Document:

Exhibit 4.3

 

OFFICER’S CERTIFICATE

 

The undersigned, William R.
Brown, Executive Vice President and Chief Financial Officer of Plum Creek
Timber Company, Inc. (the “Company”), a Delaware corporation, hereby
certifies, on behalf of the Company in its capacity as sole member of Plum
Creek Timber I. L.L.C., a Delaware limited liability company, in its capacity
as general partner of the Plum Creek Timberlands, L.P. (the “Partnership”), a
Delaware limited partnership, pursuant to Sections 2.1, 2.3 and 11.5 of the
Indenture, dated as of November 14, 2005 (the “Indenture”), by and among
the Partnership, as issuer, the Company, as guarantor, and U.S. Bank National
Association, a national banking association, as trustee, as follows:

 

1.                                       The undersigned has read Sections 2.1 and
2.3 of the Indenture and such other sections of the Indenture and other
documents and has made such other inquiries as he has deemed necessary to make
the certifications set forth herein.

 

2.                                       In the opinion of the undersigned, the
covenants and conditions precedent provided for in the Indenture, as
supplemented by the Officer’s Certificate dated as of November 14, 2005
(the “Initial Officer’s Certificate”), relating to the further issuance of the Partnership’s
5.875% Notes due 2015 in the aggregate principal amount of $225,000,000 (the “Additional
Notes”) have been complied with.

 

3.                                       The form and terms of the Additional
Notes, as set forth on Annex A attached hereto, have been duly
established pursuant to Sections 2.1 and 2.3 of the Indenture and Section 20
of the Initial Officer’s Certificate and comply with the Indenture.

 

[The
remainder of this page is blank]

 

1

 

IN WITNESS WHEREOF, the
undersigned has caused this certificate to be duly executed as of this 2nd
day of May, 2006.

 

 

	
   

  	
  PLUM CREEK TIMBERLANDS,
  L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  PLUM CREEK TIMBER I,
  L.L.C.

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  PLUM CREEK TIMBER COMPANY, INC.

  
	
   

  	
   

  	
   

  	
  its Sole Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ William R. Brown

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  William R. Brown

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice President
  and

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
								

 

[Signature page to Officer’s Certificate to Indenture]

 

2

 

ANNEX A

 

Pursuant to Sections 2.1 and
2.3 of the Indenture, dated as of November 14, 2005 (the “Indenture”), among
Plum Creek Timberlands, L.P., as issuer, Plum Creek Timber Company, Inc.,
as guarantor, and U.S. Bank National Association, as trustee, and Section 20
of the Officer’s Certificate dated as of November 14, 2005 (the “Initial
Officer’s Certificate”), the terms of the additional Securities (such
additional Securities being referred to herein as the “Additional Notes”) of
the series of Securities designated “5.875% Notes due 2015”, $300,000,000
aggregate principal amount of which have been previously issued and are
outstanding (the “Initial Notes” and, together with the Additional Notes, the “Notes”),
to be issued pursuant to the Indenture are as follows:

 

1.                                       Initial Aggregate Principal
Amount. The Additional Notes shall be limited in initial aggregate principal
amount to $225,000,000 (except for Additional Notes authenticated and delivered
upon registration of transfer of, or in exchange for, or in lieu of, other Additional
Notes pursuant to Section 2.8, 2.9, 2.11, 8.5 or 12.3 of the Indenture). The
Additional Notes shall constitute a further issuance of and be consolidated and
form a single series with the Initial Notes. The Notes shall be
limited in initial aggregate principal amount to $525,000,000.

 

2.                                       Other Terms. Except as
otherwise provided herein, the Additional Notes shall have the same terms and form as
the Initial Notes, which terms and form are set forth in the Initial
Officer’s Certificate and are incorporated herein as if such terms were set
forth herein.

 

Capitalized terms used but
not otherwise defined herein shall have the respective meanings ascribed to
such terms in the Indenture.

 

A-1Exhibit 10.1

 

Share Purchase Agreement

 

by and among

 

(1) THINK PARTNERSHIP INC.

 

(2) JAMES BANKS

 

DATED AS OF APRIL 27, 2006

 

 

	
  Table of Contents

  
	
   

  	
   

  
	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I
  DEFINITIONS

  	
  2

  
	
  ARTICLE II SALE
  AND PURCHASE

  	
  10

  
	
  ARTICLE III
  RESTRICTIONS ON TRANSFER: REGISTRATION

  	
  11

  
	
  ARTICLE IV
  REPRESENTATIONS AND WARRANTIES OF THE SELLER

  	
  12

  
	
  ARTICLE V
  REPRESENTATIONS AND WARRANTIES OF BUYER

  	
  27

  
	
  ARTICLE VI
  CLOSING

  	
  29

  
	
  ARTICLE VII
  EARNOUT

  	
  31

  
	
  ARTICLE VIII
  CONDITIONS PRECEDENT TO CLOSING

  	
  33

  
	
  ARTICLE IX
  COVENANTS

  	
  34

  
	
  ARTICLE X
  RESTRICTIVE COVENANTS

  	
  35

  
	
  ARTICLE XI
  INDEMNIFICATION

  	
  36

  
	
  ARTICLE XII TAX
  MATTERS

  	
  38

  
	
  ARTICLE XIII
  MISCELLANEOUS

  	
  38

  
	
   

  	
   

  
	
  AGREED FORM DOCUMENTS

  	
   

  
	
   

  	
   

  
	
  ESCROW AGREEMENT

  	
   

  
	
  MANAGEMENT AGREEMENTS

  	
   

  
	
  POWER OF ATTORNEY

  	
   

  
	
  REGISTRATION RIGHTS AGREEMENT

  	
   

  
	
  DEED OF RESIGNATION

  	
   

  
	
  WARRANT AGREEMENTS

  	
   

  
	
   

  	
   

  
	
  SCHEDULES

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 1: COMPANY INFORMATION
  SHEET

  	
   

  
	
  SCHEDULE 2: SELLER DISCLOSURE
  SCHEDULE

  	
   

  
	
  SCHEDULE 3: BUYER DISCLOSURE
  SCHEDULE

  	
   

  
	
  SCHEDULE 4: TAX SCHEDULE

  	
   

  

 

i

 

SHARE
PURCHASE AGREEMENT

 

This Agreement made and
entered into as of April 27, 2006 by and among:

 

(1)           THINK PARTNERSHIP INC., a Nevada
corporation (“THK” or “BUYER”), with its business address at 5
Revere Drive, Suite 510 Northbrook, IL 60062; and

 

(2)           JAMES BANKS, a British National
holding Passport No. 034712524 issued by the Government of the United Kingdom
and currently residing at 76 Redesdale Gardens, Isleworth, Middlesex TW7 5JD
(the “SELLER”);

 

The Buyer and the Seller
are sometimes together referred to as “PARTIES” and any one of them as “PARTY”.

 

WITNESSETH:

 

The Company is engaged in
the business of providing online marketing services, including search engine
marketing (collectively, the “Business”);

 

The Seller is the owner
of the legal and beneficial title to all of the issued share capital of the
Company. The Seller has agreed to sell and THK has agreed to buy, the Shares
comprising the entire issued share capital of the Company.

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants, representations and
warranties contained in this Agreement, and for other good and valuable
consideration, the receipt, adequacy and legal sufficiency of which are hereby
mutually acknowledged, intending to be legally bound, the Parties hereby agree
as follows:

 

ARTICLE I

DEFINITIONS

 

In addition to terms
defined elsewhere in this Agreement, the following terms when used in this
Agreement shall have the respective meanings set forth below:

 

“Accounts Date”
means 31 October 2005.

 

“Action” means any
claim, demand, action, cause of action, chose in action, right of recovery,
right of set-off, suit, arbitration, inquiry, proceeding or investigation by or
before any Governmental Authority or other person.

 

“Affiliate” means,
with respect to a specified Person, any other Person that, directly or
indirectly through one or more intermediaries, controls, is controlled by or is
under common control with such Person, and without limiting the generality of
the foregoing, includes, with respect to the specified Person: (a) any other
Person which beneficially owns or holds 10% or
more of the outstanding voting rights or other securities convertible into
voting rights of such Person, (b) any other Person of which the specified
Person beneficially owns or holds 10% or more of the outstanding voting rights
or other securities convertible into voting rights, or (c) any director,
officer or employee of such Person.

 

2

 

“Agreement” means
this agreement together with all Schedules.

 

“Agreed Form”
means a document being in a form agreed by the Seller and the Buyer and
initialed by or on behalf of the Seller and the Buyer for the purposes of
identification as such.

 

“Approved Liabilities”
has the meaning set forth in Section 4.26.

 

“Audited Closing Date
Balance Sheet” means the balance sheet of the Company as of the Closing
Date, prepared and audited by the THK Accountants after the Closing Date.

 

“Audited Financials”
has the meaning set forth in Section 4.8(a).

 

“Audited Four Quarter
Earnings” has the meaning set forth in Section 2.3(a).

 

“Business” is
defined in the recitals to this Agreement.

 

“Business Assets”
has the meaning set forth in Section 4.17(a).

 

“Business Day”
means any day other than a Saturday, Sunday or other day on which banks are
required or authorized by Law to be closed in the city of Chicago, Illinois or
London, England.

 

“Cash
Consideration” has the meaning set forth in Section 2.2(a).

 

“Claims of Any Nature”
has the meaning set forth in Section 4.26.

 

“Claims Threshold”
has the meaning set forth in Section 11.2(a).

 

“Clawback
Consideration” has the meaning set forth in Section 2.3(b).

 

“Closing” has the
meaning set forth in Section 6.1.

 

“Closing Date” has
the meaning set forth in Section 6.1.

 

“Company” means
Web Diversity Limited, a private limited company incorporated and registered in
England and Wales with Company Number 04352316 whose registered office is at 20
Church Street, Twickenham, Middlesex TW1 3NJ, further details of whom are set
out at Schedule 1.

 

“Company Financials”
has the meaning set forth in Section 4.8(a).

 

“Company Intellectual
Property” has the meaning set forth in Section 4.20(a).

 

“Compensation” has
the meaning set forth in Section 4.15(a).

 

“Competing Service”
has the meaning set forth in ARTICLE X(a).

 

“Consideration”
means the aggregate of the Cash Consideration and the Shares Consideration.

 

3

 

“Contract” means
any contract, plan, undertaking, understanding, agreement, license, lease,
note, mortgage or other binding commitment, whether written or oral.

 

“Copyrights” mean
all copyrights (registered or otherwise) and registrations and applications for
registration thereof, and all rights therein provided by multinational treaties
or conventions.

 

“Court” means any
court, tribunal or arbitration tribunal in any country, and any political
subdivision thereof.

 

“Database” means
all data and other information recorded, stored, transmitted and retrieved in
electronic form.

 

“Disclosure Schedule”
means the group of schedules setting out certain lists, documents and
exceptions relating to the representations and warranties of the Seller which
appear at ARTICLE IV, and attached to and forming part of this Agreement.

 

“Documents” means
this Agreement together with the Management Agreements, the Warrant Agreements,
the Escrow Agreement, the Registration Rights Agreement and the other
agreements, documents and instruments required or contemplated to be executed
in connection herewith.

 

“Earnings Threshold”
shall have the meaning set forth in Section 2.3(a).

 

“Earn Out Start Date”
means the date as determined in accordance with Section 7.2.

 

“Employees” has
the meaning set forth in Section 4.15(a).

 

“Employee
Agreement” has the meaning set forth in Section 4.15(a).

 

“Employee Benefit
Plans” has the meaning set forth in Section 4.16(c).

 

“Environmental Law”
means all
statutes, common law, byelaws, regulations, directives, codes of practice,
circulars, guidance notes and the like (whether in the United Kingdom or
elsewhere) concerning the protection of human health or the environment or the
conditions of the workplace or the generation, transportation, storage,
treatment or disposal of a Hazardous Substance.

 

“Escrow Agent” has the meaning set forth in Section 2.4.

 

“Escrow Agreement” has the meaning set forth in Section 2.4.

 

“First Twelve Quarters”
means the first twelve (12) full calendar quarters following the Earn Out Start
Date. For example only, if the Earn Out Start Date is 1 April 2006, the First
Twelve Quarters shall be calculated from 1 April 2006.

 

“First Twelve Quarters
Pre-Tax Earnings” means the aggregate pre-tax earnings of the Company
during the First Twelve Quarters as audited and certified by the THK
Accountants.

 

4

 

“Four Quarter Period”
means each and any period of four consecutive calendar quarters during the
First Twelve Quarters.

 

“GAAP” means
United Kingdom generally accepted accounting principles and practices in effect
from time to time consistently applied.

 

“Governmental
Authority” means to the extent it has jurisdiction, any supranational
governmental commission, council, directorate, court, trade agency, regulatory
body or other authority, or any national government, any legislature, any
political subdivision of a national government or of any state, county,
province or local jurisdiction therein, or any agency or instrumentality of any
such government or political subdivision.

 

“Hardware” means
all mainframes, midrange computers, personal computers, notebooks, servers,
switches, printers, modems, drives, peripherals and any component of any of the
foregoing.

 

“Hazardous Substance”
means any
natural or artificial substance (whether in the form of solid, liquid, gas or
vapour, alone or in combination with any other substance) capable of causing
harm to man or any other living organism, or capable of damaging the
environment or public health or welfare, including but not limited to
controlled, special, hazardous, toxic or dangerous waste.

 

“Health & Safety
Law” means all or any Laws which relate to the health and safety of those who work for the
Company (whether as employees or otherwise), who visit any of the properties
owned or occupied by the Company or who are in any way affected by the
activities of the Company or by persons working for the Company, including the
Factories Act 1961, the Offices, Shops and Railway Property Act 1963, the Fire
Precautions Act 1971, the Health & Safety at Work etc., Act 1974, the
Public Health (Control of Disease) Act 1984, the Public Health (Infectious
Diseases) Regulations 1985, the Management of Health and Safety at Work
Regulations 1992, the Workplace (Health, Safety and Welfare) Regulations 1992,
the Control of Substances Hazardous to Health Regulations 1994, the Reporting
of Injuries, Diseases and Dangerous Occurrences Regulations 1996, Approved
Codes of Practice and Guidance Notes issued by the Health & Safety
Commission/Executive.

 

“Hong Kong Company” means Web Diversity (HK) Limited, a company incorporated
in Hong Kong on 9 March 2005 with incorporation number 954772 with its
registered office at Unit 801, 8th Floor, Pacific House, 20 Queen’s
Road Central, Hong Kong.

 

“Hong Kong Shares” means the shares in the Hong Kong Company
owned by the Seller, being 100% of the entire issued share capital of the Hong
Kong Company.

 

“Indebtedness”
means, with respect to any Person, (a) all indebtedness of such Person, whether
or not contingent, for borrowed money, (b) all obligations of such Person for
the deferred purchase price of property or services, (c) all obligations of
such Person evidenced by notes, bonds, debentures or other similar instruments,
(d) all indebtedness created or arising under any conditional sale or other
title retention agreement with respect to property acquired by such Person
(even though the rights and remedies of a creditor or a lender under such an
agreement in the event of default are limited to repossession or sale of such
property), (e) all obligations of such Person as lessee under leases that have
been or should be, in accordance with GAAP, recorded as capital leases, (f) all
obligations, 

 

5

 

contingent or otherwise,
of such Person under acceptance, letter of credit or similar facilities, (g)
all obligations of such Person to purchase, redeem, retire, defease or
otherwise acquire for value any capital stock of such Person or any warrants,
rights or options to acquire such capital stock, valued, in the case of
redeemable preferred stock, at the greater of its voluntary or involuntary
liquidation preference plus accrued and unpaid dividends, (h) all Indebtedness
of others referred to in clauses (a) through (g) above guaranteed directly or
indirectly in any manner by such Person, or in effect guaranteed directly or
indirectly by such Person through an agreement (1) to pay or purchase such
Indebtedness or to advance or supply funds for the payment or purchase of such
Indebtedness, (2) to purchase, sell or lease (as lessee or lessor) property, or
to purchase or sell services, primarily for the purpose of enabling the debtor
to pay the Indebtedness or to assure the holder of such Indebtedness against
loss, (3) to supply funds to or in any other manner invest in the debtor
(including any agreement to pay for property or services irrespective of
whether such property is received or such services are rendered) or (4)
otherwise to assure a creditor against loss and all Indebtedness referred to in
clauses (a) through (g) above secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by)
any Lien on assets (including, without limitation, accounts and contract
rights) owned by such Person, even though such Person has not assumed or become
liable for the payment of such Indebtedness.

 

“Information System”
means any combination of Hardware, Software and/or Database(s) employed
primarily for the creation, manipulation, storage, retrieval, display and use
of information in electronic form or media.

 

“Intellectual Property”
means (a) inventions, whether or not patentable, whether or not reduced to
practice or whether or not yet made the subject of a pending Patent application
or applications, (b) ideas and conceptions of potentially patentable subject
matter, including, without limitation, any patent disclosures, whether or not
reduced to practice and whether or not yet made the subject of a pending Patent
application or applications, (c) design rights, whether registered or
unregistered; (d) Patents, (e) Trademarks, (f) Copyrights, (g) Software, (h)
trade secrets and confidential, technical or business information (including
ideas, formulas, compositions, inventions, and conceptions of inventions
whether patentable or unpatentable and whether or not reduced to practice), (i)
whether or not confidential, technology (including know-how and show-how),
manufacturing and production processes and techniques, research and development
information, drawings, specifications, designs, plans, proposals, technical
data, copyrightable works, financial, marketing and business data, Databases,
Information Systems, pricing and cost information, business and marketing plans
and customer and supplier lists and information, (j) copies and tangible
embodiments of all the foregoing, in whatever form or medium, (k) all rights to
obtain and rights to apply for Patents, and to register Trademarks and
Copyrights, (l) all rights under any license agreement and any license,
registered user agreement, technology or material, transfer agreement, and
other agreements or instruments with respect to items in (a) to (k) above; and
(m) all rights to sue and recover and retain damages and costs and attorneys’
fees for present and past infringement of any of the Intellectual Property rights
hereinabove set out.

 

“Inventories”
means all inventory, including, without limitation, merchandise, stock, raw
materials, work-in-process, finished goods, replacement parts, packaging,
office supplies, maintenance supplies, computer parts and supplies and Hardware
related to the Business maintained, held or stored by or for the Company at any
location whatsoever and any prepaid deposits for any of the same.

 

6

 

“Knowledge” means
(a) in the case of an individual, knowledge of a particular fact or other
matter if such individual is actually aware of such fact or other matter or
which such individual would have been aware of had the individual made
reasonable enquiry into the subject matter thereof, and (b) in the case of a
Person (other than an individual) such Person will be deemed to have Knowledge
of a particular fact or other matter if any individual who is serving as a
director, manager, officer, partner, executor, or trustee of such Person (or in
any similar capacity) has, or at any time had, actual knowledge of such fact or
other matter.

 

“Law” means all laws, statutes, ordinances orders,
rules and regulations of any Governmental Authority including all decisions of
Courts having the effect of law in any applicable jurisdiction.

 

“Leased Property”
means any real property leased by the Company as tenant, together with, to the
extent leased by the Company all buildings and other structures, facilities or
improvements currently or hereafter located thereon, all fixtures, systems,
equipment and items of personal property attached or appurtenant thereto, and
all easements, licenses, rights and appurtenances relating to the foregoing.

 

“Leases” has the
meaning set forth in Section 4.10(c).

 

“Liabilities” means
any and all debts, liabilities and obligations, whether accrued or fixed,
absolute or contingent, matured or unmatured, determined or determinable,
including, without limitation, those arising under any Law (including, without
limitation, any Environmental Law), Action or Order, Liabilities for Taxes and
those Liabilities arising under any Contract.

 

“Liens” means any
mortgage, pledge, security interest, attachment, encumbrance, lien (statutory
or otherwise), option, conditional sale agreement, right of first refusal,
first offer, termination, participation or purchase, or charge of any kind
(including any agreement to grant any of the foregoing), provided, however,
that the term “Lien” shall not include: (a) liens for Taxes, assessments
and charges of any Governmental Authority due and being contested in good faith
and diligently by appropriate proceedings (and for the payment of which
adequate provision has been made); (b) servitudes, easements, restrictions,
rights-of-way and other similar rights in real property or any interest therein
granted to any third party.

 

“Litigation” means
any suit, action, arbitration, cause of action, claim, complaint, criminal
prosecution, investigation, inquiry, demand letter, governmental or other
administrative proceeding, whether at law or at equity, before or by any Court,
Governmental Authority, arbitrator or other tribunal.

 

“Loss” and “Losses”
has the meaning set forth in Section 11.2(a).

 

“Management Agreements” means the employment agreements to be
entered into by the Company and each of the Seller and Simon Worsfold-Gregg, in
the Agreed Form.

 

“Material Adverse
Effect” means any circumstance, change in, or effect that, individually or
in the aggregate: (a) is, or could be, materially adverse to the business,
operations, assets or Liabilities (including, without limitation, contingent
Liabilities), employee relationships, customer or supplier relationships,
results of operations or the condition (financial or otherwise) of the Person,
or (b) could materially adversely affect the 

 

7

 

ability of the Person to
operate or conduct its business in the manner in which it is currently operated
or conducted, or contemplated to be conducted or operated.

 

“Order” shall mean
any judgment, order, writ, injunction, ruling, stipulation, determination,
award or decree of or by, or any settlement under the jurisdiction of, any
Court or Governmental Authority.

 

“Party” or “Parties”
is defined in the recitals to this Agreement.

 

“Patents” mean all
national and multinational invention registrations, patents, patent
registrations and patent applications, including all reissues, divisions,
continuations, continuations-in-part, extensions and reexaminations, and all
rights therein provided by multinational treaties or conventions and all
improvements to the inventions disclosed in each such registration, patent or
application.

 

“Permits” means
any licenses, permits, pending applications, consents, certificates,
registrations, approvals and authorizations.

 

“Person” means any
natural person, corporation, limited liability company, unincorporated
organization, partnership, association, joint venture, trust or any other
entity.

 

“Receivables”
means any and all accounts receivable, notes, book debts and other amounts due
or accruing to a Person, whether or not in the ordinary course of its business,
together with any unpaid financing charges accrued thereon.

 

“Restricted Period”
has the meaning set forth in ARTICLE X(a).

 

“Registration Rights
Agreement” means the agreement between THK and the Seller, in the Agreed
Form.

 

“Relevant Property”
means any premises now or previously owned, leased, occupied or controlled by
the Company.

 

“Shares” means all
of the issued share capital of the Company to be sold by the Seller to the
Buyer pursuant to this Agreement, as described in Schedule 1.

 

“Shares Consideration”
has the meaning set forth in Section 2.2(a).

 

“SEC” means the
United States Securities and Exchange Commission.

 

“Securities Act”
means the Securities Act of 1933 in USA, as amended from time to time.

 

“Seller’s Conditions
Precedent” has the meaning set forth in Section 8.1.

 

“Software” means
any and all (a) computer programs, including any and all software
implementations of algorithms, models and methodologies, whether in source code
or object code, (b) databases and compilations, including any and all data and
collections of data, whether machine readable or otherwise, (c) descriptions,
flow-charts and other work product used to design, plan, organize and develop
any of the foregoing, (d) the technology 

 

8

 

supporting any Internet
site(s) operated by or on behalf of the Person and (e) all documentation,
including user manuals and training materials, relating to any of the
foregoing.

 

“Subsidiary” or “Subsidiaries”
of a specified Person means any other Person in which such Person owns,
directly or indirectly, more than 50% of the outstanding voting shares or other
securities convertible into voting shares , or which may effectively be
controlled, directly or indirectly, by such Person.

 

“Tangible Personal
Property” is defined in Section 4.11(a).

 

“Tax”, “Taxes” or “Taxation”
means any compulsory contribution to state or local revenue, levied by central,
state, federal or local government and shall include (a) any withholding or
payment on account of Tax; and (b) any interest, penalty, fine or surcharge
payable in addition to any Tax, and without prejudice to the foregoing,
includes stamp duty and any liability arising
under section 601 ICTA (as defined in Schedule 4).

 

“Tax Covenant”
means the tax covenant set out at Schedule 4, Part III.

 

“Territory” has
the meaning set forth in ARTICLE X(a).

 

“THK Accountants”
means THK’s independent certified public accountants.

 

“THK Common Stock”
means the Common Stock, $.001 par value per share, of THK.

 

“THK Preferred Stock”
has the meaning set forth in Section 5.2.

 

“Trademarks” mean
all trademarks, service marks, trade dress, logos, trade names and corporate
names, whether or not registered, including all common law rights, and
registrations and applications for registration thereof, including, but not
limited to, all marks registered in the UK Patent and Trademark Office and the
Trademark Offices of other nations throughout the world, and all rights therein
provided by multinational treaties or conventions.

 

“Unapproved
Liabilities” has the meaning set forth in Section 11.2(a).

 

“Unaudited Financials”
has the meaning set forth in Section 4.8(a).

 

“Warrant Agreements”
means the agreements relating to the grant of warrants to purchase shares of
common stock of THK, to be entered into by THK and each of the Seller and Simon
Worsfold-Gregg, in the Agreed Form.

 

“Web Sites” means
all web sites, domain names, and associated internet properties, rights, titles
and interests in any way directly or indirectly used in or associated with the
Business.

 

“$”
means US Dollars.

 

9

 

ARTICLE II

SALE
AND PURCHASE

 

2.1           Sale and Purchase of Shares.

 

(a)           The
Seller will sell with full title guarantee, and the Buyer will buy the Shares
and the Hong Kong Shares from the Seller. The Shares and the Hong Kong Shares
will be sold free of any Lien and with all rights attached or accruing to them,
including all rights to any dividends or other distributions declared, made or
paid after the Closing Date.

 

(b)           The
Seller waives (and shall procure the waiver by his nominee(s) of) all rights of
pre-emption which he (or such nominee(s)) may have (whether under the Company’s
articles of association or otherwise) in respect of the transfer to Buyer of
the Shares , the Hong Kong Shares, or any of them.

 

(c)           The
Buyer shall not be obliged to complete the purchase of any of the Shares and
the Hong Kong Shares unless the purchase of all the Shares and the Hong Kong
Shares is completed simultaneously in accordance with this Agreement.

 

(d)           For
so long after Closing as the Seller remains the registered holder of any of the
Shares or the Hong Kong Shares, the Seller shall hold them and any
distributions, property and rights deriving from them in trust for the Buyer
and shall deal with the Shares and the Hong Kong Shares and any distributions,
property and rights deriving from them as the Buyer directs. In particular, the
Seller shall exercise all voting rights as the Buyer directs or shall execute
an instrument of proxy or other document which enables the Buyer or its
representative to attend and vote at any meeting of the Company or the Hong
Kong Company.

 

2.2           Consideration

 

(a)           The
Consideration for the Shares will consist of:

 

(i)            a
cash payment in the amount of $1,000,000 (one million US Dollars) (the “Cash
Consideration”), payable on Closing to a bank account hereby nominated by
Seller with the following details:

 

Account
Name: J.Banks/S.A. Kirkman

Bank:
Barclays Bank

Sort
Code: 20-42-76

Account
No: 40585106

 

(ii)           shares
of THK Common Stock (the “THK Shares”) having an aggregate value of
$1,000,000 (one million US Dollars), based on a deemed value of $2 (two
dollars) per share (the “Shares Consideration”). The Shares
Consideration will be issued to the Seller on Closing, subject to the terms of ARTICLE
III and the Registration Rights Agreement; and

 

(iii)          an
earnout payment subject to the terms of ARTICLE VII.

 

(b)           The
consideration for the Hong Kong Shares will consist of a cash payment of $1
(one US Dollar), receipt of which the Seller hereby acknowledges.

 

10

 

2.3           Clawback.

 

(a)           The
THK Shares issued as part of the Shares Consideration shall be subject to
forfeiture and return to Buyer in such number as is calculated in accordance
with Section 2.3(b) and the Consideration shall be adjusted downwards
accordingly in the event that the Company fails to earn an aggregate pre-tax
income of at least $1,000,000 (the “Earnings Threshold”) in any Four
Quarter Period, as determined by an audit or review of the Company conducted by
the THK Accountants at the end of each Four Quarter Period (the “Audited
Four Quarter Period Earnings”).

 

(b)           If
the Company fails to earn at least the Earnings Threshold in any Four Quarter
Period then the Seller will forfeit and return to Buyer in accordance with the
Escrow Agreement such percentage of the THK Shares in number as is equal to the
percentage shortfall between the highest Audited Four Quarter Period Earnings
earned during the First Twelve Quarters and the Earnings Threshold, (the “Clawback
Consideration”), regardless of what the market value of the THK Shares is
at such point in time. As an example only if the Company’s highest Audited Four
Quarter Period Earnings during the First Twelve Quarters is $700,000, then the
shortfall between this amount and the Earnings Threshold is $30,000 making the
percentage shortfall between these two figures 30%. The number of THK Shares to
be forfeited and returned by the Seller to the Buyer will therefore be 30% of
the total number of THK Shares allocated to Seller as part of the Shares
Consideration.

 

(c)           The
audits or reviews carried out to produce the Audited Four Quarter Period
Earnings for each Four Quarter Period as referred to in Section 2.3 shall be
conducted by THK Accountants and the results of such audits or reviews
(together with full access to working papers of the audits or reviews) shall be
provided to the Seller within five days of receipt of the same by the Buyer. THK
shall instruct the THK Accountants to complete the audits or reviews as soon as
reasonably practicable and in any event to endeavour if possible to complete
the audits or reviews within 3 months of the end of each Four Quarter Period.

 

2.4           Escrow Agreement. At the Closing, the
Shares Consideration shall be transferred by THK to Gerard M. Jacobs, as escrow
agent (the “Escrow Agent”), for the purpose of securing the Seller’s
obligations in Section 2.3 and the forfeiture and return of the Clawback
Consideration to THK in accordance with Section 2.3. The Shares Consideration
shall be held by the Escrow Agent pursuant to the terms of an escrow agreement
to be entered into among the Parties in the Agreed Form (the “Escrow
Agreement”). Any interest or dividends earned on the Shares Consideration
shall be disbursed to the Seller in accordance with the terms of the Escrow
Agreement. The Shares Consideration shall serve as the initial source until
exhausted, but not the only source, for the satisfaction of the obligations of
the Seller arising under Section 2.3.

 

ARTICLE III

RESTRICTIONS
ON TRANSFER: REGISTRATION

 

3.1           Restrictions
on Transfer. All certificates representing THK Common Stock issued pursuant
to this Agreement shall bear a legend stating that the THK Common Stock has not
been registered under the Securities Act, and may not be transferred or sold
without such registration or an exemption therefrom.

 

11

 

3.2           Registration.
At the Closing, THK and the Seller shall enter into the Registration Rights
Agreement.

 

ARTICLE IV

REPRESENTATIONS
AND WARRANTIES OF THE
SELLER

 

In order to induce the Buyer to enter into this
Agreement and to consummate the transactions contemplated hereby, the Seller
represents and warrants to each Buyer as follows:

 

4.1           Organization
and Qualification.

 

(a)           The
information contained in Schedule 1 is true, complete and accurate in all
respects and not misleading.

 

(b)           The Company is a company, duly organised,
validly existing and in good standing under the Laws of the jurisdiction of its
formation. The Company has all requisite power and authority to own,
lease and operate its properties and to carry on its business as now being
conducted. The Company is duly
qualified, authorised and/or licensed to conduct its business, in each
jurisdiction in which the character or location of the property owned, leased
or operated by it or the nature
of the business conducted by it
makes such qualification necessary. The Company carries on the Business and no
other activity.

 

4.2           Subsidiaries.
The Company does not have any Subsidiaries and does not own, directly or
indirectly, any equity or other ownership interests in any Person.

 

4.3           Organisation
Documents.

 

(a)           The
copies of the memorandum and articles of association or other constitutional
and corporate documents of the Company attached to the Disclosure Schedule are
true, accurate and complete in all respects as at the date hereof and copies of
all the resolutions and agreements required to be annexed to or incorporated in
those documents by the law applicable are annexed or incorporated.

 

(b)           All
statutory books and registers of the Company have been properly kept and no
notice or allegation that any of them is incorrect or should be rectified has
been received. All returns, particulars, resolutions and other documents that
the Company is required by law to file with or deliver to any authority in any
jurisdiction (including, in particular, the Registrar of Companies in England
and Wales) have been correctly made up and filed or, as the case may be,
delivered.

 

4.4           Authorization;
Enforceability. The Company and the Seller each has the legal capacity and
full right and authority to enter into this Agreement and the other Documents
to which each is a party and has the authority to execute, deliver and perform
its obligations under this Agreement and the other Documents to which it is a
party. The execution, delivery and performance of this Agreement and the other
Documents to which it is a party and the consummation of the transactions
contemplated herein and therein have been duly authorized and approved by the
Company and the Seller, and no other action on the part of the Company or the
Seller is necessary to consummate the transactions contemplated by this
Agreement 

 

12

 

and the other Documents. This Agreement and each of the other Documents
to be executed and delivered by the Company and the Seller have been duly
executed and delivered by, and constitute the legal, valid and binding
obligations of, the Company and the Seller respectively, are enforceable
against the Company and the Seller in accordance with their terms, except as
enforcement may be limited by bankruptcy, insolvency, moratorium and similar
laws relating to or affecting creditor rights generally.

 

4.5           No Violation or
Conflict. None of (a) the execution and delivery by the Company and
the Seller of this Agreement and the other Documents to be executed and
delivered by the Company and the Seller, (b) the consummation by the Company
and the Seller of the transactions contemplated by this Agreement and the other
Documents, or (c) the performance of this Agreement and the other Documents
required by this Agreement to be executed and delivered by the Company and the
Seller at Closing, will (1) conflict with or violate any provision of the
memorandum or articles of association or equivalent constitutional documents of
the Company or Seller (2) conflict with or violate any Law, Order or Permit
applicable to the Company or the Seller, or by which the Company’s assets are
bound or affected, or (3) result in any breach or violation of, or constitute a
default (or an event that with notice or lapse of time or both would become a
default) under, or impair the Company’s or the Seller’s rights or alter the
rights or obligations of any third party under, or give to others any rights of
termination, amendment, acceleration or cancellation of, or result in the
creation of any Lien on any of the properties or assets of the Company or the
Seller pursuant to, any Contract, Permit or other instrument or obligation to
which the Company or the Seller is a party or by which the Company, the Seller
or their respective properties or assets are bound or affected.

 

4.6           Governmental
Consents and Approvals. The execution, delivery and performance of this
Agreement and the other Documents by the Company and the Seller  does not and will not require any consent,
approval, authorization, Permit or other order of, action by, filing with or
notification to, any Governmental Authority.

 

4.7           Capital
Structure.

 

(a)           The
Seller owns full legal and beneficial title to 100% of the issued share capital
of the Company. The Shares have been duly authorized and validly issued, are
fully paid and non-assessable, are not subject to, nor were they issued in
violation of, any pre-emptive rights and are beneficially owned and registered
as set out in Schedule 1. Other than the Shares, no shares in the share capital
of the Company are
issued, outstanding or reserved for issuance.

 

(b)           The
Seller has full legal right, power and authority to sell, assign, transfer and
convey the Shares. The Seller is the sole legal and beneficial owner of the
Shares, free and clear of all Liens.

 

(c)           There
are no outstanding options, warrants, rights (pre-emptive or otherwise), calls,
commitments, conversion rights, rights of exchange or plans over the shares of
the Company, or any other agreements of any character (contingent or otherwise)
providing for the purchase, issuance, redemption, transfer or sale of any
interest in the Company
or its business, and none of the foregoing will arise as a result of the
execution or performance of this Agreement or the transactions contemplated
herein. There are no irrevocable proxies and no voting agreements with respect
to the share capital of the Company, or other equity or voting interest in, the Company. There are no outstanding
or 

 

13

 

authorized stock
appreciation, phantom stock, profit participation or similar rights with
respect to the share capital, or other equity or voting interest in, the
Company. The Company does not have any authorized or outstanding bonds,
debentures, notes or other indebtedness the holders of which have the right to
vote (or convertible into, exchangeable for, or evidencing the right to
subscribe for or acquire securities having the right to vote) with the
shareholders of the Company on any matter. There are no Contracts to which any
of the Seller or the Company is a party or by which any such Person is bound to
(i) repurchase, redeem or otherwise acquire any shares, or other equity or
voting interest in, the Company or any other Person or (ii) vote or dispose of
any shares, or other equity or voting interest in, the Company or any other
Person.

 

4.8           Financial
Statements.

 

(a)           The
Disclosure Schedule sets forth the balance sheets of the Company as of 31 March
2003, 31 March, 2004 and 31 March, 2005, respectively, and the related
consolidated income statement and statement of cash flows for the period from
inception to 31 March, 2005 (the “Audited Financials”), and (2) the
unaudited balance sheet as of the Accounts Date and the schedules thereto and
the related unaudited consolidated income statement and statement of cash flows
for the twelve month period then ended (the “Unaudited Financials”, and
collectively with the Audited Financials, the “Company Financials”). The
Company Financials (i) have been prepared on bases and principles which are
consistent with those used in the preparation of the statutory accounts of the
Company for the 2 complete financial years immediately preceding that which
ended on the Accounts Date, except as to the Unaudited Financials, for the
omission of notes thereto and normal year-end audit adjustments, which will not
be material individually or in the aggregate; (ii) are complete and correct in
all material respects and have been prepared in accordance with historical cost
convention, all applicable Law and GAAP consistently applied for the periods
presented. The Company Financials present fairly the financial condition and
operating results of the Company as of the dates and during the periods
indicated therein, subject to normal year-end adjustments, which will not be
material in amount or significance in the aggregate.

 

(b)           The
accounting and financial records of the Company are up to date, contain
complete and accurate details of material transactions of the Company and
comply with the provisions of sections 221 and 222 of the Companies Act 1985.

 

4.9           Conduct
in the Ordinary Course; Absence of Changes. Since the Accounts Date, the
Company has conducted the Business in the ordinary course, consistent with past
practice, and there has been no change in the Business which has had, or could
reasonably be anticipated to result in a Material Adverse Effect on the Company.
Without prejudice to the generality of the foregoing, since the Accounts Date:

 

(a)           the
Company has not issued or agreed to issue any share or loan capital;

 

(b)           no
dividend or other distribution of profits or assets has been, or agreed to be,
declared, made or paid by the Company;

 

(c)           the
Company has not borrowed or raised any money or taken any form of financial
security and no capital expenditure has been incurred on any individual item by

 

14

 

the Company in
excess of £5,000 and the Company has not acquired, invested or disposed of (or
agreed to acquire, invest or dispose of) any individual item in excess of
£5,000;

 

(d)           no
shareholder resolutions of the Company have been passed other than as routine
business at the annual general meeting;

 

(e)           no
payment has been made by the Company, or benefit conferred (directly or
indirectly) by the Company to, the Seller, any past or present director of the
Company or any person who is or was at the relevant time connected (as defined
in section 839 Income and Corporation Taxes Act) with the Seller or any such director.

 

(f)            there
has been no abnormal increase or reduction of stock-in-trade;

 

(g)           none
of the stock-in-trade reflected in the Company Financials has realised an
amount less than the value placed in it in the Company Financials;

 

(h)           the
Company has not offered price reductions, discounts or allowances on sales of
stock-in-trade, or sold stock-in-trade at less than cost price;

 

(i)            there
has not been any increases or decreases in salary, benefits, capital
expenditures, asset sales, dividends, distributions, or affiliate transactions
involving the Company and/or the Seller; and

 

(j)            there
has not been any unusual cash withdrawals, unusual payments, unusual contracts
or contract provisions, or other unusual transactions or business practices
involving the Company and/or the Sellers.

 

4.10         Property.

 

(a)           The
Disclosure Schedule lists (1) the street address of each parcel of Leased
Property, (2) the identity of the lessor, lessee and current occupant (if
different from lessee) of each such parcel of Leased Property, and (3) the term
and rental payment terms of the leases (and any subleases) pertaining to each
such parcel of Leased Property.

 

(b)           The
Company does not own nor is the Company in occupation of or entitled to any
estate or interest in any freehold or leasehold property other than the Leased
Property. Except in relation to the Leased Property, the Company does not have
any Liability in relation to any freehold or leasehold property and in
particular the Company has never assumed any liability under a lease (whether
as landlord, tenant, guarantor or otherwise). The Seller has made available to
the Buyer, true and correct copies of each deed for each parcel of Leased
Property to the extent relevant, and all deeds, title reports, insurance
policies, surveys, certificates of occupancy, environmental reports and audits,
appraisals, other title documents and other material documents relating to or
otherwise affecting the Leased Property, or the operation of the Business
thereon or any other uses thereof.

 

(c)           The
Seller has made available to the Buyer, true and correct copies of all leases
and subleases relating to the Leased Property and any and all ancillary
documents pertaining thereto (including, but not limited to, all amendments,
consents for alterations and documents recording variations and evidence of
commencement dates and expiration dates) (the “Leases”). With respect to
each Lease:

 

15

 

(1)           each
Lease is the legal, valid and binding, obligation of the parties thereto,
enforceable against each party, except as enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws relating to
or affecting creditor rights generally;

 

(2)           none
of (a) the execution and delivery by the Company and the Seller of this
Agreement and the other Documents, (b) the consummation by the Company and the
Seller of the transactions contemplated by this Agreement and the other
Documents, (c) the performance by the Company and the Seller of this Agreement
and the other Documents will (1) conflict with or violate the terms of any
Lease or (2) result in any breach or violation of or constitute a default (or
an event with notice or lapse of time or both would become a default) under, or
impair the Company’s rights or alter the rights or obligations of any third
party under, or give to others any rights of termination, amendment,
acceleration or cancellation of any Lease or provisions therein;

 

(3)           neither
the Company nor to the Knowledge of the Seller, any other party to any Lease,
is in breach or default in any material respect, and, to the Knowledge of the
Seller, no event has occurred that, with notice or lapse of time would
constitute a breach or default or permit termination, modification or acceleration
under the Lease or any provision therein; and

 

(4)           the
rental set forth in each Lease is the actual rental being paid, and there are
no separate agreements or understandings regarding the amount of rent.

 

4.11         Personal
Property.

 

(a)           The
Disclosure Schedule lists each item or distinct group of Hardware, machinery,
equipment, tools, supplies, furniture, fixtures, vehicles, rolling stock and
other tangible personal property used in the Business and owned or leased by
the Company (the “Tangible Personal Property”).

 

(b)           The
Seller has delivered or made available to the Buyer correct and complete copies
of all leases for Tangible Personal Property and any and all material ancillary
documents pertaining thereto. With respect to each lease for Tangible Personal
Property:

 

(1)           each
lease, together with all ancillary documents delivered pursuant to the first
sentence of this Section 4.11(b), is the legal, valid and binding obligation of
the parties thereto, enforceable against each of the parties in accordance with
the terms thereof except as enforcement may be limited by bankruptcy,
insolvency or other similar laws affecting the enforcement of creditor rights
generally;

 

(2)           neither
the Company, nor to the Knowledge of the Seller, any other party to any lease, is
in breach or default in any material respect, and no event has occurred that,
with notice or lapse of time would constitute such a breach or default or
permit termination, modification or acceleration under, any lease; and

 

(3)           none
of (a) the execution and delivery by the Company and the Seller of this
Agreement and the other Documents, (b) the consummation by the Company and the
Seller of the transactions contemplated by this Agreement and the other
Documents, (c) the performance by the Company and Seller of this Agreement and
the other Documents 

 

16

 

required by this
Agreement will (1) conflict with or violate the terms of any lease or (2)
result in any breach or violation of or constitute a default (or an event with
notice or lapse of time or both would become a default) under, or impair the
Company’s rights or alter the rights or obligations of any third party under,
or give to others any rights of termination, amendment, acceleration or
cancellation of, any lease.

 

(c)           All
Tangible Personal Property is adequate and usable for the use and purposes for
which it is currently used, is in good operating condition, and has been
maintained and repaired in accordance with good business practice.

 

4.12         Insurance.
True and complete copies of all insurance policies covering the assets,
business, equipment, properties and operations of the Company have been made
available to the Buyer, a list of which (by type, carrier, policy number,
limits, premium and expiration date) is set forth in the Disclosure Schedule. All
such insurance policies are in full force and effect and will remain in full
force and effect with respect to all events occurring on or prior to the
Closing Date. There are no claims that are pending under any of the Company’s
insurance policies.

 

4.13         Permits.
The Disclosure Schedule lists all Permits used in or otherwise required to
conduct the Business. Each of the Permits is valid and in full force and effect
and will continue to be valid and in full force effect immediately after
Closing.

 

4.14         Taxes.
The tax representations and warranties set out at Part II of Schedule 4 are
incorporated by reference.

 

4.15         Employees

 

(a)           The
Disclosure Schedule lists all of the officers, employees or workers of the Company
(“Employees”) and (a) their titles or responsibilities; (b) place of
employment (c) their dates of commencement of continuous employment; (d) their
current salaries or wages and all bonuses, commissions and incentives paid at
any time during the past twelve months (“Compensation”); (d) their
Compensation paid in each of the last 2 years; (e) any specific bonus,
commission or incentive plans or agreements for or with them; and (f) any
outstanding loans or advances made to them; (f) the length of notice necessary
to terminate employment; (ix) identifies any employees that are part-time, on
secondment, maternity leave, absent due to long term ill health or for any
other reason. In relation to all such employees, true, up to date and accurate
copies of all contracts of employment (“Employment Agreements”) and
staff handbooks and all terms and conditions of employment have been delivered
to the Buyer and the Company is not in the process of and has no plans to make
any changes to such contracts or terms.

 

(b)           There
is no notice outstanding that terminates the contract of employment of any
employee of the Company (whether given by the employer or employee). No offer
of a contract of employment has been made by the Company to any individual
which has not yet been accepted or which has been accepted but where the
individual’s employment has not yet started.

 

(c)           All
Employment Agreements are terminable on 3 months’ notice or less without
compensation being payable to the Employee (except compensation payable under
applicable statute).

 

17

 

(d)           There
are no terms of employment for any Employee which provide that a change in
control of the Company (however change in control may be defined in the said
document, if at all) shall entitle the said Employee to treat the change in
control as amounting to a breach of the contract or entitling him to any
payment or benefit whatsoever or entitling him to treat himself as redundant or
dismissed or released from any obligation.

 

(e)           The
Company has fully paid and met its obligations to its Employees and former
employees, including under their contracts of employment, any termination
payments or any obligations at law, and no such obligations are outstanding. The
Company has paid in full to all its employees, or adequately accrued for in
accordance with GAAP, all wages, salaries, commissions, bonuses, benefits and
other compensation due to or on behalf of its employees provided however that
Employees have until the end of a calendar year to use accrued vacation. There
is no undischarged liability to pay to any governmental or regulatory
authority, any contribution, Tax, or other payments arising in connection with
the employment of any individual by the Company. There is no dispute outstanding
between the Company and any of its current or former employees relating to
their employment or any benefit entitlements. There is no charge of
discrimination in employment or employment practices, for any reason,
including, without limitation, age, gender, race, religion or other legally
protected category, which has been asserted and not settled or is now pending
or threatened by any current or former individual against the Company.

 

(f)            In
relation to all present and former employees of the Company, the Company has in
the past and continues to comply with all statutes, regulations, orders and
other applicable law in connection with the employment and relations with its
employees, workers and trade unions, including in relation to employment practices,
health & safety, terms and conditions, record maintenance and wages and
hours (including, the Data Protection Act 1998 and the Working Time Regulations
1998).

 

(g)           The
Company has not recognised a trade union, there is no other group or
organisation representing the employees, and there are no collective bargaining
or other union arrangements in place. The Company has not experienced any
material labour difficulty, strikes, lock out, work stoppage or any other
industrial or trade dispute during the last 3 years.

 

(h)           The
Disclosure Schedule includes a list of all independent contractors engaged by
the Company and (a) their state or country of residence; (b) their payment
arrangements; and (c) brief description of their jobs or projects currently in
progress.

 

4.16         Employee
Benefit Plan

 

(a)           Except
as set forth in the Disclosure Schedule, the Company does not operate and there
are no Contracts relating to any bonus, deferred compensation, commission,
profit sharing, share option, employee share purchase or other employee benefit
plan.

 

(b)           The
Company does not operate, contribute, participates or has any liability with
respect to any scheme or arrangement for the provision of pension, retirement,
death, accident or health insurance benefits or any similar arrangements, for
any of its employees or former employees or their dependents, other than giving
its Employees access to a stakeholder defined contributions pension scheme
operated by a third party, true, accurate and compete details of which are set out
in the Disclosure Schedule.

 

18

 

(c)           In
respect of any plans, schemes or arrangements set forth in the Disclosure
Schedule pursuant to Section 4.16(a) and Section 4.16(b) (together referred to
as “Employee Benefit Plans”), the Company has fully complied with all of
the terms of such plan, scheme or arrangement, with all applicable law and all
of its contributions are up to date and fully funded, with no past liabilities,
fines or penalties outstanding. In respect of each Employee Benefit Plan, true,
up to date and complete copies of all material documents in connection with
such Employee Benefit Plans have been given to the Buyer. The Company has no
plan or commitment, whether legally binding or not, to establish any new
employee plan, or to modify or to terminate any current Employee Benefit Plan.

 

(d)           The
execution of this Agreement and the Documents and the consummation of the
transactions contemplated thereby, do not constitute a triggering event under
any Employee Benefit Plan, whether or not legally enforceable, which (either
alone or upon the occurrence of any additional or subsequent event) will or may
result in any payment (whether of severance pay or otherwise), “parachute
payment”, acceleration, vesting or increase in benefits to any employee or
former employee of the Company. No Employee Benefit Plan provides for the
payment of severance, termination, change in control or similar-type payments
or benefits.

 

4.17         Environmental
and Health/Safety Matters.

 

(a)           The
Company has at all times been in material compliance with Environmental Laws
applicable to assets used in the Business (“Business Assets”), and the
Company is not in breach of any Environmental Laws or liable for any penalties,
fines or forfeitures for failure to comply with Environmental Laws.

 

(b)           The Company has obtained, or caused to be obtained
(except where such failure to obtain has not resulted in a Material Adverse
Effect), and, to the Knowledge of the Company or the Seller, is in material
compliance with, all applicable and material Permits required by Environmental
Laws and necessary for the operation of the Business. Copies of such Permits
have been provided to the Buyer. There are no administrative or judicial
investigations, notices, claims or other proceedings pending or, to the
Knowledge of the Seller, threatened by any Governmental Authority or third
parties against the Company or any of the Business Assets which question the
validity or entitlement of the Company to any Permit.

 

(c)           The Company has neither received nor does the
Seller have Knowledge of any non compliance order, warning letter,
investigation, notice of violation, claim, suit, action, judgment, or
administrative or judicial proceeding pending or threatened against or
involving the Company issued by any Governmental Authority or third party with
respect to any Environmental Laws, which has not been resolved to the
satisfaction of the issuing Governmental Authority or third party and to the Knowledge of any of the
Seller, no facts or circumstances exist which are likely to give rise to any
litigation or arbitration proceedings by or against the Company in connection
with Environmental Laws.

 

(d)           Full details have been disclosed of the assessment carried
out by the  Company pursuant to the
Control of Substances Hazardous to Health Regulations 1988.

 

(e)           The Company has not used, disposed of, generated, stored,
transported, dumped, released, deposited, buried or emitted any Hazardous
Substance at, on, from or under any Relevant Property or at, on, from or under
any other premises. No other person has 

 

19

 

used, disposed of, generated, stored, transported,
dumped, released, deposited, buried or emitted any Hazardous Substance at, on,
from or under any Relevant Property. No Relevant Property is included on or
referred to in any register of contaminated land or any similar record or
register.

 

(f)            There is no contamination of groundwater underneath any
Relevant Property and there have been no discharges or spillages of any
substance likely to lead to such contamination. No Relevant Property has ever
been a waste disposal site and none of the Seller, the Company or any third
party has ever stored waste on or transported waste onto any Relevant Property.

 

(g)           There are no storage tanks, above or
below ground, on any Relevant Property and to the Seller’s Knowledge there have
been no such tanks on any Relevant Property in the past.

 

(h)           The Disclosure Schedule
contains a true and complete schedule of all material environmental audits,
assessments, investigations or occupational health studies undertaken by, or on
behalf of, the Company, relating to or affecting the Company or any of the
Relevant Properties.

 

(i)            The
Disclosure Schedule contains a list of the Business Assets which have been
confirmed to contain PCBs or “asbestos” or “asbestos containing material” (as
such terms are identified under the Environmental Laws). The Company has
operated and continues to operate in material compliance with all Environmental
Laws governing the handling, use and exposure to and disposal of PCBs or
asbestos or asbestos containing materials, except where such noncompliance
would not have a Material Adverse Effect on the Company. There are no claims, actions,
suits, governmental investigations or proceedings brought by any Governmental
Authority or third party pending, or, to the Knowledge of the Seller threatened
against or directly affecting Company, the Business Assets or the Business
relating to the use, handling or exposure to and disposal of PCBs or asbestos
or asbestos containing materials in connection with their assets and
operations.

 

(j)            The
Disclosure Schedule contains a true and complete schedule of the operations and
activities, and locations thereof, which have been conducted and are being
conducted by the Company on any of the Relevant Properties which have involved
the generation, accumulation, storage, treatment, transportation, labeling,
handling, manufacturing, use, recycling, spilling, leaking, dumping,
discharging, release or disposal of any material quantities of Hazardous
Substances.

 

(k)           The
Company complies and has at all times complied with Health & Safety Law
including all conditions, limitations, obligations, prohibitions and requirements
contained in Health & Safety Law and to the Knowledge of the Seller there
are no facts or circumstances which may lead to any breach of any Health &
Safety Law. There have been no claims, investigations or proceedings against or
to the Knowledge of the Seller, threatened against the Company or any of its
directors, officers or employees in relation to the business in respect of
accidents, injuries, illness, disease or other harm to the health and safety of
employees, contractors or any other persons caused by breaches of Health &
Safety Law or otherwise.

 

20

 

4.18         Certain
Interests

 

(a)           No
officer, director, senior employee (being any employee whose Compensation is
above £20,000) or the Seller, and no relative or spouse (or relative of such
spouse) who resides with, or is a dependent of, any such individual:

 

(1)           has
any direct or indirect financial interest in any competitor, supplier or
customer of the Company, provided, however, that the ownership of shares
representing no more than 1% of the outstanding voting power of any competitor,
supplier or customer, and which are also listed on any national securities
exchange or traded actively in the national over-the-counter market, shall not
be deemed to be a “financial interest” so long as the Person owning the shares
has no other connection or relationship with the competitor, supplier or
customer; or

 

(2)           owns,
directly or indirectly, in whole or in part, or has any other interest in any
tangible or intangible property which the Company uses or has used in the
conduct of the Business or otherwise; or

 

(3)           has
outstanding any Indebtedness to the Company.

 

(b)           The
Company has no Indebtedness, Liabilities, or any other obligation of any nature
whatsoever to any officer, director, employee or the Seller, and no relative or
spouse (or relative of such spouse) who resides with, or is a dependent of, any
such Person.

 

4.19         Litigation.
Except as set forth on the Disclosure Schedule, there are no Actions pending
or threatened, against, relating to or affecting the Company before any Court,
Governmental Agency or any arbitrator or mediator. Neither the Company nor the
Seller are subject to any Order, including but not limited to any Order which
prohibits or restricts the consummation of the transactions contemplated hereby
or restricts in any way the ownership of any assets by the Company or the
Company carrying on the operations. There is no civil, criminal, tribunal,
arbitration, administrative or other proceedings that are pending or threatened
by or against or concerning the Company and there are no facts or circumstances
likely to result in any such proceedings.

 

4.20         Intellectual
Property and Web Sites.

 

(a)           The
Disclosure Schedule contains an accurate and complete list of all Intellectual
Property and all of the Web Sites owned by, used by, being developed by, or
otherwise associated with the present or anticipated future operations of the
Business (“Company Intellectual Property”), including information regarding
registration or application status, as the case may be. To the Knowledge of the
Seller, the Company Intellectual Property listed in the Disclosure Schedule
constitutes all the Intellectual Property used to operate the Business as of
the Closing and thereafter, in the manner in which it is presently operated.

 

(b)           The
Company has the exclusive rights, titles and interests in and to any and all
Intellectual Property and all of the Web Sites used by, being developed by, or
otherwise associated with the present or anticipated future operations of the
Business, free and clear of any Liens, other than standard shrink-wrapped
software, content, or other similar services/property purchased on a
non-exclusive basis through contracts with vendors all of which contracts are
listed on a schedule in the Disclosure Schedule and are in full force and
effect, being complied with in full, and none of which contracts are currently
subject to any 

 

21

 

contractual
disputes nor have been threatened with cancellation or non-renewal by such
vendors.

 

(c)           The
Company has not received any written notice or claim from any third party
challenging the right of the Company to use any of the Company Intellectual
Property, or that the Company’s use of any Company Intellectual Property
violates, infringes, misuses or misappropriates any third party rights, or of
the invalidity of any patent or registration of a copyright, trademark, service
mark, domain name, or trade name included in the Company Intellectual Property.
To the Knowledge of the Seller, no valid basis exists for any such claim. The
Company has not made any claim in writing of a violation, infringement, misuse
or misappropriation by any third party (including any employee or former
employee of the Company)
of its rights to, or in connection with any Intellectual Property. The Company
has not entered into any agreement to indemnify any other Person against any
charge of infringement of any Intellectual Property, other than indemnification
provisions contained in purchase orders or license agreements arising in the
ordinary course of Business.

 

(d)           The
Company has not disclosed any of its trade secrets, know-how, source codes,
databases, customer lists, schematics, ideas, algorithms and processes other
than in the ordinary course of business with reasonable precautions being taken
(such as confidentiality agreements). The Company has not breached any
agreements of non-disclosure or confidentiality.

 

(e)           Each
of the material computer software programs used or held for use in the Business
(i) are, to the Knowledge the Seller, free from any material software defect or
material programming error for so long as such software is being used in the
same manner for its current operations (ii) runs in a commercially reasonable
manner, (iii) conforms in all material respects to the specifications thereof.

 

(f)            The
Company’s Information Systems are adequate and usable for the use and purposes
for which they are currently used, are in good operating condition, and have
been maintained in accordance with good business practice.

 

4.21         Inventories.
The Inventory of the Company as reflected in the Company Financials are in
proper working order and of merchantable quality, which can be sold in the ordinary
course of the Business in a fashion consistent with the historical sales
results, efficiencies, terms, conditions, pricing, and inventory turnover
patterns of the Business.

 

4.22         Receivables. The
Receivables of the Company as reflected in the Company Financials, consist
solely of bona fide accounts receivable generated
by the Business in the ordinary course, which can be collected in the ordinary
course of the Business in a fashion consistent with the historical collection
results, efficiencies, policies, procedures and patterns of the Business. The
Unaudited Financials make proper and adequate provision for all bad and
doubtful debts.

 

4.23         Residency;
Investment Sophistication; Backgrounds.

 

(a)           The
Seller is not contracting hereunder for any other beneficial purchaser. The
Seller is not a U.S. Person (as defined under Regulation S of the Securities
Act of 1933, as amended) or a person within the United States and it is not
acquiring the Shares Consideration  for the
account of a U.S. Person or a person within the United States.

 

22

 

(b)           The
Shares Consideration have not been offered to the Seller in the United States,
and the Seller was not in the United States when the order for the Shares
Consideration was placed.

 

(c)           The
Seller is aware that the Shares Consideration have not been, nor will they be
registered under the Securities Act, or the securities laws of any state,
except as explicitly provided for herein and in the Registration Rights
Agreement, and that the Shares Consideration may not be offered or sold,
directly or indirectly, in the United States without registration under the
Securities Act or compliance with requirements of an exemption from
registration.

 

(d)           The
Seller is not acting in this transaction as a “distributor” (as defined under
Regulation S promulgated under the Securities Act), and the Seller is acquiring
the Shares Consideration solely for his own personal account, for investment
purpose only, and is not purchasing with a view to, or for, the distribution,
subdivision or fractionalization thereof.

 

(e)           The
Seller understands that if he decides to offer, sell or otherwise transfer any
of the Shares Consideration, they may be offered, sold or otherwise transferred
only (i) to THK, (ii) outside the United States in compliance with
Rule 904 of Regulation S, (iii) in compliance with the exemption from
registration under the Securities Act provided by Rule 144 or
Rule 144A thereunder, if available, and in compliance with any applicable state
securities laws, or (iv) with the prior written consent of THK pursuant to
another exemption from registration under the Securities Act and in compliance
with any applicable state securities laws, and covenants that it (and any
beneficial purchaser for whom it is acting) will not offer or sell the Shares
Consideration in the United States or to a U.S. Person except as set out above.

 

(f)            Neither
the Seller, nor any person acting on his behalf, has made any “directed selling
efforts” in the United States, as defined in Regulation S to be: any activity
undertaken for the purpose of, or that could reasonably be expected to have the
effect of, conditioning the market in the United States for any of the
securities being purchased hereby.

 

(g)           The
Seller has received, read and understand the public filings of THK with the
SEC, including but not limited to THK’s amended Annual Reports on amended Forms
10-KSB for the years ended December 31, 2003, December 31, 2004 and December
31, 2005, including the amended and restated financial statements and “Risk
Factors” contained therein, and THK’s amended Quarterly Reports on amended
Forms 10-QSB for the quarters ended March 31, 2005, June 30, 2005 and September
30, 2005, including the amended and restated financial statements contained
therein.

 

4.24         Brokers. Except
as set forth on the Disclosure Schedule, neither the Company nor the Seller
have employed any financial advisor, broker, finder, consultant or advisor, and
neither the Company nor the Seller has incurred nor will incur any broker’s,
finder’s, investment banking, consultant, advisory or similar fees, commissions
or expenses in connection with the transactions contemplated by this Agreement.

 

4.25         Cash on Hand/Banks
and Brokerage Accounts. The Disclosure Schedule sets forth (1) a
true and complete list of the names and locations of all banks, trust
companies, securities brokers and other financial institutions at which the
Company has an account or safety deposit box or maintains a banking, custodial,
trading or other similar relationship; (2) a true and complete list and
description of each account, safety deposit box and relationship, 

 

23

 

indicating in each case the account number, the names of the respective
officers, employees, agents or other similar representatives of the Company
having signatory power with respect thereto and the current balances in the
accounts or safety deposit boxes, and (3) a list of each debenture, note, and
other evidence of indebtedness, stock, security (including rights to purchase
and derivative securities or rights), interests in joint ventures and general
and limited partnerships, mortgage loans and other investment or portfolio
assets owned of record or beneficially by the Company and the legal name of the
record and beneficial owner thereof, the location of the certificates, if any,
therefor, the maturity date, if any, and any stock or bond powers or other
authority for transfer granted with respect thereto.

 

4.26         Indebtedness
and Liabilities.

 

(a)           On
the Closing Date, the Company will be free and clear of all Indebtedness and
Liabilities, including but not limited to liens, obligations, claims and
encumbrances, actual or contingent, known or unforeseen, including but not
limited to bank loans, shareholder loans, payroll claims, bonus and commission
claims, unpaid payroll taxes, other unpaid taxes, pension obligations,
employment discrimination claims, sexual harassment claims, breach of contract
claims, credit card chargebacks, lawsuits, share options, stock warrants,
phantom stock plans, stock appreciation rights or plans, deferred compensation
agreements, purchase agreements that cannot be cancelled by the Company at any
time, consulting agreements, employment agreements (other than the Employment
Agreements), severance agreements or and any other liabilities of any nature
whatsoever (collectively, “Claims of Any Nature”) excepting only those
liabilities shown on the Unaudited Financials, subject only to minor
adjustments in liability line items incurred in the ordinary course of the
Company’s business from the Accounts Date until the Closing Date (the “Approved
Liabilities”).

 

(b)           No
guarantee, mortgage, charge, pledge, option, lien, encumbrance, or other
security agreement or arrangement has been given by or entered into by the
Company or any third party in respect of borrowings or other obligations of the
Company.

 

(c)           At
Closing, the aggregate cash in the Company’s bank accounts is equal to or
exceeds $125,000. At Closing, those Receivables with an age of less than sixty
(60) days (as reflected in the Audited Closing Date Balance Sheet) exceed the
aggregate Liabilities (as reflected on the Audited Closing Date Balance Sheet)
by at least $1.00; provided that on the Closing Date, the Company shall not
have any Liability for amounts owing to any advisor or agent retained by the
Company or the Seller in connection with the transactions contemplated by this
Agreement and the other Documents.

 

4.27         Contracts.
The Disclosure Schedule sets forth a schedule listing all material
agreements (whether in writing or oral) to which the Company is a party
including:

 

(a)           any
agreement for the purchase or sale of raw materials, commodities, supplies,
products, or other personal property, or for the furnishing or receipt of
services, including any consultancy services;

 

(b)           any
agreement that cannot be terminated by the Company without any breach or any
financial or other detriment on more than 30 days notice;

 

(c)           any
agreement concerning a collaboration, partnership, joint venture or limited
liability company venture;

 

24

 

(d)           any
agreement under which the Company has created, incurred, assumed, or guaranteed
any Indebtedness for borrowed money or pursuant to which a Lien has been placed
on any of its assets, tangible or intangible;

 

(e)           any
agreement concerning confidentiality or non-competition or any agreement which
restricts the Company from engaging in any business anywhere in the world;

 

(f)            any
agreement between the Company and any Seller (or Affiliate or spouse or
relative of the Seller, as the case may be);

 

(g)           any
agreement under which the Company has advanced or loaned monies to any officer,
director, employee or worker of the Company;

 

(h)           any
agreement that is not in the ordinary course of business;

 

(i)            any
settlement or similar agreement, the performance of which will require the
Company to pay, or entitles the Company to receive, after the Closing Date
consideration in excess of £5,000;

 

(j)            any
agreement relating to any acquisition, divestiture, merger or similar
transaction which contains representations, warranties, covenants, indemnities
or other Liabilities which may still be in effect;

 

(k)           any
powers of attorney;

 

(l)            any
contract relating to pending capital expenditures of the Company in excess of
£5,000;

 

(m)          any
agreement under which the Company has advanced or loaned any other Person
amounts in the aggregate exceeding £5,000;

 

(n)           any
other agreement (or group of related agreements) the performance of which
involves consideration in excess of £10,000;

 

(o)           any
agreement which as a result of a change of control of the Company, may
terminate, be varied, or trigger any payment or other right or obligation;

 

(p)           any
agreement which by its operation or termination would have a Material Adverse
Effect on the Company.

 

A correct, up
to date and complete copy of each written agreement listed in the Disclosure
Schedule (as amended to date) and a written summary setting forth the material
terms and conditions of each oral agreement, if any, referred to in such
schedule have been made available or delivered to the Buyer. Each agreement is
the legal, valid, binding obligation of the parties thereto, enforceable
against each party except as enforcement may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws relating to or affecting
creditor rights generally. No party to any agreement is in material breach or
default, and no event has occurred that with notice or lapse of time would
constitute a material breach or default, or permit termination, modification,
or acceleration, under the agreement.

 

25

 

4.28         Compliance
with Laws. The Company is and has been in full compliance with all applicable laws,
regulations, orders, judgments and decrees. Neither the Seller nor the Company
has received any notice or information that violation of the foregoing is being
or may be alleged and the Seller does not have any Knowledge that any of the
operations of the Company is or may not be in full compliance.

 

4.29         Insolvency.
No process has been instituted which could lead to the Company being dissolved
and its assets being distributed among the Company’s creditors, shareholders or
other contributors, and no distress, execution or other process which remains
undischarged has been levied on the Business Assets of the Company, the Company
has not stopped the payment of its debts or received a written demand pursuant
to section 123(1) (a) Insolvency Act 1986 and it is not unable to pay its debts
within the meaning of section 123 Insolvency Act 1986 nor could it be deemed to
be unable to pay its debts within the meaning of section 123 Insolvency Act
1986, and no step has been taken to initiate any process by or under which (i)
the ability of the creditors of the Company, to take any action to enforce
their debts is suspended, restricted or prevented; or (ii) some or all of the
creditors of the Company accept, by agreement or in pursuance of a court order,
an amount less than the sums owing to them in satisfaction of those sums with a
view to preventing the dissolution of the Company; or (iii) a person is
appointed to manage the affairs, business and assets of the Company its
creditors; or (iv) the holder of a charge over the Company’s assets is
appointed to control the business and assets of the Company. The Seller has no
Knowledge of any facts or circumstances which could give rise to any of the
events or circumstances referred to in this Section 4.29.

 

4.30         Material
Information. All material information concerning the Company has
been provided to the Buyer.

 

4.31         Hong
Kong Company.

 

(a)           The
Seller owns full legal and beneficial title to 100% of the issued share capital
of the Hong Kong Company. The Hong Kong Shares have been duly authorized and
validly issued, are fully paid and non-assessable, are not subject to, nor were
they issued in violation of, any pre-emptive rights and are beneficially owned
and registered by Seller. Other than the Hong Kong Shares, no shares in the
share capital of the Hong
Kong Company are issued, outstanding or reserved for issuance.

 

(b)           The
Seller has full legal right, power and authority to sell, assign, transfer and
convey the Hong Kong Shares. The Seller is the sole legal and beneficial owner
of the Hong Kong Shares, free and clear of all Liens.

 

(c)           There
are no outstanding options, warrants, rights (pre-emptive or otherwise), calls,
commitments, conversion rights, rights of exchange or plans over the Hong Kong
Shares of the Hong Kong Company, or any other agreements of any character
(contingent or otherwise) providing for the purchase, issuance, redemption,
transfer or sale of any interest in the Hong Kong Company or its business, and none of the foregoing
will arise as a result of the execution or performance of this Agreement or the
transactions contemplated herein. There are no irrevocable proxies and no
voting agreements with respect to the share capital of the Hong Kong Company,
or other equity or voting interest in, the
Hong Kong Company. There are no outstanding or authorized stock
appreciation, phantom stock, profit participation or similar rights with
respect to the share capital, or other equity or voting interest in, the Hong
Kong Company. The Hong Kong Company does not have any 

 

26

 

authorized or
outstanding bonds, debentures, notes or other indebtedness the holders of which
have the right to vote (or convertible into, exchangeable for, or evidencing
the right to subscribe for or acquire securities having the right to vote) with
the shareholders of the Hong Kong Company on any matter. There are no Contracts
to which any of the Seller or the Hong Kong Company is a party or by which any
such Person is bound to (i) repurchase, redeem or otherwise acquire any Hong
Kong Shares, or other equity or voting interest in, the Hong Kong Company or
any other Person or (ii) vote or dispose of any Hong Kong Shares, or other
equity or voting interest in, the Hong Kong Company or any other Person.

 

(d)           The
Hong Kong Company does not have any Subsidiaries and does not own, directly or
indirectly, any equity or other ownership interests in any Person.

 

(e)           The
Hong Kong Company has not carried out any trading and on the Closing Date will
be free and clear of all Liabilities and Indebtedness.

 

(f)            All
of the domain names, websites, Intellectual Property, real estate, equipment,
computers, machines, vehicles, assets, permissions, consents owned or used by
the Seller, any Person connected to the Seller or the Hong Kong Company in
carrying on the Business in Hong Kong, Asia or other parts of the world are
listed in the Disclosure Schedule. The legal and beneficial title to all such
items listed is owned either by the Company or the Hong Kong Company as set
forth in the Disclosure Schedule and free from any Liens. The Hong Kong Company
does not own or use any other such items. Neither the Seller nor any Person
connected with the Seller owns or uses any other assets used in or necessary
for the purpose of carrying on the Business in Asia.

 

(g)           Seller
does not carry on any Business activity in Hong Kong, Asia or any other part of
the world except through the Company or the Hong Kong Company.

 

ARTICLE V

REPRESENTATIONS
AND WARRANTIES OF BUYER

 

In order to
induce the Seller to enter into this Agreement and to consummate the
transactions contemplated hereby, the Buyer represents and warrant to the
Seller as follows:

 

5.1           Organization and
Qualification. Buyer is a corporation or limited liability company,
as applicable, duly organized, validly existing and in good standing under the
laws of its state of incorporation or organization with full power and
authority to own, lease and operate its properties and to conduct its business
as now conducted except where failure to be so organized, existing and in good
standing would not reasonably be expected to have a Material Adverse Effect on
Buyer. Buyer is duly qualified or licensed as a foreign corporation or foreign
limited liability company, as applicable, in each of the jurisdictions listed
on Schedule 3 which are the only jurisdictions in which the failure to be so
licensed or qualified could have a Material Adverse Effect on Buyer. Buyer has
made available to the Seller true, complete and correct copies of its charter
or constitutional documents, as amended to date.

 

5.2           Capital Structure.
The authorized capital stock of THK consists of (a) 100,000,000 shares of
THK Common Stock and (b) 5,000,000 shares of “blank check” Preferred Stock,
500,000 shares of which have been designated “Series One Preferred Stock”

 

27

 

 and 26,500 of which have been
designated “Series A Convertible Preferred Stock” (“THK Preferred Stock”).
As of the date of this Agreement: (1) 44,561,836 shares of THK Common Stock
were issued and outstanding, (2) 26,500 Series A Preferred Convertible
Preferred Stock were issues and outstanding, (3) 2,500,000 shares of THK Common
Stock were held in the treasury of THK, and (4) 11,769,949 shares of THK Common
Stock were duly reserved for future issuance pursuant to warrants or options
issued or granted by THK and 19,875,000 were duly reserved for future issuance
pursuant to the terms of the Series A Convertible Preferred Shares and the
warrants issued in connection with the Series A Convertible Preferred Shares. All
outstanding shares of THK Common Stock are, and all shares of THK Common Stock
to be issued in connection with the consummation of the transactions
contemplated by this Agreement will be, when issued in accordance with the
terms hereof, duly authorized, validly issued, fully paid and non-assessable,
and not subject to, or issued in violation of, any kind of preemptive,
subscription or any kind of similar rights. There are no bonds, debentures,
notes or other indebtedness of THK having the right to vote (or convert into
securities having the right to vote) on any matters on which stockholders of
THK may vote. Except as described on Schedule 3 hereof, there are no
outstanding securities, options, warrants, calls, rights, commitments,
agreements, arrangements or undertakings of any kind (contingent or otherwise)
to which THK is a party or bound obligating THK to issue, deliver or sell, or
cause to be issued, delivered or sold, additional shares of capital stock or
other voting securities of THK or obligating THK to issue, grant, extend or
enter into any agreement to issue, grant or extend any security, option,
warrant, call, right, commitment, agreement, arrangement or undertaking. Except
as set forth on Schedule 3 THK is not subject to any obligation or requirement
to provide funds for, or to make any investment (in the form of a loan or
capital contribution) to, or in, any Person. All of the issued and outstanding
shares of THK Common Stock were issued in compliance in all material respects
with all applicable federal and state securities laws. 

 

5.3           Authorization;
Enforceability. Buyer has the corporate or limited liability company
power and authority to execute, deliver and perform its obligations under this
Agreement and the other Documents to which it is a party. The execution,
delivery and performance of this Agreement and the other Documents to which it
is a party and the consummation of the transactions contemplated herein and
therein have been duly authorized and approved by the board of directors of
Buyer, and no other action by either entity or its equity holders is necessary
to consummate the transactions contemplated by this Agreement and the other
Documents. This Agreement and each of the other Documents to be executed and
delivered by Buyer have been duly executed and delivered by, and constitute the
legal, valid and binding obligations of Buyer enforceable against it, in
accordance with their terms, except as enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating to or affecting creditor rights generally or by general equity
principles (regardless of whether enforcement is sought in a proceeding in
equity or at law).

 

5.4           No Violation or
Conflict. None of (a) the execution and delivery by Buyer of this
Agreement and the other Documents to be executed and delivered by Buyer, (b)
consummation by Buyer of the transactions contemplated by this Agreement and
the other Documents, or (c) the performance of this Agreement and the other
Documents required by this Agreement to be executed and delivered by Buyer at
the Closing, will (1) conflict with or violate the charter or constitutional
documents of Buyer, (2) conflict with or violate any loan or credit agreement,
note, bond, mortgage, indenture, contract, agreement, lease, Law, Order or
Permit applicable to Buyer or by which its properties are bound or affected, or
(3) result in any breach or violation of or constitute a default (or an event
that with notice or lapse of time 

 

28

 

or both would become a default) under, or impair the rights of Buyer or
alter the rights or obligations of any third party under, or give to others any
rights of termination, amendment, acceleration or cancellation of, or result in
the creation of any Lien on any of the properties or assets of Buyer pursuant
to, any Contract, Permit or other instrument or obligation to which Buyer is a
party or by which Buyer or its properties are bound or affected except, in the
case of clause (2) or (3) above, for any control, breach, violation, default or
other occurrence that would not individually or the aggregate, have a Material
Adverse Effect on Buyer.

 

5.5           Governmental Consents
and Approvals. Except as set forth on Schedule 3, the execution,
delivery and performance of this Agreement and the other Documents by Buyer do
not and will not require any consent, approval, authorization, Permit or other
order of, action by, filing with or notification to, any Governmental
Authority.

 

5.6           Litigation.
Except as set forth on Schedule 3, there is no suit, action, arbitration,
claim, governmental or other proceeding before or by any Governmental Authority
pending or, to the knowledge of THK, threatened, against THK which is outside
the ordinary course of business or individually or in the aggregate material to
THK.

 

5.7           Brokers. Buyer
has not employed any financial advisor, broker or finder, and Buyer has not
incurred and will not incur any broker’s, finder’s, investment banking or
similar fees, commissions or expenses in connection with the transactions
contemplated by this Agreement.

 

5.8           Material
Information. All material information concerning THK has been made
available to the Seller.

 

ARTICLE VI

CLOSING

 

6.1           Closing
Date. The closing of the sale and purchase of the Shares (the “Closing”)
shall be held at the offices of Reed Smith Rambaud Charot LLP, Minerva House, 5
Montague Close, London SE1 9BB, at 10:00 a.m. on the date of this Agreement
or such other date as the Parties may agree, provided that the conditions to
Closing set forth in ARTICLE VIII shall have been satisfied or waived. The date
on which the Closing shall occur is hereinafter referred to as the “Closing
Date.”

 

6.2           Closing
Obligations.

 

(a)           At
Closing, Buyer and Seller shall each carry out their respective obligations as
set out in Sections 6.3 and 6.4. If the obligations of either the Buyer or any
of the Seller are not complied with in any material respect on the date for
Closing, the other Party not in default shall not be obliged to complete this
Agreement and may (without prejudice to its rights under this Agreement) at its
sole discretion:

 

(i)            waive the obligation in writing, to
the extent that it has not been fulfilled or accomplished and require the other
Party to proceed with Closing; or

 

(ii)           require the other Party to fulfill or
satisfy the obligation after Closing by a date agreed with the innocent party
and proceed with Closing, in which case the other Party undertakes to satisfy
the obligation by such agreed date.

 

29

 

6.3           Seller’
Closing Obligations.

 

(a)           At
Closing, the Seller shall deliver to the Buyer each of the following
agreements, duly executed:

 

(i)            the Warrant Agreements, duly
executed by the relevant individuals;

 

(ii)           the Registration Rights Agreement;

 

(iii)          the Escrow Agreement;

 

(iv)          the Management Agreements, duly
executed by the Company and the relevant individual;

 

(b)           At
Closing, the Seller shall procure delivery to the Buyer of:

 

(i)            executed stock transfer forms of the
Shares in favour of Buyer together with the share certificates for the Shares
(or in the case of any lost certificate an indemnity in relation to it);

 

(ii)           a power of attorney by the registered
holder of the Shares that is in Agreed Form and which enables the Buyer to
attend and vote at general meetings of the Company;

 

(iii)          the resignations as deeds in the
Agreed Form of Mrs Sheree Kirkman as secretary of the Company;

 

(iv)          a copy of the bank mandates of the
Company and copies of bank statements in respect of each account of the Company
as at the close of business on the last Business Day prior to Closing, together
in each case with a reconciliation statement prepared by the Company to show
the position at Closing (listing unpresented cheques drawn or received by the
Company and standing orders payable since the date of such bank statements);

 

(c)           At
Closing, the Seller shall procure the holding by the Company of a board meeting
covering the following matters and provide the Buyer with minutes (certified by
a duly appointed director as being true and correct) showing that:

 

(i)            the transfers of the Shares is
approved (subject to stamping if not previously effected) for registration in
the books of the Company;

 

(ii)           the resignation of secretary of the
Company is approved;

 

(iii)          such persons as are nominated by Buyer
as directors and secretary of the Company be appointed with effect from the end
of the relevant board meeting;

 

(iv)          any amendments to the authorities to
the bankers of the Company relating to bank accounts as may be nominated by the
Buyer is approved;

 

30

 

(v)           approval by the Company of any
Documents to which it is a party.

 

(d)           At
Closing, the Seller shall procure that the shareholders of the Company adopt
new articles of association as provided by the Buyer and provide the Buyer with
a copy of the resolution (certified by a duly appointed director as being true
and correct).

 

(e)           The
Seller hereby conveys, gives, grants, assigns and transfers to the Company by
deed and at no cost, effective as at Closing, (i) any and all rights, titles
and interests of any nature whatsoever that the Seller may have in, or to, the
ownership or use of any and all Intellectual Property used in or associated
with the Business and not otherwise transferred to the Company or the Hong Kong
Company prior to the Closing; and (ii) any and all rights, titles and interests
of any nature whatsoever, legal or beneficial, active or passive, that the
Seller may have in, or to any other Person, business or “website” used in the
Business or competing with the Business in any part of the world.

 

6.4           Buyers’
Closing Obligations.

 

(a)           At
Closing, Buyer shall or shall cause the Cash Consideration to be
telegraphically transferred to the Seller in accordance with Section 2.2(a) and
shall deliver a copy of a letter from the AMEX confirming the approval for
listing of the Shares Consideration on AMEX.

 

(b)           At
Closing, the Buyer shall deliver to the Seller duly executed copies of:

 

(i)            the Registration Rights Agreement;

 

(ii)           the Warrant Agreements;

 

(iii)          the Escrow Agreement

 

(iv)          extracts from the minutes of a meeting
of the board of directors of THK authorizing the Documents and the transactions
set out therein.

 

ARTICLE VII

EARNOUT

 

7.1           Earnout.
Following the Closing Date, the Consideration may be
increased by a further payment (the “Earnout Payment”) contingent on
performance of the Company in the First Twelve Quarters Pre-Tax Earnings
as set out in this Section. Such Earnout Payment, if any, shall be made by THK
to the Seller payable in cash in an amount based upon the earnings target
reached as set forth below:

 

(a)           If
the First Twelve Quarters Pre-Tax Earnings are less than $2,000,000, then no
Earnout Payment shall be payable to the Seller;

 

(b)           If
the First Twelve Quarters Pre-Tax Earnings are equal to or between $2,000,000
and $2,999,999, then the Earnout Payment shall be equal to Five Hundred
Thousand Dollars ($500,000) and be payable to the Seller;

 

31

 

(c)           If
the First Twelve Quarters Pre-Tax Earnings are equal to or between $3,000,000
and $3,999,999, then the Earnout Payment shall be equal to One Million Dollars
($1,000,000) and be payable to the Seller;

 

(d)           If
the First Twelve Quarters Pre-Tax Earnings are equal to or between $4,000,000
and $4,999,999, then the Earnout Payment shall be equal to One Million Five
Hundred Thousand Dollars ($1,500,000) and be payable to the Seller;

 

(e)           If
the First Twelve Quarters Pre-Tax Earnings are equal to $5,000,000, then the
Earnout Payment shall be equal to Two Million Dollars ($2,000,000) and be
payable to the Seller;

 

(f)            If the First Twelve Quarters Pre-Tax Earnings
are higher than $5,000,000 , then the Earnout Payment shall be equal to Two
Million Dollars ($2,000,000) plus an additional One Thousand Dollars ($1,000)
for every $500,000 above $5,000,000.

 

The Earnout Payment, if
required to be delivered by THK to the Seller as described above, shall be
delivered by THK to the Seller within 60 days following the receipt by THK from
the THK Accountants of the calculations of the First Twelve Quarters Pre-Tax
Earnings. THK shall instruct the THK Accountants to complete the calculations
as soon as reasonably practicable and in any event to endeavour if possible to
complete the calculations within 3 months following the end of the First Twelve
Quarters.

 

7.2           Earn
Out Start Date. The First Twelve Quarters shall be calculated from the Earn
Out Start Date. The Earn Out Start Date shall either be 1 April 2006 or 1 July
2006, as the Seller shall in its discretion decide. The Seller shall inform the
Buyer in writing of its election by 30 April 2006. If Seller fails to notify
the Buyer by this time, the Buyer shall decide which of the two dates is the
Earn Out Start Date by giving written notice to Seller no later than May 31,
2006.

 

7.3           Travel
Costs. In the event that:

 

(a)           THK
or any of its Affiliates requests Jim Banks or any other senior employee of the
Company to travel overseas; and

 

(b)           the
purpose of that travel does not in any way relate to promoting or furthering
the interests of the Company or its Affiliates, then the parties agree that the
cost of such travel shall be for THK’s account or for the account of its
nominee and shall not be borne by the Company, unless the parties otherwise
agree.

 

7.4           MSI
and Mike Grehan. In the event that during the First Twelve Quarters:

 

(a)           Mike
Grehan leaves his current employment and no longer provides services to THK and
any Affiliates and is thereby no longer available to provide assistance and
support to the Company; and/or

 

(b)           THK
implements what is, in Seller’s reasonable opinion, a permanent, significant
and material downsizing or other such restructuring of Market Smart Interactive

 

32

 

(MSI), and such
downsizing or restructuring materially affects MSI’s ability to give assistance
and support to the Company, then upon request by the Seller, Gerard M. Jacobs
on behalf of THK and the Seller will consider and endeavour to agree what (if
any) adjustments should be made to (i) the 2006 Earnings Threshold; and (ii)
the triggers to the Earn Out Payment set out at Section 7.1 (a) to (e), to take
into account the circumstances set out in paragraphs (a) and/or (b) above.

 

7.5           Set
Off. The Buyer may at its discretion reduce the Earnout Payment on a dollar
for dollar basis, by the value of any claim the Buyer or its nominee may have
under this Agreement, provided that Buyer’s right to make such set off shall
only accrue if the claim is agreed or otherwise determined.

 

ARTICLE VIII

CONDITIONS
PRECEDENT TO CLOSING

 

8.1           Conditions
Precedent to the Obligations of the Parties. The obligation of each of the
Parties to consummate the transactions described in this Agreement shall be
subject to the fulfillment on or before the Closing of the following conditions
precedent. Any failure of the Seller to fulfill any of the conditions precedent
set forth below in subsections (a), (b), (c), (d) and (e) as they relate to the
Seller (“Seller’s Conditions Precedent”) on or before the Closing may be
waived in writing by THK, in whole or in part, in THK’s sole discretion. Any
failure of THK or Buyer to fulfill any of the conditions precedent set forth
below in subsections (a) and (b) as they relate to THK or Buyer (“Buyer’s
Conditions Precedent”) on or before the Closing may be waived in writing by
the Seller, in whole or in part, in the Seller’s sole discretion.

 

(a)           Consents.
Any and all required consents and approvals from third parties for the
consummation of the transactions contemplated by this Agreement and the other
Documents shall have been obtained.

 

(b)           No
Actions, Suits or Proceedings. No Order of any Court or Governmental
Authority shall have been issued restraining, prohibiting, restricting or
delaying, the consummation of the transactions contemplated by this Agreement
and the other Documents. No Litigation shall be pending or, to the Knowledge of
the Parties, threatened, before any Court or Governmental Authority to
restrain, prohibit, restrict or delay, or to obtain damages or a discovery
order in respect of this Agreement or the consummation of the transactions
contemplated hereby.

 

(c)           Cash
Balance. The Seller shall demonstrate to the Buyer, to Buyer’s
satisfaction, that the Company’s aggregate cash in its bank accounts as at the
date for Closing is at least $125,000.

 

(d)           Receivables
in Excess of Liabilities. As at the date for Closing, the Company’s Receivables
with an age of less than sixty (60) days shall exceed the aggregate Liabilities
of the Company by at least $1.00, as the Seller shall demonstrate to the Buyer,
to Buyer’s satisfaction. In the event that this condition is not satisfied or
Seller fails to demonstrate, the Buyer shall be entitled to reduce the
Consideration if and to the extent that the Audited Closing Date Balance Sheet
shows that the Company’s Receivables are less than

 

33

 

the Liabilities of the
Company (such reduction to be settled by either set off or reimbursement by
Seller, as the Buyer shall determine).

 

ARTICLE IX

COVENANTS

 

9.1           Performance.  Subject to the terms and conditions provided
in this Agreement, each of the Parties shall use its respective reasonable best
efforts in good faith to take or cause to be taken as promptly as practicable
all reasonable actions that are within its power to cause to be performed and
fulfilled those of the conditions precedent to consummate the transactions
contemplated by this Agreement that are dependent upon its actions, including
obtaining all necessary approvals, to the end that the transactions
contemplated hereby will be fully and timely consummated.

 

9.2           Regulatory and Other
Authorizations; Notices and Consents.

 

(a)           Each of the Parties
will use its reasonable best efforts to obtain all authorizations, consents,
orders and approvals of all Governmental Authorities and officials that may be
or become necessary for its execution and delivery of, and the performance of
its obligations pursuant to, this Agreement and the other Documents and will
cooperate fully with each of the Parties in promptly seeking to obtain all such
authorizations, consents, orders and approvals.

 

(b)           Each of the Parties
shall give promptly such notices to third parties and use its reasonable best
efforts to obtain such third party consents as the Parties may deem necessary
or desirable in connection with the consummation of the transactions
contemplated by this Agreement and the other Documents.  The Parties shall cooperate with each other
and use all reasonable efforts to assist in giving such notices and obtaining
such consents.

 

9.3           Audited Closing Date
Balance Sheet.  After the Closing
Date, Seller shall give all reasonable, information, assistance and
co-operation to Buyer and its representatives (including the THK Accountant) to
prepare the Audited Closing Date Balance Sheet.

 

9.4           Hong Kong Expansion.

 

(a)           Immediately following
the Closing Date, the Buyer shall provide the Company with $500,000 (the “Hong
Kong Cash Infusion”), to be used by the Company to establish an office in Hong
Kong and through such office to expand the Business into Asia.

 

(b)           Following Closing, the
Seller shall submit a draft business plan to the board of directors of the
Company for comment and approval setting out details of the expansion plan in
Hong Kong.  The parties expect such plan
to be submitted by 30 April 2006 or, if later, within 30 days of the Closing
Date.

 

(c)           In the event that the
Company implements the expansion plan within the First Twelve Quarters, then
the amount of expenses legitimately and reasonably incurred by the Company in
payroll and office expenses in Hong Kong, up to a maximum equivalent to the
Hong Kong Cash Infusion, shall be deemed not to reduce the First Twelve
Quarters Pre-Tax Earnings for the purposes of calculating the Earnout Payment.

 

34

 

(d)           The parties agree that
after Closing, at the Buyer’s election (i) the Company or its nominee will
establish a new entity in Hong Kong to carry out the expansion plans as set out
in this Clause 9.4; or (ii)  the Hong
Kong Company will be used to carry out the expansion plans as set out in this
Clause 9.4.

 

(e)           Seller undertakes that
after Closing at Buyer’s election, Seller shall at its own cost provide all
co-operation and assistance requested and needed by Buyer to complete the
transfer of the legal title to the Hong Kong Shares from the Seller to the
Buyer or any nominee of the Buyer (including the Company), including making
available any share certificates or other documents and executing any documents
and do such other acts and things as the Buyer may reasonably require.

 

(f)            Notwithstanding any
provision of Section 11.2, Seller shall fully indemnify, keep indemnified and
hold harmless Buyer, the Company or the Hong Kong Company without any
thresholds, limits or caps against all losses, liabilities, costs, damages,
demands, actions and proceedings (including reasonable legal and other costs
incurred in defending any such proceeding) which may arise out of or in
connection with:

 

(i)            any Liabilities or
Indebtedness of the Hong Kong Company in relation to or in connection with any
period prior to the Closing Date;

 

(ii)           any breach by Seller of
Section 9.4(e) or the warranties set out at Section 4.31.

 

ARTICLE X

RESTRICTIVE COVENANTS

 

(a)           The Seller undertakes
to the Buyer and the Company that for a period of three (3) years after the
Closing (the “Restricted Period”), the Seller shall not, engage,
directly or indirectly, in any business that is the same as or competes with
the Business (the “Competing Service”) to or from  any country in which, as at the Closing Date,
the Business operates (the “Territory”); provided, the foregoing
shall not prohibit the Seller from (i) acquiring, directly or indirectly,
shares listed on any exchange or market system or traded actively in any
recognized over-the-counter market of any Person that provides the Competing
Service in the Territory, provided that the Seller does not, in the aggregate,
own directly or indirectly more than one per cent (1%) of the outstanding
voting power or shares of such Person.

 

(b)           The Seller undertakes
to the Buyer and the Company that during the Restricted Period, the Seller
shall not directly or indirectly, canvass, solicit or approach, or cause to be
canvassed, solicited or approached, any customer of the Business at closing or
any person who has been a customer in the last 12 months or who the Company has
plans to target as a customer in the future, such that the customer is deterred
from continuing to do business or increasing business with the Company.

 

(c)           The Seller undertakes
to the Buyer and the Company that during the Restricted Period, the Seller
shall not interfere, or seek to interfere, with the continuance of supplies to
the Company from any supplier who has been supplying goods or services to the
Company at Closing or at any time during the 12 months immediately preceding
Closing if such interference causes or would cause that supplier to cease
supplying, or materially reduce its supply of, those goods or services to the
Company.

 

35

 

(d)           The Seller undertakes
to the Buyer and the Company that during the Restricted Period, the Seller
shall not directly or indirectly, solicit or entice away, or endeavour to
solicit or entice away, from the Company or employ, any person employed by, or
who is or was a consultant to, the Company at Closing or at any time during the
period of 6 months immediately preceding Closing where the person in question
either has confidential information or would be in a position to exploit the
Company’s trade connections.

 

(e)           For the avoidance of
doubt, the services provided to the Company by the Seller in accordance with
the terms of the Management Agreements shall not breach the restrictions set
out in this Article.

 

(f)            In the event that the
Seller or any entity in which the Seller has a direct or indirect interest,
directly or indirectly uses the “Web Diversity” name or any combination thereof
or any name similar thereto, as its corporate or trade name or is used in any
other way, Seller shall take all steps that are necessary at its own cost to
stop such uses and Seller hereby undertakes to Buyer that Seller shall not
independently make any direct or indirect use of such names.

 

ARTICLE XI

INDEMNIFICATION

 

11.1         Survival of
Representations and Warranties.  The
representations and warranties contained in this Agreement shall survive until
the expiration of the applicable statute of limitations.  All covenants and agreements contained in
this Agreement (and in the corresponding covenants and agreements set forth in
any of the Documents) shall survive the Closing and continue in full force
until fully performed in accordance with their terms. 

 

11.2         Indemnification.

 

(a)           The Seller agrees to
fully indemnify, keep indemnified and hold harmless THK and its respective
successors and assigns, together with all of their officers, directors,
employees and Affiliates on an after tax basis, from and against any and all
losses, damages, liabilities, obligations, costs or expenses (any one such item
being herein called a “Loss” and all such items being herein
collectively called “Losses”) which are caused by or arise out of or in
connection with (1) any breach or default in the performance by the Seller of
any obligation or undertaking accepted in this Agreement; (2) any breach of
warranty or inaccurate or erroneous representation made by the Seller in this
Agreement; (3) any and all actions, suits, proceedings, claims, demands,
judgments, costs and expenses (including reasonable legal fees) arising out of
the foregoing, and (4) without limiting the generality of the foregoing, all
Claims of Any Nature created or incurred prior to the Closing other than the
Approved Liabilities (“Unapproved Liabilities”), if and to the extent
that such Losses in each of the above cases together with any claims under
Section 11.2(b) in aggregate exceed Thirty Thousand Pounds UK Sterling
(£30,000) (the “Claims Threshold”). 
The Claims Threshold shall not apply to any claims made under the Tax
Covenant.

 

(b)           Without restricting the
Buyer’s right to claim damages on any other basis, the sum due to the Buyer as
a result of any claim for indemnification under Sections 11.2(a) or 11.2(b)
shall be equal to the aggregate of

 

(i)            the amount necessary
to put the Company into the position which would have existed had the cause for
indemnification not occurred,

 

36

 

including (x) the amount by which the value of any
asset of the Company (including any asset warranted to exist which does not
exist) is or becomes less than the value it would have had attributed to it had
there been no such breach; and (y) the amount of any other loss or liability or
the increase in any loss or liability which the Company would not have been
subject to or which would not have incurred on the basis that such the cause
for indemnification had not occurred;

 

(ii)           all costs and expenses
incurred by the Buyer or the Company arising out of or in connection with the
indemnification claim,

 

provided that any amount payable, shall be increased
so as to ensure that the net amount received by the Buyer or the Company shall
after Tax be equal to that which would have been received had the payment and
any increased payment not been subject to Tax.

 

(c)           THK shall fully
indemnify, keep indemnified and hold harmless the Seller, and its successors
and assigns on an after tax basis, from and against any and all Losses, which
are caused by or arise out of or in connection with (1) any breach or default
in the performance by THK of any obligation or undertaking accepted in this
Agreement; (2) any breach of warranty made by THK of the warranties set out at
ARTICLE VI; and (3) any and all actions, suits, proceedings, claims, demands,
judgments, costs and expenses (including reasonable legal fees) arising out of
the foregoing, if and to the extent that such Losses in each of the above cases
in aggregate exceed an aggregate of Thirty Thousand Pounds UK Sterling
(£30,000).

 

(d)           Any indemnified party
seeking indemnification hereunder shall give to the party obligated to provide
indemnification to such indemnified party a notice describing in reasonable
detail the facts giving rise to any claim for indemnification hereunder and
shall to the extent reasonably possible, include in such notice the amount or
the method of computation of the amount of such claim, and a reference to the
provision of this Agreement or any other agreement, document or instrument
executed pursuant hereto or in connection herewith upon which such claim is
based.  After the giving of any notice
pursuant hereto, the amount of indemnification to which an indemnified party
shall be entitled under this Article shall be determined by the written
agreement between the indemnified party and the indemnifying party or by a
final judgment or decree of any Court of competent jurisdiction.

 

11.3         Third Party Claim.  If any third person asserts a claim against
an indemnified party hereunder that, if successful, might result in a claim for
indemnification against any indemnifying party hereunder, the indemnifying
party shall be given prompt written notice thereof and shall have the right
(a) to participate in the defense thereof and be represented, at its own
expense, by advisory counsel selected by it, and (b) to approve any
settlement if the indemnifying party is, or will be, required to pay any
amounts in connection therewith, such consent not to be unreasonably withheld,
conditioned or delayed. Notwithstanding the foregoing, if within ten (10)
Business Days after delivery of the indemnified party’s notice described above,
the indemnifying party indicates in writing to the indemnified party that, as
between such parties, such claims shall be fully indemnified for by the
indemnifying party as provided herein, then the indemnifying party shall have
the right to control the defense of such claim, provided that the indemnified party
shall have the right (1) to participate in the defense thereof and be
represented, at its own expenses, by advisory counsel selected by it,

 

37

 

and (2) to
approve any settlement if the indemnified party’s interests are, or would be,
affected thereby, which approval shall not be unreasonably withheld,
conditioned or delayed.

 

11.4         Any payments to Buyer
under the indemnification in this Section or under the Tax Covenant shall be
shall be treated as a reduction in the Consideration.

 

ARTICLE XII

TAX MATTERS

 

The terms of the
Tax Covenant set out in Part III of Schedule 4 are incorporated by reference
herein.

 

ARTICLE XIII

MISCELLANEOUS

 

13.1         Notices.  All notices, requests and consents hereunder
shall be in writing, shall be addressed to the receiving Party’s address set
forth below or to such other address as a Party may designate by notice
hereunder, and shall be either (a) delivered by hand, (b) made by
facsimile transmission, (c) sent by recognized overnight courier, or
(d) sent by registered post, postage prepaid with a certificate of
posting. 

 

	
  If to THK
  to:

  	
   

  	
  Think
  Partnership Inc.

  5 Revere Drive, Suite 510

  Northbrook, IL 60062

  Attn:    Gerard M. Jacobs

  Fax: 847-562-0178

  email: Gerry.Jacobs@ThinkPartnership.com

  
	
   

  	
   

  	
   

  
	
  With a copy
  to:

  	
   

  	
  Reed Smith
  LLP

  Minerva House

  5 Monatgue Close

  Attn:  Douglas Rofe

  Fax: 0207-403-4221

  email: drofe@reedsmith.com

  
	
   

  	
   

  	
   

  
	
  If to the
  Seller:

  	
   

  	
  Jim Banks

  20 Church Street

  Twickenham

  Middlesex TW1 3NJ

  United Kingdom

  Fax: +44 208 843 7901

  email: jbanks@webdiversity.co.uk

  

 

38

 

All notices, requests and consents hereunder shall be deemed to have
been delivered (1) if by hand, at the time of the delivery thereof to the
receiving party at the address of such party set forth above, (2) if sent by
facsimile transmission, at the time receipt has been acknowledged by electronic
confirmation or otherwise, (3) if sent by overnight courier, on the third
Business Day following the day such notice is delivered to the courier service,
or (4) if sent by post on the seventh (7th) Business Day following the day such
mailing is made.

 

13.2         Entire Agreement.  This Agreement and the other Documents embody
the entire agreement and understanding between the Parties with respect to the
subject matter hereof and supersede all prior oral or written agreements and
understandings relating to the subject matter hereof.  No statement, representation, warranty,
covenant or agreement of any kind not expressly set forth in the Documents
shall affect, or be used to interpret, change or restrict, the express terms
and provisions of this Agreement.  The
remedies of the Parties as set out in this Agreement are in addition to and do
not in any way exclude any rights and remedies which the Parties may have under
statute, common law or otherwise.

 

13.3         Binding Effect.  This Agreement shall be binding upon and
inure to the benefit of the Parties and their respective successors, heirs,
personal representatives, legal representatives, and permitted assigns. 

 

13.4         Assignment.  Neither this Agreement, nor any right
hereunder, may be assigned by any of the Parties without the prior written
consent of the other Parties. The Buyer may assign any rights or obligations to
an Affiliate without the need for consent from the other Parties.

 

13.5         Modifications and
Amendments.  The terms and provisions
of this Agreement may be modified or amended only by written agreement executed
by all Parties hereto. 

 

13.6         Waivers.  The terms and provisions of this Agreement
may be waived, or consent for the departure therefrom granted, only by written
document executed by the Party entitled to the benefits of such terms or
provisions.  No such waiver or consent
shall be deemed to be or shall constitute a waiver or consent with respect to
any other terms or provisions of this Agreement, whether or not similar.  Each such waiver or consent shall be
effective only in the specific instance and for the purpose for which it was given,
and shall not constitute a continuing waiver or consent.  No failure or delay by a Party in exercising
any right, power or remedy under this Agreement, and no course of dealing
between the Parties hereto, shall operate as a waiver of any such right, power
or remedy of the Party.  No single or
partial exercise of any right, power or remedy under this Agreement by a Party,
nor any abandonment or discontinuance of steps to enforce any such right, power
or remedy, shall preclude such Party from any other or further exercise thereof
or the exercise of any other right, power or remedy hereunder.  The election of any remedy by a Party shall
not constitute a waiver of the right of such Party to pursue other available
remedies.  No notice to or demand on a
Party not expressly required under this Agreement shall entitle the party
receiving such notice or demand to any other or further notice or demand in
similar or other circumstances or constitute a waiver of the rights of the
Party giving such notice or demand to any other or further action in any circumstances
without such notice or demand.

 

13.7         No Third Party
Beneficiary.  Except as otherwise
expressly provided herein, nothing in this Agreement is intended, or shall be
construed, to confer upon or give any Person other than the Parties and their respective
heirs, personal representatives, legal

 

39

 

representatives,
successors and permitted assigns, any rights or remedies under or by reason of
this Agreement.

 

13.8         Severability.  The Parties consider that the restrictive
covenants and other restrictions contained in this Agreement are reasonable but
if any such restriction shall be found to be unenforceable but would be valid
if any part of it were deleted or the period or area of application reduced such
restriction shall apply with such modification as may be necessary to make it
valid and effective.  Subject to the
aforementioned, if any term or other provision of this Agreement is invalid,
illegal or incapable of being enforced by any rule of law, or public policy,
such provision or part shall to that extent be deemed not form part of this
Agreement, but the legality, validity and enforceability of all other
provisions of this Agreement shall not be affected and all other conditions and
provisions of this Agreement shall remain in full force and effect.  Upon such determination that any term or
other provision is invalid, illegal or incapable of being enforced, the Parties
shall use their reasonable endeavors to negotiate in good faith to modify this Agreement
so as to effect the original intent of the Parties as closely as possible in an
acceptable manner to the end that transactions contemplated hereby are
fulfilled to the extent possible.

 

13.9         Publicity.  Neither the Seller or the Company shall make,
or cause to be made, any press release or public announcement in respect of
this Agreement or the transactions contemplated hereby or otherwise communicate
with any news media without the prior written consent of THK, except as may be
required by Law.  Neither THK or Buyer
shall make, or cause to be made, any press release or public announcement in
respect of this Agreement or the transactions contemplated hereby or otherwise
communicate with any news media without the prior written consent of the Seller,
except as required by Law or if THK is advised by its securities counsel in its
discretion.  THK and the Seller shall
cooperate in regard to the timing and contents of any press release or public
announcement.

 

13.10       Governing Law.  This Agreement shall be governed by and
construed in accordance with English law.

 

13.11       Counterparts; Facsimile
Signatures.  This Agreement may be
executed in any number of counterparts, either manually or via facsimile
transmission of signatures, each of which shall be deemed an original but all
of which together shall constitute one and the same agreement.

 

13.12       Headings.  The descriptive headings contained in this
Agreement are for convenience of reference only and shall not affect in any way
the meaning or interpretation of this Agreement.

 

13.13       Expenses.  Except as otherwise specified in this
Agreement, all costs and expenses, including, without limitation, fees and
disbursements of lawyers, financial advisors and accountants, incurred in
connection with this Agreement and the transactions contemplated hereby shall
be paid by the Party incurring such costs and expenses, whether or not the
Closing shall have occurred.

 

13.14       Further Assurances.  At any time and from time to time after the
Closing Date each Party shall execute and deliver such other instruments of
sale, transfer, conveyance, assignment and confirmation and do such other acts
and things as may be reasonably requested in order to more effectively carry
forth the terms and conditions of this Agreement and the Documents.

 

40

 

13.15       Arbitration.  Any controversy, dispute or claim arising out
of or in connection with this Agreement shall be settled by final and binding
arbitration to be conducted by an arbitration tribunal in Chicago, Illinois,
pursuant to the rules of the American Arbitration Association.  The arbitration tribunal shall consist of one
arbitrator.  If the parties cannot agree
on the arbitrator, the office of the American Arbitration Association in Chicago,
Illinois shall make the necessary appointment. 
The decision or award of the arbitrator shall be final, and judgment
upon such decision or award may be entered in any competent court or
application may be made to any competent court for judicial acceptance of such
decision or award and an order of enforcement. 
In the event of any procedural matter not covered by the aforesaid
rules, the procedural law of the State of Illinois shall govern.  Notwithstanding the agreement to arbitrate
contained in this Section 13.15, any party may apply to any court having
jurisdiction to enforce this Agreement to seek provisional injunctive relief so
as to maintain the status quo until the arbitration award is rendered or the
dispute is otherwise resolved.

 

13.16       Incorporation by
Reference.  Each Exhibit and Schedule
to this Agreement is hereby incorporated into this Agreement by reference
thereto, with the same legally binding force and effect as if such Exhibit or
Schedule were fully set forth herein. 

 

 

[Signatures on following
page]

 

41

 

SCHEDULE 1

 

COMPANY
INFORMATION SHEET

 

 

	
  Name of Company:

  	
   

  	
  Web Diversity Limited

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered number:

  	
   

  	
  4352316

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered office:

  	
   

  	
  20 Church Street

  Twickenham
Middlesex TW1 3NJ

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of incorporation:

  	
   

  	
  14 January 2002

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised share capital:

  	
   

  	
  £1,000,000
  consisting of 1,000,000 ordinary shares of £1 each.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Issued share capital:

  	
   

  	
  £1
  consisting of 1 ordinary share of £1.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Share Ownership:

  	
   

  	
  Shareholder

  	
   

  	
  No. shares

  legally and beneficially

  held

  	
   

  	
  Type of

  shares

  	
   

  	
  % of issued

  share capital

  
	
   

  	
   

  	
  James Banks

  	
   

  	
  1

  	
   

  	
  ordinary shares

  	
   

  	
  100

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors’ full names:

  	
   

  	
  James Banks

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary’s full name:

  	
   

  	
  Sheree Anne Kirkman

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting reference date:

  	
   

  	
  31 March

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mortgages/charges over
  Shares

  or Company’s assets:

  	
   

  	
  None.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
																

 

42

 

SCHEDULE 2

 

SELLER’S REPRESENTATIONS AND
WARRANTIES –

DISCLOSURES

 

PART 1

 

PART 1A

 

Preliminary
matters

 

1.             Unless the context requires otherwise, words and expressions defined
in the Agreement shall have the same meanings in this Schedule.  Reference to “Warranties” shall for the
purpose of this Schedule mean the representations and warranties given by the
Seller at ARTICLE IV of the Agreement.

 

2.             The disclosure of any matter or document shall not imply any
warranty, representation or undertaking not expressly given in the Agreement,
nor shall such disclosure of itself be taken as extending the scope of the
Warranties.  No admission is made that
any matter or document disclosed is required to be disclosed to avoid liability
under the Agreement or is material in any context.

 

3.             Where any conflict or inconsistency arises between the contents of
any document supplied to Buyer by the Seller or the Company and the terms of
this Schedule, the information contained in this Schedule shall prevail unless
otherwise expressly stated in this Schedule.

 

General
disclosures

 

This Schedule is deemed to
include by reference the following matters all of which are to be regarded as
disclosed:

 

1.             the Agreement, all matters and information contained in the
Agreement and all documents in the agreed terms;

 

2.             all matters which would be revealed by a search of the file of the
Company at the Companies Registry carried out on or before three Business Days
before Closing including without limitation all matters disclosed or referred
to in the accounts of the Company filed pursuant to the Companies Act 1985;

 

PART 1B

 

Specific
Disclosures and Schedules

 

The following specific
disclosures and schedules are made against the specific Warranties as
identified below.  The numbering of the
specific disclosures and schedules corresponds to the

 

43

 

clause reference of a specific
Warranty at ARTICLE IV of the Agreement against which the specific disclosure
or schedule is made. Each of the Warranties will not be limited or restricted by a specific disclosure in this Part 1B of the
Disclosure Schedule unless such specific disclosure is specifically referenced
to the Warranty concerned. If a document is referred to in a
specific disclosure in this Part 1B of the Disclosure Schedule, the contents of
that document are only disclosed against the specific Warranty to which that
specific disclosure relates.

 

See attached Disclosure Letter
and Annexes for specific disclosures.

 

44

 

Web
Diversity Limited

Disclosure
Schedule

20th
April 2006

 

45

 

Mr G Jacobs,

5 Revere Drive,

Suite 510,

Northbrook,

IL60062

USA

 

 

20th April, 2006

RE: Web Diversity Limited
Disclosure Schedule

Dear Gerry,

Please find enclosed Web Diversity Limited disclosure
documentation

 

4.3 (a) Organisation Documents

 

The copies of the memorandum and articles of
association or other constitutional and corporate documents of the Company
attached to the Disclosure Schedule are true, accurate and complete in all
respects as at the date hereof and copies of all the resolutions and agreements
required to be annexed to or incorporated in those documents by the law
applicable are annexed or incorporated. (see Appendix 1)

 

4. 8 (a) Financial Statements

 

The Disclosure Schedule sets forth the balance
sheets of the Company as of 31 March 2003, 31 March, 2004 and 31 March, 2005,
respectively, and the related consolidated income statement and statement of
cash flows for the period from inception to 31 March, 2005 (the “Audited Financials”),
and (2) the unaudited balance sheet as of the Accounts Date and the schedules
thereto and the related unaudited consolidated income statement and statement
of cash flows for the twelve month period then ended (the “Unaudited Financials”,
and collectively with the Audited Financials, the “Company Financials”).  The Company Financials (i) have been prepared
on bases and principles which are consistent with those used in the preparation
of the statutory accounts of the Company for the 2 complete financial years
immediately preceding that which ended on the Accounts Date, except as to the
Unaudited Financials, for the omission of notes thereto and normal year-end
audit adjustments, which will not be material individually or in the aggregate;
(ii) are complete and correct in all material respects and have been prepared
in accordance with historical cost convention, all applicable Law and GAAP
consistently applied for the periods presented. 
The Company Financials present fairly the financial condition and
operating results of the Company as of the dates and during the periods
indicated therein, subject to normal year-end adjustments, which will not be
material in amount or significance in the aggregate. (see
Appendix 2)

 

4.10 (a) Property

 

The Disclosure Schedule lists (1) the street
address of each parcel of Leased Property, (2) the identity of the lessor,
lessee and current occupant (if different from lessee) of each such parcel of
Leased Property, and (3) the term and rental payment terms of the leases (and
any subleases) pertaining to each such parcel of Leased Property. (see Appendix 3)

 

4.11 (a) Personal Property

 

The Disclosure Schedule lists each item or
distinct group of Hardware, machinery, equipment, tools, supplies, furniture,
fixtures, vehicles, rolling stock and other tangible personal property used in
the Business and owned or leased by the Company (the “Tangible Personal
Property”). (see Appendix 4)

 

4.12 Insurance

 

True and complete copies of all insurance
policies covering the assets, business, equipment, properties and operations of
the Company have been made available to the Buyer, a list of which (by type,
carrier, policy number, limits, premium and expiration date) is set forth in
the Disclosure Schedule.  All such
insurance policies are in full force and effect and will remain in full force
and effect with respect to all events occurring on or prior to the Closing
Date.  There are no claims that are
pending under any of the Company’s insurance policies. (see
Appendix 5)

 

4.13 Permits

 

The Disclosure Schedule lists all Permits used
in or otherwise required to conduct the Business.  Each of the Permits is valid and in full
force and effect and will continue to be valid and in full force effect immediately
after Closing. (see Appendix 6)

 

4.15 (a) Employees

 

The Disclosure Schedule lists all of the
officers, employees or workers of the Company (“Employees”) and (a) their
titles or responsibilities; (b) place of employment (c) their dates of
commencement of continuous employment; (d) their current salaries or wages and
all bonuses, commissions and incentives paid at any time during the past twelve
months (“Compensation”); (d) their Compensation paid in each of the last 2
years; (e) any specific bonus, commission or incentive plans or agreements for
or with them; and (f) any outstanding loans or advances made to them; (f) the
length of notice necessary to terminate employment; (ix) identifies any
employees that are part-time, on secondment, maternity leave, absent due to
long term ill health or for any other reason. 
In relation to all such employees, true, up to date and accurate copies
of all contracts of employment (“Employment Agreements”) and staff handbooks
and all terms and conditions of employment have been delivered to the Buyer and
the Company is not in the process of and has no plans to make any changes to
such contracts or terms. (see Appendix 7)

 

4.15 (h) Employees

 

The Disclosure Schedule includes a list of all
independent contractors engaged by the Company and (a) their state or country
of residence; (b) their payment arrangements; and (c) brief description of
their jobs or projects currently in progress. 
(see Appendix 8)

 

4.16 (a) Employee Benefit Plan

 

Except as set forth in the Disclosure
Schedule, the Company does not operate and there are no Contracts relating to
any bonus, deferred compensation, commission, profit sharing, share option,
employee share purchase or other employee benefit plan. (see
Appendix 9)

 

4.16 (b) Employee Benefit Plan

 

The Company does not operate, contribute,
participates or has any liability with respect to any scheme or arrangement for
the provision of pension, retirement, death, accident or health insurance
benefits or any similar arrangements, for any of its employees or former
employees

 

46

 

or their dependents, other than giving its
Employees access to a stakeholder defined contributions pension scheme operated
by a third party, true, accurate and compete details of which are set out in
the Disclosure Schedule. (see Appendix 10)

 

4.17 (h) Environmental and Health/Safety Matters.

 

The Disclosure Schedule contains a true and
complete schedule of all material environmental audits, assessments,
investigations or occupational health studies undertaken by, or on behalf of,
the Company, relating to or affecting the Company or any of the Relevant
Properties. (see Appendix 11)

 

4.17 (i) Environmental and Health/Safety Matters

 

The Disclosure Schedule contains a list of the
Business Assets which have been confirmed to contain PCBs or “asbestos” or “asbestos
containing material” (as such terms are identified under the Environmental
Laws).  The Company has operated and
continues to operate in material compliance with all Environmental Laws
governing the handling, use and exposure to and disposal of PCBs or asbestos or
asbestos containing materials, except where such non compliance would not have
a Material Adverse Effect on the Company. There are no claims, actions, suits,
governmental investigations or proceedings brought by any Governmental
Authority or third party pending, or, to the Knowledge of the Seller threatened
against or directly affecting Company, the Business Assets or the Business
relating to the use, handling or exposure to and disposal of PCBs or asbestos
or asbestos containing materials in connection with their assets and
operations. (see Appendix 12)

 

4.17 (j) Environmental and Health/Safety Matters

 

The Disclosure Schedule contains a true and
complete schedule of the operations and activities, and locations thereof,
which have been conducted and are being conducted by the Company on any of the
Relevant Properties which have involved the generation, accumulation, storage,
treatment, transportation, labeling, handling, manufacturing, use, recycling,
spilling, leaking, dumping, discharging, release or disposal of any material
quantities of Hazardous Substances. (see Appendix 13)

 

4.19 Litigation

 

Except as set
forth on the Disclosure Schedule, there are no Actions pending or threatened,
against, relating to or affecting the Company before any Court, Governmental
Agency or any arbitrator or mediator. 
Neither the Company nor the Seller are subject to any Order, including
but not limited to any Order which prohibits or restricts the consummation of
the transactions contemplated hereby or restricts in any way the ownership of
any assets by the Company or the Company carrying on the operations.  There is no civil, criminal, tribunal,
arbitration, administrative or other proceedings that are pending or threatened
by or against or concerning the Company and there are no facts or circumstances
likely to result in any such proceedings. (see Appendix 14)

 

4.20 Intellectual Property and Web Sites

 

The Disclosure Schedule contains an accurate
and complete list of all Intellectual Property and all of the Web Sites owned
by, used by, being developed by, or otherwise associated with the present or
anticipated future operations of the Business (“Company Intellectual Property”),
including information regarding registration or application status, as the case
may be.  To the Knowledge of the Seller,
the Company Intellectual Property listed in the Disclosure Schedule constitutes
all the Intellectual Property used to operate the Business as of the Closing
and thereafter, in the manner in which it is presently operated. (see Appendix 15)

 

4.24 Brokers

 

Except as set forth on the Disclosure
Schedule, neither the Company nor the Seller have employed any financial
advisor, broker, finder, consultant or advisor, and neither the Company nor the
Seller has incurred nor will incur any broker’s, finder’s, investment banking,
consultant, advisory or similar fees, commissions or expenses in connection
with the transactions contemplated by this Agreement. (see
Appendix 16)

 

4.25 Cash on Hand/Banks and Brokerage Accounts

 

The Disclosure Schedule sets forth (1) a true
and complete list of the names and locations of all banks, trust companies,
securities brokers and other financial institutions at which the Company has an
account or safety deposit box or maintains a banking, custodial, trading or
other similar relationship; (2) a true and complete list and description of
each account, safety deposit box and relationship, indicating in each case the
account number, the names of the respective officers, employees, agents or
other similar representatives of the Company having signatory power with
respect thereto and the current balances in the accounts or safety deposit
boxes, and (3) a list of each debenture, note, and other evidence of
indebtedness, stock, security (including rights to purchase and derivative
securities or rights), interests in joint ventures and general and limited
partnerships, mortgage loans and other investment or portfolio assets owned of
record or beneficially by the Company and the legal name of the record and
beneficial owner thereof, the location of the certificates, if any, therefor,
the maturity date, if any, and any stock or bond powers or other authority for
transfer granted with respect thereto. (see Appendix 17)

 

4.27 Contracts

 

The Disclosure Schedule sets forth a schedule
listing all material agreements (whether in writing or oral) to which the
Company is a party including:

any agreement for the purchase or sale of raw
materials, commodities, supplies, products, or other personal property, or for
the furnishing or receipt of services, including any consultancy services;

any agreement that cannot be terminated by the
Company without any breach or any financial or other detriment on more than 30
days notice;

any agreement concerning a collaboration,
partnership, joint venture or limited liability company venture;

any agreement under which the Company has
created, incurred, assumed, or guaranteed any Indebtedness for borrowed money
or pursuant to which a Lien has been placed on any of its assets, tangible or
intangible;

any agreement concerning confidentiality or
non-competition or any agreement which restricts the Company from engaging in
any business anywhere in the world;

any agreement between the Company and any
Seller (or Affiliate or spouse or relative of the Seller, as the case may be);

any agreement under which the Company has
advanced or loaned monies to any officer, director, employee or worker of the
Company;

any agreement that is not in the ordinary
course of business;

any settlement or similar agreement, the
performance of which will require the Company to pay, or entitles the Company
to receive, after the Closing Date consideration in excess of £5,000;

any agreement relating to any acquisition,
divestiture, merger or similar transaction which contains representations,
warranties, covenants, indemnities or other Liabilities which may still be in
effect;

any powers of attorney;

any contract relating to pending capital
expenditures of the Company in excess of £5,000;

any agreement under which the Company has
advanced or loaned any other Person amounts in the aggregate exceeding £5,000;

any other agreement (or group of related
agreements) the performance of which involves consideration in excess of
£10,000;

any agreement which as a result of a change of
control of the Company, may terminate, be varied, or trigger any payment or
other right or obligation;

any agreement which by its operation or
termination would have a Material Adverse Effect on the Company.

 

47

 

A correct, up to date and complete copy of
each written agreement listed in the Disclosure Schedule (as amended to date)
and a written summary setting forth the material terms and conditions of each
oral agreement, if any, referred to in such schedule have been made available
or delivered to the Buyer.  Each
agreement is the legal, valid, binding obligation of the parties thereto,
enforceable against each party except as enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws relating to
or affecting creditor rights generally. 
No party to any agreement is in material breach or default, and no event
has occurred that with notice or lapse of time would constitute a material
breach or default, or permit termination, modification, or acceleration, under
the agreement. (see Appendix 18)

 

If you require any further information please
do not hesitate to call me on 020 8843 7900.

 

Yours sincerely,

 

 

Simon Worsfold-Gregg

 

 

Appendices

 

Appendix 1

Articles of Association

Other Corporate Documentation; VAT
registration, Company Registration Number

 

Appendix 2

Company accounts, March 2003. 2004, 2005

 

Appendix 3

Property Lease

 

Appendix 4

Inventories

 

Appendix 5

Insurance Policies

 

Appendix 6

N/A

 

Appendix 7

Staff Salary/Status details, 2 years of Salary
information, existing staff contracts, bonus and commission information

 

Appendix 8

N/A

 

Appendix 9

N/A

 

Appendix 10

N/A

 

Appendix 11

N/A

 

Appendix 12

N/A

 

Appendix 13

N/A

 

Appendix 14

Information relating to litigation between Web
Diversity Limited and Media Merchandising, client failed to pay a number of
invoices (£13,479.11). This has resulted in Web taking legal action. We are
currently waiting for a hearing date. This debt has been written off from a tax
perspective.

 

48

 

Information relating to Web Diversity Limited
and Silbury Hill, client failed to pay a number of invoices and now in
receivership awaiting payout if any, this debt has been written off from a tax
perspective.

 

Appendix 15

List of Websites owned by Web Diversity

Information concerning Web Diversity’s CMS

 

Appendix 16

N/A

 

Appendix 17

All bank account details

 

Appendix 18

(a)           N/A

(b)           N/A

(c)           N/A

(d)           N/A

(e)           N/A

(f)            N/A

(g)           N/A

(h)           N/A

(i)            Potential monies from Media Merchandising from
court action, £13,400

(j)            N/A

(k)           N/A

(l)            N/A

(m)          N/A

(n)           N/A

(o)           N/A

(p)           N/A

 

49

 

SCHEDULE
3

 

THK /
BUYER REPRESENTATIONS AND WARRANTIES - DISCLOSURES

 

References to “Company” below are to THK

 

Section 5.1 – Buyer is duly qualified and licensed as
a foreign corporation in the State of Illinois

 

Section 5.3 – See attached excel spreadsheet for list
of options/warrants and shares that may be required to be issued in the future
with respect to earnouts from acquisitions.

 

Section 5.3 – THK has agreed to capitalize a bonus
pool for the pre-acquisition employees of Litmus Media, Inc. in an amount not
to exceed $1,050,000.

 

Section 5.5 – THK needs to obtain American Stock
Exchange approval for the listing of the Shares Consideration.

 

Section 5.6

 

MarketSmart Interactive

 

On May 27, 2005, the Company and its MarketSmart Interactive, Inc.
subsidiary filed a lawsuit against Jason Dowdell, a former employee of MarketSmart
Interactive, and his wife, Shannon Dowdell in the Circuit Court of the
Eighteenth Judicial Circuit of the State of Florida, in and for Brevard County,
which is captioned MarketSmart Interactive, Inc. and CGI Holding Corporation v.
Jason Dowdell and Shannon Dowdell.  In
the lawsuit, the Company alleged that Mr. Dowdell failed to perform his
employment duties and other obligations under an Asset Purchase Agreement
pursuant to which MarketSmart Interactive purchased certain business assets
from the Dowdells.  The Company also
alleged that Mr. Dowdell breached a Confidentiality, Inventions and
Non-Competition Agreement between him and MarketSmart Interactive. In the
lawsuit, the Company asserted claims for replevin of certain computer equipment
and files Jason Dowdell failed to return to MarketSmart Interactive following
the termination of his employment. The Company also sought a declaratory
judgment regarding its right to cancel shares of common stock issued to Mr.
Dowdell as well as shares of common stock and warrants to purchase shares of
common stock Mr. Dowdell alleged he is entitled to under the Asset Purchase
Agreement. The Company also sought injunctive relief and damages with respect
to the Dowdells’ breach of the Asset Purchase Agreement and Mr. Dowdell’s
breach of the Confidentiality, Inventions and Non-Competition Agreement. This
lawsuit was settled on the following terms:

 

•              MarketSmart
Interactive agreed to allow Mr. Dowdell to keep the shares of stock that were
promised to him in the Asset Purchase Agreement.

 

•              Mr. Dowdell agreed
to the entry of a Permanent Injunction limiting his competitive activities
until July 5, 2006.

 

50

 

•              The parties agreed
to a mutual release of all claims.

 

Primary Ads

 

On May 16, 2005, the Company’s PrimaryAds subsidiary filed a lawsuit
against Direct Response Technologies, Inc. in the Court of Common Pleas of
Allegheny County, Pennsylvania, captioned as PrimaryAds Inc. v. Direct Response
Technologies, Inc., GD 05-11414. Direct Response Technologies, Inc. (“DRT”)
provided software services to PrimaryAds and threatened to terminate those
services. Additionally, DRT possessed and controlled certain business
information regarding PrimaryAds’ business. PrimaryAds sought injunctive relief
to maintain the status quo (i.e., continued access to the services), as well as
the return of its business information and data. This lawsuit was settled by
way of Consent Decree upon the following settlement terms in the form of a
consent decree:

 

•              DRT agreed to
provide PrimaryAds with a duplicate of its business information and data.

 

•              DRT agreed to
continue to provide services to PrimaryAds for nine months after DRT provided
PrimaryAds with a duplicate of its business information and data.

 

•              The lawsuit has been
dismissed with prejudice.

 

After DRT failed
to properly return PrimaryAds’ business information and data, PrimaryAds filed
a motion asking the Court to require DRT to comply with the terms of the
consent decree. In response to the motion, the parties agreed to an amended
consent decree which included a non-disparagement clause, a release from all
liability relating to the lawsuit, an agreement that PrimaryAds would provide a
presentation to DRT relating to its use of DRT’s Affiliate IDs, Codes, and
Tracking Codes, an agreement that DRT would continue to provide services to
PrimaryAds until October of 2006, and an agreement that PrimaryAds would
dismiss the lawsuit.  The presentation
successfully took place on March 8, 2006 and thus the litigation has concluded.

 

51

 

SCHEDULE 4

 

TAX MATTERS

 

PART I: DEFINITIONS AND INTERPRETATION

 

ARTICLE I

 

Definitions and Interpretation

 

1.1           In addition to the
application of the definitions set out in Article I of this Agreement, in this
Schedule only the following words and expressions shall have the following
meanings:

 

	
  “ACT”

  	
   

  	
  means
  advance corporation tax;

  
	
   

  	
   

  	
   

  
	
  “Accounting
  Period”

  	
   

  	
  means an
  accounting period for the purposes of section 12 of ICTA;

  
	
   

  	
   

  	
   

  
	
  “Assumptions”

  	
   

  	
  means the
  following assumptions:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a) that the
  period beginning immediately after the end of the Accounting Period of the
  Company last ended before Closing and ending on the day before Closing was an
  Accounting Period of the Company; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b) that the
  period beginning immediately after the end of the Accounting Period of each
  member of the Buyer’s Tax Group other than the Company last ended before
  Closing and ending on the day before Closing was an Accounting Period of the
  relevant member of the Buyer’s Tax Group; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c) that the
  period beginning on the day after Closing and ending on the last day of the
  Accounting Period of the Company current at Closing was an Accounting Period
  of the Company; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d) that the
  period beginning on the day of Closing and ending on the last day of the
  Accounting Period current at Closing of each member of the Buyer’s Tax Group
  other than the Company was an Accounting Period of the relevant member of the
  Buyer’s Tax Group;

  
	
   

  	
   

  	
   

  
	
  “Balance
  Sheet”

  	
   

  	
  means in
  relation to the Company, its balance sheet as at the Accounts Date, forming
  part of the Unaudited Financials;

  
	
   

  	
   

  	
   

  
	
  “Balance
  Sheet Date”

  	
   

  	
  means the
  Accounts Date;

  
	
   

  	
   

  	
   

  
	
  “Buyer’s
  Relief”

  	
   

  	
  means any Relief
  which arises as a result of or by 

  

 

52

 

	
   

  	
   

  	
  reference to
  an Event occurring after Closing;

  
	
   

  	
   

  	
   

  
	
  “Buyer’s
  Tax Group”

  	
   

  	
  means the
  Buyer and any company which either is, or after Closing becomes, a member of
  the same group as, or otherwise connected or associated in any way with, the
  Buyer for any Tax purpose;

  
	
   

  	
   

  	
   

  
	
  “CA 1985”

  	
   

  	
  means
  the Companies Act 1985;

  
	
   

  	
   

  	
   

  
	
  “CAA”

  	
   

  	
  means the
  Capital Allowances Act 2001;

  
	
   

  	
   

  	
   

  
	
  “Due
  Date”

  	
   

  	
  means the
  date determined in accordance with paragraph 5.3 of Part III of this
  Schedule;

  
	
   

  	
   

  	
   

  
	
  “Event”

  	
   

  	
  means the
  existence of any state of affairs and any act, occurrence, omission, payment,
  whether actual or deemed of whatever nature for Tax purposes whether or not
  the Company or the Buyer is a party thereto;

  
	
   

  	
   

  	
   

  
	
  “FA”

  	
   

  	
  means Finance
  Act;

  
	
   

  	
   

  	
   

  
	
  “ICTA”

  	
   

  	
  means
  the Income and Corporation Taxes Act 1988;

  
	
   

  	
   

  	
   

  
	
  “IHTA”

  	
   

  	
  means the
  Inheritance Tax Act 1984;

  
	
   

  	
   

  	
   

  
	
  “ITEPA”

  	
   

  	
  means the Income
  Tax Earnings and Pensions Act 2003;

  
	
   

  	
   

  	
   

  
	
  “Main
  Agreement”

  	
   

  	
  means an
  agreement, to which this Schedule forms part, made between the Seller and the
  Buyer, relating to the Shares, but excluding the provisions of this Schedule
  for the purposes of the remainder of this Schedule;

  
	
   

  	
   

  	
   

  
	
  “PAYE”

  	
   

  	
  means the system
  to account for Tax set out in the Income Tax (Pay As You Earn) Regulations
  2003 and the payroll deduction scheme referred to in section 713 ITEPA;

  
	
   

  	
   

  	
   

  
	
  “Pre-Completion
  Relief”

  	
   

  	
  means any Relief
  which arises as a result of or by reference to any Event occurring on or
  before Closing and which has either been treated as an asset in the Balance
  Sheet or is taken into account in computing (and so reducing or eliminating)
  a provision for deferred Tax which appears in the Balance Sheet or which
  would have appeared in the Balance Sheet but for the presumed availability of
  the Relief;

  
	
   

  	
   

  	
   

  
	
  “Relevant
  Tax Claim”

  	
   

  	
  means any email,
  fax, written notice, letter, demand, assessment, self-assessment or other
  document from or to any person, authority or body responsible for the
  assessment, collection or recovery of Tax from which it appears that there is
  or may be a Tax Liability for

  

 

53

 

	
   

  	
   

  	
  which the
  Tax Covenantor could become liable;

  
	
   

  	
   

  	
   

  
	
  “Relief”

  	
   

  	
  means any
  loss, relief, allowance, exemption, Right to Repayment of Tax, credit,
  deduction or set-off given, claimed, claimable, due or available for Tax
  purposes;

  
	
   

  	
   

  	
   

  
	
  “Right
  to
  Repayment”

  	
   

  	
  means any
  right to repayment given, due or available for Tax purposes;

  
	
   

  	
   

  	
   

  
	
  “Seller’s
  Tax Group”

  	
   

  	
  means any of
  the Seller and any company which either is or has been a member of the same
  group as, or otherwise connected or associated in any way with, the Seller
  for any Tax purpose;

  
	
   

  	
   

  	
   

  
	
  “Tax
  Authority”

  	
   

  	
  means any
  authority competent to impose, assess or collect Tax;

  
	
   

  	
   

  	
   

  
	
  “Tax Covenantor”

  	
   

  	
  the Seller;

  
	
   

  	
   

  	
   

  
	
  “Tax
  Warranties”

  	
   

  	
  means Part
  II of this Schedule; and

  
	
   

  	
   

  	
   

  
	
  “Tax
  Seller”

  	
   

  	
  the Seller;

  
	
   

  	
   

  	
   

  
	
  “TCGA”

  	
   

  	
  means the
  Taxation of Chargeable Gains Act 1992;

  
	
   

  	
   

  	
   

  
	
  “TMA”

  	
   

  	
  means the
  Taxes Management Act 1970;

  
	
   

  	
   

  	
   

  
	
  “VAT”

  	
   

  	
  means Value
  Added Tax;

  
	
   

  	
   

  	
   

  
	
  “VATA”

  	
   

  	
  means the
  Value Added Tax Act 1994;

  

 

1.2           In this Schedule any
reference to any “Event” or “Events” which occurred on or before Closing or to
the occurrence of or result of any “Event” or “Events” on or before Closing
shall include a reference to:

 

(a)           an Event which is
deemed for Tax purposes to have occurred on or before Closing; and

 

(b)           an Event which occurred
or is deemed to have occurred after Closing if the combined effect of that
Event and any Event which occurred or are deemed for Tax purposes to have
occurred on or before Closing is to give rise to a Tax Liability or increased
Tax Liability;

 

1.3           In this Schedule any
reference to “Tax” shall be deemed to include a reference to:

 

(a)           any Tax which is
assessed on any person other than the Company and/or the Buyer (whether or not
the Tax is assessed in the name of the Company or the Buyer) and which is
recoverable from the Company and/or the Buyer; and

 

(b)           any Tax payable by the
Company or the Buyer for which the Company or the Buyer is not primarily liable
or for which the Company or the Buyer is liable only on the default of another.

 

54

 

1.4           In this Schedule any
reference to ‘Tax Liability’ means any liability of the Company to make a
payment in respect of or in the nature of Tax and includes:

 

(a)           on the basis that the
Assumptions are made and are accurate (whether such be the case in fact  or not) the set-off or utilisation of any
Buyer’s Relief or a Pre-Completion Relief against a liability to make a payment
of or in respect of Tax where but for the set-off or utilisation a liability
would have arisen under paragraph 1.4;

 

(b)           on the basis that the
Assumptions are made and are accurate (whether such be the case in fact or not)
the loss, disallowance, counteracting or clawing back of a Pre-Completion
Relief which would otherwise have been available other than as set out in
paragraph 1.4(a);

 

(c)           the loss, disallowance
or set-off of a Right to Repayment of Tax which would otherwise have been
available;

 

and the amount of the Tax Liability is:

 

(d)           in the case of an
actual tax liability falling within paragraph 1.4 or a liability not falling
within any of the preceding sub-paragraphs of this paragraph, the amount of Tax
payable;

 

(e)           in the case of a
liability falling within paragraph 1.4(a) above, the amount of Tax which would
have been payable but for the set-off or utilisation;

 

(f)            in the case of a
liability falling within paragraph 1.4(b) above, the value attributed in the
Balance Sheet to the Pre-Completion Relief so lost, counteracted or clawed
back;

 

(g)           in the case of a
liability falling within paragraph 1.4(c) above, the amount of repayment which
would otherwise have been available;

 

1.5           In construing this
Schedule the so-called ejusdem generis rule shall not apply and accordingly the
interpretation of general words shall not be restricted by being preceded by
words indicating a particular class of acts, matters or things or being
followed by particular examples.

 

1.6           The Tax Covenantor’s
and the Tax Seller’s obligations under this Schedule shall be joint and
several.

 

1.7           The Buyer may release
or compromise the liability of any Tax Covenantor or Tax Seller or grant time
or indulgence to any Tax Covenantor or Tax Seller without releasing or reducing
the liability of any other Tax Covenantor or Tax Seller.

 

1.8           In the event of any
conflict or inconsistency between any term of this Schedule and a term of the
Main Agreement, the term in this Schedule shall prevail to the extent of such
conflict or inconsistency.

 

55

 

PART II:  TAX WARRANTIES

 

1.             GENERAL COMPLIANCE AND RELATIONSHIP WITH TAX
AUTHORITIES

 

	
  1.1

  	
   

  	
  Submissions to a
  Tax Authority. All documents, returns, computations and other information
  submitted in any form to a Tax Authority by or on behalf of the Company have
  been submitted properly and accurately, and there are no circumstances that
  could render those documents and information inaccurate or incomplete.

  
	
   

  	
   

  	
   

  
	
  1.2

  	
   

  	
  Obligation to submit material to a Tax
  Authority. All documents, computations and other information that the Company
  was obliged to submit to a Tax Authority have been submitted within the
  requisite period, and the Company is not currently under any such obligation
  that remains outstanding.

  
	
   

  	
   

  	
   

  
	
  1.3

  	
   

  	
  Payment of Tax. All Tax for which the
  Company is or has been liable to account has been duly paid.

  
	
   

  	
   

  	
   

  
	
  1.4

  	
   

  	
  Repayments and notices. The Company has not
  received from any Tax Authority any payment to which it was not entitled or
  any notice in which its Tax Liability was understated.

  
	
   

  	
   

  	
   

  
	
  1.5

  	
   

  	
  PAYE. The Company has properly operated the
  PAYE system and duly deducted Tax from all payments made or treated as made
  to its employees or former employees and accounted to the relevant Tax
  Authority for all Tax so deducted by it and for all Tax chargeable on
  benefits provided for its employees or former employees.

  
	
   

  	
   

  	
   

  
	
  1.6

  	
   

  	
  VAT - collection and documentation. Since
  the Balance Sheet Date the Company has duly collected output tax on its
  supplies and documented any payments of input tax.

  
	
   

  	
   

  	
   

  
	
  1.7

  	
   

  	
  Claims for Relief. All claims by the
  Company for Relief have been properly made and have been accepted as valid by
  a Tax Authority, and no Relief has been claimed or given to the Company, or
  taken into account in determining the provision for Tax in the Balance Sheet,
  which could be withdrawn, postponed or restricted as a result of entering
  into the Main Agreement or Closing.

  
	
   

  	
   

  	
   

  
	
  1.8

  	
   

  	
  General conduct in relation to Tax.
  Everything that has been done or should have been done in relation to the
  Company’s Tax affairs has been properly done and either has been or will be
  accepted as valid by a Tax Authority.

  
	
   

  	
   

  	
   

  
	
  1.9

  	
   

  	
  Tax records – general. The Company has
  maintained sufficient records to enable it to make proper returns for Tax
  purposes, to submit any other documents or information which it is obliged to
  submit to a Tax Authority, and to calculate any Relief or Tax Liability
  arising on the disposal of any asset owned by it on or before Closing.

  
	
   

  	
   

  	
   

  
	
  1.10

  	
   

  	
  Tax records – VAT. The Company has
  maintained complete, correct and up-to-date records for the purposes of all
  legislation relating to VAT and is not subject to any condition imposed by
  the competent Tax Authority under paragraph 6 Schedule 11 VATA relating to
  the preservation of information.

  
	
   

  	
   

  	
   

  
	
  1.11

  	
   

  	
  Consent or clearance granted by a Tax
  Authority. Any consent or clearance obtained by the Company from any Tax
  Authority has been granted by that Tax Authority on a proper basis, there is
  no reason why such consent or clearance might become invalid, and the
  transactions for which the consent or clearance was obtained have been

  

 

56

 

	
   

  	
   

  	
  carried into effect (if at all) only in
  accordance with the terms of the consent or clearance.

  
	
   

  	
   

  	
   

  
	
  1.12

  	
   

  	
  Concessions. The amount of Tax chargeable
  on the Company has not, to any material extent, depended on any concession,
  settlement, agreement or other formal or informal arrangement with any Tax
  Authority.

  
	
   

  	
   

  	
   

  
	
  1.13

  	
   

  	
  Tax disputes. The Tax affairs of the
  Company are not, and have never been, the subject of any investigation,
  audit, discovery, access order or enquiry (other than routine questions) by
  or dispute with any Tax Authority and there are no facts or circumstances
  that could cause the Company’s Tax affairs to become the subject of any such
  investigation, audit, discovery, access order, enquiry or dispute.

  
	
   

  	
   

  	
   

  
	
  1.14

  	
   

  	
  Liability for Tax payable by other persons.
  The Company is not, and will not become, liable to indemnify, reimburse or
  pay any Tax (or amounts corresponding to Tax) which is any other person’s
  primary responsibility, in relation to any Event occurring or deemed to occur
  on or before Closing.

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  TAX STATUS

  
	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  Close company. The Company is not and has
  never been a close company within the meaning of sections 414 and 415 ICTA.

  
	
   

  	
   

  	
   

  
	
  2.2

  	
   

  	
  Group company. The Company is not and has
  never been a member of a group for Tax purposes.

  
	
   

  	
   

  	
   

  
	
  2.3

  	
   

  	
  Demergers and tax exempt distributions. The
  Company has not during any accounting period ending on or within the five
  years before Closing been engaged in, or been a party to, any of the
  transactions set out in sections 213 to 218 (inclusive) ICTA or section 192
  TCGA.

  
	
   

  	
   

  	
   

  
	
  2.4

  	
   

  	
  Non-deductible payments. The Company has
  not made or assumed any obligation to make any payments of an income nature,
  or to make any payment to or provide any benefit for any of its current or
  former directors, officers, or employees for whatever reason, which are or
  may be wholly or partially disallowable as deductions or charges in computing
  the Company’s profits for Tax purposes for any reason.

  
	
   

  	
   

  	
   

  
	
  2.5

  	
   

  	
  Capital expenditure – allowances. All
  capital expenditure incurred by the Company since the Balance Sheet Date and
  all capital expenditure which may be incurred by the Company under any
  existing contract has qualified or will be capable of qualifying for capital
  allowances.

  
	
   

  	
   

  	
   

  
	
  2.6

  	
   

  	
  Disallowance of losses. There has not been
  in the past three years a major change in the nature or conduct of the trade
  or business of the Company such as might prevent the carry forward or back of
  trading losses or excess management expenses by reason of the application of
  section 768A or 768B ICTA.

  
	
   

  	
   

  	
   

  
	
  2.7

  	
   

  	
  Tax avoidance. The Company has not, since
  the Balance Sheet Date, engaged in, or been a party to, a scheme or
  arrangement of which the main purpose, or one of the main purposes, was the
  avoidance of, or a reduction in liability to, Tax.

  

 

57

 

	
  2.8

  	
   

  	
  Tax residence. The Company is and has always
  been resident only in the UK for Tax purposes, and is not and has not at any
  time been subject to Tax in any jurisdiction outside the United Kingdom or
  had a branch or any other permanent establishment outside the United Kingdom.

  
	
   

  	
   

  	
   

  
	
  2.9

  	
   

  	
  European Economic Interest Grouping (EEIG).
  The Company is not a member of an EEIG in accordance with EC Council
  Regulation 2137/85.

  
	
   

  	
   

  	
   

  
	
  2.10

  	
   

  	
  Capital goods scheme. The Company has not
  within the period of ten years ending on Closing had any interest in any
  assets treated as items to which Part XV of the Value Added Tax Regulations
  applies.

  
	
   

  	
   

  	
   

  
	
  2.11

  	
   

  	
  Payment by instalments. The Company has not
  made any payments representing instalments of corporation tax pursuant to the
  Corporation Tax (Instalment Payments) Regulations 1998 in respect of any
  current or preceding Accounting Periods and section 59E TMA and is not under
  any obligation to do so.

  
	
   

  	
   

  	
   

  
	
  2.12

  	
   

  	
  Construction industry sub-contractors
  scheme. The Company is not and has not since the Balance Sheet Date been a
  sub-contractor or contractor for the purposes of Chapter 4 of Part 13 ICTA.

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  CAPITAL ASSETS

  
	
   

  	
   

  	
   

  
	
  3.1

  	
   

  	
  Base cost. If each of the capital assets of
  the Company owned at the Balance Sheet Date was disposed of at Closing for a
  consideration equal to the book value of that asset in, or adopted for the
  purpose of, the Balance Sheet, or in the case of assets acquired since the
  Balance Sheet Date, equal to the consideration given on acquisition, no Tax
  Liability on chargeable gains or balancing charge under the CAA would arise
  (and for the purpose of determining the Tax Liability on chargeable gains,
  there will be disregarded any relief or allowance available to the Company
  other than amounts falling to be deducted from the consideration receivable
  under section 38 TCGA).

  
	
   

  	
   

  	
   

  
	
  3.2

  	
   

  	
  Consideration. The Company has not since
  the Balance Sheet Date entered into any transaction or arrangement whatsoever
  otherwise than by way of bargain at arm’s length or in respect of which there
  may be substituted, for Tax purposes, a different consideration for the
  actual consideration given or received by it, and the Company has not
  disposed of any chargeable asset for a consideration not payable wholly in
  cash on Closing of the disposal.

  
	
   

  	
   

  	
   

  
	
  3.3

  	
   

  	
  Election to pay in instalments. The Company
  has not made an election under section 280 TCGA to pay the Tax in instalments
  on a chargeable gain accruing on a disposal.

  
	
   

  	
   

  	
   

  
	
  3.4

  	
   

  	
  Balancing charges. No Event has occurred
  since the Balance Sheet date otherwise than in the ordinary course of business
  by reason of which any balancing charge may fall to be made on or any
  disposal value brought into account by the Company.

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  CLOSE COMPANIES

  

 

58

 

	
  4.1

  	
   

  	
  Close investment-holding companies. The Company
  is not and has not since the Balance Sheet Date been a close
  investment-holding company within the meaning of section 13A ICTA.

  
	
   

  	
   

  	
   

  
	
  4.2

  	
   

  	
  Payments and expenses regarded as
  distributions. The Company has not made any payments or incurred any expenses
  that are treated as distributions under section 418 ICTA.

  
	
   

  	
   

  	
   

  
	
  4.3

  	
   

  	
  Loans by close companies or companies
  controlled by close companies. The Company has not effected or been a party
  to any transaction falling within section 419, 421 or 422 ICTA.

  
	
   

  	
   

  	
   

  
	
  4.4

  	
   

  	
  Transfers of value. The Company has not
  made any transfer of value as defined in section 3 IHTA which is or may be
  liable to Tax under the provisions of sections 94, 99 or 199 IHTA.

  
	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  GROUP COMPANIES

  
	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
  Acquisitions of assets from and transfer of
  assets to group companies. The Company has not at any time acquired any asset
  from or transferred any asset to any company which at the time of the
  acquisition was a member of the same group of companies as defined in section
  170 TCGA.

  
	
   

  	
   

  	
   

  
	
  5.2

  	
   

  	
  Replacement of business assets by members
  of a group. The Company has not made or been entitled to make a claim under
  section 175 TCGA or acquired any asset or any interest in any asset in
  circumstances in which another company has made such a claim.

  
	
   

  	
   

  	
   

  
	
  5.3

  	
   

  	
  Transactions between dealing companies and
  associated companies. The Company has not at any time entered into or been
  otherwise involved in any transaction to which section 774 ICTA applies.

  
	
   

  	
   

  	
   

  
	
  5.4

  	
   

  	
  Company reconstructions without a change of
  ownership. The Company has not at any time been a party to any such
  reconstruction as is described in section 343 ICTA.

  
	
   

  	
   

  	
   

  
	
  5.5

  	
   

  	
  Degrouping charges. The Company has not
  during any accounting period ending on or within the six years before Closing
  been involved in any transaction which could lead to an assessment or charge
  to corporation tax under section 179 TCGA or paragraphs 58 or 60 of Schedule
  29 FA 2002, including as a result of the execution of the Main Agreement or
  Closing.

  
	
   

  	
   

  	
   

  
	
  5.6

  	
   

  	
  VAT – group treatment. The Company is not
  and has not since the beginning of the current prescribed accounting period
  been a member of a group for the purposes of VAT under section 43 VATA and
  has not since the Balance Sheet Date applied for and been refused treatment
  as such a member.

  
	
   

  	
   

  	
   

  
	
  5.7

  	
   

  	
  VAT – anti-avoidance provisions relating to
  groups. The Company has not during any accounting period ending on or within
  the six years before Closing been party to or otherwise involved in any
  transaction in respect of which a direction has or could be made under
  Schedule 9A VATA.

  

 

59

 

	
  5.8

  	
   

  	
  Stamp duty – associated companies. The
  Company has not during within the three years ending on Closing made any
  claim for Relief or exemption under section 42 FA 1930 or section 151 FA
  1995.

  
	
   

  	
   

  	
   

  
	
  5.9

  	
   

  	
  Stamp duty land tax – groups. The Company
  has not during any accounting period ending on or within the six years before
  Closing made any claim for Relief or exemption under Part 1 Schedule 7,
  Finance Act 2003.

  
	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  BALANCE SHEET

  
	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  General. The Balance Sheet fully provides
  or reserves, in accordance with the accounting policies set out in the notes
  included in the Balance Sheet, for all Tax (including deferred tax
  attributable to timing differences capable of reversal after the Balance
  Sheet Date) for which the Company is or may be liable, or for which it may be
  accountable as at the Balance Sheet Date by reference to the profits, gains,
  income and earnings (whether actual or deemed) for any period ending on or
  before the Balance Sheet Date, or any other transaction entered into or
  deemed to be entered into on or before the Balance Sheet Date.

  
	
   

  	
   

  	
   

  
	
  6.2

  	
   

  	
  Deferred Tax. To the extent that the
  Balance Sheet does not make provision for deferred Tax, the notes to the
  Balance Sheet disclose full details of the amounts of such Tax and the
  matters to which it relates.

  

 

60

 

PART III: 
TAX COVENANT

 

ARTICLE II

 

TAX COVENANT

 

2.1           Subject as provided in
this Schedule, the Tax Covenantor covenants to pay to the Buyer an amount equal
to:

 

(a)           any Tax Liability of
the Company arising directly or indirectly as a result of any Event or Events
which occurred on or before Closing;

 

(b)           any Tax Liability of
the Buyer arising directly or indirectly as a result of any Event or Events
which occurred on or before Closing to the extent that the Tax Liability in
question would not have been a Tax Liability of the Buyer but for the
acquisition of the Shares;

 

(c)           any Tax Liability which
arises solely as a result of the relationship of the Company with any company
which is a member of the Seller’s Tax Group whensoever arising;

 

(d)           any depletion in or
reduction of value of the assets of the Company or any increase in its
liabilities as a result of inheritance tax which:

 

(i)            is
at Closing a charge on the assets of the Company or gives rise to a power to
sell, mortgage or charge the assets of the Company; or

(ii)           after
Closing becomes a charge on or gives rise to a power to sell, mortgage or
charge any of the assets of the Company being a liability in respect of
additional inheritance tax payable on the death of the person within seven
years after a transfer of value;

 

(e)           the costs and expenses
incurred by the Company or the Buyer in relation to a Tax Liability or Relevant
Tax Claim; and

 

(f)            any liability of the
Company to make a payment in respect of Tax under any indemnity, tax covenant,
guarantee or charge entered into on or before Closing.

 

2.2           The covenants contained
in this Schedule shall be construed as separate and independent covenants and
shall not be restricted one by the other save that any payment by the Tax
Covenantor in respect of a liability under one shall pro tanto discharge any
liability under any other Tax Covenant arising out of the same subject matter.

 

ARTICLE III

 

LIMITATIONS

 

3.1           The Tax Covenantor
shall not be liable under the provisions contained in Part III of this Schedule
in respect of any Tax Liability to the extent that:-

 

(a)           specific provision or
reserve in respect of that Tax Liability was made in the Balance Sheet; or

 

61

 

(b)           such Tax Liability
arises or is increased as a result only of any increase in rates of Tax made
after Closing with retrospective effect; or of any change in the law made after
Closing with retrospective effect; or

 

(c)           such Tax Liability
would not have arisen but for a transaction entered into or other voluntary act
on the part of the Company with the written consent of the Buyer after Closing
which is not in the ordinary course of the Company’s business, as carried on at
Closing, is not required by law and is not pursuant to a legally binding
obligation entered into before Closing; or

 

(d)           such Tax Liability is a
liability to stamp duty on the completion of the purchase of the Shares; or

 

(e)           such Tax Liability is a
Tax Liability for which the Company is, or may become wholly or primarily
liable as a result of transactions in the ordinary course of its trading
activities during the period beginning immediately after the Balance Sheet Date
and ending on Closing other than profits which are directly or indirectly held
for or have accrued to the benefit in whatever form of the Tax Covenantor and
/or Seller or any person associated with the Seller and/or the Tax Covenantor
within the meaning of sections 416 and 417 ICTA;

 

(f)            the Buyer has
recovered such Tax Liability under the Tax Warranties in respect of, or arising
from, the same Tax Liability;

 

(g)           such Tax Liability
results from the cessation of the trade of the Company after Closing; and

 

(h)           such Tax Liability
relates to VAT in respect supplies made and imports received since the Balance
Sheet Date (assuming for the purposes of this paragraph (h) that the relevant
VAT has been collected on supplies) or in respect of stamp duty or stamp duty
land tax the liability for which has been incurred in the course of the Company’s
business since the Balance Sheet Date.

 

3.2           No claim under this Tax
Covenant shall be reduced or limited by the Claims Threshold or any matter set
out in the Disclosure Schedule.

 

ARTICLE IV

 

PAYMENT

 

4.1           In this Schedule a
right to pay by installments shall be disregarded and the provisions of section
213 IHTA shall not apply to payments to be made under this Schedule.

 

4.2           Any payment made
pursuant to this Schedule shall, at the Buyer’s option, to be exercised in
writing, be made either to the Buyer or to the Company.

 

4.3           The transfer of shares
in the Company by the Buyer shall not by itself affect the liability of the Tax
Covenantor or Tax Seller hereunder whether to the Buyer, the Company or any
other person.

 

62

 

4.4           No payment hereunder
shall be treated as received until cleared funds in respect thereof are
available to the Company or the Buyer.

 

4.5           If any sum payable by
the Tax Covenantor under the Tax Covenant is subject to Tax in the hands of the
recipient the same obligation to make an increased payment shall apply as if a
deduction or withholding equal in amount to that Tax was required by law, and
the resulting increase in the amount of the payment is referred to in this
paragraph as a “Tax Gross-Up”.

 

ARTICLE V

 

DATE OF PAYMENT

 

5.1           This paragraph applies
solely for determining the date on which payments are to be made by the Tax
Covenantor under Part III of this Schedule.

 

5.2           The Tax Covenantor
shall make a payment to the Buyer on the date falling five clear Business Days
after the date on which the Buyer has notified the Tax Covenantor of the amount
of the payment required to be made or, if later, three clear Business Days
prior to the date on which the Buyer or Company discharges, or is deemed to
discharge, a Tax Liability in respect of which the Buyer is entitled to make a
claim under this Schedule.

 

5.3           For the purposes of
paragraph 1.4 of Part I of this Schedule, the Company is deemed to discharge a
Tax Liability:

 

(a)           on the date on which
the Company makes an actual payment of Tax in respect of the Tax Liability;

 

(b)           in the case of a Tax
Liability falling within paragraph 1.4(a) of Part I of this Schedule, the date
on which the Tax would have been payable but for the set-off or utilisation of
the Buyer’s Relief or the Pre-Completion Relief;

 

(c)           in the case of a Tax
Liability falling within paragraph 1.4(c) of Part I of this Schedule, the date
on which the repayment would otherwise have been made to the Company;

 

5.4           If the Tax Covenantor
fails to make any payment due under the Tax Covenant by the Due Date the Tax
Covenantor shall pay to the Buyer interest (accruing daily and compounded
monthly) on the amount of such payment at the rate of 3 per cent per annum
above the base rate of The Royal Bank of Scotland plc from time to time from
the date for payment determined under this paragraph to the date payment is received.

 

ARTICLE VI

CONDUCT OF CLAIMS

 

6.1           The Buyer shall give
notice to the Tax Covenantor within a reasonable time of receipt of any
Relevant Tax Claim, but no failure to give such notice shall affect the
obligations of the Tax Covenantor under Part III of this Schedule.

 

63

 

6.2           If so requested in
writing by the Tax Covenantor and subject to the provisions of paragraphs 6.3
and 6.4 the Buyer shall take or procure that the Company, at the Tax Covenantor’s
cost and expense, takes such action as the Tax Covenantor may reasonably
request to avoid, dispute, resist, appeal, compromise or defend a Relevant Tax
Claim provided that:

 

(a)           the Tax Covenantor
indemnifies and secures the Buyer and the Company in such manner as the Buyer
shall require against all losses, costs, damages and expenses, including
interest on overdue Tax which may be incurred by the Buyer and the Company in
taking action; and

 

(b)           the Buyer shall not be
obliged to appeal or procure that the Company appeal against any Tax Liability
to which the Relevant Tax Claim relates unless the Tax Covenantor has made the
request and provided the indemnity and security referred to in paragraph (a)
above by the earlier of:

 

(i)            15
days from the date on which notice of the Relevant Tax Claim was given; or

 

(ii)           two
clear Business Days before the last date on which an appeal may be made against
the Tax Liability to which the Relevant Tax Claim relates;

 

(c)           neither the Buyer nor
the Company shall be required to take any action under this paragraph which
involves contesting any Tax Liability to which the Relevant Tax Claim relates
before any court or appellate body (other that the relevant Tax Authority)
unless the Tax Covenantor at its own expense and after disclosure of all
relevant information and documents obtains and delivers to the Buyer a written
opinion of leading tax counsel to the effect that such an appeal will, on
balance, be successful.

 

6.3           The
provisions of paragraph 6.2 above shall not apply where in the Buyer’s
reasonable opinion compliance with those provisions would be detrimental to the
business of the Company taken as a whole.

 

6.4           The
provisions of paragraph 6.2 above shall not apply and the Buyer or the Company
shall, without reference to the Tax Covenantor, be entitled to admit,
compromise, settle, discharge or otherwise deal with a Relevant Tax Claim or
the Tax Liability to which a Relevant Tax Claim relates on such terms at it may
in its absolute discretion think fit and without prejudice to any right or
remedy under this Tax Covenant if it appears to the Buyer that on or before
Closing there was any act or failure to act by any of the Company or the Tax
Covenantor which might constitute fraud in relation to any Tax Liability.

 

6.5           In
connection with the conduct of a dispute relating to a Relevant Tax Claim the
Tax Covenantor shall not settle or compromise the dispute or agree anything in
its conduct, which is likely to affect the amount involved or the future Tax
Liability of the Company or the Buyer, without the prior approval of the Buyer.

 

64

 

ARTICLE VII

TAX
RETURNS

 

7.1           The Tax Covenantor or
its duly authorised agent shall at its expense prepare the Company’s tax
returns for all Accounting Periods ended on or before Closing.

 

7.2           The Company shall cause
the Company tax returns referred to in paragraph 6.1 above to be authorised
signed and submitted to the appropriate authority without amendment or with
such amendments as the Tax Covenantor shall agree, and shall give the Tax
Covenantor or its agent all such assistance as may be required to agree those
returns with the appropriate authorities; PROVIDED THAT the Company shall not
be obliged to take any such action as is mentioned in this sub-paragraph in
relation to any Company tax return that is not full, true and accurate in all
material respects.

 

7.3           The Tax Covenantor or
its duly authorised agent shall at its expense prepare all documentation and
deal with all matters (including correspondence) relating to the Company tax
returns of the Company for all Accounting Periods ended on or prior to Closing
and the Company shall afford such access to its books, accounts and records as
is necessary and reasonable to enable the Tax Covenantor or its duly authorised
agents to prepare those Company tax returns and conduct matters relating
thereto in accordance with the Tax Covenantor’s rights under this paragraph.

 

7.4           Nothing done by the
Company pursuant to this paragraph 6 shall in any respect restrict or reduce
any rights it may have to make a claim against the Tax Covenantor under Part
III of this Schedule.

 

65

 

IN WITNESS WHEREOF, the parties hereto have each executed and delivered
this Agreement as a Deed on the day and year first above written.

 

 

	
  EXECUTED AS A DEED
  by THINK

  PARTNERSHIP INC.

  acting by a duly authorised signatory.

  	
   

  
	
   

  	
  /s/ Gerard M. Jacobs

  
	
   

  	
  Authorised Signatory

  	
   

  
			

 

 

	
  EXECUTED AS A DEED by JAMES

  BANKS

  	
   

  
	
   

  	
  /s/ James Banks

  
	
  IN THE PRESENCE OF:

  	
   

  
	
   

  	
   

  
	
  Witness Signature:

  	
   

  
	
   

  	
   

  
	
  Print Witness Name:

  	
   

  
	
   

  	
   

  
	
  Witness Address:

  	
   

  

 

66

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