiary in respect of any liability for Taxes (x) based on or measured by
net income for any years or periods not finally determined (including, without
limitation, the nine (9) month period ended September 30, 2007), 

 

13

 

(y) with respect to which
the applicable statute of limitations has not expired or (z) that has been
previously deferred, are adequate to satisfy any assessment for such Taxes for
any such years.

 

(c)                                  Audits, Investigations or Claims. The Company and each Company Subsidiary is
not currently a party to any Legal Proceeding or other dispute with any Swiss
federal, cantonal or communal authority or any foreign agency, authority or tribunal
for assessment or collection or enforcement of Taxes; nor has any claim for
assessment or collection of Taxes been asserted or threatened against the
Company or any Company Subsidiary and to the Knowledge of the Company there are
no outstanding or threatened issues relating to any Taxes. There is no
currently ongoing audit of any Tax Return of the Company or any Company
Subsidiary by any taxing authority, and neither the Company nor any Company
Subsidiary has been notified in writing that any taxing authority intends to
audit any outstanding Tax Return of the Company or any Company Subsidiary.
Neither the Company nor any Company Subsidiary has executed any outstanding
waivers or consents regarding the application of the statute of limitations
with respect to any Taxes or Tax Returns.

 

(d)                                 Lien. There are no encumbrances for Taxes (other than for current Taxes not
yet due and payable) on any assets of the Company or any Company Subsidiary.

 

(e)                                  Partnerships. Neither the Company nor any Company
Subsidiary owns an interest in a partnership for Tax purposes.

 

(f)                                    Dividends. Neither the Company nor any Company Subsidiary has declared, accrued,
set aside or paid any dividend or made any other distribution in respect of any
shares of capital stock since January 1st, 2004.

 

2.17.                        Environmental
Matters.  The Company and each
Company Subsidiary is in compliance with applicable Environmental Laws. The
Company and each Company Subsidiary has all Permits required pursuant to
Environmental Laws and are in compliance with the terms thereof. There are no
past or present events, activities, practices, incidents, actions or plans in
connection with the operations of the Company or any Company Subsidiary which
have given rise to any liability on the part of the Company or any Company
Subsidiary under any Environmental Law. Neither the Company nor any Company
Subsidiary has generated, used, transported, treated, stored, released or
disposed of, or has suffered or permitted anyone else (including, without
limitation, any subtenants or sublessees) to generate, use, transport, treat,
store, release or dispose of any Hazardous Substance in violation of any
Environmental Laws. There has not been any generation, use, transportation,
treatment, storage, release or disposal of any Hazardous Substance in
connection with the conduct of the business of the Company or any Company
Subsidiary or the use of any property or facility by the Company or any Company
Subsidiary, which has created or might reasonably be expected to create any
material liability under any Environmental Law or which would require reporting
to or notification of any Governmental Body. No asbestos containing materials
or polychlorinated biphenyl or underground storage tank is contained in or
located at any facility now or previously owned or leased by the Company or any
Company Subsidiary.

 

14

 

2.18.                        Real Property.

 

(a)                                  Neither the Company nor any Company
Subsidiary owns any real property or any interest in any real property.

 

(b)                                 Each lease, sublease, license and other
agreements (collectively, the “Company Real Property Leases”) under which the
Company or any Company Subsidiary uses or occupies or has the right or
obligation to use or occupy or pay rent or other fees for use thereof, now or
in the future, any real property (the land, buildings and other improvements
covered by the Company Real Property Leases being hereinafter referred to as
the “Company Leased Real Property”) is valid, binding and in full force and
effect, and as of the Closing, all amounts owing pursuant to the Company Real
Property Leases will have been paid in full or accrued in full.

 

2.19.                        Broker’s
Fees.  No broker, finder, agent or
similar intermediary has acted on behalf of the Seller, the Company or any
Company Subsidiary in connection with this Agreement, the Transaction Documents
or the Transaction, and there are no brokerage commissions, finders’ fees or
similar fees or commissions payable in connection therewith based on any
agreement, arrangement or understanding with the Company or any Company
Subsidiary.

 

2.20.                        Insurance.  Schedule 2.20 contains a complete and
accurate list of all insurance policies to which the Company or any Company
Subsidiary is a party or that provides coverage to the Company or any Company
Subsidiary, or any director or officer of the Company or any Company Subsidiary
(collectively, the “Company Insurance Policies”).

 

(a)                                  Seller has delivered to Purchaser:

 

(i)                                     true and complete copies of all Company
Insurance Policies;

 

(ii)                                  true and complete copies of all pending
applications for material policies of insurance.

 

(b)                                 All Company Insurance Policies:

 

(A)                              are valid, outstanding, and enforceable;

 

(B)                                taken together, provide reasonably adequate
insurance coverage for the assets and the operations of the Company and each
Company Subsidiary for all reasonable risks to which the Company is exposed;

 

(C)                                are sufficient in light of industry standards
for compliance with all legal requirements and Material Company Contracts to
which any of the Company or any Company Subsidiary is a party or by which any
of them is bound;

 

(D)                               will continue in full force and effect
following the consummation of the Transaction, except for the Directors and
Officers insurance taken by the Seller on behalf of the group; and

 

15

 

(E)                                 do not provide for any retrospective premium
adjustment or other experienced-based liability on the part of any Company or
Company Subsidiary.

 

(c)                                  None of the Seller, the Company or any
Company Subsidiary has received (A) any refusal of coverage or any notice that
a defense will be afforded with reservation of rights, or (B) any notice of
cancellation or any other indication that any insurance policy is no longer in
full force or effect or will not be renewed or that the issuer or any policy is
not willing or able to perform its obligations thereunder. Notwithstanding the
foregoing, and due to local practice, there is no insurance coverage for the
Company Subsidiary in Russia.

 

(d)                                 Each of the Seller, the Company and each
Company Subsidiary has paid all premiums due, and has otherwise performed all
of their respective obligations, under each Company Insurance Policy.

 

(e)                                  Each of the Seller, the Company and each
Company Subsidiary has given notice to the insurer of all claims that may be
insured under any Company Insurance Policy.

 

2.21.                        Labor
and Employment Matters.  Neither the
Company nor any Company Subsidiary is now bound by or party to any collective
bargaining agreement and, to the Knowledge of the Company, no application for
certification of a collective bargaining agent is pending. The Company and each
Company Subsidiary is, and at all times has been, in compliance with all
Applicable Laws affecting employment practices and terms and conditions of
employment including, without limitation, laws and regulations that relate to
employment generally, equal opportunity employment, nondiscrimination,
immigration, wages, hours, benefits, collective bargaining, the payment of
taxes, occupational safety and health and plant closings. The services provided
by each employee of the Company or any Company Subsidiary are terminable at
will (where such legal concept is known and in effect and subject to local
laws) by the Company or such Company Subsidiary, as the case may be, in
accordance with the corresponding contractual termination periods and
Applicable Laws and such termination would result in no liability to the
Company or any such Company Subsidiary except – for the avoidance of doubt – as
provided by contractual termination provisions and Applicable Laws or as
otherwise accepted by Purchaser after the Closing Date.

 

2.22.                        Bank
Accounts.  Schedule 2.22 sets forth a
complete and accurate list of all (i) bank accounts or similar accounts maintained
by the Company and each Company Subsidiary, including a list of the names of
each bank or other financial institution at which such account is maintained,
the number of such account, the names of all persons authorized to make
withdrawals or to write checks on such accounts and the balance of each such
account as of date of this Agreement and as of the Closing, (ii) certificates
of deposit or similar cash equivalents held by the Company and each Company
Subsidiary, including a list of the names of each bank or other financial
institution at which such certificate of deposit or other cash equivalent is
maintained, the nature and type of such certificate of deposit or other cash
equivalent, the names of all persons authorized to withdraw, transfer or sell
any such certificate of deposit or cash equivalent and the total market value
of such certificate of deposit or cash equivalent as of the date of this
Agreement and as of the Closing.

 

16

 

2.23.                        Interested
Party Transactions.  No current
officer or director of the Company, any Company Subsidiary, or Seller, or
Seller itself and, to the reasonable Knowledge of the Company no former officer
or director or current or former employee of the Company, any Company
Subsidiary, or Seller, has any interest in: (i) any equipment or other property
or asset, real or personal, tangible or intangible, including, without
limitation, any Intellectual Property owned or controlled by the Company or any
Company Subsidiary, used in connection with the Company’s or any Company
Subsidiary’s business, or in (ii) any agreement, obligation or commitment to
which the Company or any Company Subsidiary is a party. The Seller has not been
informed of any interest in: (iii) any creditor, supplier, customer,
manufacturer, or distributor of any of the Company or any Company Subsidiary
products, or in (iv) any entity that competes with the Company or any Company
Subsidiary, owned by current officer or director of the Company, any Company Subsidiary,
or Seller, or former officer or director or current or former employee of the
Company, any Company Subsidiary, or Seller; the Seller itself has no such
interest.

 

2.24.                        No
Alternative Transaction.  As of the
date hereof, neither the Company nor any Company Subsidiary, nor the Seller, is
engaged in any discussions or negotiations with any party other than Purchaser
with respect to any proposed acquisition transaction related to the Company or
any Company Subsidiary or sale of the Shares.

 

2.25.                        Minute
Book Contents.  The Company has
delivered to Purchaser, or its designated representative, copies of: (i) all
minutes of the meetings or actions by written consent of the shareholders of
the Company and each Company Subsidiary, (ii) all minutes of the meetings or
actions by unanimous written consent of the Company’s and each Company
Subsidiary’s board of directors, and (iii) the stock records of the Company and
each Company Subsidiary (collectively, the “Minute Book Contents”), except with
respect to the Company’s subsidiaries in the United States and the United
Kingdom for which the Company has delivered to Purchaser such Minute Book
Contents as are in the Company’s possession. The Minute Book Contents are
complete and accurate in all material respects and reflect all corporate action
taken to date the consummation of which required the approval of the directors
and/or the shareholders of the Company and each Company Subsidiary, as the case
may be, provided, however, that (i) with respect to the Company’s subsidiary in
the United States the representations in this sentence are limited to the time
period from August 29, 2006 to date; and (ii) with respect to the Company’s
subsidiary in the United Kingdom the representations in this sentence are
limited to the time period from October 7, 2004 to date.

 

2.26.                        Full
Disclosure.  This Agreement
(including the Disclosure Schedules) does not (i) contain any representation,
warranty or information that is false, inaccurate, incorrect or materially
incomplete. There is no fact known to Seller or the Company that has specific
application to the Company or any Company Subsidiary and that materially
adversely affects the assets, business, prospects, financial condition or
results of operation of the Company or any Company Subsidiary.

 

17

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES OF THE SELLER

 

The
Seller hereby further represents and warrants to the Purchaser as of the date
hereof as follows:

 

3.1.                              Marketable
Title.  Seller has good, marketable
and indefeasible ownership to, sole power of disposition over, and full right
to sell, transfer and convey to Purchaser, the Shares held by such Seller.

 

3.2.                              No
Liens.  The Shares held by the Seller
are, and shall be transferred to Purchaser, free and clear of any and all
Liens.

 

3.3.                              No
Preemptive Rights.  The Shares are
not subject to any right of first refusal, preemptive right or similar right in
favor of any third party, and Seller has not granted any third party any option
to purchase or other right to acquire any Shares.

 

3.4.                              Entire
Ownership Interest.  The Shares
constitute the Seller’s entire ownership interest in the Company.

 

3.5.                              No
Conflicts.  The sale, conveyance and
transfer of the Shares held by the Seller to Purchaser in accordance with the
terms of this Agreement will not conflict with or violate the terms of any
agreement with any third party.

 

3.6.                              No
Other Agreements with Respect to the Shares.  Seller is not a party to any agreement with
respect to voting or disposition or that otherwise relates to any of the
Shares, other than this Agreement.

 

3.7.                              Foreign
Seller.  Seller hereby represents
that it has satisfied itself as to the full observance of the all Applicable
Laws of Seller’s jurisdiction in connection with the sale of the Shares,
including (i) the legal requirements within its jurisdiction for the sale of the
Shares, (ii) any foreign exchange restrictions applicable to such sale, (iii)
any government or other consents that may need to be obtained, and (iv) the
income tax and other tax consequences (TO BE CHECKED), if any, that may be
relevant to the purchase, holding, redemption, sale or transfer of the Shares.
The Purchaser’s purchase of the Shares in accordance with the terms of this
Agreement will not violate any Applicable Laws of the Seller’s jurisdiction.

 

ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES OF PURCHASER

 

Purchaser
hereby represents and warrants to the Seller as of the date hereof as follows:

 

18

 

4.1.                              Organization and
Qualification; Subsidiaries. Purchaser
is a corporation duly incorporated or organized, validly existing and in good
standing under the laws of the State of Delaware, has requisite power and
authority and governmental approvals to own, lease and operate its properties
and to carry on its business as currently conducted.

 

4.2.                              Authority to Execute
and Perform Agreement. Purchaser
has the requisite power and all authority required to enter into, execute and
deliver this Agreement and the Transaction Documents to which it is a party, to
perform its obligations hereunder and thereunder and to consummate the
Transaction. The execution, delivery and performance by Purchaser of this
Agreement and the consummation by Purchaser of the Transaction have been duly
authorized by all necessary corporate action.

 

4.3.                              Binding Effect. This Agreement and the Transaction Documents
has been, or will be, validly executed and delivered by Purchaser and, assuming
the due execution and delivery hereof by the Seller, constitutes, or will
constitute, a valid and binding obligation of each of Purchaser, enforceable
against Purchaser in accordance with its terms, except to the extent such
enforceability may be limited by (i) bankruptcy, insolvency,
reorganization, moratorium or other similar laws of general applicability
affecting or relating to enforcement of creditors’ rights generally, (ii) general
equitable principles (regardless of whether such enforceability is considered
in equity or at law), and (iii) principles of public policy with respect
to the enforcement of any indemnification or contribution provisions contained
in this Agreement and the Transaction Documents.

 

4.4.                              Broker’s Fees. No broker, finder, agent or similar
intermediary has acted on behalf of Purchaser in connection with this Agreement
or the Transaction, and there are no brokerage commissions, finders’ fees or
similar fees or commissions payable in connection therewith based on any
agreement, arrangement or understanding with Purchaser.

 

ARTICLE V

ADDITIONAL AGREEMENTS OF THE PARTIES

 

5.1.                              Filing of Tax Returns;
Payment of Taxes.

 

(a)                                  Seller shall, at Seller’s expense, prepare or
cause to be prepared and file or cause to be filed all tax returns of the
Company or any Company Subsidiary which are due on or before the Closing Date,
and Seller or the Company shall pay, or the Company shall accrue in accordance
with applicable Laws, all Taxes due with respect to such periods.
Notwithstanding the foregoing, Seller agrees not to, and agrees to cause the
Company and each Company Subsidiary not to, (a) take any actions on or as
of the Closing Date with respect to any such entity which are not in the
ordinary course of business, or (b) make any tax elections which are
effective on or before the Closing Date. Seller shall prepare and file such tax
returns in a manner consistent with prior practice, except as required by a
change in Applicable Law.

 

(b)                                 Seller and Purchaser agree, upon request from
the other party, to use their commercially reasonable best efforts to obtain
any certificate or other document from any Governmental Body or any other
Person as may be necessary to mitigate, reduce or 

 

19

 

eliminate any Tax that could
be imposed (including, but not limited to, with respect to the Transaction).

 

(c)                                  All transfer, documentary, sales, use, stamp,
registration and other such Taxes and fees (including any penalties and
interest) incurred in connection with this Agreement shall be paid by the party
incurring such Taxes and fees.

 

5.2.                              Notification of
Certain Matters. The Seller shall
give prompt notice to the Purchaser if it becomes aware of any of the following
after the date of this Agreement: (i) any notice of, or other
communication relating to, a default, or event which with notice or lapse of
time or both would become a default, under any Company Material Contract; (ii) receipt
of any notice or other communication in writing from any person alleging that
the consent of such person is or may be required in connection with the
Transaction; (iii) receipt of any notice or other communication from any
Governmental Agency or Governmental Body in connection with the Transaction; (iv) the
occurrence or non-occurrence of any fact or event which could reasonably be
expected to cause any covenant, condition or agreement hereunder not to be
complied with or satisfied in any material respect; (v) the commencement
or threat of any litigation involving or affecting the Company or any Company
Subsidiary, or any of their respective properties or assets; (vi) the
occurrence or non-occurrence of any fact or event that causes a breach by
Company of any provision of this Agreement, and (vii) the occurrence of
any event that, had it occurred prior to the date of this Agreement without any
additional disclosure hereunder, would have constituted a Company Material
Adverse Effect.

 

5.3.                              Exclusivity. Prior
to the Closing Date:

 

(a)                                  Neither the Seller nor the Company, nor any
of their- respective officers, directors, employees, agents, affiliates,
shareholders, accountants, counsel, investment bankers, financial advisors or
other representatives (collectively, “Representatives”) shall, (i) directly
or indirectly, initiate, solicit or encourage, or take any action to facilitate
the making of, any Acquisition Proposal, (ii) enter into any agreement or
take any other action that by its terms could reasonably be expected to
adversely affect the ability of the parties hereto consummate the Transaction,
or (iii) directly or indirectly engage or otherwise participate in any
discussions or negotiations with, or provide any information or data to, or
afford any access to the properties, books or records of the Company to, or
otherwise assist, facilitate or encourage, any person (other than the Purchaser
or any affiliate or associate thereof) relating to any Acquisition Proposal.

 

(b)                                 The Company and each of its Representatives
shall immediately cease and cause to be terminated all existing discussions and
negotiations, if any, with any other persons conducted heretofore with respect
to any Acquisition Proposal.

 

(c)                                  For purposes of this Agreement, an “Acquisition
Proposal” means any inquiry, proposal or offer from any person relating to (i) any
direct or indirect acquisition or purchase of any of the assets of the Company
or any Company Subsidiary out of the ordinary course of business or any of the
capital stock or voting power (or of securities or rights convertible into or
exercisable for such capital stock or voting power) of the Company or any
Company Subsidiary, (ii) any tender offer or exchange offer that if
consummated would result in any person beneficially owning any capital stock or
voting power (or of securities or 

 

20

 

rights convertible into or
exercisable for such capital stock or voting power) of the Company or any
Company Subsidiary, or (iii) any merger, consolidation, business
combination, recapitalization, liquidation, dissolution, sale of Shares or
similar transaction involving the Company or any of the Company Subsidiaries.
Each of the transactions referred to in clauses (i) - (iii) of the
foregoing definition of Acquisition Proposal, other than the Transaction
proposed by this Agreement, is referred to herein as an “Acquisition
Transaction.”

 

5.4.                              Non-Competition. For a period of three (3) years after
the Closing Date, the Seller shall not, directly or indirectly, engage or
invest in, own, manage, operate, or control, or participate in the ownership,
management, operation, or control of, any business whose products or activities
compete in the Territory with the Purchaser and/or Company or any affiliate of
Purchaser and/or Company within the Business Scope as defined herein. For
purposes of this non-competition covenant, the term “Territory” shall mean the
whole world and the term “Business Scope” shall mean regulatory services and
clinical project management in areas such as contract services related to the
conduct of Phase I through Phase IV human clinical trials including project
management, monitoring, data management, biostatistics, and medical writing of
the nature provided by the Purchaser and Company at the Closing Date. For the
avoidance of doubt, the following shall not be considered as a competition
under the terms of this Article 5.4. :

 

•                  collaborative
or services agreement signed by Seller with a third party involved in the
Business Scope;

 

•                  acquisition
of Seller by a third party involved in the Business Scope.

 

5.5.                              Non-Solicitation of Employees.                           For a period of three (3) years after
the Closing Date, the Seller shall not solicit or entice away from their
employment or engagement with Company, its subsidiaries or affiliates, any
employee, contractor, consultant or contract partner. For the avoidance of
doubt, the terms of the present Article 5.5 shall not be interpreted as
preventing Seller to work with any consultant and contract partner engaged by
Company or Company Subsidiaries.

 

5.6.                              Confidentiality. Unless (i) otherwise expressly provided
in this Agreement, (ii) required by Applicable Law, (iii) necessary
to secure any required consents as to which the other party has been advised,
or (iv) consented to in writing by Purchaser and the Company, this
Agreement and any information or documents furnished in connection herewith
shall be kept strictly confidential by the parties hereto and their respective
Representatives. Prior to any disclosure pursuant to the preceding sentence,
the party intending to make such disclosure shall consult with the other party
to the extent practicable regarding the nature and extent of the disclosure.
Subject to the preceding sentence, nothing contained herein shall preclude
disclosures to the extent necessary to comply with accounting, SEC and other
disclosure obligations imposed by Applicable Law or in connection with the due
diligence or other investigation of the Purchaser by potential third party
investors or lenders in Purchaser if such third party is bound by similar
confidentiality restrictions. In the event the Transaction is not consummated,
Purchaser, Seller and the Company shall return to the other all documents
furnished by the other and all copies thereof made by such party and will hold
in absolute confidence all information obtained from the other party except to
the extent (i) such party is required to disclose such information by
Applicable Law or such disclosure is necessary in 

 

21

 

connection
with the pursuit or defense of a claim, (ii) such information was known by
such party prior to such disclosure or was thereafter developed or obtained by
such party entirely independent of and without reference to such disclosure, (iii) such
party received such information on a non-confidential basis from a source,
other than the other party, which is not known by such party to be bound by a
confidentiality obligation with respect thereto or (iv) such information
becomes generally available to the public or is otherwise no longer
confidential. Prior to any disclosure of information pursuant to the exception
in clause (i) of the preceding sentence, the party intending to disclose
the same shall so notify the party which provided the same to the extent
practicable in order that such party may seek a protective order or other
appropriate remedy should it choose to do so.

 

5.7.                              Reasonable Efforts.
Each party hereto shall, and shall
cause its respective Subsidiaries to, take or cause to be taken all actions
necessary, proper or advisable to consummate the Transaction. Without limiting
the generality of the foregoing, each of the parties hereto shall, and shall
cause its respective Subsidiaries to, obtain all authorizations, consents,
orders and approvals of federal, state, and local regulatory bodies, that are
or may become necessary for the performance of its respective obligations
pursuant to this Agreement, the Transactions Documents and the consummation of
the Transaction, and shall cooperate fully in promptly seeking to obtain such
authorizations, consents, orders and approvals as may be necessary for the
performance of its respective obligations pursuant to this Agreement and the
Transaction Documents. The parties shall not take, and shall cause their
respective subsidiaries not to take, any action which would have the effect of
delaying, impairing or impeding the receipt of any required regulatory
approvals, and the parties shall use, and shall cause their respective
subsidiaries to use, commercially reasonable efforts to secure such approvals
as promptly as possible. The parties shall use, and shall cause their
respective subsidiaries to use, commercially reasonable efforts not to take any
action or enter into any transaction which would result in a breach of any
covenant made by such party in this Agreement.

 

5.8.                              Further Assurances.
At any time and from time to time after
the Closing, each party to this Agreement agrees to cooperate with each other
party and to execute and deliver such other documents, instruments of transfer
or assignment, files, books and records and do all such further acts as may be
reasonably required to consummate the Transaction.

 

5.9.                              Public Disclosure.
Prior to the Closing, each party to
this Agreement shall consult with each other party before issuing any press
release or otherwise making any public statements, announcements or
communications with respect to this Agreement or the Transaction and shall not
issue any such press release or make any such public statement, announcement or
communication without the prior consent of the other parties, which consent
shall not be unreasonably withheld. If any public statement, announcement or
communication is required by Applicable Law to be made by any party to this
Agreement, prior to making such statement, announcement or communication, such
party will deliver a draft thereof to the other parties and shall give the
other parties an opportunity to comment thereon.

 

5.10.                        Intercompany Contracts and
Assets. To the extent that Seller
or any of its affiliates provides the Company or any Company Subsidiary any
service or use of assets pursuant to a contract or other arrangement between
Seller (or any of its affiliates) and a third party, upon request by Purchaser,
the parties agree to cooperate to cause the Company or the applicable Company
Subsidiary to directly enter into a new contract with such third party with 

 

22

 

respect
to such services or assets prior to the Closing. Prior to the Closing, Seller
agrees to transfer or assign, as applicable, to the Company or the applicable
Company Subsidiary any contracts and assets that are used or necessary solely
for the benefit of the business of the Company or any Company Subsidiary, but
which are held by Seller or any of its affiliates other than the Company or any
Company Subsidiary.

 

5.11.                        Letter of Credit. For the thirty (30) days following the
Closing Date, Purchaser shall use its commercially reasonable efforts in good
faith to obtain an irrevocable stand-by letter of credit from a reputable
international bank for the purpose of securing payment under the Note.

 

5.12.                        Election of New Board and
Discharge of Former Board. At
Closing Purchaser shall elect new Board members of the Company and grant
discharge to the leaving Board members of the Company.

 

ARTICLE VI

CONDITIONS TO CLOSING

 

6.1.                              Conditions to Each
Party’s Obligations to Consummate the Transaction. The respective obligations of each party to this Agreement to
consummate the Transaction shall be subject to the following conditions, unless
waived in writing prior to the Closing Date by such party:

 

(a)                                  All consents, approvals, authorizations,
orders and action of any Governmental Body required to permit the consummation
of the Transactions shall have been obtained or made and shall be in full force
and effect.

 

(b)                                 No action shall have been taken, and no
statute, rule, regulation, executive order, judgment, decree, or injunction
shall have been enacted, entered, promulgated or enforced (and not repealed,
superseded, lifted or otherwise made inapplicable), by any court or governmental
or regulatory agency of competent jurisdiction which restrains, enjoins or
otherwise prohibits the consummation of the Transaction (each party agreeing to
use its reasonable best efforts to avoid the effect of any such statute, rule,
regulation or order or to have any such order, judgment, decree or injunction
lifted).

 

6.2.                              Conditions to
Obligations of Purchaser to Consummate the Transaction. The obligation of Purchaser to consummate the
Transaction shall be subject to the satisfaction of the following conditions,
unless waived in writing prior to the Closing Date by Purchaser:

 

(a)                                  The representations and warranties of the
Seller and the Company contained herein that are qualified as to materiality or
a Company Material Adverse Effect (or similar concept) shall be true and
correct, and those not so qualified shall be true and correct in all material
respects, in each case at and as of the Closing with the same force and effect
as though made at and as of the Closing (except to the extent a representation
or warranty speaks specifically as of an earlier date, in which case as of such
date).

 

23

 

(b)                                 The Seller and the Company shall have
performed, in all material respects, all obligations and complied with all
covenants required by this Agreement to be performed or complied with, in all
material respects, by it prior to the Closing.

 

(c)                                  No event has occurred or circumstance exists
that (with or without notice or lapse of time) has resulted in or may result
in any material change with respect to any work performed or to be performed
with respect to any Back Log described in Schedule 2.7 (b).

 

(d)                                 All consents, approvals, authorizations, or
action of any third party required to permit the consummation of the Transactions
shall have been obtained or made and shall be in full force and effect.

 

(e)                                  The Seller shall have executed and delivered
to the Purchaser a certificate, dated the Closing Date evidencing compliance
with Sections 6.2(a)-(d) hereof.

 

(f)                                    The Seller shall have delivered to Purchaser
the certificate representing its Shares, duly endorsed to Purchaser.

 

(g)                                 The Seller shall have delivered to Purchaser
a resolution of the Company’s board of directors approving the transfer of the
Shares to Purchaser and entering Purchaser into the stock ledger of the Company
as owner of Shares.

 

(h)                                 The Seller shall have delivered to Purchaser
the original stock ledger wherein the transfer of the Shares by Seller to
Purchaser has been duly registered.

 

(i)                                     The Seller shall have delivered to Purchaser
the original resignation letters of each member of the Board of Directors with
the exception of Markus Weissbach, M.D., Ph.D.

 

6.3.                              Conditions to
Obligations of the Seller to Consummate the Transaction.  The
obligation of the Seller to consummate the Transaction shall be subject to the
satisfaction of the following conditions, unless waived in writing prior to the
Closing Date by the Seller:

 

(a)                                  The representations and warranties of
Purchaser contained herein that are qualified as to materiality or a Purchaser
Material Adverse Effect (or similar concept) shall be true and correct, and
those not so qualified shall be true and correct in all material respects.

 

(b)                                 Purchaser shall have performed, in all
material respects, all obligations and complied with all covenants required by
this Agreement to be performed or complied with, in all material respects, by
each of them prior to the Closing.

 

(c)                                  All consents, approvals, authorizations, or
action of any third party required to permit the consummation of the
Transactions shall have been obtained or made and shall be in full force and
effect.

 

24

 

ARTICLE VII

INDEMNIFICATION

 

7.1.                              Survival of
Representations and Warranties.

 

(a)                                  All of the representations and warranties
contained in Article II and Article III of this Agreement shall
survive until eighteen (18) months after the Closing Date (the “Termination
Date”), at which time liability therefor shall cease, except as provided in the
last sentence of this Section 7.1. Notwithstanding the foregoing, the
representations and warranties contained in Section 2.1, Section 2.2,
Section 2.3 and Section 2.4 shall survive indefinitely and the
representations and warranties in Section 2.12, Section 2.16 and Section 2.17
shall survive until the lapsing of the appropriate statute of limitations, at
which time liability therefor shall cease. If at any time prior to the
applicable Termination Date or expiration of the appropriate statue of limitations,
as applicable, an Indemnified Party (as defined below) delivers to the Seller a
written notice alleging, in good faith, the existence of an inaccuracy in or
breach of any the representations and warranties of the Company or the Seller
(and setting forth in reasonable detail the basis for such Indemnified Party’s
belief that such an inaccuracy or breach may exist) and asserting a claim
for recovery under Section 7.2 based on such alleged inaccuracy or breach,
then the representation or warranty underlying the claim asserted in such
notice shall survive the applicable Termination Date or expiration of the
appropriate statute of limitations, as applicable, solely for the purposes of
resolving such claim and only until such time as such claim is fully and finally
resolved. All of the covenants, agreements and obligations of the parties
contained in this Agreement or any other document, certificate, schedule or
instrument delivered or executed in connection herewith shall survive (i) until
fully performed or fulfilled, unless non-compliance with such covenants,
agreements or obligations is waived in writing by the party or parties entitled
to such performance or (ii) if not fully performed, until the expiration
of the relevant statute of limitations.

 

(b)                                 The representations, warranties, covenants
and obligations of the Company and the Seller, and the rights and remedies that
may be exercised by the Indemnified Parties, shall not be limited or
otherwise affected by or as a result of any information furnished to, or any
investigation made by or knowledge of, any of the Indemnified Parties or any of
their representatives. The parties recognize and agree that the representations
and warranties also operate as bargained for promises and risk allocation
devices and that, accordingly, any party’s knowledge, and the waiver of any
condition based on the accuracy of any representation or warranty, or on the
performance of or compliance with any covenant or obligation, shall not affect
the right to indemnification or payment of Losses pursuant to this Article VII,
or other remedy based on such representations, warranties, covenants and
obligations, except to the extent set forth in a written agreement waiving such
rights executed by the party giving such waiver.

 

(c)                                  For purposes of this Article VII, each
statement or other item of information set forth in the disclosure schedule delivered
by the Company pursuant to Article II hereof shall be deemed to be a
representation and warranty made by the Company in this Agreement.

 

25

 

(d)                                 Nothing in this Article VII or elsewhere
in this Agreement shall be construed to limit Purchaser’s rights or remedies
with respect to any claim for fraud or intentional misrepresentation.

 

(e)                                  The Parties waive all notification and
examination requirements under article 201 CO. In particular, except as
otherwise provided in Section 7.1, Purchaser may assert claims for
misrepresentation or breaches of representations or warranties in any written form and
at any time prior to the lapse of the respective periods set forth in Section 7.1(a).
These time limits shall override the statutory time limits set in out in article 210
CO.

 

7.2.                              Indemnification. Subject to the terms and conditions contained
herein, the Seller shall indemnify, defend and hold harmless Purchaser, and its
Representatives (all such persons and entities being collectively referred to
as the “Indemnified Parties” and individually as an “Indemnified Party”) from,
against, for and in respect of any Losses (as defined below) to the extent
caused by or arising out of any inaccuracy in or breach of any of the
representations, warranties or covenants made by the Seller or the Company in
this Agreement; provided that no Indemnified Party shall be entitled to
indemnification pursuant to this Section for any Losses of an individual
amount under Thirty Thousand Euro (€30,000) until the aggregate amount of such
Losses under all claims for Indemnified Parties exceeds One Hundred and Twenty
Five Thousand Euro (€125,000) (the “Threshold”), at which time the Indemnified
Parties shall be entitled to indemnification for all Losses, not just those in
excess of the Threshold. Subject to compliance with this Article VII and
for so long as the Note is outstanding, the indemnification obligations of the
Seller and the repayment of any Losses shall be satisfied first by offsetting
the amount of any such Losses against the outstanding principal and interest
under the Note thereby reducing the amount of such principal and interest by an
amount equal to such Losses. In this Agreement, the term “Losses” shall refer
to any damages (including consequential, indirect and special damages), claim,
demand, settlement, judgment, award, fine, penalty, Tax, costs (including costs
of investigation) and expenses (including legal fees and expenses, whether
relating to a third-party claim, an action by an Indemnified Party to enforce
its rights under the Agreement or any other action, proceeding or claim),
injury, decline or diminution in value, lost opportunity, lost profits,
liability (contingent or otherwise) that any Indemnified Party may sustain
or incur.

 

7.3.                              Claims for
Indemnification.

 

(a)                                  If any Indemnified Party becomes aware of any
Losses for which such Indemnified Party will seek indemnification, such
Indemnified Party shall deliver to the Seller, on or before the Termination
Date, a certificate signed by any authorized signatory of the Indemnified Party
(a “Claim Certificate”) stating that with respect to the indemnification
obligations set forth in Section 7.2, Losses exist and specifying in
reasonable detail the individual items of such Losses included in the amount so
stated, the date each such item was paid, properly accrued or arose, the nature
of the inaccuracy in, or breach of warranty, representation or covenant to
which such item is related and an estimate of attorney’s fees and expenses
necessary to conclude the matter. If the Seller does not object to such
claim(s) within fifteen (15) business days after the delivery of the Claim
Certificate to the Seller, then Purchaser shall be entitled to be reimbursed for
such Losses as set forth herein and to exercise Purchaser’s right of offset.

 

26

 

(b)                                 The Seller may object to the claim in
the Claim Certificate by delivery to the Indemnified Party of such objection in
writing within fifteen (15) business days after the delivery of the Claim
Certificate to the Seller. In case the Seller shall so object in writing to any
claim or claims by an Indemnified Party made in any Claim Certificate, the
Indemnified Party shall have fifteen (15) business days to respond in a written
statement to the objection of the Seller. If after such second fifteen (15)
business day period there remains a dispute as to any claims set forth in a
Claim Certificate, the Seller and the relevant Indemnified Party shall attempt
in good faith for sixty (60) days to agree upon the rights of the respective
parties with respect to each of such claims. If the Seller and Indemnified
Party should so agree, a memorandum setting forth such agreement shall be prepared
and signed by both the Seller and the Indemnified Party, and the Indemnified
Party shall be entitled to reimbursement for such Losses as set forth herein.

 

(c)                                  If no agreement can be reached after good
faith negotiation between the parties pursuant to subsection (b) above,
the Indemnified Party or the Seller may, by written notice to the other, demand
binding arbitration of the matter. Any conflicts arbitrated pursuant to this Section 7.3
shall be arbitrated in accordance with the provisions of Section 9.2 of
this Agreement.

 

7.4.                              Challenge of Third
Party Claims.

 

(a)                                  Promptly after receipt by an Indemnified
Party of notice of the assertion or commencement by any third party of any
claim, investigation, proceeding or action with respect to which the Seller may become
obligated to indemnify, hold harmless, compensate or reimburse an Indemnified
Party pursuant to this Article VII, such Indemnified Party will give
notice to the Seller of the commencement of such claim (“Claim Notice”), but
the failure to notify the Seller will not relieve the Seller of any liability
that it may have to any Indemnified Party, except to the extent that the
Seller demonstrates that the defense of such action is prejudiced by
Indemnified Party’s failure to give such notice.

 

(b)                                 The Seller may elect to participate, at
its sole cost and expense, with such Indemnified Party to challenge any claims
that are asserted by a third party for which Indemnified Party has delivered
the Claim Notice to the Seller. If the Seller elects to participate, the Seller
must deliver a notice to the Indemnified Party within twenty (20) calendar days
after the receipt of the Claim Notice. The Seller shall not, without the
Indemnified Party’s prior written consent, settle or compromise any third party
claims or consent to entry of any judgment. The Indemnified Party shall consult
with the Seller with respect to any claims asserted by a third party, and will
inform the Seller of all material developments with respect to such
claims, but the Indemnified Party shall have the right in its sole discretion
to settle any claim.

 

(c)                                  For avoidance of doubt, notwithstanding the
provisions of this Section 7.4, as between the parties, claims for
indemnification shall remain subject to the claims procedure set forth in Section 7.3.

 

7.5.                              No Contribution. The Seller shall not have and shall not
exercise or assert (or attempt to exercise or assert), any right of
contribution, right of indemnity or other right or remedy against the Company
in connection with any indemnification obligations or any other liability to
which the Seller may become subject to in connection with this Agreement.

 

27

 

7.6.                              Limitation on
Indemnification; Right to Offset.

 

(a)                                  Amount Limitation. The Seller shall not have any obligation to
indemnify any Indemnified Party under this Article VII to the extent the
aggregate amount of the Claims for which the Indemnified Parties are entitled
to indemnification hereunder exceeds an amount equal to Two Million Five
Hundred Thousand Euro (€2,500,000) (after which point the Seller will have no
obligation to indemnify any Indemnified Party from and against any further
Claims).

 

(b)                                 Right to Offset. The Purchaser shall have the right, in
addition to any other rights of the Indemnified Parties hereunder and in law or
equity, to offset the outstanding balance of unpaid principal and interest
under the Note against any amounts due to the Purchaser or any other
Indemnified Party from the Seller under this Article VII. For avoidance of
doubt, the Purchaser’s right to offset shall be subject to the amount
limitation set forth in Section 7.6(a) and the eighteen month
Termination Date provision set forth in Section 7.1(a).

 

ARTICLE VIII

TERMINATION

 

8.1.                              Termination. This Agreement may be terminated at any
time, upon the earlier of any one of the following prior to the Effective Time:

 

(a)                                  by the mutual written consent of the parties
to this Agreement;

 

(b)                                 by either the Seller or Purchaser, by written
notice to the other if, for any reason, the Closing has not occurred prior to
the close of business on October 31, 2007; provided, however, that the
right to terminate this Agreement pursuant to this Section 8.1(b) shall
not be available to the Seller or Purchaser, as applicable, if the party
seeking to terminate the Agreement is responsible for the delay;

 

(c)                                  by Seller or Purchaser, by written notice to
the other, if prior to Closing any court of competent jurisdiction shall have
issued an order, judgment or decree (other than a temporary restraining order)
restraining, enjoining or otherwise prohibiting the Transaction and such order,
judgment or decree shall have become final and non-appealable;

 

(d)                                 at the election of Seller or Purchaser, if
prior to Closing the other has breached any representation, warranty, covenant
or agreement contained in this Agreement, which breach has not been cured on or
before thirty (30) Business Days following delivery of written notice of such
breach by the non-breaching party; provided, however, that the right to
terminate this Agreement pursuant to this Section 8.1(d) shall not be
available to the Seller or Purchaser if such party at such time, is in breach
of any representation, warranty, covenant or agreement set forth in this
Agreement.

 

8.2.                              Effect of Termination.
In the event of the termination of this
Agreement by either the Seller or Purchaser pursuant to Section 8.1, (i) this
Agreement shall forthwith 

 

28

 

become
void and have no further force or effect, and (ii) there shall be no
liability under this Agreement on the part of Purchaser, the Seller or the
Company.

 

8.3.                              Expenses. All costs and expenses incurred in connection
with this Agreement and the Transaction shall be paid by the party incurring
such costs and expenses, whether or not the Transaction is consummated. At the
closing, the Seller shall pay all costs and expenses incurred in connection
with this Agreement and the Transaction by the Seller, including, without
limitation, all attorney’s fees incurred by the Seller or the Company in
connection with the Transaction.

 

8.4.                              No Rescission. Any rescission of this Agreement after
Closing (including but not limited to Wandelung in
the sense of Art. 207 CO or invocation of error in the sense of art. 24 CO )
shall be excluded.

 

ARTICLE IX

MISCELLANEOUS

 

9.1.                              Certain Definitions; Rules of
Construction. Definitions shall
apply equally to both the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. All references herein to
Articles, Sections, Exhibits and Schedules shall be deemed to be references to
Articles and Sections of, and Exhibits and Schedules to, this Agreement unless
the context shall otherwise require. All Exhibits and Schedules attached hereto
shall be deemed incorporated herein as if set forth in full herein and, unless
otherwise defined therein, all terms used in any Exhibit or Schedule shall
have the meaning ascribed to such term in this Agreement. The words “include,” “includes”
and “including” shall be deemed to be followed by the phrase “without
limitation.”  The words “hereof,” “herein”
and “hereunder” and words of similar import when used in this Agreement shall refer
to this Agreement as a whole and not to any particular provision of this
Agreement. Unless otherwise expressly provided herein, any agreement, plan,
instrument or statute defined or referred to herein or in any agreement or
instrument that is referred to herein means such agreement, plan, instrument or
statute as from time to time amended, modified or supplemented, including (in
the case of agreements or instruments) by waiver or consent and (in the case of
statutes) by succession of comparable successor statutes and references to all
attachments thereto and instruments incorporated therein. For the purposes of
this Agreement, the following terms shall have the following meanings:

 

“Applicable Law” means any national, federal,
state or local law, regulation, code, ordinance, statute, rule, Order,
judgment, decree or other requirement of a Governmental Body applicable to the
business of the Seller, Company, any Company Subsidiary or Purchaser as the
context may require.

 

“Benefit Plan” means each deferred
compensation, executive compensation, incentive compensation, stock purchase or
other stock-based compensation plan, severance or termination pay, sick leave
insurance, occupational and non-occupational insurance, holiday, vacation or
other bonus plan or practice, hospitalization or other medical, life or other
insurance, supplemental unemployment benefits, profit sharing, mandatory and
nonmandatory pension, or 

 

29

 

retirement
plan, program, agreement, commitment or arrangement, and each other employee
Benefit Plan, program, agreement or arrangement.

 

“Business Day” means any day other than
Saturday or Sunday or any other day on which banks in Zurich/Switzerland are
permitted or obligated to be closed for business, provided, however, that with
respect to the giving of notice hereunder, the term “Business Day” shall also
exclude nationally recognized holidays in the country where notice is received.

 

“Claim” means any action, suit, claim,
complaint, demand, litigation or similar proceeding.

 

“CO” means Swiss Code of Obligations, as
amended.

 

“Company Material Adverse Effect” means any
change, effect, event or occurrence that is materially adverse to the condition
(financial or otherwise), assets, properties, business, or operations of the
Company or any Company Subsidiary.

 

“Environmental Laws” means all applicable
statutes, rules, regulations, ordinances, orders, decrees, judgments, permits,
licenses, consents, approvals, authorizations, and governmental requirements or
directives or other obligations lawfully imposed by any Governmental Body or
Governmental Agency under national, federal, state, local or common law,
indemnity agreements or other contractual obligations, in each case, pertaining
to the protection of the environment, protection of public health, protection
of worker health and safety, the treatment, emission and/or discharge of
gaseous, particulate and/or effluent pollutants, and/or the handling of
hazardous materials.

 

“Environmental Matter” means any matter
arising out of, relating to, or resulting from pollution, contamination,
protection of the environment, human health or safety, health or safety of
employees, sanitation, and any matters relating to emissions, discharges,
disseminations, releases or threatened releases, of Hazardous Substances into
the air (indoor and outdoor), surface water, groundwater, soil, land surface or
subsurface, buildings, facilities, real or personal property or fixtures or
otherwise arising out of, relating to, or resulting from the manufacture,
processing, distribution, use, treatment, storage, disposal, transport,
handling, release or threatened release of Hazardous Substances.

 

“Exchange Act” means the Securities and
Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

 

“Governmental Body” means any court,
administrative or regulatory agency or commission or other governmental
authority of competent jurisdiction.

 

“Governmental Agency” means (i) the
Government of Switzerland, including all departments and agencies of any branch
of the Government of Switzerland, all independent agencies or
instrumentalities  and (ii) any
cantonal or communal government, including all departments, agents, agencies,
branches, independent agencies or instrumentalities, activities, and
non-appropriated fund activities of or within a regional or local government
and all regional or local government corporations.

 

30

 

“Hazardous Substances” means any pollutants,
contaminants, toxic or hazardous or extremely hazardous substances, materials,
wastes, constituents, compounds, chemicals (including, without limitation,
petroleum or any by-products or fractions thereof, any form of natural
gas, Bevill Amendment materials, lead, asbestos and asbestos-containing
materials (“ACM”), building construction materials and debris, polychlorinated
biphenyls (“PCBs”) and PCB-containing equipment, radon and other radioactive
elements, ionizing radiation, electromagnetic field radiation and other
non-ionizing radiation, sonic forces and other natural forces, infectious,
carcinogenic, mutagenic, or etiologic agents, pesticides, defoliants,
explosives, flammables, corrosives and urea formaldehyde foam insulation) that
are regulated by any Environmental Laws. For the purpose of the present
Agreement “Hazardous Substance” shall not include drugs held by the Company or
the Company Subsidiary for the purpose of their business.

 

“Intellectual Property” means all of the
following as they are used in connection with the business of a Person as
presently conducted and as they exist in all jurisdictions or any treaty regime
throughout the world, in each case, to the extent owned or controlled by such
Person:

 

(a)                                  patents, patent applications and inventions,
designs and improvements described and claimed therein, patentable inventions
and other patent rights (including any divisions, continuations,
continuations-in-part, substitutions, or reissues thereof, whether or not
patents are issued on any such applications and whether or not any such
applications are modified, withdrawn, or resubmitted);

 

(b)                                 trademarks, service marks, trade dress, trade
names, brand names, designs, logos, or corporate names, whether registered or
unregistered, and all registrations and applications for registration thereof;

 

(c)                                  copyrights and mask works, including all
renewals and extensions thereof, copyright registrations and applications for
registration thereof;

 

(d)                                 trade secrets, confidential business
information and other proprietary information, concepts, ideas, designs,
research or development information, processes, procedures, techniques,
technical information, specifications, operating and maintenance manuals,
engineering drawings, methods, know-how, technical data and databases,
discoveries, inventions, modifications, extensions, improvements, and other
proprietary rights (whether or not patentable or subject to copyright, mask
work, or trade secret protection);

 

(e)                                  computer software programs, including, without
limitation, all source code, object code, and documentation related thereto;
and

 

(f)                                    Internet addresses, domain names, web sites,
web pages and similar rights and items.

 

“Knowledge” with respect to any Person, means
the actual knowledge of any individual or the officers, senior managers or
directors of such Person, in each case after reasonable inquiry.

 

31

 

“Lien” means any mortgage, pledge, lien,
charge, easement, restrictive covenant, encumbrance, voting or transfer
restriction, or security interest.

 

“Loss Contract(s)” means  those Company
Material Contracts pursuant to which the Company will incur a Net Loss.

 

“Material Contracts” means all of the
following contracts, agreements, understanding or arrangements (each, a “Contract”):

 

(a)                                  any Contract relating to the employment of
any executive management team member or operational team member;

 

(b)                                 any Contract relating to the acquisition,
transfer, development, sharing or license of any material Intellectual Property
(except for any Contract pursuant to which any material Intellectual Property
is licensed to a Person under any third party software license generally
available to the public at a cost of no more than CHF 120,000);

 

(c)                                  any Contract which provides for
indemnification of any officer, director, employee or agent of a Person;

 

(d)                                 any Contract imposing any restriction on the
right or ability of a Person to (i) compete with any other Person, (ii) acquire
any material product or other material asset or any services from any other
Person, sell any material product or other material asset to or perform any
services for any other Person or transact business or deal in any other manner
with any other Person, (iii) develop or distribute any material technology,
(iv) make, have made, use or sell any current products or products under
development, or (v) acquire any capital stock or other security of any
Person;

 

(e)                                  any Contract that contemplates or involves
payment or delivery of cash or other consideration in an amount or having a
value in excess of CHF 150,000 in the aggregate, or contemplates or involves
the performance of services having a value in excess of CHF 150,000 in the
aggregate;

 

(f)                                    any other Contract, if a breach or
termination of such Contract would reasonably be expected to have a Material
Adverse Effect on a Person;

 

(g)                                 any Contract pursuant to which the Company or
any Company Subsidiary is required to give notice or provide information to or
otherwise obtain the consent of any Person prior to considering, negotiating,
accepting or consummating any Acquisition Proposal  or entering into any discussions, agreements,
arrangements relating to any Acquisition Transaction.

 

(h)                                 any Contract for the lease of real property;

 

(i)                                     any Contract guarantying the performance of
any Person or guarantying any indebtedness for borrowed money;

 

(j)                                     any Contract containing any covenant limiting
in any respect the right of a Person (1) to engage in any line of
business, (2) to develop, market or distribute any 

 

32

 

products or services, or (3) to
compete with any Person or granting any exclusive distribution rights; and

 

(k)                                  any Contract granting to a Person any credit,
extending any loan or other borrowing facility.

 

“Net Loss(es)” means, with respect to any
applicable Company Material Contract, the revenue derived by the Company with
respect to such Company Material Contract is less than all direct and/or out of
pocket costs, fees and expenses incurred by the Company in connection with
performing its obligations thereunder.

 

“Purchaser Material Adverse Effect” means any
change, effect, event or occurrence that is materially adverse to the condition
(financial or otherwise), assets, properties, prospects, business or operations
of Purchaser or any Purchaser Subsidiary.

 

“Person” means any individual, corporation,
partnership, limited liability company or partnership, joint venture,
association, joint-stock company, trust, unincorporated organization or
government (including any agency or political subdivision thereof).

 

“Securities Act” means the Securities Act of
1933, as amended, and the rules and regulations promulgated thereunder.

 

“Subsidiary” of any Person means any
corporation, partnership, joint venture or other legal entity of which such
Person (either directly or through or together with any other Subsidiary of
such Person), owns, directly or indirectly, 50% or more of the stock or other
equity interests the holders of which are generally entitled to vote for the
election of the board of directors or similar governing body of such
corporation, partnership, joint venture or other legal entity.

 

“Tax” or “Taxes” means any taxes,
charges, fees, imposts, levies or other assessments, including, without
limitation, all net income, indirect taxes and levies (including, without
limitation, VAT, stamp and withholding taxes), franchise, profits, gross
receipts, capital, sales, use, ad valorem, value added, transfer, transfer
gains, inventory, capital stock, license, withholding, payroll or salary source
tax, employment, social security (or similar), unemployment, excise, severance,
stamp, occupation, real or personal property, premium, windfall profits,
environmental, customs duties, registration, alternative or add-on minimum, and
estimated taxes, customs duties, fees, assessments and charges of any kind
whatsoever, together with any interest and any penalties, fines, additions to
tax or additional amounts thereon whether disputed or not, imposed by any
taxing authority (federal, cantonal, communal or foreign) and shall include any
transferee liability in respect of Taxes.

 

“Tax Return” means any returns, forms
declarations, reports, estimates, information returns or statements relating to
Taxes, including any schedule or attachment thereto, and including any
amendment thereof.

 

“Transaction Documents” means this Agreement
and each of the agreements and instruments contemplated hereby or thereby,
including, without limitation, all documents, instruments or agreements attached
to or contemplated by any of the foregoing.

 

33

 

9.2.                              Arbitration. If a dispute arises between the parties
relating to the interpretation or performance of this Agreement, including the
resolutions of claims provided for in Section 7.3, and with the exception
of any claim for a temporary restraining order or preliminary or permanent
injunctive relief to enjoin any breach or threatened breach hereof, such
dispute shall be settled by arbitration in accordance with the Swiss Rules of
International Arbitration of the Swiss Chambers of Commerce in force on the
date when the notice of arbitration is submitted in accordance with these
Rules. The number of arbitrators shall be three. The seat of the arbitration shall
be in Zurich/Switzerland , and judgment upon the award rendered by the
arbitrators may be entered in any court having jurisdiction thereof. The
arbitrators must be knowledgeable in the subject matter at issue in the
dispute. The arbitration shall be conducted in English. The arbitrators shall
make his or her decision in accordance with the terms of this Agreement and
Applicable Law. The decision of the arbitrator shall be final and may be
sued on or enforced by the party in whose favor it runs in any court of
competent jurisdiction at the option of the successful party. The rights and
obligations of the parties to arbitrate any dispute relating to the
interpretation or performance of this Agreement shall survive the expiration of
this Agreement for any reason. The arbitrator shall be empowered to award
specific performance, injunctive relief and other equitable remedies as well as
damages, but shall not be empowered to award punitive or exemplary damages.

 

9.3.                              Waivers and Amendments.
Subject to Applicable Law, this
Agreement may be amended, superseded, canceled, renewed or extended, and
the terms hereof may be waived, only by a written instrument signed by the
parties hereto or, in the case of a waiver, by or on behalf of the party
waiving compliance. No delay on the part of any party in exercising any
right, power or privilege hereunder shall operate as a waiver thereof, nor
shall any waiver on the part of any party of any such right, power or
privilege, nor any single or partial exercise of any such right, power or
privilege, preclude any further exercise thereof or the exercise of any other
such right, power or privilege.

 

9.4.                              Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of Switzerland (without regard to conflict
of law rules). The application of the Vienna Convention on the International
Sale of Goods dated April 11, 1980, shall be excluded.

 

9.5.                              Notices. Any notices or other communications required
under this Agreement shall be in writing and be effective upon delivery if
given by hand delivery or facsimile transmission or on the next day after given
if delivered by overnight courier, and shall be given at the addresses or
facsimile numbers set forth below, with copies provided as follows:

 

	
  (a)

  	
  if to the Seller:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Cerep S.A.

  
	
   

  	
  155 Boulevard Haussmann

  
	
   

  	
  75008 Paris, France

  
	
   

  	
  Attn: Thierry Jean, Ph.D.

  
	
   

  	
  Fax:                       

  
	
   

  	
   

  

 

34

 

	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
                              

  
	
   

  	
                              

  
	
   

  	
  Attn:                     

  
	
   

  	
  Fax:                      

  
	
   

  	
   

  
	
  (c)

  	
  if to Purchaser:

  
	
   

  	
   

  
	
   

  	
  Averion International Corp.

  225 Turnpike Road

  Southborough, MA 01772

  Attn: Chief Executive Officer

  Fax: (508) 597-5765

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Foley & Lardner LLP

  402 W. Broadway

  21st Floor

  San Diego, CA 92101

  Attn: Adam Lenain, Esq.

  Fax: (619) 234-3510

  

 

or
at such other place or places or to such other person or persons as shall be
designated in writing by the parties to this Agreement in the manner herein
proved.

 

9.6.                              Section Headings.
The section and paragraph headings
contained in this Agreement are for reference purposes only and shall not in
any way affect the meaning or interpretation of this Agreement.

 

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

 

9.8.                              Assignments. Except as expressly provided herein, the
rights and obligations of a party hereunder may not be assigned,
transferred or encumbered without the prior written consent of the other
parties. Notwithstanding the foregoing, Purchaser may, without consent of any
other party, cause one or more subsidiaries of Purchaser to carry out all or part of
the transactions contemplated hereby; provided, however, that Purchaser shall,
nevertheless, remain liable for all of its obligations, and those of any such
Subsidiary, to Seller hereunder. This Agreement shall be binding upon, inure to
the benefit of, and be enforceable by the respective successors and permitted
assigns of the parties hereto. Nothing contained herein shall be deemed to
confer upon any other person any right or remedy under or by reason of this
Agreement.

 

9.9.                              Entire Agreement;
Enforceability. This Agreement and
the Transaction Documents, including the Exhibits and Schedules attached hereto
and thereto:  (i) constitute the
entire agreement among the parties with respect to the Transaction and
supersedes all prior 

 

35

 

agreements
and understandings, both written and oral, among the parties, with respect to
the subject matter hereof and thereof; and (ii) shall be binding upon, and
are solely for the benefit of each party hereto and nothing in this Agreement
is intended to confer upon any other Person any rights or remedy of any nature
whatsoever hereunder or by reason of this Agreement or any of the Transaction
Documents.

 

9.10.                        Equitable Relief. Seller and Company agree that any breach of Article V
will result in irreparable injury to Purchaser for which a remedy at law would
be inadequate; and that, in addition to any relief at law which may be
available to Purchaser for such breach and regardless of any other provision
contained in this Agreement, Purchaser shall be entitled to injunctive and
other equitable relief as a court may grant. This Section shall not
be construed to limit Purchaser’s right to obtain equitable relief for other
breaches of this Agreement under general equitable standards.

 

9.11.                        Severability. Any term or provision of this Agreement which
is invalid, illegal or unenforceable in any jurisdiction shall, as to that
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without rendering invalid, illegal or unenforceable the
remaining terms and provisions of this Agreement or affecting the validity or
enforceability of any of the terms or provisions of this Agreement in any other
jurisdiction. If any provision of this Agreement is so broad as to be
unenforceable, the provision shall be interpreted to be only so broad as is
enforceable.

 

[Remainder of Page Intentionally Left Blank]

 

36

 

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

 

 

	
   

  	
  AVERION INTERNATIONAL CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip T. Lavin

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   Philip T. Lavin

  	
   

  
	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  CEREP S.A.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thierry Jean

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   Thierry Jean

  	
   

  
	
   

  	
  Title:

  	
   Chairman & CEO

  	
   

  
									

 

[Signature Page to
Securities Purchase Agreement]

 

 

EXHIBIT A

PROMISSORY NOTE

 

[See attached]

 

1

 

EXHIBIT B

FORM NET WORKING CAPITAL CERTIFICATE

 

[See attached]

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