Document:

OPERATING AGREEMENT

                                       OF

                                TICKETS2NITE, LLC

                       A NEVADA LIMITED LIABILITY COMPANY

<PAGE>

                                TABLE OF CONTENTS

                                                                           PAGE

ARTICLE I         DEFINITIONS...............................................1
      1.1   "Act"...........................................................1
      1.2   "Adjusted Capital Account"......................................1
      1.3   "Adjusted Capital Contribution".................................1
      1.4   "Affiliate".....................................................1
      1.5   "Agreement".....................................................2
      1.6   "Articles"......................................................2
      1.7   "Bankruptcy"....................................................2
      1.8   "Bona Fide Offer"...............................................2
      1.9   "Capital Account"...............................................2
      1.10  "Capital Contribution"..........................................2
      1.11  "Cinema Ride"...................................................2
      1.12  "Code"..........................................................2
      1.13  "Company".......................................................2
      1.14  "Company Minimum Gain"..........................................2
      1.15  "Distributable Cash"............................................3
      1.16  "Distribution"..................................................3
      1.17  "Economic Interest".............................................3
      1.18  "Economic Risk of Loss".........................................3
      1.19  "Eligible Members"..............................................3
      1.20  "Fair Market Value".............................................3
      1.21  "Fiscal Year"...................................................3
      1.22  "Former Member".................................................3
      1.23  "Former Member's Interest"......................................3
      1.24  "HK Inc.".......................................................3
      1.25  "HK LLC"........................................................3
      1.26  "Managers"......................................................3
      1.27  "Member"........................................................3
      1.28  "Member Minimum Gain"...........................................4
      1.29  "Member Nonrecourse Debt".......................................4
      1.30  "Member Nonrecourse Deductions".................................4
      1.31  "Membership Interest"...........................................4
      1.32  "Membership Termination Event"..................................4
      1.33  "Net Profits" and "Net Losses"..................................4
      1.34  "Nevada Statute"................................................4
      1.35  "Nonrecourse Deductions"........................................5
      1.36  "Nonrecourse Liability".........................................5
      1.37  "Offered Interest"..............................................5
      1.38  "Percentage Interest"...........................................5
      1.39  "Person"........................................................5
      1.40  "Purchasing Member".............................................5
      1.41  "Tax Credits"...................................................5
      1.42  "Tax Matters Member.............................................5
      1.43  "Transfer"......................................................5

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                                                                        PAGE(S)
      1.44  "Transferring Member"...........................................5
      1.45  "Treasury Regulations"..........................................5

ARTICLE II        ORGANIZATIONAL MATTERS....................................6
      2.1   Name............................................................6
      2.2   Term............................................................6
      2.3   Office and Agent................................................6
      2.4   Purpose of Company..............................................6
      2.5   Intent..........................................................6
      2.6   Reimbursement of Expenses of Organization.......................6
      2.7   Name Change.....................................................6

ARTICLE III       CAPITAL CONTRIBUTIONS.....................................7
      3.1   Initial Capital Contributions...................................7
      3.2   Intentionally Deleted...........................................7
      3.3   Additional Capital Contributions................................7
      3.4   Capital Accounts................................................7
      3.5   No Priorities of Members; No Withdrawals of Capital.............8
      3.6   No Interest.....................................................8

ARTICLE IV        MEMBERS...................................................8
      4.1   Limited Liability...............................................8
      4.2   Admission of Additional Members.................................8
      4.3   Withdrawal......................................................8
      4.4   Members Are Not Agents..........................................8
      4.5   Meetings of Members; Written Consent............................8

ARTICLE V         MANAGEMENT AND CONTROL OF THE COMPANY.....................9
      5.1   General Supervision and Control of Management by the Managers...9
      5.2   Officers of the Company........................................10
      5.3   Transactions between the Company and the Members...............10
      5.4   Performance of Duties; Liability of Managers and Officers......10
      5.5   Company Opportunities..........................................11
      5.6   Expenses.......................................................11
      5.7   Medical Insurance..............................................12

ARTICLE VI        ALLOCATIONS OF NET PROFITS, NET LOSSES AND DISTRIBUTIONS.12
      6.1   Minimum Gain Chargeback........................................12
      6.2   Member Minimum Gain Chargeback.................................12
      6.3   Qualified Income Offset........................................12
      6.4   Nonrecourse Deductions.........................................12
      6.5   Member Nonrecourse Deductions..................................12
      6.6   Allocation of Net Profits......................................12
      6.7   Allocation of Net Losses.......................................13

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                                                                        PAGE(S)
      6.8   Distribution of Distributable Cash by the Company..............13
      6.9   Allocation of Net Profits and Losses and Distributions in Respect of
            a Transferred Interest.........................................13
      6.10  Tax Allocation Matters.........................................13
      6.11  Order of Application...........................................13
      6.12  Allocation of Liabilities......................................14
      6.13  Form of Distribution...........................................14

ARTICLE VII       TRANSFER OF INTERESTS....................................15
      7.1   Transfer of Interests..........................................15
      7.2   Right of First Offer...........................................15

ARTICLE VIII      CONSEQUENCES OF MEMBERSHIP TERMINATION EVENTS............16
      8.1   Dissolution of Company.........................................16
      8.2   Admission or Conversion........................................16
      8.3   Purchase Price.................................................16
      8.4   Notice of Intent to Purchase...................................17
      8.5   Election to Purchase Less Than All of the Former Member's Interest.
            17
      8.6   Closing of Purchase of Former Member's Interest................17
      8.7   Payment of Purchase Price......................................17

ARTICLE IX        ACCOUNTING, RECORDS AND REPORTING BY MEMBERS.............18
      9.1   Books and Records..............................................18
      9.2   Bank Accounts; Invested Funds..................................18
      9.3   Tax Matters for the Company Handled by the Managers and Tax Matters
            Members........................................................18
      9.4   Accounting Matters.............................................18

ARTICLE X         DISSOLUTION AND WINDING UP...............................18
      10.1  Dissolution....................................................18
      10.2  Certificate of Dissolution.....................................19
      10.3  Winding Up.....................................................19
      10.4  Distributions in Kind..........................................19
      10.5  Order of Payment of Proceeds Upon Dissolution..................19
      10.6  Compliance with Treasury Regulations...........................20
      10.7  Limitations on Payments Made in Dissolution....................20
      10.8  Certificate of Cancellation....................................20
      10.9  Compensation for Services......................................20

ARTICLE XI        INDEMNIFICATON...........................................20
      11.1  Indemnification................................................20
      11.2  Contract Right; Expenses.......................................21
      11.3  Indemnification of Officers and Employees......................21
      11.4  Insurance......................................................21

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                                                                        PAGE(S)
ARTICLE XII       MISCELLANEOUS............................................21
      12.1  Amendments.....................................................21
      12.2  Offset Privilege...............................................21
      12.3  Remedies Cumulative............................................21
      12.4  Notices........................................................21
      12.5  Attorney's Fees................................................22
      12.6  Governing Law; Jurisdiction....................................22
      12.7  Complete Agreement.............................................22
      12.8  Binding Effect.................................................22
      12.9  Section Headings...............................................22
      12.10 Interpretation.................................................22
      12.11 Severability...................................................22
      12.12 Multiple Counterparts..........................................22

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<PAGE>
                               OPERATING AGREEMENT
                                       OF
                                TICKETS2NITE, LLC

                       A NEVADA LIMITED LIABILITY COMPANY

     This  Operating  Agreement is made as of September 24, 2002, by and between
Cinema Ride, Inc., a Delaware  corporation  ("Cinema Ride"),  and Entasis LLC, a
Delaware  limited  liability  company ("HK LLC") as  successor to  Tickets2Nite,
Inc., a Nevada  corporation  ("HK Inc.")  (each,  a "Member" and  together,  the
"Members"), with reference to the following facts:

     A. The  parties  desire  to form  TICKETS2NITE,  LLC (the  "Company")  as a
limited  liability  company  under the laws of the State of Nevada  and, to that
end,  have  filed  Articles  of  Organization  for the  Company  with the Nevada
Secretary of State.

     B. The parties now desire to adopt an  operating  agreement to govern their
respective rights and obligations as Members of the Company.

     NOW,  THEREFORE,  in consideration of the mutual covenants contained herein
and for  other  good  and  valuable  consideration,  the  receipt  of  which  is
acknowledged,  the  parties  agree  that the  following  shall be the  Operating
Agreement of the Company. ARTICLE I

                                   DEFINITIONS

     When  used in this  Agreement,  the  following  terms  have  the  following
meanings:

     1.1 "ACT" means the Nevada Limited  Liability  Company Act, codified in the
Nevada Statute Section 86.011 ET SEQ.

     1.2  "ADJUSTED  CAPITAL  ACCOUNT" of a Member means the Capital  Account of
that Member  increased by the Member's share of Company  Minimum Gain and Member
Minimum Gain.

     1.3  "ADJUSTED  CAPITAL  CONTRIBUTION"  of a Member means the excess of (a)
that Member's  Capital  Contribution to the Company,  over (b)  Distributions to
that Member under Section 6.8(a).

     1.4  "AFFILIATE"  of a Member or  Manager  means (i) a Person  directly  or
indirectly (through one or more  intermediaries)  controlling,  controlled by or
under  common  control with that Member or Manager;  (ii) an officer,  director,
partner, member or immediate family member of that Member or Manager; or (iii) a
member of the  immediate  family of an officer,  director,  partner or member of
that Member or  Manager.  For these  purposes  "control"  means the  possession,
direct  or  indirect,  of the power to  direct  or cause  the  direction  of the
management  and policies of a Person,  whether  through the  ownership of voting
securities, by contract or otherwise.
<PAGE>

     1.5 "AGREEMENT"  means this Operating  Agreement of  TICKETS2NITE,  LLC, as
originally executed and as amended from time to time.

     1.6  "ARTICLES"  means the  Articles of  Organization  of the  Company,  as
originally  filed with the Nevada Secretary of State and as amended from time to
time.

     1.7  "BANKRUPTCY" of a Member means: (i) the institution of any proceedings
under any federal or state law for the relief of debtors,  including  the filing
by or against that Member of a voluntary or  involuntary  case under the federal
bankruptcy  law, which  proceedings,  if involuntary,  are not dismissed  within
sixty (60) days after their  filing;  (ii) an assignment of the property of that
Member for the  benefit  of  creditors;  (iii) the  appointment  of a  receiver,
trustee or conservator of any substantial  portion of the assets of that Member,
which appointment, if obtained ex parte, is not dismissed within sixty (60) days
thereafter;  (iv) the seizure by a sheriff,  receiver, trustee or conservator of
any  substantial  portion of the assets of that Member;  (v) the failure by that
Member  generally  to pay its debts as they  become due  within  the  meaning of
Section  303(h)(1) of the United  States  Bankruptcy  Code, as determined by the
Bankruptcy Court; or (vi) that Member's admission in writing of its inability to
pay its debts as they become due.

     1.8 "BONA FIDE  OFFER"  means an offer in writing to a Member  offering  to
purchase all or any part of that  Member's  Membership  Interest or any interest
therein  and  setting  forth all of the  material  terms and  conditions  of the
proposed  purchase from an offeror who is ready,  willing and able to consummate
the purchase and who is neither the Company nor an Affiliate of that Member.

     1.9 "CAPITAL  ACCOUNT" of a Member means the capital account of that Member
determined  from the inception of the Company  strictly in  accordance  with the
rules set forth in Section 1.704-1(b)(2)(iv) of the Treasury Regulations.

     1.10 "CAPITAL  CONTRIBUTION" of a Member, at any particular time, means the
amount of money, the fair market value of any property, promissory note or other
binding  obligation  to  contribute  money or  property,  which that  Member has
theretofore  contributed to the capital of the Company. The Members hereby agree
that the fair market value of all property,  promissory  notes and other binding
obligations  to  contribute  money  or  property   contributed  by  each  Member
concurrently with the execution hereof shall be equal to the amount set forth as
each Member's Capital Account balance on Exhibit "A" attached hereto.

     1.11 "CINEMA RIDE" means Cinema Ride, Inc., a Delaware corporation,  or any
permitted successor-in-interest to its entire Membership Interest.

     1.12 "CODE" means the Internal Revenue Code of 1986, and as amended.

     1.13 "COMPANY" means TICKETS2NITE, LLC, a Nevada limited liability company.

     1.14 "COMPANY MINIMUM GAIN" with respect to any taxable year of the Company
means  the  "partnership  minimum  gain" of the  Company  computed  strictly  in
accordance   with  the   principles  of  Section   1.704-2(d)  of  the  Treasury
Regulations.

                                      -2-
<PAGE>

     1.15  "DISTRIBUTABLE  CASH" at any time means that portion of the cash then
on hand or in bank accounts of the Company which the Managers, in their absolute
discretion,  deem available for distribution to the Members, taking into account
(a) the  amount  of cash  required  for the  payment  of all  current  expenses,
liabilities and obligations of the Company  (whether for expense items,  capital
expenditures, improvements, retirement of indebtedness or otherwise) and (b) the
amount of cash necessary to establish prudent reserves for the payment of future
capital expenditures,  improvements, retirements of indebtedness, operations and
contingencies, known or unknown, liquidated or unliquidated,  including, but not
limited to,  liabilities  which may be incurred in  litigation  and  liabilities
undertaken pursuant to the indemnification provisions of this Agreement.

     1.16 "DISTRIBUTION"  means the transfer of money or property by the Company
to one or more Members without separate consideration.

     1.17 "ECONOMIC INTEREST" means a share,  expressed as a percentage,  of one
or more of the Company's  Net Profits,  Net Losses,  Tax Credits,  Distributable
Cash or other Distributions,  but does not include any other rights of a Member,
including,  without  limitation,  the  right  to  vote  or  participate  in  the
management of the Company or the right to  information  concerning  the business
and affairs of the Company. 1.18 "ECONOMIC RISK OF LOSS" means the economic risk
of loss within the meaning of Section 1.752-2 of the Treasury Regulations.

     1.19  "ELIGIBLE  MEMBERS" has the meaning  specified  in Section 7.2.  1.20
"FAIR MARKET  VALUE"  means,  with respect to an asset,  the price at which that
asset would be sold for cash  payable at closing  between a willing  buyer and a
willing  seller,  each  having  reasonable   knowledge  of  all  relevant  facts
concerning the asset and neither acting under any compulsion to buy or sell.

     1.21 "FISCAL YEAR" Means the Company's fiscal year, which shall be December
31, 2002.

     1.22   "FORMER   MEMBER"  has  the  meaning   specified   in  Section  8.2.

     1.23 "FORMER MEMBER'S  INTEREST" has the meaning  specified in Section 8.2.

     1.24 "HK INC." means Tickets2Nite, Inc, a Nevada corporation.

     1.25 "HK LLC" means Entasis LLC, a Delaware limited  liability company or a
permitted successor-in-interest to its entire Membership Interest.

     1.26  "MANAGERS"  means the  Managers of the Company  duly  selected by the
Members pursuant to Section 5.1(b).

     1.27  "MEMBER"  means each Person who (a) is an initial  signatory  to this
Agreement,  has been admitted to the Company as a Member in accordance  with the
Articles  or this  Agreement  or is a  transferee  of a Member  who has become a
Member in accordance  with the  provisions  of this  Agreement , and (b) has not
suffered a Membership Termination Event.

                                      -3-
<PAGE>

     1.28  "MEMBER  MINIMUM  GAIN" has the  meaning  given to the term  "partner
nonrecourse   debt  minimum   gain"  in  Section   1.704-2(d)  of  the  Treasury
Regulations.

     1.29 "MEMBER NONRECOURSE DEBT" means any "partner nonrecourse liability" or
"partner   nonrecourse  debt"  under  Section   1.704-2(b)(4)  of  the  Treasury
Regulations.  Subject to the  foregoing,  it means any Company  liability to the
extent the  liability is  nonrecourse  for  purposes of Section  1.1001-2 of the
Treasury  Regulations,  and a Member (or  related  Person  within the meaning of
Section 1.752-4(b) of the Treasury  Regulations) bears the Economic Risk of Loss
under Section  1.752-2 of the Treasury  Regulations  because,  for example,  the
Member or related Person is the creditor or a guarantor.

     1.30 "MEMBER NONRECOURSE  DEDUCTIONS" means the Company deductions,  losses
and Code Section 705(a)(2)(B) expenditures,  as the case may be (as computed for
"book"  purposes),  that are  treated as  deductions,  losses  and  expenditures
attributable  to Member  Nonrecourse  Debt under  Section  1.704-2(i)(2)  of the
Treasury Regulations.

     1.31  "MEMBERSHIP  INTEREST" means a Member's total interest as a member of
the Company,  including  that Member's  share of the Company's Net Profits,  Net
Losses,  Distributable  Cash or other  Distributions,  its right to inspect  the
books and  records  of the  Company  and its right,  to the extent  specifically
provided  in  this  Agreement,  to  participate  in the  business,  affairs  and
management  of the Company and to vote or grant  consent with respect to matters
coming before the Company.

     1.32 "MEMBERSHIP TERMINATION EVENT" with respect to any Member means one or
more of the following:  the death, insanity,  permanent disability,  withdrawal,
resignation, expulsion, Bankruptcy, dissolution or occurrence of any other event
which terminates the continued  membership of that Member in the Company,  other
than a Transfer of a Member's  Membership  Interest  which is made in accordance
with the provisions of ARTICLE VII.

     1.33 "NET PROFITS" and "NET LOSSES" means, for each fiscal period,  the net
income  and net  loss,  respectively,  of the  Company  determined  strictly  in
accordance  with  federal  income  tax  principles  (including  rules  governing
depreciation and amortization), except that in computing net income or net loss,
the "book" value of an asset will be  substituted  for its adjusted tax basis if
the two differ,  and the following items shall be excluded from the computation:
(a) any gain,  income,  deductions or losses specially  allocated under Sections
6.1, 6.2, or 6.3; (b) any Nonrecourse Deductions; and (c) any Member Nonrecourse
Deductions.

     1.34 "NEVADA  STATUTE"  means the Nevada Revised  Statute,  as amended from
time to time. Any  references in this  Agreement to a specific  provision of the
Nevada  Statute  shall  refer  to  the  cited  provision,  as  the  same  may be
subsequently   amended  from  time  to  time,   as  well  as  to  any  successor
provision(s).

                                      -4-
<PAGE>

     1.35  "NONRECOURSE  DEDUCTIONS"  in any fiscal  period  means the amount of
Company  deductions that are  characterized  as "nonrecourse  deductions"  under
Treasury Regulations Section 1.704-2(b) of the Treasury Regulations.

     1.36  "NONRECOURSE  LIABILITY" means a liability  treated as a "nonrecourse
liability"  under  Sections  1.704-2(b)(3)  and  1.752-1(a)(2)  of the  Treasury
Regulations.

     1.37 "OFFERED INTEREST" has the meaning specified in Section 7.2.

     1.38  "PERCENTAGE  INTEREST" means the percentage  interest of a Member set
forth opposite the name of that Member in Exhibit A hereto,  as such  percentage
may be adjusted from time to time pursuant to the provisions of this Agreement.

     1.39 "PERSON" means any entity, corporation,  company,  association,  joint
venture,  joint stock company,  partnership,  trust,  limited liability company,
limited  liability  partnership,  real estate  investment  trust,  organization,
individual  (including  personal  representatives,  executors  and  heirs  of  a
deceased   individual),   nation,   state,   government   (including   agencies,
departments, bureaus, boards, divisions and instrumentalities thereof), trustee,
receiver or liquidator.

     1.40  "PURCHASING  MEMBER" has the meaning  specified in Section 8.4.  1.41
"TAX CREDITS" means all credits  against  income or franchise  taxes and credits
allowable to Members under state, federal or other tax statutes.

     1.42 "TAX  MATTERS  MEMBER"  means the  Members  appointed  pursuant to the
provisions  of Section 9.3 to serve as the "tax  matters  member" of the Company
for  purposes  of Sections  6221-6233  of the Code.  Initially,  the Tax Matters
Members shall be Cinema Ride and HK LLC.

     1.43  "TRANSFER"  means,  with  respect  to a  Membership  Interest  or any
interest  therein,  the  sale,  assignment,   transfer,   disposition,   pledge,
hypothecation  or encumbrance  thereof,  whether direct or indirect,  voluntary,
involuntary or by operation of law, and whether or not for value,  of (a) all or
any part of that  Membership  Interest or interest  therein or (b) a controlling
interest  in any  Person  which  directly  or  indirectly  through  one or  more
intermediaries  holds that Membership  Interest or interest  therein.  For these
purposes,  a  "controlling  interest"  shall not include any  transfer  which is
solely the transfer of an economic interest.

     1.44  "TRANSFERRING  MEMBER" has the meaning specified in Section 7.2.

     1.45  "TREASURY  REGULATIONS"  means the  regulations  of the United States
Treasury Department pertaining to the income tax.

     References in this  Agreement to  "Articles,"  "Sections,"  "Exhibits"  and
"Schedules," shall be to the Articles,  Sections, Exhibits and Schedules of this
Agreement, unless otherwise specifically provided; all Exhibits and Schedules to
this Agreement are incorporated herein by reference; any of the terms defined in
this  Agreement  may,  unless the  context  otherwise  requires,  be used in the
singular or the plural and in any gender  depending on the reference;  the words
"herein",  "hereof" and "hereunder"  and words of similar  import,  when used in
this  Agreement,  shall  refer  to  this  Agreement  as a  whole  and not to any
particular  provision of this  Agreement;  and except as otherwise  specified in
this  Agreement,  all  references  in this  Agreement (a) to any Person shall be

                                      -5-
<PAGE>

deemed to include  such  Person's  permitted  heirs,  personal  representatives,
successors  and  assigns;  and (b) to any  agreement,  any document or any other
written  instrument  shall  be  a  reference  to  such  agreement,  document  or
instrument  together with all exhibits,  schedules,  attachments  and appendices
thereto,  and in each  case as  amended,  restated,  supplemented  or  otherwise
modified from time to time in accordance with the terms thereof;  and (c) to any
law,  statute or regulation  shall be deemed  references to such law, statute or
regulation as the same may be supplemented, amended, consolidated, superseded or
modified from time to time.

                                   ARTICLE II

                             ORGANIZATIONAL MATTERS

     2.1  NAME.  The name of the  Company  shall  be  "TICKETS2NITE,  LLC."  The
business  of the Company may be  conducted  under that name or, upon  compliance
with applicable  law, under any other name that the Members deem  appropriate or
advisable.

     2.2 TERM. The term of this  Agreement  shall commence upon the date of this
Agreement  and  shall  continue  for the  period  of  duration  provided  in the
Articles, unless extended or sooner terminated as hereinafter provided.

     2.3 OFFICE AND AGENT. The Company shall continuously maintain an office and
registered  agent in the State of Nevada as required by the Act.  The  principal
office of the Company shall be at the Showcase Mall, 3785 Las Vegas Blvd. South,
4th Floor,  Las Vegas,  Nevada  89109 or at such other place as the Managers may
determine  from time to time.  The Company may also have such offices within and
without the State of Nevada as the Managers may from time to time determine. The
registered  agent shall be as stated in the Articles or as otherwise  determined
by the Managers.

     2.4 PURPOSE OF COMPANY.  The Company may engage in any lawful  activity for
which a limited liability  company may be organized under the Act; however,  its
primary  purpose  shall  be to  engage  in  the  business  of  selling  same-day
discounted   show,   concert,   tours,   special  events,   sports  and  general
entertainment tickets and dinner discounts, other than motion simulator rides.

     2.5 INTENT.  It is the intent of the Members that the Company  shall always
be operated in a manner  consistent  with its treatment as a  "partnership"  for
Federal and state income tax purposes. It also is the intent of the Members that
the  Company  not be  operated  or treated as a  "partnership"  for  purposes of
Section  303 of the United  States  Bankruptcy  Code.  No Member  shall take any
action inconsistent with that express intent.

     2.6 REIMBURSEMENT OF EXPENSES OF ORGANIZATION. The Members hereby authorize
the Company to pay its  expenses of  organization  and to  reimburse  any Person
advancing funds for that purpose.

     2.7 NAME CHANGE.  Promptly upon execution of this Agreement by the Members,
HK  Inc.  shall  change  its  name  to one  which  does  not  contain  the  word
"TICKETS2NITE" or any name similar to it.

                                      -6-
<PAGE>
                                   ARTICLE III

                              CAPITAL CONTRIBUTIONS

     3.1 INITIAL CAPITAL CONTRIBUTIONS. Concurrently herewith, each Member shall
contribute  to the Company the cash amounts  which are specified in Exhibit A as
that Member's initial Capital Contribution (the "Required Cash  Contributions").
Additionally,  HK LLC  shall  assign  to the  Company  the  following  items and
contracts:

          (a) Marketing  Sponsorship  Agreement  dated as of July 2, 2002 by and
between the Coca-Cola Company and HK Inc.;

          (b)  Sublease  dated  as of June  28,  2002 by and  between  Caribbean
International Sales Corp., Inc., a Nevada corporation and HK Inc.; and

          (c) All rights title and interest in and to all intellectual property,
including, without limitation,  software programs, internet domain names and web
sites, relating to and including the name "TICKETS2NITE."

Cinema  Ride shall also assign to the  Company  all show  contracts  and similar
agreements  relating  to  discounted  tickets.  Cinema  Ride also  grants to the
Company  a  perpetual  worldwide  exclusive  royalty-free  license  to  use  any
inventions  covered by Cinema Ride's  business  methodology  patent  application
relating to discounted tickets and any and all software developed as a result of
the prior  expenditures  of Cinema Ride.  In the event that any of the foregoing
contracts  and rights set forth in this  Section  3.1 cannot be  assigned to the
Company,  each of HK LLC and  Cinema  Ride,  as the case may be,  shall  use its
reasonable  best efforts to provide the Company  with the  economic  benefits it
would have  received  had the items  referred  to herein  been  assigned  to the
Company.

     3.2 INTENTIONALLY DELETED.

     3.3 ADDITIONAL CAPITAL  CONTRIBUTIONS.  No Member shall be required to make
any Capital Contributions not specifically referred to in Section 3.1.

     3.4  CAPITAL  ACCOUNTS.   The  Company  shall  establish  and  maintain  an
individual  Capital Account for each Member. The initial Capital Account of each
Member shall be as set forth  opposite  such  Member's name on Exhibit A hereto,
and increased by: (i) any additional  Capital  Contributions made by such Member
and (ii) such Member's allocable shares of Net Profits for each fiscal year; and
decreased by: (i) distributions to such Member and (ii) such Member's  allocable
share of the Net Losses for each  fiscal  year.  In the event that assets of the
Company other than cash are  distributed to a Member in kind,  Capital  Accounts
shall be adjusted for the hypothetical  "book" gain or loss that would have been
realized by the Company if the  distributed  assets had been sold for their fair
market values in a cash sale (in order to reflect  unrealized  gain or loss). In
the event of the liquidation of the Company,  Capital Accounts shall be adjusted
for the  hypothetical  "book" gain or loss that would have been  realized by the
Company if all Company  assets had been sold for their fair  market  values in a
cash sale (in order to reflect unrealized gain or loss).

                                      -7-
<PAGE>

     3.5 NO  PRIORITIES  OF  MEMBERS;  NO  WITHDRAWALS  OF  CAPITAL.  Except  as
otherwise  specified  in  ARTICLE  VI and in the Act,  no  Member  shall  have a
priority over any other Member as to any Distribution,  whether by way of return
of capital or by way of profits,  or as to any  allocation of Net Profits or Net
Losses.  No Member  shall  have the right to  withdraw  or  reduce  its  Capital
Contributions  in the  Company  except  as a result  of the  dissolution  of the
Company or as otherwise  provided in Section 4.3 or the Act, and no Member shall
have the right to demand or receive  property  other than cash in return for its
Capital Contributions.

     3.6 NO INTEREST. No Member shall be entitled to receive any interest on its
Capital Contributions.

                                   ARTICLE IV

                                     MEMBERS

     4.1 LIMITED LIABILITY. Except as required under the Act or as expressly set
forth in this  Agreement,  no Member  shall be  personally  liable for any debt,
obligation  or liability of the Company,  whether that  liability or  obligation
arises in contract, tort or otherwise.

     4.2 ADMISSION OF ADDITIONAL MEMBERS.  Subject to compliance with applicable
law and the  unanimous  approval  of the  Managers,  additional  Members  may be
admitted to the Company from time to time upon such terms and  conditions as the
Managers  may  determine,  and any such  additional  Members  shall  be  granted
Membership Interests and may participate in the management,  Distributable Cash,
Net Profits,  Net Losses, Tax Credits and other  Distributions of the Company on
such terms as the Managers may fix.

     4.3  WITHDRAWAL.  Any Member may withdraw  from the Company at any time and
for any reason upon thirty (30) days prior written  notice to the other Members.
Any such withdrawal shall constitute a Membership Termination Event and shall be
subject to the provisions of Section 8.1.

     4.4  MEMBERS  ARE NOT  AGENTS.  The  management  of the  Company  is vested
exclusively  in the  Managers.  No Member,  acting  solely in its  capacity as a
Member,  may be an agent of the Company,  nor may any Member,  in that capacity,
bind or  execute  any  instrument  on behalf of the  Company  without  the prior
written consent of the Managers.

     4.5 MEETINGS OF MEMBERS; WRITTEN CONSENT.  Meetings of the Members shall be
held at such  times  and  places  within or  without  the State of Nevada as the
Members  may fix from time to time,  but,  in any  event,  any Member may call a
special  meeting of the Members upon ten (10) days prior  written  notice to the
other Members.  No annual,  regular or special meetings of Members are required,
but if such  meetings  are held,  they shall be  conducted  pursuant to the Act.
Members may participate in any meeting through the use of conference  telephones
or similar  communications  equipment as long as all Members  participating  can
hear one another. A Member so participating is deemed to be present in person at
the meeting.  Any action which may be taken by the Members at a meeting may also
be taken without a meeting,  if a consent in writing setting forth the action so
taken is signed by Members  having not less than the minimum votes that would be
necessary to  authorize  that action at a meeting of the Members duly called and
noticed.

                                      -8-
<PAGE>
                                    ARTICLE V

                      MANAGEMENT AND CONTROL OF THE COMPANY

     5.1 GENERAL SUPERVISION AND CONTROL OF MANAGEMENT BY THE MANAGERS.

          (a)  MANAGEMENT  BY MANAGERS.  The business and affairs of the Company
shall be  managed  and  controlled  by  Managers  (the  "Managers").  Except for
situations in which the approval of the Members is specifically  required by the
Act, the Articles or this  Agreement,  the Managers shall have full complete and
exclusive  authority,  power and  discretion to manage and control the business,
property  and affairs of the  Company,  to make all  decisions  regarding  those
matters, to supervise,  direct and control the actions of the officers,  if any,
of the Company and to perform any and all other actions customary or incident to
the  management  of the  Company's  business,  property and affairs.  Within the
resources  available to the Company,  the Managers  shall control and direct the
administration  of the  business and affairs of the Company in  accordance  with
sound  business  practice,  taking such steps as are necessary or appropriate in
their reasonable judgment to conserve and enhance the value and profitability of
the Company's business, property and affairs.

          (b)  ELECTION  AND TERM OF  MANAGERS.  The Company  shall have two (2)
Managers.  One of the Managers  shall be  designated by Cinema Ride (the "Cinema
Ride  Manager")  and one of the Managers  shall be designated by HK LLC (the "HK
LLC Manager"). Each of Cinema Ride and HK LLC shall have the right to remove the
Manager appointed by it at any time and for any reason, by written notice to the
other Member, and each Manager so appointed shall serve in the capacity until he
or she resigns or is removed by Cinema Ride or HK LLC, as  applicable,  in their
absolute  discretion.  Each replacement Manager shall be subject to the approval
of the other Member  which  approval  shall not be  unreasonably  withheld.  The
initial  Managers  shall be Mitch Francis (as designated by Cinema Ride) and Hal
Kolker (as designated by HK Inc.).

          (c) ADVISORY  BOARD.  There shall be an advisory  board of the Company
(the "Advisory Board") initially  consisting of one individual  appointed by the
two Managers (the "Individual  Advisor").  The Individual Advisor may be removed
at any time by any Manager, in its sole and absolute discretion, with or without
cause.  At the  request  of the  Managers,  the  Advisory  Board  shall  provide
assistance and advice to the Managers. In the event that the Managers are unable
to agree on the  selection of the  Individual  Manager  (either  initially or as
replacement), each Manager shall choose an advisor and the two advisors shall in
turn choose a third advisor, with the three advisors then acting as the Advisory
Board. Said third advisor may be removed at any time by any Manager, in its sole
and absolute discretion, with or without cause.

          (d) ACTIONS BY THE MANAGERS.  Subject to subparagraph  (e) below,  all
decisions or actions of the Company are subject to the unanimous approval of the
Managers (whether verbally or in writing, whether in person or by proxy).

          (e) DISPUTE  RESOLUTION.  In the event that the Managers  cannot reach
agreement on any operational  decision of the Company, the Managers shall submit
the dispute to the Advisory Board. The Advisory Board shall make a determination

                                      -9-
<PAGE>

with respect to the dispute and any such  determination  shall be binding on the
Managers and the Company.

     5.2 OFFICERS OF THE COMPANY.

          (a)  APPOINTMENT OF OFFICERS.  The Managers may, at their  discretion,
appoint  officers  of the  Company  at any time to  conduct,  or to  assist  the
Managers in the conduct of, the day-to-day  business and affairs of the Company.
The  officers of the Company may  include a  Chairperson,  a President  or Chief
Executive  Officer,  one or  more  Senior  Vice  Presidents,  one or  more  Vice
Presidents,  a Secretary,  one or more Assistant Secretaries,  a Chief Financial
Officer, a Treasurer,  one or more Assistant  Treasurers and a Comptroller.  The
officers shall serve at the pleasure of the Managers  subject to all rights,  if
any, of an officer under any contract of employment. Any individual may hold any
number of offices and two  individuals  may serve in one office as a co-officer.
If a Manager is not an individual, such Manager's officers may serve as officers
of the Company if appointed by the Managers.  The officers  shall  exercise such
powers and perform such duties as are  typically  exercised by similarly  titled
officers in a corporation  and as shall be  determined  from time to time by the
Managers,  but subject in all  instances to the  supervision  and control of the
Managers. The initial Co-Chief Executive Officers shall be Mitch Francis and Hal
Kolker,  who shall have joint  responsibility  for establishing and implementing
management policies of the Company. The initial  Co-Chairpersons  shall be Mitch
Francis and Hal Kolker.

          (b) SIGNING  AUTHORITY OF  OFFICERS.  Unless  otherwise  agreed by the
Managers,  all checks,  instruments  and other documents of the Company shall be
signed by both Managers.  Each Manager shall designate in writing another Person
to sign such  checks,  instruments  and other  documents  on his  behalf if such
Manager is not available.

          (c) DAY TO DAY  MANAGEMENT.  Provided  that the Company is meeting the
minimum  targets  established  by the Managers from time to time, the day to day
management  of the Company  shall be provided by Cinema Ride or an  affiliate of
Cinema  Ride with all actual  costs  paid or  reimbursed  by the  Company to the
extent such costs have been approved as part of the established minimum targets.
If the  Company  fails to meet such  targets and one or both  Managers  elect to
remove  Cinema  Ride or its  affiliate  or  Cinema  Ride  (or its  affiliate  or
successor)  resigns,  the  Managers  shall then  appoint a successor  who should
conduct  such  day to day  business.  In the  event  that the  Managers  fail to
establish or agree upon minimum  targets,  then the matter shall be submitted to
the Advisory Board.

     5.3 TRANSACTIONS BETWEEN THE COMPANY AND THE MEMBERS.  Notwithstanding that
it may  constitute a conflict of interest,  the Members and/or the Managers may,
and may cause their Affiliates to, engage in any transaction with the Company so
long as that  transaction  is (a) fair to the  Company  and (b)  approved by the
Managers.

     5.4 PERFORMANCE OF DUTIES; LIABILITY OF MANAGERS AND OFFICERS.  Neither the
Managers nor any officer shall be liable to the Company or to any Member for any
losses or damages suffered by them, except as the result of fraud, deceit, gross
negligence,  reckless or intentional misconduct or a knowing violation of law or
this  Agreement by the Managers or officer or as a result of acts from which the
Managers or officer  derives an improper  personal  benefit.  The  Managers  and
officers,  if any,  shall perform their  managerial  duties in good faith,  in a
manner they  reasonably  believe to be in the best  interests of the Company and

                                      -10-
<PAGE>

the Members.  In  performing  their duties,  the Managers and officers  shall be
entitled to rely on  information,  opinions,  reports or  statements,  including
financial  statements  and other  financial  data, of the  following  persons or
groups unless they have  knowledge  concerning the matter in question that would
cause such  reliance  to be  unwarranted  and  provided  that the  Managers  and
officers act in good faith and after  reasonable  inquiry when the need therefor
is indicated by the circumstances:

          (a) one or more agents of the Company  whom the  Managers or officers,
as the case may be,  reasonably  believe to be  reliable  and  competent  in the
matters presented; or

          (b) any attorney, independent accountant or other Person as to matters
which the Managers or  officers,  as the case may be,  reasonably  believe to be
within such Person's professional or expert competence.

     5.5   COMPANY OPPORTUNITIES.

          (a) COMPANY  OPPORTUNITIES.  Each Member and its  Affiliates  shall be
required to offer to the Company each and every  opportunity  it acquires  after
the date of this Agreement to pursue a prospective  business  venture if, by its
nature,  that prospective  business venture is within the primary purpose of the
Company  specified in Section 2.4 and if the Company  would  reasonably  be in a
position  to take up that  prospective  business  venture  in the  course of its
business.

          (b) COMPETING  ACTIVITIES.  Except for prospective  business  ventures
which are within the primary purpose of the Company and are, therefore,  subject
to the provisions of Section 5.5(a), however:

               (i) no Member  shall be  obligated  to  present  any  prospective
project,  business venture,  investment opportunity or economic advantage to the
Company or any other  Members,  even if the  opportunity is one of the character
that,  if presented to the Company or the other  Members,  could be taken by the
Company or the other  Members,  and each Member shall have the right to hold any
such prospective project,  business venture,  investment opportunity or economic
advantage for its own account or to recommend the same to Persons other than the
Company or the other Members; and

               (ii)  the  Members  and  their  respective  officers,  directors,
shareholders,  partners, members, agents, employees and Affiliates may engage or
invest in,  independently or with others,  any business  activity of any type or
description.  Neither the Company nor the other  Members shall have the right in
or to such other  ventures or  activities  or to the income or proceeds  derived
therefrom.

     5.6 EXPENSES.  The Company shall reimburse the Members and the Managers and
their respective Affiliates for all reasonable  out-of-pocket costs and expenses
incurred by them in connection with the business and affairs of the Company,  as
well as  organizational  expenses  (including,  without  limitation,  legal  and
accounting  fees and costs)  incurred by them to form the Company and to prepare
the Articles and this Agreement. In particular,  the Company shall reimburse Hal
Kolker and Cinema Ride for all travel  expenses in connection  with their visits
to Las Vegas and their cellular phone  expenses,  up to $2,000 per month subject

                                      -11-
<PAGE>

to  appropriate  documentation.  Any expense  item or series of related  expense
items in excess of $3,000 shall require the pre-approval of both Managers.

     5.7 MEDICAL  INSURANCE  The Company  shall include Hal Kolker under a group
employee  medical  insurance  policy to be determined by Hal Kolker.  Hal Kolker
shall reimburse the Company for the costs thereof attributable to insuring him.

                                   ARTICLE VI

            ALLOCATIONS OF NET PROFITS, NET LOSSES AND DISTRIBUTIONS

     6.1 MINIMUM GAIN CHARGEBACK.

     In the event that  there is a net  decrease  in the  Company  Minimum  Gain
during any taxable  year,  the minimum  gain  chargeback  described  in Sections
1.704-2(f) and (g) of the Treasury Regulations shall apply.

     6.2 MEMBER MINIMUM GAIN  CHARGEBACK.  If during any taxable year there is a
net  decrease in Member  Minimum  Gain,  the  partner  minimum  gain  chargeback
described in Section 1.704-2(i)(4) of the Treasury Regulations shall apply.

     6.3  QUALIFIED  INCOME  OFFSET.  Any Member who  unexpectedly  receives  an
adjustment,  allocation or Distribution  described in subparagraphs  (4), (5) or
(6)  of  Section   1.704-1(b)(2)(ii)(D)  of  the  Treasury  Regulations,   which
adjustment, allocation or distribution creates or increases a deficit balance in
that Member's  Capital  Account,  shall be allocated  items of "book" income and
gain in accordance  with the  provisions  of the  "qualified  income  offset" as
described in Section 1.704-1(b)(2)(ii)(D) of the Treasury Regulations.

     6.4 NONRECOURSE  DEDUCTIONS.  Nonrecourse  Deductions shall be allocated to
the Members in proportion to their Percentage Interests.

     6.5 MEMBER NONRECOURSE  DEDUCTIONS.  Member Nonrecourse Deductions shall be
allocated to the Members as required in Section  1.704-2(i)(1)  of the Treasury
Regulations  in accordance  with the manner in which the Members bear the burden
of an Economic Risk of Loss corresponding to the Member Nonrecourse Deductions.

     6.6  ALLOCATION  OF NET PROFITS.  The Net Profits for each fiscal period of
the Company shall be allocated to the Members in  accordance  with the following
order of priority:

          (a) first, to those Members with negative  Adjusted Capital  Accounts,
among them in proportion to the ratio of the negative balances in their Adjusted
Capital Accounts, until no Member has a negative Adjusted Capital Account;

          (b) second, to those Members whose Adjusted Capital  Contributions are
in excess of their Adjusted Capital Accounts,  among them in accordance with the
ratio of these excesses, until all of these excesses have been eliminated; and

          (c)  finally,  to  the  Members  in  proportion  to  their  Percentage
Interests.

                                      -12-
<PAGE>

     6.7  ALLOCATION  OF NET LOSSES.  Net Losses for each  fiscal  period of the
Company  shall be allocated  to the Members in  proportion  to their  Percentage
Interests.

     6.8  DISTRIBUTION  OF  DISTRIBUTABLE  CASH  BY  THE  COMPANY.   Subject  to
applicable law and any limitations  contained  elsewhere in this Agreement,  the
Managers shall cause the Company to distribute any  Distributable  Cash at least
monthly to the Members,  which  Distributions shall be in the following order of
priority:

          (a) first,  to the Members in  proportion  to their  Adjusted  Capital
Contributions until each Member's Adjusted Capital Contribution has been reduced
to zero; and

          (b) finally,  to  the  Members  in  proportion  to  their  Percentage
Interests.

     6.9 ALLOCATION OF NET PROFITS AND LOSSES AND  DISTRIBUTIONS IN RESPECT OF A
TRANSFERRED  INTEREST. If any Membership Interest is Transferred or is increased
or decreased by reason of the admission of a new Member or otherwise  during any
Fiscal Year, each item of income, gain, loss, deduction or credit of the Company
for that Fiscal Year shall be  assigned  pro rata to each day in the  particular
period of that Fiscal Year to which such item is attributable  (i.e., the day on
or during which it is accrued or otherwise incurred) and the amount of each item
so assigned  to any such day shall be  allocated  to the Member  based upon that
Member's   respective   Membership   Interest   at  the   close  of  that   day.
Notwithstanding any provision above to the contrary, gain or loss of the Company
realized in connection with a sale or other  disposition of any of the assets of
the Company shall be allocated solely to the parties owning Membership Interests
as of the date that sale or other disposition occurs.

     6.10 TAX ALLOCATION MATTERS.

          (a) CONTRIBUTED OR REVALUED PROPERTY. Each Member's allocable share of
the taxable income or loss of the Company, depreciation, depletion, amortization
and gain or loss with respect to any  contributed  property,  or with respect to
revalued property where the Company's property is revalued pursuant to Paragraph
(b)(2)(iv)(f)  of  Section  1.704-1  of  the  Treasury  Regulations,   shall  be
determined  in the  manner  (and as to  revaluations,  in the  same  manner  as)
provided in Section 704(c) of the Code. The allocation  shall take into account,
to the full extent required or permitted by the Code, the difference between the
adjusted basis of the property to the Member contributing it and the fair market
value of the property determined by the Managers at the time of its contribution
or revaluation, as the case may be. The Company shall apply Section 704(c)(1)(A)
by using the  "traditional  method"  as set forth in Section  1.704-3(b)  of the
Treasury Regulations.

          (b) RECAPTURE  ITEMS. In the event that the Company has taxable income
that is characterized  as ordinary income under the recapture  provisions of the
Code, each Member's  distributive share of taxable gain or loss from the sale of
Company assets (to the extent  possible) shall include a proportionate  share of
this  recapture  income  equal  to  that  Member's  share  of  prior  cumulative
depreciation  deductions  with  respect  to the  assets  which  gave rise to the
recapture income.

     6.11 ORDER OF APPLICATION. To the extent that any allocation,  Distribution
or  adjustment  specified  in any of the  preceding  Sections of this ARTICLE VI

                                      -13-
<PAGE>

affects the results of any other allocation, Distribution or adjustment required
herein,  the  allocations,   Distributions  and  adjustments  specified  in  the
following Sections shall be made in the priority listed:

          (a) Section 6.8.

          (b) Section 6.1.

          (c) Section 6.2.

          (d) Section 6.3.

          (e) Section 6.4.

          (f) Section 6.5.

          (g) Section 6.7.

          (h) Section 6.6.

          (i) Section 10.5.

     These provisions shall be applied as if all  Distributions  and allocations
were made at the end of the Company's Fiscal Year.  Where any provision  depends
on the Capital  Account of any Member,  that Capital Account shall be determined
after the operation of all preceding provisions for the Fiscal Year.

     Notwithstanding  the allocation  provisions set forth above in Sections 6.1
through  6.7,  the  Members  hereby  agree  that,   upon  the  sale  of  all  or
substantially  all of the  assets of the  Company  and/or  the  dissolution  and
liquidation of the Company, the allocation  provisions contained in this Article
VI and elsewhere in this  Agreement  shall be applied and amended by the Members
to cause to the greatest extent  possible the final Capital Account  balances of
the  Members  to be as  close as  possible  equal to the  amount  that  would be
distributed  to each  Member  pursuant to Section  6.8 if the  aggregate  of the
proceeds  from the sale of such  assets  and/or any  liquidation  proceeds  were
distributed  pursuant to said Section 6.8, rather than  distributed  pursuant to
Section 10.5(a) which Section 10.5(a) shall be the controlling  provision.  Such
application  and  amendment by Members to create such result shall  include,  if
necessary,  special  allocations of gross income and/or gross deductions for the
current  accounting  period.  This paragraph shall control  notwithstanding  any
reallocation of income, loss or items thereof by the Internal Revenue Service or
any other taxing authority.

     6.12 ALLOCATION OF  LIABILITIES.  Each Member's  interest in  "partnership"
profits for purposes of determining  that Member's share of "excess  nonrecourse
liabilities"  of the Company as used in Section  1.752-3(a)(3)  of the  Treasury
Regulations, shall be equal to that Member's Percentage Interest.

     6.13 FORM OF  DISTRIBUTION.  No  Member,  regardless  of the  nature of its
Capital Contribution,  has the right to demand and receive any Distribution from
the Company in any form other than money.  No Member may be  compelled to accept
from the Company a Distribution  of any asset in kind in lieu of a proportionate
Distribution  of  money  being  made  to  other  Member(s),  and  except  upon a

                                      -14-
<PAGE>

dissolution  and the winding up of the  Company,  no Member may be  compelled to
accept a Distribution of any asset in kind.

                                   ARTICLE VII

                              TRANSFER OF INTERESTS

     7.1  TRANSFER OF  INTERESTS.  Except as permitted in Section 7.2, no Member
shall be entitled to Transfer all or any part of its Membership  Interest except
with the prior written consent of all other Members,  which consent may be given
or withheld,  conditioned or delayed as the other Members may determine in their
sole and absolute discretion.  Any attempted Transfer without such prior written
consent shall be null and void AB INITIO,  and the transferee shall not become a
Member.

     7.2 RIGHT OF FIRST OFFER.

          (a) OFFER TO SELL; OPTION TO PURCHASE.  If a Member (the "TRANSFERRING
MEMBER")  desires to Transfer all or any part of its  Membership  Interest  (the
"OFFERED  INTEREST"),  the Transferring  Member shall give written notice to the
Company and to the other Members (the "ELIGIBLE MEMBERS"), setting forth in full
the terms of the proposed  sale (the  "Offer").  The Company shall then have the
right and option,  for a period  ending ten (10)  calendar  days  following  its
receipt  of the  written  notice,  to elect to  purchase  all or any part of the
Offered  Interest  at the  purchase  price and upon the terms  specified  in the
Offer. If the Company elects to purchase less than all of the Offered  Interest,
the  Eligible  Members  shall  then have the right and  option,  for a period of
twenty (20)  calendar days  thereafter,  to elect to purchase all or any part of
the  Offered  Interest  not elected to be  purchased  by the Company pro rata in
accordance with the ratio of their Percentage Interests (or non pro rata if such
Members so agree),  at the  purchase  price and upon the terms  specified in the
Offer.

               i)  TRANSFER TO PROPOSED  TRANSFEREE.  If the Company  and/or the
Eligible  Members in the  aggregate  do not elect to purchase all of the Offered
Interest pursuant to this Section 7.2, the Transferring  Member may Transfer all
of the Offered  Interest to a third party provided that the net present value of
the  purchase  price  for the  Offerred  Interest  is at least  92.5% of the net
present value of the price for the Offerred  Interest as set forth in the Offer,
whereupon the  transferee  shall take and hold the Offered  Interest  subject to
this  Agreement  and to  all  of  the  obligations  and  restrictions  upon  the
Transferring  Member and shall  observe and comply with this  Agreement and with
all such obligations and restrictions. The Transferring Member shall have ninety
(90) calendar days after the date of the  termination  of the Eligible  Members'
options  provided  above to enter into a binding  agreement  to sell the Offered
Interest  and ninety (90)  calendar  days  thereafter  to  Transfer  the Offered
Interest.  If no such  agreement is entered into or the Transfer is not effected
within any such ninety (90) calendar day period,  then the  Transferring  Member
shall not be entitled to Transfer the  Transferred  Interest and any  subsequent
proposed  Transfer of all or any part of the  Transferring  Member's  Membership
Interest shall once again be subject to the provisions of this Section 7.2.

               ii)  NON-CASH   CONSIDERATION.   For  these   purposes,   if  any
consideration offered for the Offered Interest consists of rights,  interests or
property  other than money or an  obligation to pay money,  the Managers  (other
than any Manager who is also the Transferring  Member), or the  non-Transferring

                                      -15-
<PAGE>

Members if the sole Manager is the  Transferring  Member,  shall, in good faith,
determine the Fair Market Value of that consideration in monetary terms.

                                  ARTICLE VIII

                  CONSEQUENCES OF MEMBERSHIP TERMINATION EVENTS

     8.1 DISSOLUTION OF COMPANY. Upon the occurrence of a Membership Termination
Event,  the Company shall dissolve  unless (a) all remaining  Members consent in
writing within ninety (90) days of the Membership  Termination Event to continue
the Company in a  reconstituted  form, if necessary and (b) agreement is reached
within such  ninety  (90) day period  between the Company and the Member (or the
legal representative or other  successor-in-interest of the Member) who suffered
the Membership  Termination Event as to the purchase of that Member's Membership
Interest.

     8.2  ADMISSION  OR   CONVERSION.   Upon  the  occurrence  of  a  Membership
Termination Event with respect to a Member under circumstances where the Company
does not  dissolve,  the  remaining  Members  shall  determine  which one of the
following shall occur and give written notice thereof to the Member who suffered
the Membership Termination Event (the "Former Member"):

          (a)   the   Former   Member's   personal   representative   or   other
successor-in-interest  shall be admitted as a Member of the Company in the place
and stead of the Former Member to the extent of the Former  Member's  Membership
Interest  (the "Former  Member's  Interest");  PROVIDED  HOWEVER,  (a) the other
Members  shall have  consented  in writing to such  admission  (the  granting or
denial of which shall be in each Member's sole discretion), (b) the assignee has
executed a  counterpart  of this  Agreement (as modified or amended from time to
time) and such  other  instruments  as the other  Members  may  reasonably  deem
necessary or appropriate to confirm the  undertaking of the assignee to be bound
by all the terms and  provisions  of this  Agreement  and (c) the  assignee  has
undertaken in writing to pay all expenses  incurred by the Company in connection
with such assignment;

          (b) the Company and/or one or more of the remaining Members and/or (if
the entire  Former  Member's  Interest  is not  subscribed  for  purchase by the
Company  and/or  one or more  of the  remaining  Members)  any  other  Person(s)
designated by the Managers  (other than any Manager  affiliated  with the Former
Member) shall purchase,  and the Former Member or the Former  Member's  personal
representative  or other  successor-in-interest  shall sell, the Former Member's
Interest or part thereof upon the terms and conditions specified in Section 8.3;
or (c) any combination of the above.

     8.3 PURCHASE PRICE. If the Managers (other than any Manager affiliated with
the Former Member) elect the alternative in Section  8.2(b),  the purchase price
for the Former  Member's  Interest shall be the Capital  Account  balance of the
Former  Member as of the date of the  Membership  Termination  Event,  PROVIDED,
HOWEVER,  that if the Former Member or the Former Member's legal  representative
or other  successor-in-interest  deems the Capital  Account balance to vary from
the fair  market  value of the Former  Member's  Interest  as of the date of the
Membership  Termination  Event  by more  than  ten  percent  (10%),  it shall be

                                      -16-
<PAGE>

entitled  to  require  an  appraisal  by  providing  notice of the  request  for
appraisal  within  thirty (30) days after the  determination  of the Managers to
cause the Company to purchase the Former Member's  Interest  pursuant to Section
8.2(b).  In such event, the fair market value of the Former Member's Interest as
of the date of the Membership Termination Event shall be determined by three (3)
independent appraisers, one selected by the Former Member or the Former Member's
legal representative or other successor-in-interest, one selected by the Company
and one selected by the two  appraisers  so named.  The fair market value of the
Former  Member's  Interest as of the date of the  Membership  Termination  Event
shall be deemed to be the  average  of the two  appraisals  closest in amount to
each other, and the fair market value of the Former Member's  Interest as of the
date  of the  Membership  Termination  Event,  as so  determined,  shall  be the
purchase  price. If the fair market value is determined to vary from the Capital
Account  balance  by less  than ten  percent  (10%),  the party  requesting  the
appraisal shall pay all expenses of all the appraisers. In all other events, the
party requesting the appraisal shall pay one-half of such expenses and the other
party shall pay one-half of such expenses.

     8.4 NOTICE OF INTENT TO  PURCHASE.  If the Managers  elect the  alternative
specified at Section  8.2(b),  then,  within thirty (30) days after the purchase
price of the Former Members'  Interest is determined,  the Managers shall notify
the remaining  Members of that portion,  if any, of the Former Members' Interest
which the  Company has elected to  purchase.  If the Company  elects to purchase
less than all of the Former  Members'  Interest,  each  remaining  Member  shall
notify the Managers in writing, within ten (10) days thereafter,  if that Member
desires to  purchase a portion of the balance of the Former  Members'  Interest.
The failure of any  remaining  Member to so notify the Managers  within such ten
(10) day period shall  constitute  an election on the part of that Member not to
purchase  any of the balance of the Former  Members'  Interest.  Each  remaining
Member so  electing to purchase  (a  "Purchasing  Member")  shall be entitled to
purchase a portion of the  balance of the Former  Members'  Interest in the same
proportion  that the Percentage  Interest of the Purchasing  Member bears to the
aggregate of the Percentage Interests of all of the Purchasing Members.

     8.5 ELECTION TO PURCHASE LESS THAN ALL OF THE FORMER MEMBER'S INTEREST.  If
any Purchasing  Member elects to purchase less than all of its pro rata share of
the balance of the Former Member's  Interest,  then the other Purchasing Members
may elect to  purchase  more than their pro rata  share.  If the Company and the
Purchasing Members do not elect to purchase all of the Former Member's Interest,
any other Person(s)  designated by the Managers may purchase the remaining share
thereof.

     8.6 CLOSING OF  PURCHASE  OF FORMER  MEMBER'S  INTEREST.  The closing  (the
"Closing") of the sale of a Former Member's Interest shall be held no later than
sixty (60) days after the  determination  of the purchase price. At the Closing,
the Former Member or the Former Member's legal  representative  shall deliver to
the purchasers an instrument of transfer (containing  warranties as to title and
the absence of encumbrances)  conveying the Former Member's Interest. The Former
Member or the Former Member's legal  representative  and the purchasers shall do
all things and  execute  and  deliver all papers  necessary  to  consummate  the
transaction in accordance with the provisions of this Agreement.

     8.7 PAYMENT OF PURCHASE PRICE. The purchase price shall be paid as follows:
the  purchasers  shall pay cash at the Closing  equal to one-fifth  (1/5) of the
purchase price,  with the balance of the purchase price to be paid in four equal
annual  principal  installments,   plus  interest,  payable  each  year  on  the

                                      -17-
<PAGE>

anniversary  date of the  Closing.  The unpaid  principal  balance  shall accrue
interest at the current  applicable  federal  rate  provided in the Code for the
month in which the initial  payment is made, but the  purchasers  shall have the
right to prepay in full or in part at any time without  penalty.  The obligation
to pay the balance due shall be evidenced by a promissory note, and if purchased
by a Person  other  than the  Company,  secured  by a pledge  of the  Membership
Interest being purchased.

                                   ARTICLE IX

                  ACCOUNTING, RECORDS AND REPORTING BY MEMBERS

     9.1 BOOKS AND RECORDS.  The books and records of the Company shall be kept,
and the  financial  position  and the  results of its  operations  recorded,  in
accordance  with the cash  method of  accounting  unless a  different  method is
required to be followed for federal  income tax purposes.  The books and records
of the  Company  shall  reflect  all  the  Company  transactions  and  shall  be
appropriate  and adequate for the Company's  business.  Each Member and its duly
authorized  representative,  including, but not limited to, Cinema Ride's and HK
LLC's  accountants,  shall have complete access to all such books and records at
any time.

     9.2 BANK  ACCOUNTS;  INVESTED  FUNDS.  All  funds of the  Company  shall be
deposited in such account or accounts of the Company as may be determined by the
Managers and shall not be  commingled  with the funds of any other  Person.  All
withdrawals  therefrom  shall be made upon checks  signed by such persons and in
such  manner as the  Managers  may  determine.  Temporary  surplus  funds of the
Company  may  be  invested  in  commercial  paper,  time  deposits,   short-term
government obligations or other investments determined by the Managers.

     9.3 TAX  MATTERS FOR THE COMPANY  HANDLED BY THE  MANAGERS  AND TAX MATTERS
MEMBERS.  The Members shall from time to time cause the Company to make such tax
elections  as it  deems  to be in the  best  interests  of the  Company  and the
Members.  The Tax Matters  Members shall represent the Company (at the Company's
expense) in connection  with all  examinations  of the Company's  affairs by tax
authorities,  including resulting judicial and administrative  proceedings,  and
shall  expend  Company  funds for  professional  services  and costs  associated
therewith.  The Tax Matters  Members  shall oversee the Company's tax affairs in
the overall best  interests  of the  Company.  If for any reason the Tax Matters
Members can no longer serve in that capacity,  the Managers may designate  other
Members to be Tax Matters Members.  Initially,  the Tax Matters Members shall be
Mitch Francis and Hal Kolker.

     9.4  ACCOUNTING  MATTERS.  All decisions as to accounting  matters shall be
made by the Managers.

                                    ARTICLE X

                           DISSOLUTION AND WINDING UP

     10.1  DISSOLUTION.  The Company shall be dissolved,  its assets disposed of
and its  affairs  wound  up upon  (and  only  upon)  the  first  to occur of the
following:

                                      -18-
<PAGE>

          (a)  the  expiration  of the  term  of the  Company  specified  in the
Articles or any other event of dissolution specified in the Articles;

          (b) the entry of a decree of judicial  dissolution pursuant to Section
86.541 of the Act;

          (c) the unanimous vote of the Members;

          (d) the occurrence of a Membership Termination Event, if all remaining
Members fail to consent in accordance  with Section 8.1 to continue the business
of the Company  within  ninety (90) days after the  occurrence  of that event or
fail to reach the agreement described in Section 8.1(b);

          (e) the sale of all or substantially all of the assets of the Company;

          (f) the Company's Bankruptcy; or

          (g) the  occurrence  of an  event  which  makes  it  unlawful  for the
business of the Company to be continued.

     10.2  CERTIFICATE OF  DISSOLUTION.  Upon  dissolution  of the Company,  the
Managers  shall  cause  Articles  of  Dissolution  to be filed  with the  Nevada
Secretary of State.

     10.3  WINDING UP. Upon the  occurrence  of any event  specified  in Section
10.1,  the  Company  shall  continue  solely  for the  purpose of winding up its
affairs in an orderly  manner,  liquidating its assets and satisfying the claims
of its creditors.  The Managers shall be responsible  for overseeing the winding
up and  liquidation of the Company,  shall take full account of the  liabilities
and  assets  of the  Company,  shall  cause  its  assets  either  to be  sold or
distributed,  as they may determine,  and shall cause the proceeds therefrom, to
the extent  sufficient,  to be applied  and  distributed  as provided in Section
10.5.  The  Persons  winding up the affairs of the  Company  shall give  written
notice of the  commencement  of  winding up by mail to all known  creditors  and
claimants whose addresses appear on the records of the Company.

     10.4  DISTRIBUTIONS IN KIND. Any non-cash asset  distributed to one or more
Members  shall first be valued at its fair  market  value to  determine  the Net
Profit or Net Loss that would have resulted if that asset had been sold for that
value,  the Net Profit or Net Loss shall then be  allocated  pursuant to ARTICLE
VI, and the  Members'  Capital  Accounts  shall be  adjusted  to  reflect  those
allocations.  The amount  distributed and charged to the Capital Account of each
Member  receiving an interest in the distributed  asset shall be the fair market
value of the interest (net of any liability secured by the asset that the Member
assumes or takes  subject  to).  The fair  market  value of that asset  shall be
determined by the Managers.

     10.5 ORDER OF PAYMENT OF PROCEEDS UPON DISSOLUTION.

          (a) LIQUIDATING DISTRIBUTIONS.  After determining that all known debts
and  liabilities  of the  Company,  including,  without  limitation,  debts  and
liabilities  to Members  who are  creditors  of the  Company,  have been paid or
adequately  provided for, the remaining  assets shall promptly be distributed to
the Members in accordance with their positive  Capital Account  balances,  after

                                      -19-
<PAGE>

taking into account income and loss  allocations for the Company's  taxable year
during which the liquidation occurs.

          (b) NO  LIABILITY.  No Member shall have any liability to the Company,
any Member or any  creditor of the Company on account of any deficit  balance in
its Capital Account.

     10.6 COMPLIANCE WITH TREASURY REGULATIONS. All payments to the Members upon
the winding up and  dissolution  of the Company  shall be strictly in accordance
with the positive Capital Account balance  limitation and other  requirements of
Section 1.704-1(b)(2)(ii)(D) of the Treasury Regulations.

     10.7  LIMITATIONS  ON PAYMENTS  MADE IN  DISSOLUTION.  Except as  otherwise
specifically  provided in this Agreement,  each Member shall be entitled to look
only to the  assets of the  Company  for the  return of that  Member's  positive
Capital Account balance and shall have no recourse for its Capital Contributions
and/or share of Net Profits (upon dissolution or otherwise) against the Managers
or any other Member.

     10.8 CERTIFICATE OF CANCELLATION.  Upon completion of the winding up of the
Company's affairs,  the Managers shall cause a Certificate of Cancellation to be
filed with the Nevada Secretary of State.

     10.9  COMPENSATION FOR SERVICES.  The Persons winding up the affairs of the
Company shall be entitled to reasonable  compensation from the Company for their
services. ARTICLE XI

                                 INDEMNIFICATON

     11.1 INDEMNIFICATION. The Company shall indemnify and hold harmless each of
the Members and the Managers, and each of their respective officers,  directors,
shareholders,  partners, Members, trustees,  beneficiaries,  employees,  agents,
heirs,   assigns,    successors-in-interest   and   Affiliates,   (collectively,
"Indemnified Persons") from and against any and all losses, damages, liabilities
and expenses,  (including  costs and  reasonable  attorneys'  fees),  judgments,
fines,  settlements and other amounts  (collectively  "Liabilities")  reasonably
incurred  by any such  Indemnified  Person in  connection  with the  defense  or
disposition of any action,  suit or other proceeding,  whether civil,  criminal,
administrative  or investigative  and whether  threatened,  pending or completed
(collectively  a  "Proceeding"),  in which any such  Indemnified  Person  may be
involved  or with  which any such  Indemnified  Person may be  threatened,  with
respect to or arising out of any act  (including  any act of active  negligence)
performed by the Indemnified Person or any omission or failure to act if (a) the
performance  of the act or the  omission  or failure  was done in good faith and
within the scope of the authority  conferred upon the Indemnified Person by this
Agreement or by the Act, except for acts of willful misconduct, gross negligence
or reckless  disregard of duty,  or acts which  constitute a material  breach of
this  Agreement  or from  which such  Indemnified  Person  derived  an  improper
personal  benefit,  or (b) a court of  competent  jurisdiction  determines  upon
application that, in view of all of the circumstances, the Indemnified Person is
fairly and  reasonably  entitled  to  indemnification  from the Company for such
Liabilities  as such  court  may  deem  proper.  The  Company's  indemnification
obligations  hereunder  shall  apply not only  with  respect  to any  Proceeding

                                      -20-
<PAGE>

brought  by the  Company or a Member  but also with  respect  to any  Proceeding
brought by a third party.

     11.2 CONTRACT RIGHT;  EXPENSES.  The right to indemnification  conferred in
this ARTICLE XI shall be a contract right and shall include the right to require
the  Company to advance  the  expenses  incurred  by the  Indemnified  Person in
defending  any such  Proceeding in advance of its final  disposition;  PROVIDED,
HOWEVER,  that, if the Act so requires,  the payment of such expenses in advance
of the final  disposition of a Proceeding shall be made only upon receipt by the
Company of an undertaking,  by or on behalf of the indemnified  Person, to repay
all amounts so advanced if it shall ultimately be determined that such Person is
not entitled to be indemnified under this ARTICLE XI or otherwise.

     11.3  INDEMNIFICATION  OF OFFICERS AND  EMPLOYEES.  The Company may, to the
extent  authorized  from  time  to  time  by  the  Managers,   grant  rights  to
indemnification and to advancement of expenses to any officer, employee or agent
of the Company to the fullest  extent of the  provisions of this ARTICLE XI with
respect to the  indemnification  and  advancement  of expenses of Members of the
Company.

     11.4 INSURANCE.  The Company may purchase and maintain  insurance on behalf
of any  Person  who is or was an  agent of the  Company  against  any  liability
asserted against that Person and incurred by that Person in any such capacity or
arising  out of that  Person's  status as an agent,  whether or not the  Company
would  have the power to  indemnify  that  Person  against  liability  under the
provisions of Section 11.1 or under applicable law.

                                   ARTICLE XII

                                  MISCELLANEOUS

     12.1  AMENDMENTS.  No amendment to this  Agreement  may be made without the
unanimous  approval of all Members.  All amendments to this Agreement must be in
writing.

     12.2 OFFSET  PRIVILEGE.  Any monetary  obligation owing from the Company to
any  Member or  Manager  may be  offset  by the  Company  against  any  monetary
obligation then owing from that Member or Manager to the Company.

     12.3 REMEDIES CUMULATIVE. Except as otherwise provided herein, the remedies
under this  Agreement are cumulative and shall not exclude any other remedies to
which any Person may be lawfully entitled.

     12.4  NOTICES.  Any  notice  to be given to the  Company  or any  Member in
connection  with this  Agreement  must be in writing  and will be deemed to have
been given and received when delivered to the address  specified by the party to
receive the notice by courier or other means of personal service,  when received
if sent by  facsimile,  or three (3) days  after  deposit of the notice by first
class mail, postage prepaid,  or certified mail, return receipt  requested.  Any
such notice must be given to the Company at its principal place of business, and
to any Member at the address  specified in Exhibit A. Any party may, at any time
by giving five (5) days' prior written  notice to the other  parties,  designate
any other address as the new address to which notice must be given.

                                      -21-
<PAGE>

     12.5  ATTORNEY'S  FEES.  In the event that any dispute  between the Company
and/or the Members  should result in litigation or  arbitration,  the prevailing
party in that  dispute  shall be  entitled  to recover  from the other party all
reasonable  fees,  costs and expenses of enforcing  any right of the  prevailing
party, including without limitation, reasonable attorneys' fees and expenses.

     12.6 GOVERNING LAW;  JURISDICTION.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Nevada,  without regard to
any  conflicts  of  laws  principles  of  the  State  of  Nevada  or  any  other
jurisdiction  that would call for the application of the law of any jurisdiction
other than the State of Nevada.  Each party  hereto  consents  to the  exclusive
jurisdiction of the state and federal courts located in Las Vegas, Nevada in any
action on a claim arising out of, under or in connection  with this Agreement or
the  transactions  contemplated  by this  Agreement.  Each party hereto  further
agrees that personal  jurisdiction over it may be effected by service of process
by registered or certified  mail  addressed as provided in Section 12.4 and that
when so made shall be as if served upon it personally.

     12.7 COMPLETE  AGREEMENT.  This  Agreement and the Articles  constitute the
complete and exclusive  statement of agreement among the Members with respect to
their  respective  subject  matters  and  supersede  all prior  written and oral
agreements or statements by and among the Members. No representation, statement,
condition or warranty not contained in this  Agreement or the Articles  shall be
binding  on the  Members or have any force or effect  whatsoever.  To the extent
that  any  provision  of the  Articles  conflicts  with  any  provision  of this
Agreement, the Articles shall control.

     12.8 BINDING EFFECT.  Subject to the provisions of this Agreement  relating
to  Transferability,  this  Agreement  shall be  binding  upon and  inure to the
benefit of the Members and their respective successors and assigns.

     12.9  SECTION  HEADINGS.   All  Section  headings  are  inserted  only  for
convenience of reference and are not to be considered in the
interpretation or construction of any provision of this Agreement.

     12.10 INTERPRETATION. In the event any claim is made by any Member relating
to any conflict,  omission or ambiguity in this  Agreement,  no  presumption  or
burden of proof or  persuasion  shall be implied by virtue of the fact that this
Agreement  was  prepared  by or at the  request of a  particular  Member or that
Member's counsel.

     12.11  SEVERABILITY.  If any provision of this Agreement or the application
of that  provision  to any person or  circumstance  shall be held  invalid,  the
remainder of this  Agreement or the  application of that provision to persons or
circumstances  other  than  those  to  which  it is held  invalid  shall  not be
affected.

     12.12 MULTIPLE COUNTERPARTS.  This Agreement may be executed in two or more
counterparts,  each of which shall be deemed an original, but all of which shall
constitute one and the same instrument.

                                      -22-
<PAGE>

     IN  WITNESS  WHEREOF,  all of the  Members of  TICKETS2NITE,  LLC, a Nevada
limited  liability  company,  have executed this Agreement,  effective as of the
date first written above.

                               MEMBER:

                               Cinema Ride, a Delaware corporation

                               By:        /s/ MITCH FRANCIS
                                         -------------------------------
                                         Name:  Mitch Francis
                                         Title: President

                               MEMBER:

                               Entasis LLC, a Delaware limited liability company

                               By:        /s/ HAL KOLKER
                                         -------------------------------
                                         Name:  Hal Kolker
                                         Title: Manager

                                      -23-
<PAGE>

                                    EXHIBIT A

            CAPITAL CONTRIBUTIONS, ADDRESSES AND PERCENTAGE INTERESTS

                                OF MEMBERS AS OF

                               SEPTEMBER 24, 2002

<TABLE>
<CAPTION>

                                             Member's     Member's   Member's
                                             Capital      Percentage Capital
MEMBER'S NAME     MEMBER'S ADDRESS           CONTRIBUTION INTEREST   ACCOUNT
<S>              <C>                        <C>           <C>        <C>

Cinema Ride, Inc. 12001 Ventura Place,       $200,000 1)      50%    $200,000
                  Suite 340                                          3)
                  Studio City, Nevada  91604

Entasis LLC       _________________          $200,000 2)      50%    $200,000
                  _________________                                  3)

</TABLE>

1. Cinema Ride previously  contributed  $183,694.27 to the Company.  Cinema will
contribute $16,305.73 upon execution of this Agreement.

2. In the  event  that  Bacardi  agrees to  become a  sponsor  of the  Company's
discounted show  operations,  HK LLC shall be entitled to receive credit against
its  obligations to make the capital  contribution  the amount of any payment by
Bacardi made on or before the execution of this Agreement.

3.  Such  capital  account  shall be  actually  credited  upon  making  the cash
contributions provided herein.

                                      -24-EX 10.1

SHARE
PURCHASE AGREEMENT

          
     
     THIS SHARE
PURCHASE AGREEMENT (“Agreement”) is made as
of July 18, 2002, by and among OUTOKUMPU COPPER PRODUCTS OY, a Finnish company
(“OCP”), OUTOKUMPU COPPER HOLDINGS, INC., a Delaware corporation
 (“Buyer”), and LENNOX
INTERNATIONAL, INC., a Delaware corporation (“Seller”).

RECITALS

          
     
     Seller desires to sell, and Buyer desires to purchase, membership interests of HEATCRAFT
HEAT TRANSFER LLC (to be renamed OUTOKUMPU
HEATCRAFT USA LLC), a Delaware limited liability company (the "Company") as hereinafter
provided, for the consideration and on the terms and conditions set forth in
this Agreement.  Buyer is a wholly-owned subsidiary of OCP.

AGREEMENT

          
     
     
Buyer, OCP and Seller, intending to be legally bound, agree as follows:

1.     
DEFINITIONS.

          
     
     
For purposes of this Agreement, the following terms have the meanings specified
or referred to in this Section 1:

          
     
     
“Acquired Companies” -- the Company and the Heat Transfer
Subsidiaries, collectively.

          
     
     “Applicable Contract” -- any Contract
(a) under which any Acquired Company has or may acquire any rights, (b) under which any Acquired
Company has or may become subject to any obligation or liability, or (c) by which any Acquired
Company or any of the assets owned or used by it is or may become
bound.

          
     
     “Balance Sheet”
 -- as defined in Section 3.4.

          
     
     “Balance Sheet Net Assets” -- the combined
net assets ((i) total assets minus (ii) total liabilities other than any Indebtedness) of the
Acquired Companies shown on the Base Balance Sheet calculated in accordance with GAAP.

          
     
     “Base Balance Sheet” --
 means the unaudited balance sheet for the Acquired
Companies attached hereto as Schedule 1-A.

          
     
     “Base Business Plan” --
means the initial base business plan of the Company set forth as Attachment A
to the Members' Agreement.

          
     
     “Best Efforts” -- the efforts that a prudent Person desirous of achieving a result would use in similar circumstances to ensure that such
result with due consideration for timing where appropriate; provided, however, that an obligation to use Best Efforts under this Agreement does not require the
Person subject to that obligation to take actions that would result in a materially adverse change in the benefits to such Person of this Agreement and the
Contemplated Transactions.

          
     
     
“Breach”  -- a "Breach" of a representation, warranty, covenant, obligation or other provision of this Agreement or any instrument delivered
pursuant to this Agreement will be deemed to have occurred if there is or has been any inaccuracy in or breach of, or any failure to perform or comply with, such
representation, warranty, covenant, obligation or other provision, and the term "Breach" means any such inaccuracy, breach, failure, claim, occurrence or
circumstance. 

          
     
     “Business” -- consists of:

          
     
     (a)     
Subject to clause (b)
below, Seller’s heat transfer business in North America, which includes its
original equipment manufacturing (“OEM”) heat
transfer division located in Grenada, Mississippi, its commercial coil heat
transfer operation located in Grenada, Mississippi and its Livernois operations
in Dearborn, Michigan and its operations in Juarez, Mexico. The Business
includes all plant, property, equipment and working capital presently used or
useable in the designated facilities; those licenses, patent rights, trademarks
and trade names used in the Business (including Heatcraft), know-how, and other
commercial or proprietary information associated and/or necessary to conduct the
Business as presently conducted and foreseen, including all agreements with
trade representatives, agents, distributors engaged in marketing activities
related to the Business, with products currently manufactured by the Business;
and the real estate (including all rights to leaseholds) wherein the Business
conducts its manufacturing, distribution or administrative functions in the
designated facilities (collectively “Assets”). 

          
     
     (b)     "Business" does not
include (i) the heat transfer operations of Seller which are integrated into Seller's other
businesses, including its HVAC/R
operations in the United States consisting of the following companies: Lennox Industries Inc.;
Armstrong Air Conditioning Inc.; Advanced Distributor Products LLC;
Excel Comfort Systems Inc.; Allied Air Enterprises Inc. and Heatcraft Refrigeration Products
or (ii) Seller's interest in Frigus-Bohn S.A. de C.V. or, for
clarification purposes, Seller's interest in its joint venture company in Brazil,
Heatcraft do Brasil Ltda.

          
     
     “Business Day” --
means a day (other than a Saturday or Sunday) on which banks in both New York, New York (USA) and Helsinki, Finland are
open for general business.

          
     
     “Buyer” --
as defined in the first
paragraph of this Agreement.

          
     
     “Buyer's Accountants” --
PricewaterhouseCoopers LLP.

          
     
     “Closing” -- as defined in Section 2.3.

          
     
     “Closing Date” -- the date and time as of
which the Closing actually takes place.

2

          
     
     “Closing Date Net Assets” -- the
combined net assets (total assets minus (ii) total liabilities other than any Indebtedness) of the Acquired
Companies as of the Closing Date calculated in accordance with GAAP.

          
     
     “Company” -- as defined in
the Recitals of this Agreement.

          
     
     “Competition Law” -- Any Legal Requirement
intended to prohibit or regulate mergers, restraints of trade or monopolization of trade,
including the HSR Act and Council Regulation (EEC) No. 4064/89 or similar laws
within Finland or other applicable jurisdictions including France, Italy and the
Czech Republic.

          
     
     “Consent” -- any approval, consent, ratification,
 waiver, or other authorization (including any Governmental Authorization).

          
     
     “Contemplated Transactions” -- all of the
transactions contemplated by this Agreement, including:

          
     
     (c)     the sale of
the Shares by Seller to Buyer;

          
     
     (d)     
the JV Transactions;

          
     
     (e)     the performance
by Buyer and Seller of their respective covenants and obligations under this Agreement; and

          
     
     
(f)     The Company’s
exercise of 100% control over the Heat Transfer Subsidiaries including the
transactions provided for in Section 6.1. 

          
     
     “Contract” -- any agreement,
contract, obligation, promise or undertaking (whether written or oral and
whether express or implied) that is
legally binding.

          
     
     “Damages” -- as defined in Section 10.1.

          
     
     “Effective Time” --
11:59:59 p.m. on the Closing Date.

          
     
     
“Encumbrance” --
any charge, claim, community
property interest, condition, equitable interest, lien, option, pledge, security interest,
right of first refusal or any restriction on use, voting, transfer, receipt of
income or exercise of any other attribute of ownership.

          
     
     “Environment” -- soil, land surface or
subsurface strata, surface waters (including navigable waters, ocean waters,
streams, ponds, drainage
basins and wetlands), groundwaters, drinking water supply, stream sediments,
ambient air (including indoor air), plant and animal life and any other environmental
medium or natural resource.

          
     
     “Environmental, Health and
Safety Liabilities”
-- any cost, damages, expense, liability, obligation or other responsibility
arising 

3

from the requirements for
compliance with or arising from the violation of  any applicable
Environmental Law or Occupational Safety and Health Law and consisting of or
relating to: 

          
     
     (a)     any actions required to
be taken to comply with applicable law or regulation relating to environmental,
health or safety matters or conditions (including on-site or off-site
contamination, occupational safety and health and regulation of chemical
substances or products);

          
     
     (b)     fines, penalties,
judgments, awards, settlements, legal or administrative proceedings, damages,
losses, claims, demands and response, investigative, remedial or inspection
costs and expenses resulting from any requirements under Environmental Law or
Occupational Safety and Health Law; 

          
     
     (c)     financial
responsibility under Environmental Law or Occupational Safety and Health Law for
cleanup costs or corrective action, including any investigation, cleanup,
removal, containment or other remediation or response actions
(“Cleanup”) required by applicable Environmental
Law or Occupational Safety and Health Law (whether or not such Cleanup has been
required or requested by any Governmental Body or any other Person) with
authority to require such Cleanup; or 

          
     
     (d)     any other compliance, corrective, investigative or remedial measures required under the applicable Environmental Law or Occupational Safety and Health
Law.

          
     
     The terms “removal,” “remedial”
and “response action,” include the types of activities
covered by the United States Comprehensive
Environmental Response, Compensation, and Liability Act, 42 U.S.C.ss.9601
et seq., as amended ("CERCLA").

          
     
     “Environmental Law” -- any
Legal Requirement that requires:

          
     
     (a)
     advising appropriate
authorities, employees and the public of intended or actual releases of
pollutants or hazardous substances or materials, violations of discharge limits
or other prohibitions and of the commencements of activities, such as resource
extraction or construction, that could have significant impact on the
Environment; 

          
     
     (b)     preventing or reducing
to acceptable
levels the release of pollutants or hazardous substances or materials into
the Environment;

          
     
     (c)     reducing the
quantities, preventing the release or minimizing the hazardous characteristics
of wastes that are generated;

          
     
     (d)     assuring that products
are designed, formulated, packaged and used so that they do not present unreasonable
risks to human health or the Environment
when used or disposed of;

          
     
     (e)     protecting resources,
 species or ecological amenities;

4

          
     
     (f)     reducing
to acceptable levels the risks
inherent in the transportation of hazardous substances, pollutants,
oil or other potentially harmful substances;

          
     
     (g)     cleaning
up pollutants that have been
released, preventing the threat of release, or paying the costs of such
clean up or prevention; or 

          
     
     
(h)     making responsible
parties pay private parties, or groups of them, for damages done to their health
or the Environment, or permitting self-appointed representatives of the public
interest to recover for injuries done to public assets. 

          
     
     “ERISA” -- the Employee Retirement
Income Security Act of 1974 or any successor law, and regulations and rules
issued pursuant to that Act or any successor law.

          
     
     “European Share Purchase Agreement”
 --
the Share Purchase Agreement to be entered into as of the Closing Date by and between LGL Holland
B.V. and OCP with respect to the purchase by OCP (or its Related Person) of 55%
of the shares or other equity interests of Outokumpu Heatcraft
B.V. (“EU JVCo”).

          
     
     “Facilities” -- any real property,
leaseholds or other interests currently or formerly owned or operated by Seller
or any Related Person
thereof and any buildings, structures or equipment (including motor
vehicles, tank cars and rolling stock) currently or formerly owned or operated by Seller or any
Related Person thereof for which Buyer or any of the Acquired Companies could
have any legal liability under Environmental Law.

          
     
     “GAAP” -- generally accepted United States
accounting principles, applied on a basis consistent with the basis on which the Balance Sheet
and the other financial statements referred to in Section 3.4 were prepared.

          
     
     “Governmental Authorization”
 -- any approval,
consent, license, permit, waiver or other authorization issued, granted, given
or otherwise made available by or under the authority of any Governmental Body
or pursuant to any Legal Requirement.

          
     
     “Governmental Body”
-- any:

          
     
     (a)     nation, state, county, city, town,
village, district or other jurisdiction of any nature;

          
     
     (b)     federal, state, local, municipal,
foreign or other government;

          
     
     (c)     governmental or
quasi-governmental
authority of any nature (including any governmental agency, branch, department,
official or entity and any court or
other tribunal);

          
     
     (d)     multi-national
organization or body; or

5

          
     
     (e)     body exercising,
or entitled to exercise, any administrative, executive, judicial, legislative,
police, regulatory or taxing authority or power of any nature.

          
     
     “Grenada Real Property”
-- all real
property owned or leased by Heatcraft Inc. or any Related Persons in the State
of Mississippi used for the activities of the Business.

          
     
     "Hazardous Activity" -- the distribution,
generation, handling, importing, management, manufacturing, processing, production,
refinement,
Release, storage, transfer, transportation, treatment or use (including any
withdrawal or other use of groundwater) of Hazardous Materials in, on, under, about or
from the Facilities or any part thereof, and any other act, business, operation
or thing that increases the danger, or risk of danger, or poses an unreasonable risk
of harm to persons or property or the Environment on or off the Facilities.

          
     
     “Hazardous Materials”
-- any waste or
other substance that is listed, defined, designated or classified as, or otherwise
determined to be,
hazardous, radioactive or toxic or a pollutant or a contaminant under or pursuant
to any Environmental Law, including any admixture or solution thereof, and
specifically including petroleum and all derivatives thereof or synthetic substitutes
therefore and asbestos or asbestos-containing materials.

          
     
     “Heat Transfer Existing Subsidiaries”
 - the
direct and indirect, wholly or partially owned, subsidiaries of Seller in existence as of
December 31, 2001 and through which the Business has been operated.

          
     
     “Heat
Transfer Subsidiaries” - the Persons formed or to be formed
that, in addition to the Company, are listed on Schedule 3.1(a).

          
     
     “HSR Act” --
the Hart-Scott-Rodino Antitrust
Improvements Act of 1976 or any successor law, and regulations and rules issued
pursuant to that Act or any successor law.

          
     
     “Indebtedness”--
without duplication with respect to any Person, (a) all indebtedness of such
Person for borrowed money (including all
accrued interest and accumulated amortization),
(b) all obligations of such Person for the deferred purchase price of property or services (other than trade
payables created in the Ordinary Course of Business),
(c) 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 the seller or lender under such agreement in the event of default are limited to
repossession or sale of such property), (d) all obligations of such Person as lessee
under leases that have been, in accordance with GAAP, recorded as capital
leases, (e) all obligations, contingent or otherwise, of such Person under acceptance,
letter of credit or similar facilities that have been, in accordance with
GAAP, recorded as indebtedness, and (f) Indebtedness of others referred to in clauses
(a) through (e) above guaranteed in any manner by such Person, or in effect
guaranteed by such Person under or pursuant to one or more Contracts.

          
     
     “Independent Accountants”
-- Ernst & Young, LLP.

          
     
     “Intellectual Property Assets”  --
as defined in Section 3.22.

6

          
     
     
“Interim Closing Period” -- the period beginning as of the Effective
Time and continuing through and ending on the Closing Date.

          
     
     
“IRC” -- the Internal Revenue Code of 1986 or any successor law, and regulations issued by the IRS pursuant to the Internal Revenue Code or
any successor law.

          
     
     
“IRS” -- the United States Internal Revenue Service or any successor agency, and, to the extent relevant, the United States Department of
the Treasury.

          
     
     
“JV Closings” -- the completion
and consummation of the JV Transactions as provided for in the
Members' Agreement.

          
     
     
“JV Transactions” -- the Contracts and
actions provided for, and as defined, in the Members' Agreement.

          
     
     
“Key Executives”
-- the individuals listed on Schedule 1-B.

          
     
     
“Knowledge”
-- an individual will be deemed to have “Knowledge” of a particular fact
or other matter if:

          
     
     
(a)     such individual is
actually aware of such fact or other matter; or

          
     
     
(b)     a prudent individual
could be expected to discover or otherwise become aware of such fact or other
matter in the course of conducting a reasonably comprehensive investigation
concerning the existence of such fact or other matter. 

A Person (other than an
individual) will be deemed to have “Knowledge” of a particular fact or
other matter if any individual who is serving, or who has at any time served, as
a director, officer, partner, or manager (as it might relate to an LLC) of such
Person or any subsidiary thereof (or in any similar capacity) has, or at any
time had, Knowledge of such fact or other matter. Notwithstanding the foregoing,
“Knowledge” of Seller means the knowledge of the officers and
directors of Seller, the Acquired Companies and the Heat Transfer Existing
Subsidiaries; the management team members of Seller in Dallas, Texas listed on
Schedule 1- C and of Heatcraft Inc. in Grenada, Mississippi and
Livernois Engineering Inc. in Dearborn Michigan listed on Schedule 1-D;
and the management team members for Seller’s heat transfer operations in
Europe, and the directors of such subsidiaries listed on Schedule 1-E. 

          
     
     
“LLC Agreement”
-- the Restated Limited Liability Company Agreement of the Company, the form of which is attached to the Members' Agreement
as Attachment G.

          
     
     
“Legal Requirement” -- any federal, state, local, municipal, foreign, international, multinational or other administrative order,
constitution, law, ordinance, principle of common law, regulation, statute or treaty.

7

          
     
     
“Members’ Agreement” -- the
Joint Venture and Members' Agreement among Buyer, OCP, Seller and the
Company, dated July 18, 2002.

          
     
     
“Membership Interests” --
as defined in the LLC Agreement.

          
     
     
“Net Assets Adjustment” --
the amount by which (a)
the Closing Date Net Assets are greater (the "Positive Net Assets Adjustment")
or less
(the "Negative Net Assets Adjustment") than (b) the Balance Sheet Net Assets.

          
     
     
“OCP”-- as defined in the
first paragraph of this Agreement.

          
     
     
“Occupational Safety and Health Law”
-- any Legal Requirement designed to provide safe and healthful working conditions and to reduce
occupational safety and health hazards.

          
     
     
“Order” -- any award, decision, injunction, judgment, order, ruling, subpoena or verdict entered, issued, made or rendered by any court,
administrative agency or other Governmental Body or by any arbitrator.

          
     
     
“Ordinary Course of Business” -- an action taken by a Person will be deemed to have been taken in the "Ordinary Course of Business" if such
action is consistent with the past practices of such Person and is taken in the ordinary course of the normal day-to-day operations of such Person.

          
     
     
“Organizational Documents” --
(a) the articles or certificate of incorporation and the bylaws of a corporation,
(b) the partnership
agreement and any statement
of partnership of a general partnership, (c) the limited partnership
agreement and the certificate of limited partnership of a limited partnership,
(d) the certificate of formation and limited liability company agreement,
memorandum of association, or operating agreement of a limited liability
company, (e) any charter or similar document adopted or filed in connection
with the creation, formation or organization of a Person, and (f) any
amendment to or restatement of any of the foregoing. 

          
     
     
“Permitted Indebtedness” -
any Indebtedness of the Acquired Companies incurred after the Effective Time which has been approved in writing
by Buyer.

          
     
     
“Person” -- any individual,
corporation (including any non-profit corporation), general or limited
partnership, limited liability company,
joint venture, estate, trust, association, organization, labor union or
other entity or Governmental Body.

          
     
     
“Plan” -- as defined in
Section 3.13.

          
     
     
“Proceeding” -- any action,
arbitration, audit, hearing, investigation, litigation or suit (whether civil,
criminal, administrative,
investigative or informal) commenced, brought, conducted or heard by or before,
or otherwise involving, any Governmental Body or arbitrator.

          
     
     
“Related Person” -- with respect
to a particular individual:

8

          
     
     
(a)     each other
member of such individual's immediately family (including
spouse, parents and children, natural or adopted) (the “Family”);

          
     
     
(b)     any Person that is
directly or indirectly
controlled by such individual or one or more members of such individual's Family.

With respect to a specified Person other than an individual:

          
     
     
(c)     any Person
that directly or indirectly controls, is directly or indirectly controlled by, or is directly or indirectly under common control with such
specified Person;

          
     
     
(d)     any Person that
 holds a Material Interest in such specified Person; and

          
     
     
(e)
     any Person with respect
to which such specified Person serves as a general partner or a trustee (or in a
similar capacity). 

          
     
     
“Release” -- any spilling, leaking, emitting, discharging, depositing, escaping, leaching, dumping or other releasing into the Environment,
whether intentional or unintentional.

          
     
     
“Representative” --
with respect to a particular Person, any director, officer, employee, agent,
consultant, advisor or other representative
of such Person, including legal counsel, accountants and financial advisors
which has been designated by a Person and acknowledged by the other Party which are
limited in number to those reasonably necessary to accomplish the required
activities under this Agreement.

          
     
     
“Search Expenses” -- the
fees and expenses incurred by Buyer or its Related Person in connection with
environmental searches and investigations reasonably incurred by or on behalf of
Buyer (but excluding the fees of Buyer's attorneys).

          
     
     
“Securities Act” -- the
Securities Act of 1933 or any successor law, and regulations and rules issued
pursuant to that Act or any successor law.

          
     
     
“Seller” --
as defined in the first paragraph of this Agreement.

          
     
     
“Seller’s Accountants” --
KPMG LLP.

          
     
     
“Seller's Release” -- as
defined in Section 2.4.

          
     
     
“Shared Services Agreement” -- an agreement between the
Company, EU JVCo and Seller in the form attached to the Members’ Agreement as
Attachment I pursuant to which (a) Seller and/or its Related Persons shall
provide certain transition services to the Company, EU JVCo and the other Acquired
Companies and (b) the Company will provide certain services to Advanced
Distributor Products LLC, an affiliate of Seller.

          
     
     
“Shares” -- 55% of the
Membership Interests in the Company.

9

          
     
     
“Subsidiary” -- with respect to any Person (the "Owner"),
any corporation or other Person of which securities or other interests having the
power to elect a majority of that corporation's or other Person's board of
directors or similar governing body are held by the Owner or one or more of its
Subsidiaries; when used without reference to a particular Person, “Subsidiary”
means a Subsidiary of the Company.

          
     
     
“Tax” and “Taxes” --
any federal, state, local or foreign income, gross receipts, license, payroll,
employment, excise, severance, stamp,
occupation, premium, windfall profits, environmental (including taxes under Code
Section 59A), customs duties, capital stock, franchise, profits, withholding,
social security (or similar), unemployment, disability, real property, personal
property, sales, use, transfer, transfer pricing, registration, value added,
alternative or add-on minimum, estimated or other tax of any kind whatsoever,
including any interest, penalty or addition thereto, whether disputed or not.

          
     
     
“Tax Return” -- any return (including any information return),
report, statement, schedule, notice, form or other document or information
required to be filed with or submitted to, any Governmental Body in connection
with the determination, assessment, collection or payment of any Tax or in connection
with the administration, implementation or enforcement of or compliance with any
Legal Requirement relating to any Tax.

          
     
     
“Threat of Release” -- a substantial likelihood of a
Release that may require action in order to prevent or mitigate damage to the
Environment that may result from such Release.

          
     
     
“Threatened” -- a claim, Proceeding, dispute, action
or other matter will be deemed to have been "Threatened" if any demand or
statement has
been made (orally or in writing) or any notice has been given (orally or in writing),
or if any other event has occurred or any other circumstances exist, that
would lead a prudent Person with adequate Knowledge of all of the relevant facts
to conclude that such a claim, Proceeding, dispute, action or other matter is
likely to be asserted, commenced, taken or otherwise pursued in the future.

          
     
     
“Transaction Expenses” -- all fees, costs, expenses and
disbursements, incurred by Seller and the Acquired Companies, in connection with the
Contemplated Transactions and the transactions provided for in the European Share
Purchase Agreement, including: (a) the fees and expenses of any counsel retained
by Seller, (b) the fees and expenses of any investment or financial advisors retained
by Seller or any Acquired Company, (c) the fees and expenses of Seller’s
Accountants, (d) any amounts payable in accordance with Section 10.4.3, (e) any
incentive bonuses payable to the management, and any severance or similar payments
payable to any employee, of any of the Acquired Companies in connection with the
transactions contemplated hereby and in the European Share Purchase Agreement, (f)
Seller’s share of the fees and expenses of the Independent Accounting Firm, if any,
(g) any fees and expenses of any other counsel, accountants or other similar
professionals with respect to services rendered to Seller or the Acquired Companies
 in connection with the transactions contemplated by this Agreement and the
European Share Purchase Agreement and (h) one–half of Buyer’s Search Expenses.

10

2.          SALE AND
TRANSFER OF SHARES; CLOSING.

     
     2.1     SHARES.
Subject to the terms and
conditions of this Agreement, at the Closing Seller will sell and transfer the
Shares to Buyer, and Buyer will purchase the Shares from Seller.

          
2.2     CONSIDERATION.

          
     
     (a)     The total consideration
payable by Buyer for the purchase of the Shares (the “Purchase
Price”) shall be (i) $45,320,000 minus (ii) any
Indebtedness other than Permitted Indebtedness of the Acquired Companies that
Seller shall not have repaid in full pursuant to Section 6.3(b) that is
outstanding as of the Closing Date (including the unpaid principal, accrued and
unpaid interest, any premium (including any prepayment penalties or other
charges payable by reason of the prepayment of such Indebtedness on the Closing
Date) and other charges payable in connection therewith) and (iii) either (A)
plus 55% of the Positive Net Assets Adjustment or (B) minus 55% of
the Negative Net Assets Adjustment. 

          
     
     (b)     At least three (3)
Business Days prior to the Closing Date, the chief financial officer of Seller
shall certify in writing to Buyer the estimated amount of the Indebtedness,
Permitted Indebtedness, Closing Date Net Assets and, based thereon, a
preliminary calculation of the Net Assets Adjustment and the adjustment for
Indebtedness. As soon as practicable prior to the Closing Date and based on the
certification referred to above, Buyer and Seller shall jointly calculate the
amount of the Purchase Price to be paid at Closing subject to adjustment as
provided for in Section 2.2(c) (the “Preliminary Purchase
Price”). The Closing shall occur and the payments to be made
at Closing as provided for in Section 2.4 shall be based upon the notice
provided for herein, and upon such joint calculations. 

          
          
(c)     As promptly as possible
and in any event, not later than 30 days after the Closing, the Company, under
the direction of Buyer after consultation with Seller, shall prepare and deliver
initially to Buyer and Buyer’s Accountants (i) financial statements of
the Company including a consolidated balance sheet (the “Closing
Balance Sheet”) and an income statement with consolidating
schedule of the Acquired Companies as of the Closing Date in accordance with
GAAP which shall be subject to an audit or review by Buyer’s Accountants
and (ii) a supplemental report setting forth the Indebtedness, the
Permitted Indebtedness, Closing Date Net Assets and, based thereon, the Net
Assets Adjustment (identified as either the Positive Net Assets Adjustment or
the Negative Net Assets Adjustment), and the adjustment for Indebtedness (the
“Closing Adjustments”), each of which shall be
reported on by Buyer’s Accountants (the “Closing Date Financial
Report”). The Closing Date Financial Report shall reflect a
physical inventory conducted in accordance with subsection (e) of this Section
2.2 with any necessary adjustments required to reflect any changes from the date
of the inventory and the Closing Date. Any third-party expenses or fees incurred
by Company in preparing or in connection with the Closing Date Financial Report
and the Closing Adjustment (including the fees of Buyer’s Accountants)
shall be borne by the Company. The Company and Buyer’s Accountants shall
make available any work papers or other information relating to the Closing Date
Financial Report then or thereafter requested by Seller. Any expenses incurred
by Seller’s Accountants in reviewing the Closing Date Financial Report,
such work papers and other information and in providing

11

Seller with its report
thereon shall be borne by the Company. If Seller does not object, or otherwise
fails to respond, to the Closing Date Financial Report within 30 days after
delivery to Seller, such Closing Date Financial Report shall automatically
become final and conclusive. In the event that Seller objects to the Closing
Date Financial Report within such 30 day review period, Seller and Buyer shall
promptly meet and endeavor to reach agreement as to the content of the Closing
Date Financial Report. If Seller and Buyer agree on the content of the Closing
Date Financial Report, such Closing Date Financial Report shall become final and
conclusive. If Seller and Buyer are unable to reach agreement within 30 days
after the end of Seller’s 30 day review period, then the Independent
Accountants shall promptly be retained to undertake a determination of the
Closing Date Financial Report, which determination shall be made as quickly as
possible (it being understood that the parties shall direct the Independent
Accountants to complete their work within 30 days). Only disputed items shall be
submitted to the Independent Accountants for review. In resolving any disputed
item, the Independent Accountants may not assign a value to such item greater
than the greatest value for such item claimed by either party or less than the
lowest value for such item claimed by either party, in each case as presented to
the Independent Accountants. Such determination of the Independent Accountants
shall be final and binding on Seller and Buyer, and all expenses of the
Independent Accountants shall be borne equally by Seller and Buyer. The Purchase
Price and the payments required to be made after the Closing Date pursuant to
Section 2.2(d) shall be finally determined on the basis of the Closing Date
Financial Report and the Closing Adjustment. 

          
     
     
(d)     Within five (5)
Business Days after the final determination of the Closing Adjustments, Buyer or
Seller, as the case may be, shall pay to the other the amount by which the
Purchase Price, as adjusted by the Closing Adjustments, is greater or less than
the Preliminary Purchase Price (such difference being the “Closing
Purchase Price Reconciliation”). If the Closing Purchase
Price Reconciliation is positive, Buyer shall pay such difference to Seller. If
the Closing Purchase Price Reconciliation is negative, Seller shall pay such
difference to Buyer. If (i) Buyer fails to pay any amount owing to Seller
pursuant to this subsection (d) or (ii) Seller fails to pay any amount owing to
Buyer pursuant to this subsection (d), within the specified five (5) Business
Day period, then the amount so owing shall be payable on demand and interest
shall accrue on the unpaid amount at the rate of 18% per annum. 

          
     
     (e)     The target date for the
physical inventory referred to in subsection (c) above is August 24, 2002,
except for Italy, which is on or about August 10, 2002. Buyer agrees to notify
Seller by August 2, 2002 if it appears that the approval of the European
Commission will not be received by August 22, 2002, in which case the date of
the physical inventory will be postponed by mutual agreement of the parties to a
date that is closer to the Closing Date but in no event earlier than 35 days
prior to a new target Closing Date. The physical inventory will be taken
as by the employees of the Acquired Companies under the direction of
Buyer, after consultation with Seller who shall have the right to be present
thereat. 

          
     
     (f)    
 (i)     Subject to clause
(ii) of this Section 2.2(f), if any Accounts Receivable that are included in the
Closing Balance Sheet and taken into account in calculating the Net Assets
Adjustment are not collected in full within later of 180 days after the
Closing or 90 days after the due date (the aggregate amount of any such
uncollected Accounts Receivable less any reserve for doubtful 

12

accounts being
herein referred to as the “Shortfall Amount”),
Buyer shall promptly notify Seller in writing as to the Shortfall Amount. Within
five (5) Business Days after delivery of such notice, unless Seller disputes the
amount thereof, Seller shall pay Buyer by wire transfer of immediately available
funds an amount equal to the Shortfall Amount. The receivables in question will
then be transferred to Seller and Buyer agrees to provide any reasonable
assistance requested by Seller to collect said receivables. For purposes hereof,
it is understood that the Accounts Receivable included in the current assets to
be set forth on the Closing Balance Sheet will be net of any reserve for
doubtful accounts. Any disputes as to the Shortfall Amount shall be submitted to
and resolved by the Independent Accountants in the same manner as provided for
in Section 2.2(c). 

          
          
          
(ii)    
 Buyer acknowledges Seller's disclosure that the aggregate amount of the
Accounts Receivable on the Balance Sheet includes two
Accounts Receivable (the
“Showa A/R’s”) the sum of which is, on the date hereof,
approximately $1,265,000, which arise out of a Contract that Livernois (one of
the Heat Transfer Existing Subsidiaries) has performed (the “Showa
Contract”). Seller agrees that, notwithstanding clause (i) of this Section
2.2(f), if the Showa A/R’s are not collected in full prior to the Closing,
(A) the amount of any shortfall in collecting the Showa A/R’s shall not be
included as a current asset on the Closing Balance Sheet used in the
determination of the Closing Date Net Assets and (B) the Company shall cause
Livernois to assign its rights to collect the Showa A/R’s or the shortfall
to Seller. Buyer agrees to provide Buyer any reasonable assistance requested by
Seller to collect the Showa A/R’s or any shortfall amount thereunder. 

          
2.3     
CLOSING. The purchase and sale (the
“Closing”) provided for in this Agreement will take
place at the offices of Seller in Dallas, Texas, at 10:00 a.m. (local time) as
soon as all of the conditions to Closing set forth in Articles 7 and 8 have been
or can be satisfied, on a date that, subject to the foregoing, will be
reasonably specified by Buyer by written notice to Seller at least five (5)
Business Days in advance or at such other time and place as the parties may
agree. Subject to the provisions of Section 9, failure to consummate the
purchase and sale provided for in this Agreement on the date and time and at the
place determined pursuant to this Section 2.3 will not result in the termination
of this Agreement and will not relieve any party of any obligation under this
Agreement. 

          
2.4     CLOSING
 OBLIGATIONS.  At or prior to the Closing:

          
     
     (a)    
 Seller will deliver, or cause a Related Person to deliver, to Buyer:

          
     
          
     
(i)     
an assignment executed by Seller of the Shares to Buyer, in a form
reasonably acceptable to Buyer;

          
     
          
      (ii)     
a certificate executed by Seller representing and warranting to Buyer that each
of Seller’s representations and warranties in this Agreement was accurate
in all respects as of the date of this Agreement and is accurate in all respects
as of the Closing Date as if made on the Closing Date (giving full effect to any
supplements to and schedules or exhibits attached hereto that were delivered by
Seller to Buyer prior to the Closing Date in accordance with Section 5.5); and

13

          
     
          
     
(iii)     
resignations, effective as of the Closing, of such directors and officers of the
Acquired Companies as may be designated by the Board of the Company prior to
Closing.

          
     
     
(b)     
Buyer will deliver, or cause a Related Person to deliver:

          
     
          
     
(i)     
the Preliminary Purchase Price by wire transfer to Seller, to an account to be
specified by Seller;

          
     
          
      (ii)     
a certificate executed by Buyer to the effect that, except as otherwise stated
in such certificate, each of Buyer’s representations and warranties in this
Agreement was accurate in all respects as of the date of this Agreement and is
accurate in all respects as of the Closing Date as if made on the Closing
Date. 

          
2.5     ALLOCATION OF PURCHASE PRICE.

          
     
     
(a)     Not later than ninety
(90) days after the Closing Date, (i) Buyer shall prepare and deliver to Seller
a proposed allocation of the Purchase Price among the Company’s assets
other than those owned by Livernois and (ii) Seller shall prepare and deliver to
Buyer a proposed allocation of the Purchase Price among the assets owned by
Livernois. Buyer and Seller each agrees to keep the other party informed with
respect to the identity and credentials of any appraiser retained for purposes
of such allocation and to provide the other party with such information related
thereto as the other party may reasonably request. Unless either party objects
to a proposed allocation within thirty (30) days after receipt of such proposed
allocation from the party responsible for preparing it hereunder, that
allocation will be considered to be final (each, a “Final
Allocation”). If a party objects to a proposed allocation,
the parties shall negotiate in good faith to reach agreement upon a Final
Allocation. If the parties do not agree upon a Final Allocation, the parties
shall submit the matter to the Independent Accountants for determination of the
Final Allocation. The determination of any Final Allocation by the Independent
Accountants will be final and binding upon the parties. Neither Seller nor Buyer
shall take any position on any Tax Return or other filing with a Governmental
Body that is inconsistent with any Final Allocation. Buyer and Seller shall duly
prepare and timely file such reports and information returns as may be
prescribed or appropriate under Code Section 1060 and any regulations thereunder
and any corresponding provisions of applicable state income Tax laws to report
the allocation of the Purchase Price in accordance with the Final Allocation.
Any adjustments to the Purchase Price after the Closing will be allocated among
the Company’s assets in a manner consistent with the foregoing. 

3.     REPRESENTATIONS AND WARRANTIES OF SELLER.
Seller represents and warrants to Buyer as follows:

     
     3.1.     
ORGANIZATION AND GOOD STANDING.

          
     
     (a)     Schedule 3.1(a)
contains a complete and accurate list for each Acquired Company of its name, its
jurisdiction of incorporation or formation, other jurisdictions in which it is
authorized to do business, and its capitalization (including the identity of
each shareholder and the number of shares or other ownership interests held by
each). Each Acquired Company is duly 

14

organized, validly existing and in good
standing under the laws of its jurisdiction of incorporation or formation, with
full power and authority to conduct its business as it is now being conducted,
to own or use the properties and assets that it purports to own or use and to
perform all its obligations under Applicable Contracts. Each Acquired Company is
duly qualified to do business as a foreign corporation or other entity and is in
good standing under the laws of each other jurisdiction in which either the
ownership or use of the properties owned or used by it, or the nature of the
activities conducted by it, requires such qualification where the lack of such
qualification would have a material adverse effect on the Business. 

          
     
     (b)     The Company is, and at
all times since its formation has been, a limited liability company with only a
single member. 

          
     
     
(c)     
Seller has delivered to Buyer copies of the Organizational Documents of each
Acquired Company, as currently in effect.

          
3.2     
AUTHORITY; NO CONFLICT.

          
     
     (a)     
This Agreement
constitutes the legal, valid, and binding obligation of Seller, enforceable
against Seller in accordance with its terms. Upon the execution and delivery by
Seller of the LLC Agreement and the Members’ Agreement (collectively, the
“Seller’s Closing Documents”), the Seller’s
Closing Documents will constitute the legal, valid and binding obligations of
Seller, enforceable against Seller in accordance with their respective terms.
Seller has all the necessary right, power, authority and capacity to execute and
deliver this Agreement and the Seller’s Closing Documents and to perform
its obligations under this Agreement and the Seller’s Closing Documents. 

          
     
     (b)     
Except as set forth in
Schedule 3.2(b), neither the execution and delivery of this
Agreement nor the consummation or performance of any of the Contemplated
Transactions will, directly or indirectly (with or without notice or lapse of
time): 

          
          
          
(i)     contravene, conflict with or result in a violation of (A) any provision of
the Organizational Documents of Seller or of the Acquired Companies, or
(B) any resolution adopted by the board of directors or the shareholders of
Seller or of any Acquired Company;

          
          
          
(ii)     contravene, conflict with or result in a violation of, or give any Governmental
Body or other Person the right to exercise any remedy or obtain any relief
under, any Legal Requirement or any Order to which any Acquired Company or
Seller, or any of the assets owned or used by any Acquired Company or otherwise
in connection with the Business, may be subject;

          
          
          
(iii)     contravene, conflict with or result in a violation of any of the terms or
requirements of, any Governmental Authorization that is held by any Acquired
Company or that otherwise relates to the Business or the business of, or any of
the assets owned or used by, any Acquired Company;

15

          
          
          
(iv)     cause any Acquired Company to become subject to, or to become liable for the
payment of, any Tax;

          
          
          
(v)     contravene or result in a violation or breach of any provision of, or give any
Person the right to declare a default or exercise any remedy under, or to
accelerate the maturity or performance of, or to cancel, terminate or modify,
any Applicable Contract; or

          
          
          
(vi)     result in the imposition or creation of any Encumbrance
upon or with respect to
any of the assets owned or used by any Acquired Company or otherwise in
connection with the Business.

Except as set forth in
Schedule 3.2(b), neither Seller nor any Acquired Company is or will
be required to give any notice to or obtain any Consent from any Person in
connection with the execution and delivery of this Agreement or the consummation
or performance of any of the Contemplated Transactions. 

          
3.3     
CAPITALIZATION.

      
              
(a)     All of the Membership
Interests have been validly authorized and issued in compliance with all Legal
Requirements. Seller is and will be on the Closing Date the record and
beneficial owners and holders of the Shares, free and clear of all Encumbrances. 

      
              
(b)     With the exception of
the Shares (which are owned by Seller), all of the outstanding equity securities
and other securities of each Acquired Company are owned of record and
beneficially by one or more of the Acquired Companies, free and clear of all
Encumbrances except where the ownership of shares is required under the Legal
Requirements of the jurisdiction of organization to be vested in those Persons
serving on the Board of Directors of an Acquired Company. No legend or other
reference to any purported Encumbrance appears upon any certificate representing
equity securities of any Acquired Company. All of the outstanding equity
securities of each Acquired Company have been duly authorized and validly issued
and are fully paid and non-assessable. Except as set forth on
Schedule 3.3(b), there are no Contracts relating to the issuance,
sale, or transfer of any equity securities or other securities of any Acquired
Company. Seller is not a party to any option, warrant, purchase right or other
contract or commitment that could require Seller to sell, transfer, or otherwise
dispose of any equity securities of the Acquired Companies. There are no voting
trust, proxy or other agreement with respect to the voting of any Shares of the
Acquired Companies. None of the outstanding equity securities or other
securities of any Acquired Company was issued in violation of any Legal
Requirement. 

     
               
(c)     Except as set forth on
Schedule 3.3(c), no Acquired Company owns, or has any Contract to
acquire, any equity securities or other securities of any Person (other than
Acquired Companies) or any direct or indirect equity or ownership interest in
any other business. 

          3.4
     
FINANCIAL STATEMENTS.     Seller has delivered to Buyer: (i) all available
audited financial statements of the Acquired Companies and the Business as of
December 31 for each of the years 

16

2000 and 2001, (ii) unaudited financial
statements for the Heat Transfer Existing Subsidiaries for each of the years
2000 and 2001 and (iii) a proforma unaudited consolidated balance sheet of the
Acquired Companies and the Business as at the Effective Time (the “Balance
Sheet”) all of which are attached hereto as Schedule 3-4. Buyer
acknowledges that the audited financial statements, if any, may be audited
according to local accounting principles or according to GAAP, and nothing in
this section requires Seller to restate these financial statements. The Balance
Sheet is true and correct and fairly presents the financial condition of the
Acquired Companies and the Business in all material respects and reflects the
consistent application of accounting principles. 

     
3.5     
BOOKS AND RECORDS.     The books of account, minute books, stock record books,
and other records of the Acquired Companies for the period of time as the
Acquired Companies have been owned by the Seller, all of which have been made
available to Buyer, are complete and correct and have been maintained in
accordance with reasonable business practices of the Seller, including the
maintenance of an adequate system of internal controls. For such time as the
Acquired Companies have been owned by the Seller, such minute books contain
records of all meetings held of, and corporate action taken by, the
stockholders, the Boards of Directors, and committees of the Boards of Directors
of the applicable Persons, which are accurate and complete in all material
respects and, to Seller’s Knowledge, no meeting of any such stockholders,
Board of Directors, or committee has been held for which minutes have not been
prepared and are not contained in such minute books, where the absence of such
record would have a material adverse effect on the Acquired Companies. At the
Closing, all of those books and records will be in the possession of the
Acquired Companies. 

          
3.6     
TITLE TO PROPERTIES; ENCUMBRANCES.     Schedule 3.6
contains a
complete and accurate list of all real property, leaseholds or other interests
therein used in connection with the Business. Seller has delivered or made
available to Buyer copies of the deeds and other instruments (as recorded) by
which Seller or one of the Acquired Companies acquired such real property and/or
interests, and copies of all title insurance policies, opinions, abstracts and
surveys that, to Seller’s Knowledge, are in the possession of Seller or the
Acquired Companies and relating to such property or interests. The Acquired
Companies own, or will as of the Closing Date own, (with good and marketable
title in the case of owned real property, subject only to the matters permitted
by the following sentence) all the properties and assets (whether real, personal
or mixed and whether tangible or intangible) that are used in connection with
the Business, or reflected as owned in the books and records of the Acquired
Companies or the Business, including all of the properties and assets reflected
in the Balance Sheet (except for assets held under capitalized leases or
operating leases disclosed or not required to be disclosed in Schedule
3.6 and personal property sold since the date of the Balance Sheet in the
Ordinary Course of Business), and all of the properties and assets purchased or
otherwise acquired to be owned by the Acquired Companies or otherwise in
connection with the Business since the date of the Balance Sheet (except for
personal property acquired and sold since the date of the Balance Sheet in the
Ordinary Course of Business and consistent with past practice). All material
properties and assets reflected in the Balance Sheet are free and clear of all
Encumbrances and are not, in the case of real property, subject to any rights of
way, building use restrictions, exceptions, variances, reservations or
limitations of any material nature except, with respect to all such properties
and assets, (a) mortgages or security interests shown on the Balance Sheet
as securing specified liabilities or obligations, with respect to which no
default (or event that, with notice or lapse of time or 

17

both, would constitute a default) exists, (b) mortgages or security interests
incurred in connection
with the purchase of property or assets after the date of the Balance Sheet
(such mortgages and security interests being limited to the property or assets
so acquired), with respect to which no material default (or event that, with
notice or lapse of time or both, would constitute a default) exists,
(c) liens for current taxes not yet due, and (d) with respect to real
property, any restrictions which have not been identified in documents of
ownership or title insurance. All buildings, plants and structures owned by the
Acquired Companies or otherwise used in connection with the Business lie wholly
within the boundaries of the real property owned by the Acquired Companies and
to Seller’s Knowledge, do not encroach upon the property of, or otherwise
conflict with the property rights of, any other Person. 

          3.7     
CONDITION
AND SUFFICIENCY OF ASSETS.     The buildings, structures and
equipment used in the Business are structurally sound, are in good operating
condition and repair and are adequate for the uses to which they are being put,
and none of such buildings, structures or equipment is in need of maintenance or
repairs except for ordinary, routine maintenance and repairs that are not
material in nature or cost or other repairs included in the Base Business Plan.
The buildings, structures and equipment of the Acquired Companies are sufficient
for the continued conduct of the Business after the Closing in substantially the
same manner as conducted prior to the Closing. One or more of the Acquired
Companies is, or will be as of the Closing Date, the owner of all right, title
and interest in and to all of the assets that have been used in connection with
the operation of the Business by Seller or the Heat Transfer Existing
Subsidiaries (including all material Applicable Contracts, Intellectual Property
Assets, inventory, insurance, Governmental Authorizations, licenses and
permits), whether tangible or intangible, free and clear of all Encumbrances,
and such assets are sufficient for the continued conduct of the Business after
the Closing in substantially the same manner as conducted prior to the Closing. 

          
3.8     ACCOUNTS
RECEIVABLE.  All trade accounts receivable of the Business that
are reflected on the Balance Sheet (whether or not they were factored as of the
date of the Balance Sheet) and all accounts receivable of the Business that will
be reflected on the accounting records of the Acquired Companies as of the
Closing Date (collectively, the “Accounts
Receivable”) represent or will represent valid obligations
arising from sales actually made or services actually performed in the Ordinary
Course of Business, and the respective reserves shown on the Balance Sheet or on
the accounting records of the Company as of the Closing Date are calculated
consistent with GAAP and, in the case of the reserve as of the Closing Date,
will be so calculated. There is no contest, claim or right of set-off which has
been asserted by any account debtor, other than those incurred in the Ordinary
Course of Business, under any Contract with any obligor of an Accounts
Receivable relating to the amount or validity of such Accounts Receivable. 

          3.9
     INVENTORY.  All inventory of the Business, whether or not
reflected in the Balance Sheet, is owned by the Acquired Companies and to
Seller’s Knowledge, consists of a quality and quantity usable and salable
in the Ordinary Course of Business, except for obsolete items and items of
below-standard quality, all of which have been written off or written down to
net realizable value in the Balance Sheet or on the accounting records of the
Acquired Companies as of the Closing Date, as the case may be.  All
inventories not written off have been priced at the lower of cost or net
realizable value. 

18

The quantities of each item of inventory (whether raw
materials, work-in-process or finished goods) are not excessive, but are
reasonable in the present circumstances of the Acquired Companies. 

          3.10     
     NO
UNDISCLOSED LIABILITIES. Except as set forth in Schedule
3.10 or Schedule 3.19, to Seller’s Knowledge, the Business, the
Acquired Companies have no material liabilities or obligations whether absolute,
accrued, contingent or otherwise) except for liabilities or obligations
reflected or reserved against in the Balance Sheet and such trade payables and
short term trade indebtedness relating to the Business as may have been incurred
in the Ordinary Course of Business since the date thereof. 

          3.11
     TAXES.

          
          (a)     To Seller’s
Knowledge, Seller and the Acquired Companies have filed or caused to be filed
all Tax Returns that are or were required to be filed by or with respect to the
Business or any of them, either separately or as a member of a group of
corporations, pursuant to applicable Legal Requirements where the failure to
file such Tax Return would have a material adverse effect on the Business or the
Acquired Companies. Seller will make available to Buyer or its Representatives,
at its request, copies of, and Schedule 3.11 contains a complete and
accurate list of, all such Tax Returns since January 1, 1998. To Seller’s
Knowledge, Seller and the Acquired Companies have paid, or made provision for
the payment of, all material Taxes that have or may have become due pursuant to
those Tax Returns or otherwise, or pursuant to any assessment received with
respect to the Business or by Seller or any Acquired Company, except such Taxes,
if any, as are listed in Schedule 3.11 and are being contested in
good faith and as to which adequate reserves (determined in accordance with
GAAP) have been provided in the Balance Sheet. 

          
          (b)     
The U.S. Federal income
Tax Returns of Seller and each Acquired Company subject to such Taxes have been
audited by the IRS or other Governmental Body or are closed by the applicable
statute of limitations for all taxable years through 1997. To Seller’s
Knowledge, all deficiencies proposed as a result of such audits have been paid,
reserved against, settled, or, as described in Schedule 3.11, are
being contested in good faith by appropriate proceedings. Except as described in
Schedule 3.11, neither Seller nor any Acquired Company has given or
been requested to give waivers or extensions (or is or would be subject to a
waiver or extension given by any other Person) of any statute of limitations
relating to the payment of Taxes of Seller or any Acquired Company or for which
Seller or any Acquired Company may be liable. 

          
          (c)     
To Seller’s
Knowledge, the charges, accruals and reserves with respect to Taxes on the
respective books of Seller and each Acquired Company are adequate (determined in
accordance with GAAP) and are at least equal to Seller’s and that Acquired
Company’s expected liability for Taxes. There exists no proposed tax
assessment against Seller, any Acquired Company or the Business except as
disclosed in the Balance Sheet or in Schedule 3.11. To Seller’s
Knowledge, all material Taxes that Seller or any Acquired Company is or was
required by Legal Requirements to withhold or collect have been duly withheld or
collected and, to the extent required, have been paid to the proper Governmental
Body or other Person. 

19

          
          (d)     
All Tax Returns filed
with respect to the Business or by (or that include on a consolidated basis)
Seller or any Acquired Company, to the Knowledge of the Seller, are true,
correct and complete in all material respects. There is no tax sharing agreement
that will require any payment by Seller or any Acquired Company after the date
of this Agreement. Neither Seller nor any Acquired Company is, or within the
five-year period preceding the Closing Date has been, an “S”
corporation. 

          3.12     
NO MATERIAL ADVERSE CHANGE.  Except as disclosed on Schedule
3.12, since December 31, 2001, there has not been any material adverse
change in the business, operations, properties, prospects, assets or condition
of the Business or any Acquired Company, and no event has occurred or
circumstance exists that may result in such a material adverse change. 

          
3.13     
EMPLOYEE BENEFITS.

          
          
        (a)     As used in this Section 3.13,
        the following terms have the meanings set forth below:

     
               
“
  Company Other Benefit Obligation” means an Other Benefit Obligation owed,
        adopted or followed by an Acquired Company.

     
               
“Company Plan” means all Plans of which an Acquired Company or its predecessor is or was a Plan Sponsor, or to which an Acquired Company or
its predecessor otherwise contributes or has contributed, or in which an Acquired Company or its predecessor otherwise participates or has participated.  All
references to Plans are to Company Plans unless the context requires otherwise.

     
               
        “Company VEBA” means a VEBA whose members include employees of
        any Acquired Company.

     
               
        “ERISA Affiliate” means, with respect to an Acquired Company,
        any other person that, together with the Company, would be treated as a
        single employer under IRC § 414.

     
               
        “MultiEmployer Plan” has the meaning given in ERISA §
3(37)(A).

     
               
        “Other Benefit Obligations” means all obligations, arrangements or customary practices,
        whether or not legally enforceable, to provide bonus
        or other payments or benefits, other than salary, as compensation for
        services rendered or in connection with the Contemplated Transactions,
        to present or former directors, employees or agents, other than obligations,
        arrangements, and practices that are Plans.  Other Benefit Obligations include
        consulting agreements under which the compensation paid does not depend upon
        the amount of service rendered, sabbatical policies, severance payment policies
        and fringe benefits within the meaning of IRC § 132.

     
               
        “PBGC” means the Pension Benefit Guaranty Corporation,
        or any successor thereto.

     
               
        “Pension Plan” has the meaning given in ERISA §
3(2)(A).

20

     
               
        “Plan” has the meaning given in ERISA §3(3).

     
               
        “Plan Sponsor” has the meaning given in ERISA §3(16)(B).

     
               
        “Qualified Plan” means any Plan that meets or purports to meet
the requirements of IRC § 401(a).

     
               
        “Title IV Plans” means all Pension Plans that are
        subject to Title IV of ERISA, 29 U.S.C. § 1301 et seq., other than MultiEmployer
        Plans.

     
               
        “VEBA” means a voluntary employees' beneficiary
        association under IRC § 501(c)(9).

     
               
        “Welfare Plan” has the meaning given in ERISA § 3(1).

     
               
(b)     Schedule 3.13(b)
contains a complete and accurate list of all Company Plans, Company Other
Benefit Obligations and Company VEBAs, and identifies as such all Company Plans
that are (i) defined benefit Pension Plans, (ii) Qualified Plans or (iii) Title
IV Plans. 

     
               
         
(i)     Schedule 3.13(b)(i) sets forth a calculation of the liability, if any, of
the Acquired Companies for post-retirement benefits other than pensions, made in
accordance with Financial Accounting Statement 106 of the Financial Accounting
Standards Board, regardless of whether any Acquired Company is required by this
Statement to disclose such information.

     
               
          (ii)
Schedule 3.13(b)(ii) sets forth the material financial cost of all
obligations owed under any Company Plan or Company Other Benefit Obligation that
is not subject to the disclosure and reporting requirements of ERISA.

     
               
(c)     
Seller has delivered to Buyer:

     
               
         
(i)     
its most recent documents that set forth the terms of each Company Plan, Company
Other Benefit Obligation or Company VEBA and of any related trust, including (A)
all plan descriptions and summary plan descriptions of Company Plans for which
Seller or the Acquired Companies are required to prepare, file and distribute
plan descriptions and summary plan descriptions, and (B) its most recent
summaries and descriptions, to the extent prepared and furnished to participants
and beneficiaries regarding Company Plans, Company Other Benefit Obligations and
Company VEBAs for which a plan description or summary plan description is not
required;

     
               
          (ii)
     all recent personnel, payroll and employment
manuals and policies;

     
               
          (iii)    
all recent collective bargaining agreements pursuant to which contributions have
been made or obligations incurred (including both pension and welfare benefits)
by the Acquired Companies, and all collective bargaining agreements pursuant to
which contributions are being made or obligations are owed by such entities; 

21

     
               
         (iv)
     any recent  written description of any Company
Plan or Company Other Benefit Obligation that is not otherwise in writing;

     
               
         (v)
     all current registration statements filed with respect
to any Company Plan;

     
               
         (vi)
     all current insurance policies purchased by or to provide
benefits under any Company Plan;

     
               
         (vii)
     all current contracts with third party administrators, actuaries, investment
managers, consultants and other independent contractors that relate to any
Company Plan, Company Other Benefit Obligation or Company VEBA; 

     
               
         (viii)
     all reports submitted within the two (2) years preceding the date of this
Agreement by third party administrators, actuaries, investment managers,
consultants or other independent contractors with respect to any Company Plan,
Company Other Benefit Obligation or Company VEBA;

     
               
           (ix)
     all current notifications to employees of their
 rights under ERISA § 601 et seq. and IRC § 4980B;

     
               
           (x)
      the Form 5500 filed in each of the most recent three (3) plan years with respect
to each Company Plan, including all schedules thereto and the opinions of
independent accountants; 

     
               
           (xi)
     all notices that were given by any Acquired Company or any Company Plan to the
IRS, the PBGC or any participant or beneficiary, pursuant to statute, within the
two (2) years preceding the date of this Agreement, including notices that are
expressly mentioned elsewhere in this Section 3.13;

     
               
          (xii)
     all notices that were given by the IRS, the PBGC or the Department of Labor to
any Acquired Company or any Company Plan within the two (2) years preceding the
date of this Agreement; 

     
               
         (xiii)
     with respect to Qualified Plans, the most recent IRS determination letter for
each Plan of the Acquired Companies and, with respect to VEBAs, the most recent
IRS determination letter that the trust is exempt from income taxes; and

     
               
         (xiv)
     with respect to Title IV Plans, the Form PBGC-1
 filed for each of the two (2) most recent plan years.

     
               
(d)     Except as set forth in Schedule 3.13(d):

     
               
           (i)
     The Acquired
Companies have performed all of
their respective material obligations under all Company Plans, Company Other Benefit
Obligations and Company
VEBAs.

22

The Acquired Companies have made appropriate entries in their financial
records and statements for all obligations and liabilities under such Plans, VEBAs and Other
Benefit Obligations that have accrued but are not
due.

     
               
           (ii)
     No material statement, either written or oral, has been made by any Acquired
Company to any Person with entitlements with regard to any Plan or Other Benefit
Obligation that was not in accordance with the Plan or Other Benefit Obligation
and that could have a material adverse economic consequence to any Acquired
Company or to Buyer.

     
               
           (iii)
     The Acquired Companies, with respect to all Company Plans, Company Other
Benefits Obligations and Company VEBAs, are, and each Company Plan, Company
Other Benefit Obligation and Company VEBA is, in compliance with ERISA, the IRC
and other applicable Laws in all material respects including the provisions of
such Laws expressly mentioned in this Section 3.13, and with any applicable
collective bargaining agreement.

           
           
           
         
(A)     No material transaction
prohibited by ERISA § 406 and no “prohibited transaction” under
IRC § 4975(c) have occurred with respect to any Company Plan. 

           
           
           
         
(B)     Neither Seller nor any Acquired Company has any
material liability to the IRS with respect to any Plan, including any liability imposed by IRC Chapter
43.

           
           
           
         
(C)     Neither Seller nor any Acquired Company has any
material liability to the PBGC with respect to any Plan other than premiums as and when due or has any
liability under ERISA § 502 or § 4071.

           
           
           
         
(D)     All material filings required by ERISA and the
IRC as to each Plan have been timely filed, and all material notices and disclosures to participants
required by either ERISA or the IRC have been timely provided.

           
           
           
         
(E)     All material
contributions and payments made or accrued with respect to all Company Plans,
Company Other Benefit Obligations and Company VEBAs are deductible under IRC
§ 162 or § 404. No material amount, or any asset of any Company Plan
or Company VEBA, is subject to Tax as unrelated business taxable income. 

     
               
           (iv)     
Each Company Plan can be terminated within thirty (30) days, without payment of
any additional contribution or amount and without the vesting or acceleration of
any benefits promised by such Plan. 

     
               
           (v)
      
Since January 1,
2001, there has been no establishment or amendment of any Company Plan, Company
VEBA or Company Other Benefit Obligation. 

     
               
           (vi)
     To the Knowledge of Seller, no event has occurred or circumstance exists that
could result in a material increase in premium costs of Company Plans and
Company Other Benefit Obligations that are insured, or a material increase in
benefit costs of such Plans and Obligations that are self-insured.

23

     
               
         
(vii)     
Other than claims for benefits submitted by participants or beneficiaries, no
claim against, or legal proceeding involving, any Company Plan, Company Other
Benefit Obligation or Company VEBA is pending or, to Seller’s Knowledge, is
Threatened.

     
               
          
(viii)   
No Company Plan is a stock bonus or employee stock ownership plan within the meaning
of IRC § 401(a).

     
               
           (ix)
    
Each Qualified Plan of each Acquired Company is qualified in form and operation
under IRC § 401(a); each trust for each such Plan is exempt from federal
income tax under IRC § 501(a). Each Company VEBA is exempt from federal
income tax.  No event has occurred or circumstance exists that will or
could give rise to disqualification or loss of tax-exempt status of any such
Plan or trust.

     
               
           (x)
    
Each Acquired Company has met or is expected to meet the minimum funding
standard, and has made all contributions required, under ERISA § 302 and
IRC § 402. 

     
               
          
(xi)     No Company Plan is subject to Title IV of ERISA.

     
               
         
(xii)     The Acquired Companies have paid all amounts
due to the PBGC pursuant to ERISA § 4007.

     
               
           (xiii)
  
No Acquired Company has ceased operations at any facility or has withdrawn from
any Title IV Plan in a manner that would subject to any entity or Seller to
liability under ERISA § 4062(e), § 4063 or § 4064.

     
               
           (xiv)
  
No Acquired Company has filed a notice of intent to terminate any Plan or has
adopted any amendment to treat a Plan as terminated. The PBGC has not instituted
proceedings to treat any Company Plan as terminated. No event has occurred or
circumstance exists that may constitute grounds under ERISA § 4042 for the
termination of, or the appointment of a trustee to administer, any Company Plan.

     
               
           (xv)
   No amendment has been
made to any Plan that has required or could require the provision of security
under ERISA § 307 or IRC § 401(a)(29). 

     
               
         
(xvi)     No accumulated funding deficiency, whether or not
waived, exists with respect to
any Company Plan, and no event has occurred or circumstance exists that may
result in an accumulated funding deficiency as of the last day of the current
plan year of any such Plan.

     
               
         
(xvii)   
The actuarial report for each Pension Plan of each Acquired Company fairly
presents the financial condition and the results of operations of each such Plan
in accordance with GAAP. 

     
               
         
(xviii)  
Since the last valuation date for each Pension Plan of each Acquired Company, no
event has occurred or circumstance exists (excluding the accrual of additional
service by active employees) that would materially increase the amount of
benefits under any such Plan or 

24

that would cause the excess of Plan assets over
benefit liabilities (as defined in ERISA § 4001) to materially decrease, or
the amount by which benefit liabilities exceed assets to materially increase.

     
               
           (xix)
     No reportable event (as defined in ERISA §
4043 and in
regulations issued thereunder) has occurred.

     
               
           (xx)
     
Neither Seller nor any Acquired Company has Knowledge of any facts or
circumstances that may give rise to any liability of any Seller, any Acquired
Company or the Company to the PBGC under Title IV of ERISA. 

     
               
           (xxi)  
  
No Acquired Company or its predecessor has ever established, maintained, or
contributed to or otherwise participated in, or had an obligation to maintain,
contribute to or otherwise participate in, any MultiEmployer Plan.

     
               
           (xxii)
   
Except to the extent required under ERISA § 601 et seq. and IRC §
4980B, no Acquired Company provides health or welfare benefits for any retired
or former employee or is obligated to provide health or welfare benefits to any
active employee following such employee’s retirement or other termination
of service.

     
               
           (xxiii)
   
Each Acquired Company has the right to modify and terminate benefits to retirees
(other than pensions) without incurring any liability for future benefits with
respect to both retired and active employees. 

     
               
           (xxiv)
   Seller and all Acquired Companies have complied with the
 provisions of ERISA § 601 et seq. and IRC § 4980B.

     
               
           
(xxv)   
No payment that is owed or may become due to any director, officer, employee or
agent of any Acquired Company will be non-deductible to the Acquired Companies
or subject to tax under IRC § 280G or § 4999; nor will any Acquired
Company be required to “gross up” or otherwise compensate any such
person because of the imposition of any excise tax on a payment to such person.

     
               
           (xxvi)
  
The consummation of the Contemplated Transactions will not result in the
payment, vesting or acceleration of any benefit unless otherwise provided in
this Agreement. 

     
3.14       
COMPLIANCE WITH LEGAL REQUIREMENTS; GOVERNMENTAL AUTHORIZATIONS.

          
          
(a)      
Except as set forth in Schedule 3.14 or Schedule 3.19:

     
               
           
(i)       
each Acquired Company is, and at all times since January 1, 1998 has been,
and the Business has been conducted at all times since January 1, 1998, in full
compliance with each Legal Requirement that is or was applicable to it or to the
conduct or operation of its business or the ownership or use of any of its
assets except for any such failure that would not result in a material adverse
effect.

25

     
               
           
(ii)     
no event has occurred or circumstance exists that (with or without notice or
lapse of time) (A) may constitute or result in a violation by the Business or
any Acquired Company of, or a failure on the part of the Business or any
Acquired Company to comply with, any Legal Requirement, or (B) may give rise to
any obligation on the part of the Company, Seller, any Acquired Company or Buyer
to undertake, or to bear all or any portion of the cost of, any remedial action
of any nature; and

     
               
           
(iii)     
neither Seller nor any Acquired Company has received at any time since
January 1, 1998 any notice or other communication (whether oral or written)
from any Governmental Body or any other Person regarding (A) any actual,
alleged, possible or potential violation of, or failure to comply with, any
Legal Requirement which would have a material effect on the Business or any
Acquired Company, or (B) any actual, alleged or potential obligation on the part
of Seller, the Business or any Acquired Company arising under any applicable
Legal Requirement to undertake, or to bear any material portion of the cost of,
any remedial action of any material nature.

          
          
(b)      Schedule 3.14
contains a complete and accurate list of each material Governmental
Authorization that is required to be held by the Business for its operation or
that is otherwise required for the Business or any Acquired Company to own or
use any of its assets. Each Governmental Authorization listed or required to be
listed in Schedule 3.14 is valid and in full force and effect. Except as
set forth in Schedule 3.14 or Schedule 3.19: 

     
               
           
(i)      
all of the material terms and requirements of each Governmental Authorization
identified or required to be identified in Schedule 3.14 have been at all
required times complied with by the Business and, to the extent applicable, by
each Acquired Company in all material respects;

     
               
           
(ii)     
no event has occurred or circumstance exists that may (with or without notice or
lapse of time) (A) constitute or result in a violation of or a failure to comply
with any material term or requirement of any Governmental Authorization listed
or required to be listed in Schedule 3.14, or (B) result in the
revocation, withdrawal, suspension, cancellation or termination of, or any
material modification to, any Governmental Authorization listed or required to
be listed in Schedule 3.14;

     
               
        
(iii)     
neither Seller nor any Acquired Company has received, at any time since
January 1, 1998, any notice or other communication (whether oral or
written) from any Governmental Body or any other Person regarding (A) any
actual, alleged or potential violation of, or failure to comply with, any
material term or requirement of any Governmental Authorization, or (B) any
actual, proposed or potential revocation, withdrawal, suspension, cancellation,
termination of or material modification to any Governmental Authorization; and

     
               
        
(iv)     
all material applications required to have been filed for the renewal of the
Governmental Authorizations listed or required to be listed in Schedule
3.14 or which are required by or in connection with the Contemplated
Transactions have been duly filed on a timely basis with the appropriate
Governmental Bodies, and all other material filings required to have been

26

made
with respect to such Governmental Authorizations have been duly made on a timely
basis with the appropriate Governmental Bodies.

The Governmental
Authorizations listed in Schedule 3.14 collectively constitute all of the
Governmental Authorizations necessary to permit the Business to be lawfully
conducted in the manner it is currently conducted in all material respects and
to permit the Acquired Companies to own and use their assets in the manner in
which they currently own and use such assets in all material respects. 

     3.15       
 LEGAL PROCEEDINGS; ORDERS.

          
          
(a)     Except as set forth in Schedule 3.15
 or Schedule 3.19, to the Knowledge of Seller, there is no
 pending Proceeding:

          
          
         
(i)      
that has been commenced by or against any Acquired Company or may affect the
Business or the business of, or any of the assets owned or used by, any
Acquired Company in any material respect; or

          
          
         
(ii)     
that challenges, or that may have the effect of preventing, delaying, making
illegal or otherwise interfering with in any material way, any of the
Contemplated Transactions. 

To Seller’s Knowledge,
no such Proceeding has been Threatened. Seller has delivered to Buyer copies of
all pleadings, correspondence and other documents relating to each Proceeding
listed in Schedule 3.15 requested by Buyer. The Proceedings listed in
Schedule 3.15 will not have a material adverse effect on the Business or
the business, operations, assets, condition or prospects of any Acquired
Company. 

          
          
(b)     Except as set forth in Schedule 3.15:

          
          
         
(i)      
there is no material Order to which the Business or any of the Acquired
Companies, or any of the assets owned or used by any Acquired Company or
otherwise in connection with the Business, is subject; 

          
          
         
(ii)      
Seller is not subject to any material Order that relates to the Business or the
business of, or any of the assets owned or used by, any Acquired
Company; and

          
          
         
(iii)     
no officer, director, agent or employee of any Acquired Company is subject to
any Order that prohibits such officer, director, agent or employee from engaging
in or continuing any conduct, activity or practice relating to the Business or
the business of any Acquired Company which would have a material adverse effect
on the Business or the business of any Acquired Company.

          
          
(c)     Except as set forth in Schedule 3.15:

27

          
          
         
(i)     
the Seller and each Acquired Company are in full compliance with all of the
terms and requirements of each material Order to which the Business or they, or
any of the assets owned or used by it, is or has been subject;

          
          
         
(ii)     
no event has occurred or circumstance exists that may constitute or result in
(with or without notice or lapse of time) a material violation of or failure to
comply with any term or requirement of any Order to which Seller, the Business
or any Acquired Company, or any of the assets owned or used by any Acquired
Company is subject; and

          
          
         
(iii)     
neither Seller nor any Acquired Company has received any notice or other
communication (whether oral or written) from any Governmental Body or any other
Person regarding any actual, alleged potential violation of, or failure to
comply with, any material term or requirement of any Order to which the Seller,
the Business or any Acquired Company, or any of the assets owned or used by any
Acquired Company or otherwise in connection with the Business, is or has been
subject.

     
3.16       ABSENCE OF CERTAIN CHANGES AND EVENTS
.     Except as set forth in Schedule
3.16, since December 31, 2001 and for clauses (f), (g), and (i) of this Section
3.16, since December 31, 2000, the Business has been conducted by the Seller and
its Related Persons only in the Ordinary Course of Business and there has not
been, with respect to or relating to the Business, any: 

          
          
(a)     issuance of any
membership interests in or shares of capital stock of any Acquired Company
except as necessary to provide for the creation of the Acquired Companies and
consistent with Section 3.3; grant of any stock option or right to purchase
membership interests in or shares of capital stock of any Acquired Company;
issuance of any security convertible into such capital stock; grant of any
registration rights; purchase, redemption, retirement or other acquisition by
any Acquired Company of any membership interests in or shares of any such
capital stock; or declaration or payment of any dividend or other distribution
or payment in respect of shares of capital stock; 

          
          
(b)     amendment to the Organizational Documents of any
of the Heat Transfer Existing Subsidiaries or any Acquired Company except as
may be necessary to
provide for the creation of the Acquired Companies;

          
          
(c)     except in the Ordinary
Course of Business, payment or increase by any Acquired Company of any
management fee or any bonuses, salaries, or other compensation to any
stockholder, director, officer or employee or entry into any employment,
severance or similar Contract with any director, officer or employee; 

          
          
(d)     except in the Ordinary
Course of Business, adoption of, or increase in the payments to or benefits
under, any profit sharing, bonus, deferred compensation, savings, insurance,
pension, retirement or other employee benefit plan for or with any employees of
any Acquired Company; 

28

          
          
(e)     damage to or
destruction or loss of any asset or property of any Acquired Company, whether or
not covered by insurance, materially and adversely affecting the properties,
assets, business, financial condition or prospects of the Business or the
Acquired Companies, taken as a whole; 

          
          
(f)     entry into, termination
of or receipt of notice of termination of (i) any license, distributorship,
dealer, sales representative, joint venture, credit or similar agreement which
would have a material impact on the Business, or (ii) any Contract or
transaction involving a total remaining commitment by or to any Acquired Company
of at least $100,000; 

          
          
(g)     except in the Ordinary
Course of Business, sale, lease or other disposition of any asset or property of
any Acquired Company or mortgage, pledge or imposition of any lien or other
encumbrance on any material asset or property of any Acquired Company or
otherwise relating to the Business, including the sale, lease or other
disposition of any of the Intellectual Property Assets; 

          
          
(h)     cancellation or waiver of any claims or
rights with a value to any Acquired Company in excess of $25,000;

          
          
(i)     material change in the accounting methods used
by any Acquired Company; or

          
          
(j)     agreement, whether oral or written, by Seller or
any Acquired Company to do any of the foregoing.

     
3.17     CONTRACTS; NO DEFAULTS.

          
          
(a)     Schedule 3.17(a) contains a complete and
accurate list, and
Seller has delivered to Buyer true and complete copies, of:

          
          
         
(i)     
each Applicable Contract that involves performance of services or delivery of
goods or materials by one or more Acquired Companies or otherwise in connection
with the Business of an amount or value in excess of $100,000;

          
          
         (ii)     
each Applicable Contract that involves performance of services or delivery of
goods or materials to one or more Acquired Companies or otherwise in connection
with the Business of an amount or value in excess of $100,000;

          
          
         
(iii)     
each Applicable Contract that was not entered into in the Ordinary Course of
Business and that involves expenditures or receipts of one or more Acquired
Companies or otherwise in connection with the Business in excess of $25,000;

          
          
         
(iv)     
each lease, rental or occupancy agreement, license, installment and conditional
sale agreement, and other Applicable Contract affecting the ownership of,
leasing of, title to, use of or any leasehold or other interest in, any real or
personal property (except personal property leases and installment and
conditional sales agreements having a value per item or aggregate payments of
less than $25,000 and with terms of less than one year);

29

          
          
         
(v)     
each licensing agreement or other Applicable Contract with respect to patents,
trademarks, copyrights or other intellectual property, including agreements with
current or former employees which are still in effect, consultants or
contractors regarding the appropriation or the non-disclosure of any of the
Intellectual Property Assets other than those agreements with employees entered
into in the normal course of business;

          
          
         (vi)
     each collective bargaining agreement and other
Applicable Contract to
or with any labor union or other employee representative of a group of employees;

          
          
         (vii)     
each joint venture, partnership and other Applicable Contract (however named)
involving a sharing of profits, losses, costs, or liabilities by any Acquired
Company with any other Person; 

          
          
         (viii)     
each Applicable Contract containing covenants that in any material way purport
to restrict the business activity of the Business or any Acquired Company or any
Related Person of an Acquired Company or limit the freedom of the Business or
any Acquired Company or any Related Person of an Acquired Company in any
material way to engage in any of its line of business or to compete with any
Person in its lines of business;

          
          
         (ix)
     each Applicable Contract providing for payments to
or by any Person based on sales, purchases or profits, other than direct
payments for goods;

          
          
         (x)
     each power of attorney that is currently effective
and outstanding which could effect in a material way the Business or the Acquired
Companies;

          
          
         (xi)     
each Applicable Contract entered into other than in the Ordinary Course of
Business that contains or provides for an express undertaking by any Acquired
Company to be responsible for indirect, consequential or punitive damages;

          
          
         (xii)
     each Applicable Contract for capital expenditures
in excess of $25,000;

          
          
         
(xiii)     
each written warranty, guaranty and other similar undertaking with respect to
contractual performance extended by any Acquired Company other than in the
Ordinary Course of Business; and

          
          
         
(xiv)     each material amendment, supplement and modification
(whether oral or written) in respect of any of the foregoing.

Schedule 3.17(a) sets forth sufficient details concerning such Contracts to identify the
Contracts, and the Acquired Companies’ office where details relating to the
Contracts are located. 

          
          
(b)     Except as set forth in Schedule 3.17(b):

          
          
         
(i)     Neither Seller nor any Related Person of Seller
has or may acquire any rights
under, and Seller has not become subject to any obligation or liability under,
any material Contract that relates to the business of, or any of the material
assets owned or used by, any Acquired Company; and

30

          
          
         
(ii)     To Seller’s Knowledge, no officer or employee
of any Acquired Company is
bound by any Contract that purports to limit the ability of such officer or
employee to (A) engage in or continue any conduct, activity or practice relating
to the business of any Acquired Company, or (B) assign to any Acquired Company
any material rights to any invention, improvement or discovery made in the
course of said officer’s or employee’s employment.

          
          
(c)     Except as set forth in Schedule 3.17(c), each Contract
identified or required to be identified in Schedule 3.17(a) is in full force and effect and is
valid and enforceable in accordance with its terms in all material respects.

          
          
(d)     Except as set forth in Schedule 3.17(d)

          
          
         
(i)     
to Seller’s Knowledge, each Acquired Company is, and at all times has been,
in compliance in all material respects with all applicable terms and
requirements of each Contract under which such Acquired Company has or had any
obligation or liability or by which such Acquired Company or any of the assets
owned or used by such Acquired Company or otherwise in connection with the
Business is or was bound;

          
          
         
(ii)     to Seller’s Knowledge, each other Person that
has or had any obligation or
liability under any Contract under which an Acquired Company has or had any
rights is, and at all times has been, in compliance in all material respects
with all applicable terms and requirements of such Contract;

          
          
         
(iii)     to Seller’s Knowledge, no event has occurred or circumstance exists that
(with or without notice or lapse of time) may contravene, conflict with or
result in a material violation or breach of, or give any Acquired Company or
other Person the right to declare a default or exercise any remedy under, or to
accelerate the maturity or performance of, or to cancel, terminate or modify,
any Applicable Contract; and

          
          
         
(iv)     neither Seller nor any Acquired Company has given to or received from any other
Person any notice or other communication (whether oral or written) regarding any
actual, alleged potential material violation or breach of, or default under, any
Contract.

          
          
(e)     There are no
renegotiations of any material amounts paid or payable to Seller or any Acquired
Company under current or completed Contracts with any Person and no such Person
has made written demand for such renegotiation. 

          
          
(f)     The Contracts relating
to the sale, design, manufacture, or provision of products or services by the
Acquired Companies or otherwise in connection with the Business have been
entered into in the Ordinary Course of Business and have been entered into
without the commission of any act alone or in concert with any other Person, or
any consideration having been paid or promised, that is or would be in material
violation of any Legal Requirement. 

31

     
3.18     INSURANCE.

          
          
(a)     
Seller has delivered to
Buyer a true and complete list of all policies of insurance to which any
Acquired Company is a party or under which the Business, any Acquired Company,
or any director of any Acquired Company, is or has been covered at any time
within the five (5) years preceding the date of this Agreement and a list of all
pending applications for policies of insurance. 

          
          
(b)     Schedule 3.18(b) describes:

          
          
         
(i)     any self-insurance arrangement by or affecting
the Business or any Acquired Company, including any reserves established thereunder;

          
          
         
(ii)     any contract or arrangement, other than a policy
of insurance, for the transfer or sharing of any risk by any Acquired Company or otherwise in
connection with the Business; and

          
          
         
(iii)     all obligations of the Acquired Companies or
otherwise in connection with the
Business to third parties with respect to insurance (including such obligations
under leases and service agreements) and identifies the policy under which such
coverage is provided.

          
          
(c)     Schedule 3.18(c)
sets forth, by year, for the current policy year and each of the five (5)
preceding policy years: 

          
          
         
(i)     a summary of the loss experience under each policy;

          
          
         
(ii)     a statement describing
each claim under an insurance policy for an amount in excess of $50,000, which
sets forth: 

           
           
           
         
(A)     the name of the claimant;

           
           
           
         
(B)     description of the policy by insurer, type of
insurance and period of coverage; and

           
           
           
         
(C)     the amount and a brief description of the claim;
and

          
          
         (iii)     
a statement
describing the loss experience for all claims that were self-insured, including
the number and aggregate cost of such claims. 

          
          
(d)     Except as set forth on Schedule 3.18(d),
to Seller's Knowledge:

          
          
         
(i)     
All policies to which any Acquired Company is a party or will be a party at the
Effective Time, or that provide coverage to Seller, the Business, any Acquired
Company or any director or officer of an Acquired Company in all material
respects:

           
           
           
         
(A)     are valid, outstanding and enforceable;

32

           
           
           
         
(B)     are issued by an insurer that is financially
sound and reputable;

           
           
           
         
(C)     taken together, provide adequate insurance
coverage for the Business and the assets and the operations of the Acquired
Companies;

           
           
           
         
(D)     are sufficient for
compliance with all Legal Requirements and Contracts to which any Acquired
Company is a party, by which any Acquired Company is bound or otherwise in
connection with the Business to the extent insurance is customarily available
therefor; 

           
           
           
         
(E)     will continue in full
force and effect following the consummation of the Contemplated Transactions or,
as applicable, will have been replaced by similar policies on or before the
Closing Date; and 

           
           
           
         
(F)     do not provide for any retrospective premium
adjustment or other experienced-based liability on the part of any Acquired Company or otherwise in
connection with the Business.

          
          
         
(ii)     Neither Seller nor any Acquired Company has
received (A) any refusal of coverage
or any notice that a defense will be afforded with reservation of rights, or (B)
any notice of cancellation or any other indication that any insurance policy is
no longer in full force or effect or will not be renewed or that the issuer of
any policy is not willing or able to perform its obligations thereunder.

          
          
         
(iii)     
The Acquired Companies or Seller have paid all premiums due, and have otherwise
performed all of their respective obligations, under each policy to which any
Acquired Company is a party or that provides coverage to the Business or to any
Acquired Company or director thereof.

          
          
         
(iv)     To Seller’s
Knowledge, the Acquired Companies have given notice to the insurer of all claims
that may be insured thereby. 

     
     3.19     ENVIRONMENTAL MATTERS.
Except as set forth in Schedule 3.19 or
as described in the reports supplied by Seller or obtained by Buyer and each of which
reports is specifically listed on Schedule 3.19, to Seller's Knowledge:

          
          
(a)     Each of the Acquired
Companies and the Business is in compliance with in all material respects and is
not in violation of or liable under in any material respect, any Environmental
Law. Neither Seller nor any Acquired Company has any reasonable basis to expect,
nor has any of them received, any actual or Threatened order or notice from (i)
any Governmental Body or private citizen acting in the public interest, or (ii)
the current or prior owner or operator of any Facilities, of any actual or
potential material violation or material failure to comply with any
Environmental Law, or of any actual or Threatened obligation to undertake or
bear the cost of any Environmental, Health, and Safety Liabilities with respect
to any of the Facilities or any other properties or assets (whether real,
personal, or mixed) in which Seller or any Acquired Company has or had an
interest, or with respect to any property or Facility at or to which Hazardous
Materials were generated, manufactured, refined,

33

transferred, imported, used, or
processed by Seller, any Acquired Company, or any other Person for whose conduct
they are or may be held responsible, or from which Hazardous Materials have been
transported, treated, stored, handled, transferred, disposed, recycled, or
received. 

          
          
(b)     There are no pending or
Threatened claims, Encumbrances, or other material restrictions of any nature,
resulting from any Environmental, Health, and Safety Liabilities or arising
under or pursuant to any Environmental Law, with respect to or affecting any of
the Facilities or any other properties and assets (whether real, personal, or
mixed) in which Seller or any Acquired Company has or had an interest. 

          
          
(c)     Neither Seller nor any
Acquired Company has any basis to expect, nor has any of them or any other
Person for whose conduct they are or may be held responsible, received, any
citation, directive, inquiry, notice, Order, summons or warning that relates to
Hazardous Activity, Hazardous Materials, or any alleged, actual, or potential
violation or failure to comply with any Environmental Law, or of any alleged,
actual, or potential obligation to undertake or bear the cost of any
Environmental, Health, and Safety Liabilities with respect to any of the
Facilities or any other properties or assets (whether real, personal, or mixed)
in which Seller or any Acquired Company had an interest, or with respect to any
property or facility to which Hazardous Materials generated, manufactured,
refined, transferred, imported, used, or processed by Seller, any Acquired
Company, or any other Person for whose conduct they are or may be held
responsible, have been transported, treated, stored, handled, transferred,
disposed, recycled, or received. 

          
          
(d)     Neither Seller nor any
Acquired Company nor any other Person for whose conduct they are or may be held
responsible has any Environmental, Health, and Safety Liabilities with respect
to the Facilities or with respect to any other properties and assets (whether
real, personal, or mixed) in which any Acquired Company (or any predecessor),
has or had an interest, or at any property geologically or hydrologically
adjoining the Facilities or any such other property or assets. 

          
          
(e)     Except in material
compliance with or as permitted by applicable Environmental Law, there are no
Hazardous Materials present on or in the Environment at the Facilities or at any
geologically or hydrologically adjoining property in material quantities that
emanated from Seller, any Acquired Company or any predecessor thereof, including
any Hazardous Materials contained in barrels, above or underground storage
tanks, landfills, land deposits, dumps, equipment (whether moveable or fixed) or
other containers, either temporary or permanent, and deposited or located in
land, water, sumps, or any other part of the Facilities or such adjoining
property, or incorporated into any structure therein or thereon. Except in
material compliance with or as permitted by applicable Environmental Law,
neither Seller nor any Acquired Company nor any other Person for whose conduct
they are or may be held responsible has permitted or conducted, or is aware of,
any Hazardous Activity conducted with respect to the Facilities or any other
properties or assets (whether real, personal, or mixed) in which any Acquired
Company has or had an interest. 

          
          
(f)     Except in material compliance with or as
permitted by applicable Environmental Law, there has been no Release or Threat
of Release, of any material
amounts of Hazardous Materials at or from the Facilities.

34

          
          
(g)     
Seller has delivered or
made available to Buyer true and complete copies and results of the most recent
material reports, studies, analyses, tests, or monitoring possessed or initiated
by Seller or any Acquired Company or such other reports as Buyer has requested
pertaining to Hazardous Materials or Hazardous Activities in, on, or under the
Facilities, or concerning compliance by Seller, any Acquired Company, or any
other Person for whose conduct they are or may be held responsible, with
Environmental Laws. 

     3.20     EMPLOYEES.

          
          
(a)     Schedule 3.20(a)
contains a complete and accurate list of the following information for each
employee of the Acquired Companies whose compensation in 2001 exceeded
$100,000.00 US Dollars, including each employee on leave of absence or layoff
status: employer, name, job title, current compensation paid or payable
and any change in compensation since the Effective Time, vacation accrued and
service credited for purposes of vesting and eligibility to participate under
any Acquired Company’s severance pay plan. 

          
          
(b)     No employee or director
of any Acquired Company is a party to, or is otherwise bound by, any agreement
or arrangement, including any confidentiality, noncompetition or proprietary
rights agreement, between such employee or director and any other Person
(“Proprietary Rights Agreement”) that in any material
way adversely affects or will affect (i) the performance of his or her duties as
an employee or director of the Acquired Companies, or (ii) the ability of the
Business to be conducted or of any Acquired Company to conduct its business,
including any Proprietary Rights Agreement with Seller or the Acquired Companies
by any such employee or director. To Seller’s Knowledge, no director,
officer or other key employee of any Acquired Company intends to terminate his
or her employment with such Acquired Company. 

     
     
3.21     LABOR RELATIONS; COMPLIANCE.

          
          
(a)     Except as set forth on Schedule 3.21(a),
neither the
Business nor any Acquired Company has been or is a party to or bound by any collective
bargaining
or other material labor Contract.

          
          
(b)     Except as set forth on
Schedule 3.21(b), since January 1, 1998, there has not been,
there is not presently pending or existing and, to Seller’s Knowledge,
there is not Threatened, (i) any strike, work stoppage or material employee
grievance process, (ii) any Proceeding against or affecting the Business or any
Acquired Company relating to the alleged material violation of any Legal
Requirement pertaining to labor relations or employment matters, including any
charge or complaint filed by an employee or union with the National Labor
Relations Board, the Equal Employment Opportunity Commission or any comparable
Governmental Body, organizational activity or other material labor or employment
dispute against or affecting the Business or any of the Acquired Companies or
their premises, or (iii) any application for certification of a collective
bargaining agent. No event has occurred or circumstance exists that could on any
reasonable basis provide the basis for any work stoppage or other labor dispute.
There is no lockout of any employees by the Seller or any Acquired Company, and
no such action is contemplated by the Seller or any Acquired Company. 

35

          
          
(c)     
Except as set forth on
Schedule 3.21(c), the Seller and each Acquired Company have complied
in all material respects with all Legal Requirements relating to employment,
equal employment opportunity, nondiscrimination, immigration, wages, hours,
benefits, collective bargaining, the payment of social security and similar
taxes, occupational safety and health and plant closing. Except as set forth on
Schedule 3.21(c), no Acquired Company is liable for the payment of
any material compensation, damages, taxes, fines, penalties or other amounts,
however designated, for failure to comply with any of the foregoing Legal
Requirements. 

     
     3.22     
INTELLECTUAL PROPERTY.

          
          
(a)     Intellectual Property Assets
.
The term
“Intellectual Property Assets” includes to the extent
owned or used by the Business:

          
          
         
(i)     the names Heatcraft, Livernois, and all
derivatives or combinations thereof, and
all fictional business names, trading names, registered and unregistered
trademarks, service marks and applications (collectively,
“Marks”);

          
          
         
(ii)     all patents, patent applications and
inventions that may be patentable
(collectively, “Patents”);

          
          
         
(iii)     all copyrights in both published works and
unpublished works
(collectively, “Copyrights”);

          
          
         
(iv)     all rights in mask works (collectively,
“Rights in Mask Works”); and

          
          
         
(v)     all know-how, trade secrets, confidential information,
customer lists, software,
technical information, data, process technology, plans, drawings and blue prints
(collectively, “Trade Secrets”) owned, used or licensed
in connection with the Business.

          
          
         
(vi)     the internet domain names relating to the Business.

          
          
(b)     
Agreements. Schedule 3.22(b) contains a complete and accurate list
and summary description, including any royalties paid or received by Seller or
the Acquired Companies, of all Contracts relating to the Intellectual Property
Assets to which Seller or any Acquired Company is a party or by which Seller or
any Acquired Company is bound, except for any license implied by the sale of a
product and perpetual, paid-up licenses for commonly available software programs
with a value of less than $10,000 under which Seller or an Acquired Company is
the licensee. There are no outstanding and, to Seller’s Knowledge, no
Threatened disputes or disagreements of a material nature with respect to any
such agreement. 

          
          
(c)     Know-How Necessary for the Business.

          
          
         
(i)     The Intellectual Property Assets are all those
necessary for the operation of
the Business as it is currently conducted. One or more of the Acquired Companies
is the owner of all right, title and interest in and to each of the Intellectual
Property Assets which are, except as set

36

forth on Schedule 3.22(c)(i),
free and clear of all Encumbrances, and has the right to use without payment to
a third party all of the Intellectual Property Assets.

          
          
         
(ii)     Except as set forth in Schedule 3.22(c)(ii),
all current employees
of each Acquired Company have executed written Contracts with Seller or one or
more of the Acquired Companies that assign to Seller or one or more of the
Acquired Companies all rights to any inventions, improvements, discoveries or
information relating to the Business. No employee, officer or director of Seller
or any Acquired Company has entered into any Contract that restricts or limits
in any way the scope or type of work in which the employee may be engaged or
requires the employee to transfer, assign or disclose information concerning his
or her work to anyone other than Seller or one or more of the Acquired
Companies.

          
          
(d)     Patents.

          
          
         
(i)     Schedule 3.22(d)(i) contains a complete
and accurate list and summary
description of all Patents. Seller or one or more of the Acquired Companies is
the owner of all right, title and interest in and to each of the Patents, free
and clear of all Encumbrances.

          
          
         
                (ii)     All of the issued Patents are
currently in
compliance with formal legal
requirements (including payment of filing, examination and maintenance fees and
proofs of working or use), to Seller’s Knowledge, are valid and enforceable
and, except as set forth on Schedule 3.22(d)(ii), are not subject to any
maintenance fees or taxes or actions falling due within ninety (90) days after
the Closing Date.

          
          
         
                (iii)     No Patent has been or is now
involved in any
interference, reissue,
reexamination or opposition proceeding. To Seller’s Knowledge, there is no
potentially interfering patent or patent application of any third party.

          
          
         
                (iv)     No Patent is infringed or, to
Seller’s Knowledge,
has been challenged or
threatened in any way.  None of the products manufactured and sold, nor any
process or know-how used, by the Business or any Acquired Company infringes or
is alleged to infringe any patent or other proprietary right of any other
Person.

          
          
        (e)     Trademarks.

          
          
         
                (i)     Schedule 3.22(e)(i) contains
 a complete
and accurate list and summary
description of all Marks. One or more of the Acquired Companies is or will be at
Closing the owner of all right, title, and interest in and to each of the Marks,
free and clear of all Encumbrances.

          
          
         
                (ii)     All Marks that have been registered with the United
States Patent and Trademark
Office are currently in compliance with all formal legal requirements (including
the timely post-registration filing of affidavits of use and incontestability
and renewal applications), are valid and enforceable, except as disclosed on
Schedule 3.22(e)(ii), and are not subject to any maintenance fees or
taxes or actions falling due within ninety (90) days after the Closing Date.

37

          
          
         
                (iii)     
No Mark has been or is now involved in any opposition, invalidation or
cancellation and, to Seller’s Knowledge, no such action is Threatened with
the respect to any of the Marks. 

          
          
         
                (iv)     To Seller's Knowledge, there is no potentially
interfering trademark or trademark application of any third party.

          
          
         
                (v)     To Seller’s Knowledge, no Mark is infringed
or has been challenged or
threatened in any way.  None of the Marks used by any Acquired Company
infringes or is alleged to infringe any trade name, trademark or service mark of
any third party.

          
          
        (f)     Copyrights.

          
          
         
                (i)     To Seller’s Knowledge, no Copyright is
infringed or has been challenged or
threatened in any way. To Seller’s Knowledge, none of the subject matter of
any of the Copyrights infringes or is alleged to infringe any copyright of any
third party or is a derivative work based on the work of a third party.

          
          
        (g)     Trade Secrets.

          
          
         
(i)     Seller and the Acquired
Companies have taken all reasonable precautions to protect the secrecy,
confidentiality and value of their Trade Secrets. 

          
          
         
                (ii)     One or more of the Acquired Companies has good title and an absolute (but not
necessarily exclusive) right to use the Trade Secrets. To the Seller’s
Knowledge, the Trade Secrets are not part of the public knowledge or literature,
and, to Seller’s Knowledge, have not been used, divulged or appropriated
either for the benefit of any Person (other than one or more of the Acquired
Companies) or to the detriment of the Acquired Companies. No Trade Secret is
subject to any adverse claim or has been challenged or threatened in any way.

          
3.23     CERTAIN
PAYMENTS. To Seller’s Knowledge, no Acquired Company or
director, officer, agent or employee of any Acquired Company, nor any other
Person associated with or acting for or on behalf of the Business or any
Acquired Company, has directly or indirectly (a) made any contribution, gift,
bribe, rebate, payoff, influence payment, kickback or other payment to any
Person, private or public, regardless of form, whether in money, property or
services (i) to obtain favorable treatment in securing business, (ii) to pay for
favorable treatment for business secured, (iii) to obtain special concessions or
for special concessions already obtained, for or in respect of the Business, any
Acquired Company or any Related Person of an Acquired Company, or (iv) in
violation of any Legal Requirement, or (b) established or maintained any fund or
asset that has not been recorded in the books and records of the Acquired
Companies. 

38

     
     
3.24     DISCLOSURE.

          
          
        (a)     No representation or
warranty of Seller in this Agreement and no statement in any Schedule attached
hereto omits to state a material fact necessary to make the statements herein or
therein, in light of the circumstances in which they were made, not misleading. 

          
          
        (b)     No notice given
pursuant to Section 5.5 will contain any untrue statement or omit to state
a material fact necessary to make the statements therein or in this Agreement,
in light of the circumstances in which they were made, not misleading. 

          
          
        (c)     There is no fact known
to Seller that has specific application to Seller or any Acquired Company (other
than general economic or industry conditions) and that materially adversely
affects the assets, business, prospects, financial condition, or results of
operations of the Business or Acquired Companies (on a consolidated basis) that
has not been set forth in this Agreement. 

     
     
3.25     RELATIONSHIPS WITH RELATED PERSONS. Neither Seller nor any
Related Person of Seller or of any Acquired Company currently has, or since
January 1, 1998 has owned (of record or as a beneficial owner), an equity
interest or any other financial or profit interest in, a Person that has (i) had
business dealings or a material financial interest in any transaction with any
Acquired Company other than business dealings or transactions conducted in the
Ordinary Course of Business with the Acquired Companies at substantially
prevailing market prices and on substantially prevailing market terms except for
less than one percent (1%) of the outstanding capital stock of any such business
that is publicly traded on any recognized exchange or in the over-the-counter
market. Except as set forth in Schedule 3.25, neither Seller nor any
Related Person of Seller or of any Acquired Company is a party to any Contract
with, or has any claim or right against, any Acquired Company. 

     
     3.26     
BROKERS OR FINDERS. Except as set forth in Schedule 3.26, Seller
and its agents have incurred no obligation or liability, contingent or
otherwise, for brokerage or finders’ fees or agents’ commissions or
other similar payment in connection with this Agreement. 

4.     REPRESENTATIONS AND WARRANTIES OF BUYER AND OCP.
Buyer and OCP represent and warrant to Seller as follows:

     
     
4.1     ORGANIZATION AND GOOD STANDING.
Buyer is a corporation duly organized, validly existing and in good standing under
the laws of the State of Delaware.

     
     
4.2     AUTHORITY; NO CONFLICT.

          
          
        (a)     This Agreement
constitutes the legal, valid and binding obligation of Buyer and OCP,
enforceable against Buyer and OCP in accordance with its terms. Upon the
execution and delivery by Buyer of the LLC Agreement, and the
Members’ Agreement (collectively, the “Buyer’s
Closing Documents”), the Buyer’s Closing
Documents will constitute the legal, valid and binding obligations of Buyer,
enforceable against Buyer in accordance with their respective terms. Buyer has
all the necessary rights, power and authority to execute and deliver this
Agreement and the Buyer’s 

39

Closing Documents and to perform its obligations
under this Agreement and the Buyer’s Closing Documents.

          
          
        (b)     Except as set forth in
Schedule 4.2, neither the execution and delivery of this Agreement by
Buyer nor the consummation or performance of any of the Contemplated
Transactions by Buyer will contravene, conflict with or result in a violation of
or give any Government or other Person the right to challenge, prevent, delay or
otherwise interfere with any of the Contemplated Transactions or exercise any
remedy or obtain any relief under or pursuant to: 

          
          
         
                (i)     any provision of Buyer's or OCP's Organizational
Documents;

          
          
         
                (ii)     any resolution adopted by the board of directors
or the stockholders of Buyer or OCP;

          
          
         
                (iii)     any Legal Requirement or Order to which Buyer
or OCP may be subject; or

          
          
         
                (iv)     any Contract to which Buyer or OCP is a party or
by which Buyer or OCP may be bound.

Except as set forth in
Schedule 4.2, Buyer and OCP are not and will not be required to give
notice or obtain any Consent from any Person in connection with the execution
and delivery of this Agreement or the consummation or performance of any of the
Contemplated Transactions. 

     
     4.3     INVESTMENT INTENT.
Buyer is acquiring the Shares for its own account and not with a view to their distribution within the meaning of Section 2(11) of
the Securities Act.

     
     4.4     CERTAIN PROCEEDINGS. There is no pending Proceeding that has been
commenced against Buyer or OCP and that challenges, or may have the effect of
preventing, delaying, making illegal or otherwise interfering with, any of the
Contemplated Transactions. To the Knowledge of Buyer and OCP, no such Proceeding
has been Threatened. 

     
     
4.5     BROKERS OR FINDERS. Buyer, OCP and their officers and agents have incurred
no obligation or liability, contingent or otherwise, for brokerage or
finders’ fees or agents’ commissions or other similar payment in
connection with this Agreement and will indemnify and hold Seller harmless from
any such payment alleged to be due by or through Buyer or OCP as a result of the
action of Buyer, OCP or their officers or agents. 

5.     ADDITIONAL COVENANTS OF SELLER AND BUYER.

     
     5.1     
ACCESS AND INVESTIGATION.

          
          
(a)     Between the date of
this Agreement and the Closing Date, Seller will, and will cause each Acquired
Company and its Representatives to, (a) afford Buyer and its Representatives and
prospective lenders and their Representatives (collectively,
“Buyer’s Advisors”) reasonable access to

40

each Acquired Company’s personnel, properties (including subsurface
testing), contracts, books and records, and other documents and data, (b)
furnish Buyer and Buyer’s Advisors with copies of all such material
contracts, books and records, and other existing documents and data as Buyer may
reasonably request, and (c) furnish Buyer and Buyer’s Advisors with such
additional financial, operating and other data and information as Buyer may
reasonably request. 

          
          
(b)     In addition to any
environmental investigations and audits conducted by Buyer or its
Representatives prior to the date of this Agreement, Buyer shall be permitted to
cause further environmental audits of the Facilities to be conducted as are
reasonably necessary for assessing the presence and or disposition of Hazardous
Materials and compliance with Environmental Laws, including such Phase II
environmental audits as Buyer and Seller may mutually agree upon. Seller hereby
agrees to permit Buyer’s qualified environmental consultants to enter upon
the Facilities, upon giving Seller reasonable notice, with men and materials
reasonably necessary to conduct such environmental audits. In connection with
any such environmental audits and at the request of Seller, Buyer shall from
time to time enter into agreements relating to indemnification for damages and
confidentiality of audit results. 

     
     
5.2     OPERATION OF THE BUSINESSES OF THE ACQUIRED
COMPANIES.  Except as provided for in Section 6, between the Effective Time and the Closing Date, Seller
will, and will cause each Acquired Company to:

          
          
         
(i)     conduct the Business only in the Ordinary Course of Business and
without any material deviation from the Base Business Plan;

          
          
         
(ii)     
use its Best Efforts to preserve intact the current business organization of the
Business, keep available the services of the current officers, employees and
agents of the Business and maintain the relations and good will with suppliers,
customers, landlords, creditors, employees, agents and others having business
relationships with the Business;

          
          
         
(iii)     consult with Buyer concerning operational
matters of a material
nature (subject to any Legal Requirement limiting any such consultation); and

          
          
         (iv)     
otherwise report
periodically to Buyer concerning the status of the business, operations and
finances of the Business and such Acquired Company. 

          
5.3     
NEGATIVE
COVENANT. Except as otherwise expressly permitted by this
Agreement, between the date of this Agreement and the Closing Date, Seller will
not, and will cause each Acquired Company not to, without the prior written
consent of Buyer, take any affirmative action, or fail to take any reasonable
action within their or its control, as a result of which any of the changes or
events listed in Section 3.16 is reasonably likely to occur. Without limiting
the foregoing, Seller will cause the Acquired Companies not to incur any
Indebtedness other than Permitted Indebtedness. 

     
5.4     REQUIRED APPROVALS.

41

          
          
                (a)     As promptly as
practicable after the date of this Agreement, Seller and Buyer will, and Seller
will cause each Acquired Company to, make all filings required by Legal
Requirements to be made by them in order to consummate the Contemplated
Transactions, including all filings required under the HSR Act (if any) and the
competition laws of any other Governmental Body, including Council Regulation
(EEC) No. 4064/89 or similar laws within Finland or other applicable
jurisdictions such as France, Italy and the Czech Republic. In addition, each of
Seller and Buyer agree that if any Governmental Body requests additional
information under the HSR Act or any other Legal Requirement, it will use its
reasonable commercial efforts to comply with such requests as promptly as
possible. 

          
          
                (b)     Between the date of
this Agreement and the Closing Date, Seller will, and will cause each Acquired
Company to, (i) cooperate with Buyer with respect to all filings that Buyer
required by Legal Requirements to make in connection with the Contemplated
Transactions, and (ii) cooperate with Buyer in obtaining all consents identified
in Schedule 4.2. provided that this Agreement will not require Seller to
dispose of or make any change in any portion of its business or to incur any
other burden to obtain a Governmental Authorization. 

          
          
                (c)     Between the date of
this Agreement and the Closing Date, Buyer will, and will cause each Related
Person to, (i) cooperate with Seller with respect to all filings that Seller is
required by Legal Requirements to make in connection with the Contemplated
Transactions, and (ii) cooperate with Seller in obtaining all consents
identified in Schedule 3.2; provided that this Agreement will not require
Buyer to dispose of or make any change in any portion of its business or to
incur any other burden to obtain a Governmental Authorization. 

     
     5.5     
NOTIFICATION. Between the date of this Agreement and the
Closing Date, either party will promptly notify the other party in writing if
such party, including any Acquired Company becomes aware of any fact or
condition that causes or constitutes a Breach of any of either party’s
representations and warranties as of the Effective Time or as of the date of
this Agreement (as applicable), or that party becomes aware of the occurrence
after the date of this Agreement of any fact or condition that would (except as
expressly contemplated by this Agreement) cause or constitute a Breach of any
such representation or warranty had such representation or warranty been made as
of the time of occurrence or discovery of such fact or condition. If any such
fact or condition requires any change in any Schedule if the Schedule were dated
the date of the occurrence or discovery of any such fact or condition, the party
responsible for the Schedule will promptly deliver to other party a supplement
to the Schedule specifying such change. During the same period, either party
will promptly notify the other party of the occurrence of any Breach of any
covenant of a party in this Agreement or of the occurrence of any event that may
make the satisfaction of the conditions in the Agreement impossible or unlikely. 

     
     5.6     
NO NEGOTIATION. Until such time, if any, as this Agreement is
terminated pursuant to Section 9, Seller will not, and will cause each Acquired
Company and each of their Representatives not to, directly or indirectly
solicit, initiate, or encourage any inquiries or proposals from, discuss or
negotiate with, provide any non-public information to, or consider the merits of
any unsolicited inquiries or proposals from, any Person (other than Buyer)
relating to any transaction involving the 

42

sale of the business or assets (other
than in the Ordinary Course of Business) of the Business or of any Acquired
Company, or any of the capital stock of any Acquired Company, or any merger,
consolidation, business combination, or similar transaction involving the
Business and any Acquired Company. 

     
     5.7     
BEST EFFORTS. Between the date of this Agreement and the Closing Date,
both Buyer and Seller will use its Best Efforts to cause the conditions in
Sections 7 and 8 to be satisfied except as set forth in the provisos to Sections
5.4(b) and 5.4(c), as applicable. 

     
     5.8     
STATUTE OF LIMITATIONS. Prior to the Closing, Seller shall not permit any
Acquired Company to agree with any Governmental Body to extend the statute of
limitations with respect to any Taxes, without the prior written consent of
Buyer. 

     
     5.9     INTERIM
FINANCIAL STATEMENTS. From the date of this Agreement through the
Closing Date, Seller will prepare monthly financial statements for the Business
and the Acquired Companies on a consolidated basis (beginning with the month of
January, 2002), and will promptly (and in any event not later than the fifteenth
Business Day following the end of the month to which a statement relates)
deliver them to Buyer. These unaudited financial statements will be prepared in
accordance with GAAP (except for the absence of footnotes and subject to normal
year end adjustments which will be immaterial in amount) and in a manner
consistent with the basis of presentation used in the unaudited financial
statements referred to in Section 3.4, and will fairly present, in all
material respects, the consolidated financial position,and results of
operations of the Business and the Acquired Companies as at and for the
periods indicated. 

     
     
5.10     MATTERS RELATING TO REAL PROPERTY.

          
          
                (a)     
Buyer shall obtain, at
Buyer’s sole cost and expense, a commitment from Chicago Title Insurance
Company or any other title insurance company acceptable to Buyer (the
“Title Company”) for the issuance of an extended
coverage owner’s policy of fee title insurance (including mechanics’
lien coverage) for each parcel included in the Grenada Real Property setting
forth the status of title to each such parcel (individually a “Title
Commitment” and collectively the “Title
Commitments”). The Title Commitments shall be accompanied by
true, complete and legible copies of all Encumbrances identified therein. At
Closing, the policies to be issued pursuant to the Title Commitments
(individually a “Title Policy” and collectively
the “Title Policies”) shall insure that the
Company will have good, marketable and indefeasible title to such Grenada Real
Property, subject only to those Encumbrances accepted by Buyer pursuant to
subparagraph (c) of this Section 5.10 (“Permitted Title
Encumbrances”). At the Closing, Buyer shall pay all premiums
for the issuance of the Title Policy and such standard endorsements as Buyer may
reasonably require (the “Endorsements”), and Seller shall deliver to
the Title Company such affidavits, indemnities and other documentation as is
necessary to enable the Title Company to issue the Title Policies with the
Endorsements subject only to Permitted Title Encumbrances. 

          
          
                (b)     
Buyer shall obtain, at
Buyer’s sole cost and expense, surveys covering each parcel included in the
Grenada Real Property (individually a “Survey”
and collectively the “Surveys”),

43

dated subsequent
to this Agreement, each of which shall be prepared by a surveyor duly licensed
under the laws of the state in which the Grenada Real Property is located. Each
survey shall be in form and substance reasonably satisfactory to Buyer and the
Title Company, and (ii) shall be certified to Buyer and the Title Company using
a form of certification acceptable to Buyer. 

          
          
                (c)     
On or prior to the
fifth Business Day following Buyer’s receipt of the Title Commitment or all
of the Surveys, whichever is later, Buyer shall notify Seller in writing (the
“Defect Notice”) of any unacceptable Encumbrances
or other matters disclosed by either the Title Commitments or the Surveys
(individually a “Disapproved Encumbrance” and
collectively the “Disapproved Encumbrances”).
Seller agrees to use commercially reasonable efforts to eliminate the
Disapproved Encumbrances or otherwise resolve the Disapproved Encumbrances to
the satisfaction of Buyer on or before the Closing Date. Seller shall have three
(3) days after receipt of the Defect Notice to notify Buyer in writing (i) that
the Disapproved Encumbrances will be eliminated an otherwise resolved as
provided above or (ii) that the Disapproved Encumbrances will not be eliminated
or otherwise resolved. If Seller elects not to cause any Disapproved Encumbrance
to be eliminated or otherwise resolved, Buyer shall have the right, in its sole
discretion, for a period of five (5) days following the expiration of the three
(3) day period provided for above, to notify Seller of Buyer’s election to
either waive such objection and proceed with the Closing, without impairing any
right of indemnification or other right or remedy hereunder, or to terminate
this Agreement. Absent any notice from Buyer within such five (5) day period,
Buyer shall be deemed to have elected to terminate this Agreement. If Seller
gives notice that one or more Disapproved Encumbrances will be eliminated or
otherwise resolved, and such Disapproved Encumbrances are not so eliminated or
otherwise resolved on or before the Closing Date, Buyer shall have the right to
terminate this Agreement by written notice to Seller. 

     
     
5.11     TRIDAN CONTRACT.  Heatcraft Inc.,
one of the Heat Transfer Existing Subsidiaries ("HI"), is a party to a Contract
with Tridan International
Inc. dated on or about May 3, 2000 (the "Tridan Contract").  Buyer and Seller
acknowledge and agree that notwithstanding any other provision of this Agreement or
the Members' Agreement (a) the Tridan Contract will be assigned to the Company in
connection with the JV Transactions and (b) if HI's failure to purchase any
product covered by the Tridan Contract prior to the Closing Date cannot be cured
by the Company purchasing such product, then the Seller shall indemnify the Company
against any payment required as a result of such failure.  Seller agrees (for itself
and HI) and Buyer agrees to cooperate with HI to the extent commercially
reasonable in connection with preserving all rights under the Tridan Contract
(including but not limited to the right to purchase fin presses).

6.     
CERTAIN ACTIONS PRIOR TO CLOSING DATE; TRANSITION AND EMPLOYEE MATTERS

     
     
6.1     THE ACQUIRED COMPANIES.  Prior to the
Closing Date, Seller will take or cause to be taken all actions necessary or advisable
to effectuate the actions
described on Attachment E to the Members' Agreement and will cause the ownership
of the Acquired Companies to be as set forth on Attachment E to the Members'
Agreement.

44

     
     
6.2     TRANSITION MATTERS.

          
          
                (a)     At or prior to the
Closing, Buyer and Seller shall cause the Company to enter into the Shared
Services Agreement. 

          
          
                (b)     At or prior to the
Closing, Seller shall cause all right, title and interest in and to the
trademark “Heatcraft” to be assigned to the Company and Buyer and
Seller shall cause the Company to license the name “Heatcraft” to
Seller for use in certain refrigeration operations mutually agreeable to Buyer
and Seller pursuant to a Trademark License Agreement in the form attached as
Exhibit 6.2(b). 

     
     
6.3     PAYMENT OF INDEBTEDNESS.

          
          
                (a)     Except as expressly
provided in Paragraph (b) of this Section 6.3, Seller will cause all
Indebtedness owed by any Acquired Company to Seller (or any Related Person of
Seller), or owed to any Acquired Company by Seller (or any Related Person of
Seller) to be paid in full prior to Closing, except that any account payable
from Seller or any Related Person arising out of sales of goods or from any
shared services will be paid in accordance with its terms. 

          
          
                (b)     Seller will cause all
Indebtedness owed by any Acquired Company to be paid in full prior to Closing
and will have caused the termination of all other financing activities of the
Company prior to the Closing (other than Permitted Indebtedness or Indebtedness
otherwise approved in writing by Buyer), it being the general intent of the
parties that the Acquired Companies shall be free of Indebtedness other than
Permitted Indebtedness as of the Closing (with the provisions of Section 2.2 and
the Closing Adjustment for Indebtedness being intended to take into account any
failure to effectuate such intent). 

     
     
6.4     EMPLOYEES AND BENEFITS

     
     
6.4.1     Background.

          
          
                (a)     The Business has been managed,
operated and maintained by employees of Seller or its Subsidiaries. Prior to the
Closing Date, such employees have been compensated at established wage and
salary rates, and some or all of such employees have had rights under some or
all of the following: (i) employee benefit plans, as defined in ERISA Section
3(3) and (ii) published employment policies in effect at their respective work
locations. All such benefit plans, published policies, and any other agreements
or policies affecting employment are described in Schedule 3.13(b).
Seller’s salaried employees assigned to the Business (except those who at
the Closing Date have retired or are on long-term disability, and those whom
Buyer and Seller have excluded are herein called “Continuing Salaried
Employees.” 

          
          
                (b)     The Continuing Salaried
Employees will remain employed by the Company after the Closing under
essentially the same terms and conditions as in effect immediately prior to the

45

Closing Date. The Company will also continue the employment of all hourly
employees after Closing at the Facilities (except those who are on layoff),
herein called “Continuing Hourly Employees”.
Continuing Salaried Employees and Continuing Hourly Employees are collectively
referred to herein as “Continuing Employees”.
Nothing in this Section will limit the right of the Company to terminate the
employment or to make any adjustments, including both increases and decreases,
in salary and benefits of any Continuing Employee at any time after the Closing
Date. Except as otherwise provided in this Section, the Company will have
absolute discretion with respect to the terms and conditions of employment of
any Continuing Employee and other persons at any time employed by the Company,
including the right to hire, terminate, promote, demote, transfer, reduce
compensation or benefits or change the job status of any employee of the Company
at any time after the Closing Date. No provision of this Agreement is intended
or will be construed as a promise or guaranty of the continued employment of any
Continuing Employee or any other employee of either party. 

     
     
6.4.2     Seller's Defined Contribution
Plans.

          
          
                (c)     Seller has delivered to
Buyer copies of the qualified 401(k) plans and profit sharing plans, which plans
are listed in Schedule 3.13(b) (the “Defined Contribution
Plans”) under which the interest of each participant is
maintained in an individual account. 

          
          
                (d)     Seller will continue to
maintain the Defined Contribution Plans with respect to Continuing Employees who
are participants therein, and will distribute 100% of the respective account
balances to such participants upon their request (or to a qualified plan
established by the Company or an IRA of a participant) on a fully vested basis
as soon as practicable following the Closing Date. There will be no employer or
employee contributions under the Defined Contribution Plans with respect to such
participants following the Closing Date except for Seller’s fulfillment of
contribution obligations incurred under any such plans prior to the Closing
Date. Neither Buyer nor the Company will assume, adopt or have any
responsibility with respect to, such plans. 

     
     
6.4.3     Seller's Defined Benefit
Plans.

          
          
                (a)     Seller presently maintains the
Lennox International Inc. Pension Plan for Salaried Employees (“Salaried
Pension Plan”)
and the Heatcraft Inc. Hourly
Employees Pension Plan (“Hourly Pension Plan”).
Such plans are defined benefit pension plans as defined in ERISA Section 3(35)
and are herein called the “Defined
Benefit Plans”.

          
          
                (b)     Following the Closing
Date, the Company may adopt one or more defined benefit pension plans covering
Continuing Employees (“New Pension Plan”),
providing such benefits and containing such provisions as the Company may
determine. The Company will be responsible for administration, funding and
benefit payments under the New Pension Plan, and Seller does not assume any
responsibility or liability thereunder. 

          
          
                (c)     Seller will retain all
liability for administration and funding of the Defined Benefit Plans, based
upon the accrued benefits as of the Closing Date and 100% vesting in their
accrued benefits for all Continuing Employees, and will provide to Continuing
Employees who were

46

participants in either of the Defined Benefit Plans on the
Closing Date (and to their beneficiaries) all benefits under the Defined Benefit
Plans, including unreduced benefits and benefit supplements set forth in the
Defined Benefit Plans; and neither Buyer, the Company nor the New Pension Plan
will have any liability therefor. In addition, the Defined Benefit Plans will
provide unreduced benefits and benefit supplements under its early retirement
provisions to Continuing Employees except as expressly provided for in the
Defined Benefit Plan, taking into account attained age and service with the
Seller prior to the Closing Date. In addition, if any Continuing Employee who is
on disability on the Closing Date thereafter completes the period of disability
required for disability retirement under either of the Defined Benefit Plans,
such plan will provide such disability retirement benefit, and Seller will
provide to such retiree the benefits, if any, referred to in Subsection 6.4.5(d)
below. 

          
          
                (d)     Seller will be
responsible for the funding and administration of the Defined Benefit Plans and
the payment of benefits thereunder after the Closing Date, and neither Buyer nor
the Company assumes any responsibility or liability in connection therewith. 

     
     
6.4.4     Service Credit.

          
          
                (a)     Service with Seller up
to the Closing Date will be credited by the Company for eligibility and vesting
purposes in any qualified pension benefit plan that Buyer or the Company may
adopt on or after the Closing Date with respect to Continuing Employees. Seller
will furnish to Buyer and the Company as soon as practicable after the Closing,
a list of Continuing Employees and the amount of pre-Closing service of each
such person under Seller’s qualified pension benefit plans, all certified
by Seller to be true and correct on the basis of Seller’s records
pertaining thereto; and Buyer and the Company will have the right to rely
thereon. 

          
          
                (b)     Service with the
Company after the Closing Date will not be credited by Seller under its Defined
Contribution Plans and Defined Benefit Plans, but all Continuing Employees will
be treated as 100% vested in their accrued benefits under such plans as a result
of the transactions contemplated by this Agreement. 

     
     
6.4.5     Employee Welfare Plans and Policies.

          
          
                (a)     As used in this
Subsection 6.4.5, “Welfare Plan or Policy” means
any employee welfare benefit plan as defined in ERISA Section 3(1), and also any
policy, practice or program maintained by Seller for the Company and the
Acquired Companies as of the Closing Date with respect to any employee fringe
benefits. Except as provided in Subsection 6.4.6 below, the Company will have no
liability under any Welfare Plan or Policy for any employment-related claim of
an employee arising out of care or service received on or before the Closing
Date. Seller will retain liability for any claim under each Welfare Plan or
Policy based upon care or service received on or prior to the Closing Date. In
patient stays begun prior to Closing will remain Seller’s liability until
such time as the stay has ended. Such liability will include all claims arising
out of events on or prior to the Closing Date (i) under severance or termination
pay plans, long term disability plans, salary continuation plans and accident
and sickness plans and (ii) for medical, dental, life/survivor, accidental death
and dismemberment, Company travel accident and workers’ compensation
benefits. 

47

          
          
                (b)     Seller will have no
liability under any employee Welfare Plan or Policy adopted by the Company after
the Closing Date. Except as provided in Subsection 6.4.4 or under continuation
coverage referred to in Paragraph (e) of this Subsection 6.4.5, Seller will have
no liability for any employment-related claim of an employee of the Company
arising out of occurrences after the Closing Date. The Company will have the
right at any time to adopt such Welfare Plans and Policies as the Company may
determine, and to modify, amend or terminate any such plan or policy. 

          
          
                (c)     Any of the
Company’s Welfare Plans or Policies in which benefits are calculated on the
basis of service will provide credit for service with Seller for Continuing
Employees up to the Closing Date. Seller will furnish to Buyer and the Company,
as soon as practicable after the Closing, a list of Continuing Employees and the
amount of pre-Closing service of each such person under any Welfare Plan or
Policy in which service is relevant, all certified by Seller to be true and
correct on the basis of Seller’s records pertaining thereto; and Buyer and
the Company will have the right to rely thereon. 

          
          
                (d)     At such time as any
Continuing Employee who is eligible to retire at or before the Closing Date
under either of the Defined Benefit Plans terminates employment with the Company
after the Closing Date, Seller will be responsible to offer to provide each such
Person, commencing on the date when such Person so terminates, the individual
and family medical and life insurance benefits that Seller would have provided
on the Closing Date to its employees who retired on the Closing Date (subject to
any changes made by Seller in such benefits between the Closing Date and the
date such Person so terminates). Neither Buyer nor the Company assumes any
obligation, liability or any other responsibility to provide, fund or otherwise
pay for any post-employment medical or health coverage of any Continuing
Employee or of any other employee of Seller that was earned or accrued on or
before the Closing Date. 

          
          
                (e)     All Continuing
Employees and any qualified beneficiaries who are covered under any group health
plan, as defined in ERISA Section 607 and for which the Closing is deemed to be
a termination of employment, of Seller as of the Closing Date will be entitled
to continuation coverage under such group health plan as a result of the
transactions contemplated by this Agreement. The Company will establish a group
health plan to cover Continuing Employees and their qualified beneficiaries as
soon as practicable after the Closing Date. If such a group health plan is not
in place the day after the Closing Date, the Company may, on behalf of all
Continuing Employees and their qualified beneficiaries, agree to pay to Seller
the amount of the applicable continuation premium under ERISA Section 604 for
the period of continuation coverage. Seller agrees to cooperate with the Company
to coordinate the group health plan to be effective after the Closing Date and
the payment of continuation premiums by the Company, if applicable. All
continuation premiums payable by the Company will be paid promptly on the due
date. 

     
     During any period of continuation  coverage,  the only liability of the Company
will be to pay the applicable premium to Seller
or to Seller's group health plan on behalf of Continuing  Employees who are actively
employed by the Company. The cost of health and
related benefits will be allocated as of the Effective Time.

48

     
     With respect to the  Continuing  Employees  and any  qualified  beneficiaries
 who are covered  under any group health plan, as
defined in ERISA Section 607 and for which the Closing is deemed to not to be a
termination  of employment,  if the Company's  group
health plan to cover  Continuing  Employees and their  qualified  beneficiaries
is not in place the day after the Closing Date, the
Company may, on behalf of all Continuing Employees and their qualified beneficiaries,
agree to pay to Seller the cost of the claims
filed under the  continuation  coverage.  Seller  agrees to  cooperate  with the Company
to  coordinate  the group health plan to be
effective after the Closing Date and the payment of the costs of any claims arising
under the continuation  coverage by the Company,
if applicable. All continuation costs payable by the Company will be paid promptly
on the due date.

     
     During any period of continuation coverage, the only liability of the
Company will be to pay the applicable costs to Seller or to Seller's group health
plan on behalf of Continuing Employees who are actively employed by the Company.
The cost of health and related benefits will be allocated as of the Effective Time.

     
     6.4.6     Vacation Policy.

          
          
                (f) Seller represents that
Continuing Employees earn vacation rights ratably each year, to be taken or paid
for during the calendar year in which earned, in accordance with Seller’s
vacation policy, a true copy of which is annexed hereto as Schedule
6.4.6(a). The Company will assume liability for 2002 calendar year vacations
of Continuing Employees not yet taken or paid for as of the Closing Date. 

          
          
                (g) The Company will have
the right to establish from time to time such vacation policies with respect to
its employees as the Company may determine subject to applicable Legal
Requirements. 

     
     6.4.7     Cooperation.
  Following the Closing Date, Seller, Buyer and the Company
will supply one another sufficient employee data and
records to carry out the
purposes of this Section 6.4, including the data necessary to complete all
required actuarial valuations, reports and disclosures, and any other mandated
government filings. Without limiting the foregoing, Seller will cooperate as
requested by Buyer or the Company in providing data as to the status of employee
welfare benefits, including available deductible amounts and other relevant
benefit information. 

7.     CONDITIONS
PRECEDENT TO BUYER’S OBLIGATION TO CLOSE

     
     
     Buyer's obligation to purchase the Shares and to take the other actions
required to be taken by Buyer at the Closing is subject to the
satisfaction, at or prior to the Closing, of each of the following conditions (any
of which may be waived by Buyer, in whole or in part):

     
7.1     
ACCURACY OF REPRESENTATIONS. All of Seller’s representations and
warranties in this Agreement (considered collectively), and each of these
representations and warranties (considered individually), must have been
accurate in all material respects as of the date of this Agreement or as of the
Effective Time (as applicable), and must be accurate in all material

49

respects as
of the Closing Date as if made on the Closing Date, without giving effect to any
supplement to any Schedule. 

     
7.2     
SELLER’S PERFORMANCE.

          
          
                (a)     All of the covenants and obligations
that Seller is required to perform or to comply with pursuant to this Agreement at
 or prior to the Closing
(considered collectively), and each of these covenants and obligations (considered
individually), must have been duly performed and complied with in all material
respects.

          
          
                (b)     Each document required
to be delivered pursuant to Section 2.4 must have been delivered, and each
of the other covenants and obligations in Sections 5.4 and 5.7 must have
been performed and complied with in all respects. 

     
7.3     CONSENTS.  Each of the Consents identified in
Schedule 3.2 must have been obtained and must be in full force and effect.

     
7.4     ADDITIONAL DOCUMENTS.
Each of the following documents
must have been delivered to or obtained by Buyer:

          
          
                (a)     employment agreements, in form and
substance satisfactory to Buyer executed by the Company and the Key Executives; and

          
          
                (b) such other documents as
Buyer may reasonably request for the purpose of (i) evidencing the accuracy of
any of Seller’s representations and warranties, (ii) evidencing the
performance by Seller of, or the compliance by Seller with, any covenant or
obligation required to be performed or complied with by Seller,
(iii) evidencing the satisfaction of any condition referred to in this
Section 7, or (iv) otherwise facilitating the consummation or
performance of any of the Contemplated Transactions. 

     
7.5     NO
PROCEEDINGS. Since the date of this Agreement, there must not
have been commenced or Threatened against Buyer, or against any Person
affiliated with Buyer, any Proceeding (a) involving any challenge to, or
seeking damages or other relief in connection with, any of the Contemplated
Transactions, or (b) that may have the effect of preventing, delaying,
making illegal, or otherwise interfering with any of the Contemplated
Transactions. 

     
7.6     
NO CLAIM REGARDING SHARE OWNERSHIP OR SALE PROCEEDS. There must not have
been made or Threatened by any Person any claim asserting that such Person
(a) is the holder or the beneficial owner of, or has the right to acquire
or to obtain beneficial ownership of, any Membership Interests of the Company or
any stock of, or any other voting, equity or ownership interest in, any of the
other Acquired Companies, or (b) is entitled to all or any portion of the
Purchase Price payable for the Shares. 

50

     
     7.7     
NO PROHIBITION. Neither the consummation nor the performance of any
of the Contemplated Transactions will, directly or indirectly (with or without
notice or lapse of time), materially contravene, or conflict with, or result in
a material violation of, or cause Buyer or any Person affiliated with Buyer to
suffer any material adverse consequence under, (a) any applicable Legal
Requirement or Order, or (b) any Legal Requirement or Order that has been
published, introduced or otherwise formally proposed by or before any
Governmental Body. 

     
     
7.8     JV CLOSINGS.
The JV Closings shall have been completed.

8.     
CONDITIONS PRECEDENT TO SELLER’S OBLIGATION TO CLOSE

          
     Seller's obligation to sell the Shares and to take the other actions required
to be taken by Seller at the Closing is subject to the
satisfaction, at or prior to the Closing, of each of the following conditions
(any of which may be waived by Seller, in whole or in part):

     
     8.1     
ACCURACY OF REPRESENTATIONS.  All of Buyer’s representations and
warranties in this Agreement (considered collectively), and each of these
representations and warranties (considered individually), must have been
accurate in all material respects as of the date of this Agreement and must be
accurate in all material respects as of the Closing Date as if made on the
Closing Date. 

     
     8.2     
BUYER’S PERFORMANCE

          
          
                (a)     All of the covenants and obligations
that Buyer is required to perform or to comply with pursuant to this Agreement at or
prior to the Closing
(considered collectively), and each of these covenants and obligations (considered
individually), must have been performed and complied with in all material
respects.

          
          
                (b)     Buyer must have delivered each of the
 documents required to be delivered by Buyer pursuant to Section 2.4, and each of the
other covenants and
obligations in Section 5.4 and 5.7 must have been performed and complied in all respects
and (ii) made the cash payments required to be made by Buyer pursuant to
Sections 2.4(b)(i).

     
     
8.3     CONSENTS.  Each of the Consents identified in
Schedule 3.2 must have been obtained and must be in full force and effect.

     
     
8.4     
ADDITIONAL DOCUMENTS..  Buyer must have caused to be delivered to Seller such
other documents as Seller may reasonably request for the purpose of
(a) evidencing the accuracy of any representation or warranty of Buyer,
(b) evidencing the performance by Buyer of, or the compliance by Buyer
with, any covenant or obligation required to be performed or complied with by
Buyer, (c) evidencing the satisfaction of any condition referred to in this
Section 8, or (d) otherwise facilitating the consummation of any of
the Contemplated Transactions. 

     
     
8.5     
NO PROCEEDINGS. Since the date of this Agreement, there must not
have been commenced or Threatened against Seller, or against any Person
affiliated with Seller, any Proceeding 

51

(a)     involving any challenge to, or
seeking damages or other relief in connection with any of the Contemplated
Transactions, or (b) that may have the effect of preventing, delaying, making
illegal, or otherwise interfering with any of the Contemplated Transactions. 

     
     
8.6     
NO CLAIM REGARDING SHARE OWNERSHIP OR SALE PROCEEDS. There must not have
been made or Threatened by any Person any claim asserting that such Person (a)
is the holder or the beneficial or the beneficial owner of, or has the right to
acquire or to obtain beneficial ownership of, any Membership Interests of the
Company of the Company or any stock of, or any other voting, equity or ownership
interest in, any of the other Acquired Companies, or (b) is entitled to all or
any portion of the Purchase Price payable for the Shares. 

     
     
8.7     
NO PROHIBITION. Neither the consummation nor the performance of any
of the Contemplated Transactions will, directly or indirectly (with or without
notice or lapse of time), materially contravene, or conflict with, or result in
a material violation of, or cause Seller or any Person affiliated with Seller to
suffer any material adverse consequence under (a) any applicable Legal
Requirement or Order, or (b) any Legal Requirement or Order that has been
published, introduced or otherwise formally proposed by or before any
Governmental Body. 

     
     
8.8     JV CLOSINGS.
The JV Closings shall have been completed.

9.     
TERMINATION.

     
     
9.1     TERMINATION EVENTS.  This Agreement may, by
notice given prior to or at the Closing, be terminated:

          
          
                (a)     by either Buyer or
Seller if a material Breach of any provision of this Agreement has been
committed prior to Closing by the other party and such Breach has not been
waived; 

          
          
                (b)     (i)     
by Buyer if any of
the conditions in Section 7 has not been satisfied as of the Closing Date or if
satisfaction of such a condition is or becomes impossible (other than through
the failure of Buyer to comply with its obligations under this Agreement) and
Buyer has not waived such condition on or before the Closing Date; or (ii) by
Seller, if any of the conditions in Section 8 has not been satisfied of the
Closing Date or if satisfaction of such a condition is or becomes impossible
(other than through the failure of Seller to comply with its obligations under
this Agreement) and Seller has not waived such condition on or before the
Closing Date; 

          
          
                (c)     by mutual consent of Buyer and
 Seller; or

          
          
                (d)     by either Buyer or
Seller if the Closing has not occurred (other than through the failure of any
party seeking to terminate this Agreement to comply fully with its obligations
under this Agreement) on or before September 30, 2002 (the “Target
Date”), or such later date as the parties may agree upon. If
any Governmental Body with jurisdiction over the enforcement of any Competition
Laws requests additional information relating to the JV Transactions or the
parties and/or if any waiting period has not expired or any clearance or
approval under any such Competition Law has not been satisfied or obtained by
the Target Date, the Target Date will automatically be extended for such period

52

of time as may be reasonably necessary for the parties to have complied with the
Competition Laws and all such requests for information thereunder to the extent
applicable to the JV Transactions, but in no event shall the Target Date be
extended by this sentence beyond December 31, 2002. 

     
     
9.2     
EFFECT OF TERMINATION. Each party’s right of termination under Section
9.1 is in addition to any other rights it may have under this Agreement or
otherwise, and the exercise of a right of termination will not be an election of
remedies. If this Agreement is terminated pursuant to Section 9.1, all
further obligations of the parties under this Agreement will terminate, except
that the obligations in Sections 11.1 and 11.3 will survive; provided, however,
that if this Agreement is terminated by a party because of the Breach of this
Agreement by the other party or because one or more of the conditions to the
terminating party’s obligations under this Agreement is not satisfied as a
result of the other party’s failure to comply with its obligations under
this Agreement, the terminating party’s right to pursue all legal remedies
will survive such termination unimpaired. 

10.     
INDEMNIFICATION; REMEDIES; DISPUTE RESOLUTION

     
     
10.1     
SURVIVAL; RIGHT TO INDEMNIFICATION NOT AFFECTED BY KNOWLEDGE; DEFINITIONS.

          
          
                (a)     All representations,
warranties, covenants and obligations in this Agreement, the Schedules, the
supplements to the Schedules, the certificate delivered pursuant to Section
2.4(a)(ii) and any other certificate or document delivered pursuant to this
Agreement will survive the Closing as set forth in this Article 10. Except as
expressly provided for in Section 10.2(b) and the last sentence of Section 10.2,
the right to indemnification, payment of Damages or other remedy based on such
representations, warranties, covenants and obligations will not be affected by
any investigation conducted with respect to, or any Knowledge acquired (or
capable of being acquired) at any time, whether before or after the execution
and delivery of this Agreement or the Closing Date, with respect to the accuracy
or inaccuracy of or compliance with, any such representation, warranty, covenant
or obligation, and the waiver of any condition based on the accuracy of any
representation or warranty, or on the performance of or compliance with any
covenant or obligation, will not affect the right to indemnification, payment of
Damages or other remedy based on such representations, warranties, covenants and
obligations. 

          
          
                (b)     For purposes of this
Article 10, the following terms have the meanings specified or referred to in
this Section 10.1(b): 

          
          
                “Buyer Indemnified Persons” -- means Buyer, OCP, the
Acquired Companies and their respective Representatives and Related Persons.

          
          
                “Seller Indemnified Persons”-- means Seller and its
-Representatives and Related Persons.

          
          
                “Damages” -- means any loss, liability, claim, damage
(including incidental and consequential damages), expense (including costs of
investigation and defense and reasonable 

53

attorneys' fees and expenses of attorneys,
accountants, engineers and other experts and consultants), fine, penalty or
obligation, whether or not involving a third-party claim.

          
          
                “Indemnified Party” -- any Person entitled to
 indemnification under this Article 10.

          
          
                “Indemnifying Party” -- any Person required to
indemnify another Person under this Article 10.

          
          
                “Loss” -- means an amount for the applicable
Livernois Contract determined by subtracting (A) the sum of all direct costs of designing,
manufacturing, selling and distributing the product and/or services necessary to
meet the specifications set forth in such Livernois Contract plus an amount for
overhead such that the product and/or service is fully burdened with overhead in the
 same manner that Livernois historically has allocated overhead for the same
product or service or, if it is a new product and/or service, in the manner that is
used for the product or service of Livernois that is most comparable thereto
from (B) the net proceeds received under the Livernois Contract, provided, however,
that (i) “Loss” shall not include any discount, rebate or credit to the customer
under any Livernois Contract pursuant to a decision made after the Effective Time;
and (ii) to the extent that any Loss represents a Loss that has been incurred
prior to the Effective Time (based on revenues received or booked on Livernois
records as an unbilled receivable, and costs incurred by Livernois prior to the
Effective Time), the Loss will be reduced to that extent.

          
          
                “Livernois Contracts” -- means the Contracts
for the delivery of products or services by Livernois to any other Person that was
in effect
or entered into at any time prior to the Closing Date. including but not limited to
those listed on Schedule 10.1; provided, however, that the Livernois Contracts
shall not include the Showa Contract (other than with respect to any services to be
provided by Livernois under the Showa Contract after the Closing Date).

     
     
10.2     
INDEMNIFICATION AND PAYMENT OF DAMAGES BY SELLER. Seller
will indemnify and hold harmless the Buyer Indemnified Persons, for, and will
pay to the Buyer Indemnified Persons the amount of, any Damages, arising,
directly or indirectly, from or in connection with: 

          
          
                (a)     any Breach of any
representation or warranty made by Seller in this Agreement or by Seller or any
Related Person thereof in the European Share Purchase Agreement (without giving
effect to any supplement to any Schedule) or any other certificate or document
delivered by Seller or such Related Person pursuant to this Agreement or the
European Share Purchase Agreement (provided, however, that this Section 10.2(a)
shall only apply if the Closing shall not occur), 

          
          
                (b)     any Breach of any
representation or warranty made by Seller in this Agreement or by Seller or any
Related Person thereof in the European Share Purchase Agreement as if such
representation or warranty were made on and as of the Closing Date (without
giving effect to any supplement to any Schedule), other than any such Breach
that is disclosed in a supplement to any Schedule and is expressly identified in
the certificate delivered pursuant to Section 2.4(a)(ii) as having caused the
condition specified in Section 7.1 not to be satisfied; 

54

          
          
                (c)     any Breach by Seller of any covenant
or obligation of Seller in this Agreement or by Seller or any Related Person thereof in the European Share Purchase
Agreement;

          
          
                (d)     the operation of the
Business prior to the Closing Date, including Damages relating to any product
shipped by, or any services provided by the Business or any Acquired Company or
by the EU JVCo or any subsidiary or predecessor thereof prior to the Closing
Date including but not limited to any liabilities assumed by the Company or any
other Acquired Company arising from the Seller’s actions provided for by
Attachment E to the Members’ Agreement whether pursuant to a certain
Reorganization Agreement among Heatcraft Inc. or certain Affiliates thereof and
a certain Heat Transfer Contribution Agreement (the “US Reorganization
Agreements”) or othrwise. 

          
          
                (e)     the Proceedings and matters disclosed
in Schedule 3.15 and Schedule 3.15 to the European Share Purchase
Agreement;

          
          
                (f)     any claim by any Person
for brokerage or finder’s fees or commissions or similar payments based
upon any agreement or understanding made by any such Person with Seller or any
Acquired Company (or any Person acting on their behalf or on behalf of the
Business for which they are responsible) in connection with any of the
Contemplated Transactions or the transactions contemplated by the European Share
Purchase Agreement; and 

          
          
                (g)     all Losses, in the
aggregate, arising from the Livernois Contracts. On a semi-annual basis after
the Closing, the Company shall prepare and deliver initially to Buyer and Seller
accounting statements for each Livernois Contract in a form agreed upon by the
parties (the “Contract Status Sheet”). The Contract
Status Sheet shall reflect the status of the contract, the costs incurred,
revenue received, expected completion date and any changes to the terms of the
original contract. Once completed, a detailed income statement for the completed
contract and the adjustment for any losses incurred (the “Contract
Loss Adjustment”), will be prepared in accordance with GAAP which
shall be subject to an audit or review by Seller’s Accountants. The Company
shall make available any work papers or other information relating to the
Contract Loss Adjustment then or thereafter requested by Seller’s
Accountants. If Seller does not object, or otherwise fails to respond, to the
Contract Loss Adjustment within 30 days after delivery to Seller, such Contract
Loss Adjustment shall automatically become final and conclusive and shall be
payable by Seller to Company within ten (10) Business Days. In the event that
Seller objects to the Contract Loss Adjustment within such 30 day review period,
Seller and Buyer shall promptly meet and endeavor to reach agreement as to the
content of the Contract Loss Adjustment. If Seller and Buyer agree on the
content of the Contract Loss Adjustment, such Contract Loss Adjustment shall
become final and conclusive and shall be payable by Seller to Company within ten
(10) Business Days. If Seller and Buyer are unable to reach agreement within 30
days after the end of Seller’s 30 day review period, then the Independent
Accountants shall promptly be retained to undertake a determination of the
Contract Loss Adjustment, which determination shall be made as quickly as
possible (it being understood that the parties shall direct the Independent
Accountants to complete their work within 30 days). Only disputed items shall be
submitted to the Independent Accountants for review. In resolving any disputed
item, the Independent Accountants may not assign a value to such item greater
than the greatest value for such item claimed by either party or less than the
lowest value for such item claimed by either party, in each case as presented to

55

the Independent Accountants. Such determination of the Independent Accountants
shall be final and binding on Seller and Buyer, and all expenses of the
Independent Accountants shall be borne equally by Seller and Buyer. The payments
required to be made after the final determination of the Independent Accountants
shall be payable by Seller to Company within ten (10) Business Days. The parties
shall make appropriate and equitable reconciliations from time to time to
account for the requirement that Losses be determined on an aggregate basis. 

          
          
        Notwithstanding the provisions of clauses (a) and (b) of this Section 10.2,
to the extent that Seller can prove (and Seller has the burden
of proof in that regard) that Buyer had Knowledge that any of Seller's representations
or warranties contained in this Agreement or in the European Share Purchase
Agreement were false at the time such agreement was signed, Seller shall have no
indemnification obligation for the Breach of such representation or warranty.

          
          
        In the event of any conflict between this Agreement and either of the US
Reorganization Agreements, this Agreement shall control in all
respects.

     
10.3     INDEMNIFICATION AND PAYMENT OF DAMAGES BY SELLER --
ENVIRONMENTAL MATTERS.

          
          
10.3.1     Indemnification.  In addition to the
provisions of Section 10.2, Seller will indemnify and hold harmless the Buyer Indemnified
Persons for, and will pay to Buyer, the Acquired Companies and the other Buyer Indemnified Persons the
amount of, any Damages (including costs of investigation, cleanup, containment
or other remediation and associated operation, maintenance and monitoring)
arising, directly or indirectly, from or in connection with: 

          
          
                (a)     any Environmental,
Health and Safety Liabilities arising out of or relating to: (i) (A) the
ownership, operation or condition at any time on or prior to the Closing Date of
the Facilities or any other properties and assets (whether real, personal or
mixed and whether tangible or intangible) in which Seller, any Heat Transfer
Existing Subsidiary or any Acquired Company has or had an interest, including
any fact, event, condition, circumstance, incident, operation or practice
identified or covered in any of the reports listed in Schedule 3.19 (the
“Known Environmental Liabilities”), or (B) any Hazardous Materials or
other contaminants that were present on the Facilities or such other properties
and assets at any time on or prior to the Closing Date; or (ii) (A) any
Hazardous Materials or other contaminants, wherever located, that were
generated, transported, stored, treated, Released or otherwise handled by
Seller, any Heat Transfer Existing Subsidiary or any Acquired Company or by any
other Person for whose conduct they are or may be held responsible at any time
on or prior to the Closing Date, or (B) any Hazardous Activities with respect to
the Facilities or relating to the Business that were conducted by Seller, any
Heat Transfer Existing Subsidiary or any Acquired Company or by any other Person
for whose conduct they are or may be held responsible, including any fact,
event, condition, circumstance, incident, operation or practice identified in or
covered by any of the reports listed in Schedule 3.19; or 

          
          
                (b)     any bodily injury
(including illness, disability and death, and regardless of when any such bodily
injury occurred, was incurred or manifested itself), personal injury, property
damage 

56

(including trespass, nuisance, wrongful eviction and deprivation of the
use of real property), or other damage of or to any Person, including any
employee or former employee of Seller, any Heat Transfer Existing Subsidiary or
any Acquired Company or any other Person for whose conduct they are or may be
held responsible, in any way arising from or allegedly arising from any
Hazardous Activity conducted with respect to the Facilities or the operation of
the Acquired Companies, any Heat Transfer Existing Subsidiary or the Business
prior to the Closing Date,including any fact, event, condition,
circumstance, incident, operation or practice identified in or covered by any of
the reports listed in Schedule 3.19, or from Hazardous Material that was (i)
present on or before the Closing Date on or at the Facilities (or present or
suspected to be present on any other property, if such Hazardous Material
emanated from any of the Facilities and was present on any of the Facilities on
or prior to the Closing Date), including any fact, event, condition,
circumstance, incident, operation or practice identified in or covered by any of
the reports listed in Schedule 3.19 or (ii) Released by Seller, any Heat
Transfer Existing Subsidiary or any Acquired Company or any other Person for
whose conduct they are or may be held responsible, at any time on or prior to
the Closing Date, including any fact, event, condition, circumstance, incident,
operation or practice identified in or covered by any of the reports listed in
Schedule 3.19. 

     
     
10.3.2     Environmental Management.

          
          
                (c)     Contractual Predicate:

        
          
          
         
                    (i)
The reports listed on Schedule 3.19 or the additional Phase II reports prepared
under Section 5.1(b) identify operating practices of the Acquired Companies or
their predecessors and/or physical conditions at one or more of the Facilities
which are not in full compliance with Environmental Law and/or which create
latent or actual Environmental, Health and Safety Liabilities.

        
          
          
         
                    (ii)     
Under Section 10.3.1, Seller is obligated to indemnify and hold harmless Buyer,
the Acquired Companies and the other Buyer Indemnified Persons for and has
agreed to pay Buyer, the Acquired Companies and the other Buyer Indemnified
Persons the amount of any Damages arising, directly or indirectly, from or in
connection with Environmental, Health and Safety Liabilities.

        
          
          
         
                    (iii)     
The liabilities associated with the matters identified in the reports listed on
Schedule 3.19 are covered by Seller’s indemnification and payment
obligations under Section 10.3.1. The purpose of this Section 10.3.2 is to
provide for the efficient administration of the rights of Seller, Buyer, the
Acquired Companies and the other Buyer Indemnified Persons and the obligations
of Seller under Section 10.3.

          
          
                (d)     Management Framework:

          
          
         
                    (i)     
All of the tasks necessary to manage and/or resolve the Environmental, Health
and Safety Liabilities, including Cleanup, arising from the matters identified
in the reports listed in Schedule 3.19 and any other Environmental,
Health and Safety Liabilities for which Seller is

57

obligated to provide indemnity
and pay Damages under Section 10.3.1, including Cleanup, constitutes the
“Work” to be governed by this Section 10.3.

        
          
          
         
                    (ii)     
Seller and its Representatives shall manage the Work. Buyer will be given the
opportunity to participate in the Work as defined in the subsequent provisions
of this section. 

        
          
          
         
                    (iii)     
Seller hereby appoints Mark Yohman to serve as its initial overall project
coordinator (“PC”) for the Work. Buyer hereby appoints Earl
Robinson to serve as its initial representative (“OR”) to
review and provide input on the Work. Either party may change its appointed
representative by written notice to the other. The rights and responsibilities
of the PC and the OR with respect to managing the Work and /or any Cleanup are
as follows:

           
           
           
         
                         (A)     The PC, with the
OR’s concurrence, will select such environmental/engineering firms as may
be necessary to plan and carry out the Work. The PC, with the OR’s
concurrence, can change or supplement such environmental/engineering firms as
necessary to efficiently and effectively carry out the Work. 

           
           
           
         
                         (B)     
The PC and OR in consultation with the environmental/ engineering firms, will jointly develop long-range plans, budgets, schedules and execution
strategies (for at least one year in advance) for the Work.

           
           
           
         
                         (C)     The PC, OR and
engineering/environmental consulting firms will jointly develop project specific
scopes of work and related work plans. 

           
           
           
         
                         (D)     The PC will take the
lead in managing the environmental/ engineering firms. The firms will be
instructed to provide duplicate originals of all written correspondence
including teleconferencing communications and work products, to the PC and the
OR simultaneously. 

           
           
           
         
                         (E)     The PC shall require
 performance of the Work according to each project's schedule; that schedule will reflect that the Work must be performed
economically and expeditiously.

           
           
           
         
                         (F) All relevant
correspondence and work products generated by Buyer, Seller or their respective
Representatives or by the environmental/engineering firms engaged to perform any
Work, or received by Buyer, Seller or their respective Representatives from any
environmental/engineering firms or any Governmental Bodies, will be transmitted
to the other party as soon as practicable, to the extent that such material has
not already been forwarded directly. 

           
           
           
         
                         (G)     The PC will be
responsible for dealing with all Governmental Bodies, but the PC shall give the
OR prompt notice of all scheduled meetings, conference calls and other
pre-arranged conversations with Governmental Bodies and shall allow the OR to
attend or participate in all scheduled meetings, conference calls and other
pre-arranged conversations with such Governmental Bodies which relate to the
Work at any of the Facilities. The OR will be given a

58

reasonable time in advance
to review, discuss and propose modifications to the timing or content of any
proposed communication with such agencies which pertain to the Work. 

           
           
           
         
                         (H)     The PC and the OR will
jointly develop negotiating positions and strategies for communicating with the
Governmental Bodies about the process for evaluating and selecting Cleanup or
other remedies, compliance strategies or other necessary actions. 

           
           
           
         
                         (I)     If the PC and OR
disagree on any element of the Work (including plans, Cleanup or other execution
strategies, scopes of the Work, work plans, schedules, budgets or contract terms
of the Work proposals) or on the content or timing of any communication to a
Governmental Body or if the OR believes that the PC is failing to diligently
attend to or prosecute any element of the Work, (collectively, “ENV
Disagreements”), the OR shall promptly and concisely state
its position in writing. The PC shall give due consideration to the LR’s
position, and the PC shall then make a determination which, subject to Paragraph
(J) below, resolves the ENV Disagreement. 

           
           
           
         
                         (J)     If the OR or Buyer
requests, the PC’s decision will be subject to review by the CEO of Buyer
and Seller, after a meeting or telephone conference between the CEO of Buyer and
the CEO of Seller. After the foregoing review, Buyer will have the authority to
resolve any ENV Disagreement and to effect any actions with respect to the Work
with any Governmental Body; provided, however, that Seller will no longer be
obligated to indemnify Buyer or any other Buyer Indemnified Person. At the
election of the Buyer, the dispute may be submitted to a qualified independent
third party for resolution. The parties will select this party by mutual
agreement, all costs for the review will be shared equally by Buyer and Seller
and any decisions will be governed by the principle that any Work performed must
be that necessary to comply with any applicable Legal Requirement and in the
most cost-effective manner. 

           
           
           
         
                         (K)     If the manner in which
Seller is managing any element of the Work negatively impacts or harms the
Business (with any ENV Disagreement regarding the same to be resolved as
provided in paragraph (J) above), Buyer will have the right to assume management
of such Work by notice to Seller. 

          
          
                (e)     
Cost Control:  The PC and Buyer will take all reasonable steps to insure the
project costs which are subject to payment by Seller or Company are closely
monitored and controlled.

          
          
                (f)     Project Controls: Every
environmental/engineering firm who performs any Work shall prepare periodic
written progress reports in a format jointly developed by the PC and OR for the
specific tasks and projects they are contracted to perform. Each environmental/
engineering firm shall also be available to confer with the PC and the OR as the
PC and the OR determine is necessary, about the Work. 

          
          
                (g)     Funding/Invoicing Procedures:

        
          
          
         
                    (i)     Each environmental/engineering firm who performs any Work shall submit invoices
for payment in a form developed jointly by both the PC and the OR. Invoices must
be sent to both the PC and OR concurrently. The OR shall communicate any
questions about or 

59

objections to any environmental/engineering firm invoice
within thirty (30) days after receipt. After completing its review, and
conferring with the OR the PC shall make a decision concerning payment of the
invoice. On determining that an invoice is to be paid, the PC shall arrange for
such payment to be by Seller, which payment will be made by Seller in its
ordinary accounts payable cycle unless Paragraph (ii) below applies.

        
          
          
         
                    (ii)     
If the OR and Buyer disagree with the PC’s decision as to payment of any
invoice amount, Seller or Buyer shall deliver a Dispute Notice (as defined in
Section 10.13(a)) with respect to any portion or the entire all of the invoice.
In such event the Dispute will be resolved pursuant to Section 10.13. If it is
ultimately determined pursuant to Section 10.13 that Seller is required to pay
any amount which was the subject of a Dispute Notice sent pursuant to this
section, Seller shall pay such amount to the Company.

     
     
10.3.3.     Procedure.  Notwithstanding Section 10.3.2,
the procedure described in Section 10.11 will apply to any claim solely for monetary
 damages
relating to a matter covered by this Section 10.3.

     
     
10.4     INDEMNIFICATION AND PAYMENT OF DAMAGES
BY SELLER - TAX MATTERS.

     
     
10.4.1     General.

          
          
                (a)     In addition to the
provisions of Section 10.2, Seller shall indemnify each Buyer Indemnified Person
and hold them harmless from (i) all liability for Taxes that may be imposed or
assessed against the Acquired Companies (which for purposes only of this Section
10.4 shall include the Acquired Companies and the entities set forth on
Schedule 10.4.1(a) or the assets of the Acquired Companies based on
income attributable to all taxable periods ending on or before the Closing Date
reduced without duplication by the actual payment of Taxes prior to the Closing
Date and any reserves with respect to Taxes set forth on the Closing Balance
Sheet, (ii) all liability (as a result of Treasury Regulation
§ 1.1502-6 or otherwise) for Taxes of any Person (other than any of
the Acquired Companies) with which any of the Acquired Companies is or has been
affiliated or has filed or has been required to file a consolidated, combined or
unitary Tax Return, and (iii) subject to the last sentence of Section 10.4.2(b),
all liability for reasonable legal, accounting, consulting or similar fees and
expenses for any item attributable to any item in clauses (i) or (ii) of this
sentence. 

          
          
                (b)     In the case of any taxable period
that includes (but does not end on) the Closing Date (a “Straddle
Period”):

        
          
          
         
                    (i)     
real, personal and intangible property Taxes (“Property
Taxes”) of the Acquired Companies attributable to all
taxable periods ending on or before the Closing Date will be equal to the amount
of such property Taxes for the entire Straddle Period multiplied by a fraction,
the numerator of which is the number of days during the Straddle Period that are
in all taxable periods ending on or before the Closing Date and the denominator
of which is the number of days in the Straddle Period; and

60

        
          
          
         
                    (ii)     
the Taxes of the Acquired Companies (other than Property Taxes) attributable to
all taxable periods straddling the Closing Date will be computed as if such
taxable period ended as of the close of business on the Closing Date and, in the
case of any Taxes attributable to the ownership by any of the Acquired Companies
of any equity interest in any non-U.S. corporation, partnership or other
“flow through” entity, as if a taxable period of such corporation,
partnership or other “flow through” entity ended as of the closing of
business on the Closing Date.

     
     10.4.2     
Tax Indemnification Procedures

          
          
                (c)     If a claim is made by
any Governmental Body, which, if successful, would result in an indemnity
payment to any Indemnified Person pursuant to Section 10.4.1, then the Company
shall give notice to Seller in writing of such claim within thirty (30) days
after receipt of such a claim (a “Tax Claim”);
provided, however, the failure to give such notice shall not affect the
indemnification provided pursuant to Section 10.4.1 except to the extent that
Seller has been actually prejudiced as a result of such failure. Notice to
Seller hereunder will constitute notice to Seller. 

          
          
                (d)     With respect to any Tax
Claim relating to a taxable period ending on or prior to the Closing Date,
Seller shall control all proceedings and may make all decisions taken in
connection with such Tax Claim (including selection of counsel) and, without
limiting the foregoing, may in its sole discretion pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with any
Governmental Body with respect thereto, and may, in its sole discretion, either
pay the Tax claimed and sue for a refund where applicable law permits such
refunded suits or contest the Tax Claim in any permissible manner; provided,
however, that Seller must first consult in good faith with Buyer before taking
any action with respect to the conduct of a Tax Claim. 

          
          
                (e)     Seller and Buyer shall
jointly control and participate in all proceedings taken in connection with any
Tax Claim relating to Taxes of the Acquired Companies for a Straddle Period.
Neither Seller nor Buyer shall settle any such Tax Claim without the prior
written consent of the other parties. Each party shall pay its own expenses with
respect to any such Tax Claim. 

          
          
                (f)     The Company shall
control all proceedings with respect to any Tax Claim relating to a taxable
period beginning after the Closing Date. 

          
          
                (g)     Buyer and the Acquired
Companies on the one hand, and Seller on the other, shall reasonably cooperate
in contesting any Tax Claim, which cooperation will include the retention and,
upon request, the provision to the requesting Person of records and information
which are reasonably relevant to such Tax Claim, and making employees available
on a mutually convenient basis to provide additional information or explanation
of any material provided hereunder or to testify at proceedings relating to such
Tax Claim. 

     
     10.4.3     
Transfer and Similar Taxes.
Seller shall pay and shall hold each Buyer Indemnified Person harmless from all transfer,
documentary, sales, use,
registration and similar Taxes (including all applicable real estate transfer or
gains taxes and state transfer taxes, and related fees, 

61

including any penalties
interest and additions to Tax) (“Transfer
Taxes”). The procedures set forth in Section 10.4.1 apply to
Transfer Taxes. On or prior to the Closing, Seller shall present Tax receipts or
other documents, satisfactory to Buyer, demonstrating that all Transfer Taxes
have been paid in full. 

     
     10.5     INDEMNIFICATION AND PAYMENT BY SELLER -
TRANSACTION EXPENSES.

          
          
                (a)     Prior to the Closing
Date, Seller shall have requested final invoices from all relevant third parties
(including accountants, attorneys and other similar professionals) reflecting
all fees and expenses payable by Seller and the Acquired Companies with respect
to services rendered in connection with the transactions contemplated hereby and
by the European Share Purchase Agreement. Not later than three (3) Business Days
prior to the Closing Date, the chief financial officer of Seller shall certify
in writing to Buyer the amount of (i) any Transaction Expenses that will have
been paid by Seller or any Acquired Company immediately prior to the Closing
Date, (ii) an estimate of any Transaction Expenses incurred but not paid as of
the Closing Date, and (iii) an estimate of any Transaction Expenses reasonably
expected to be incurred after the Closing Date. 

          
          
                (b)     In addition to the
provisions of Section 10.2, Seller agrees to indemnify, defend and hold the
Buyer Indemnified Persons harmless from and against any and all Losses that the
Buyer Indemnified Persons may suffer, sustain, incur or become subject to
arising out of or due to the failure of Seller to pay in full all Transaction
Expenses. Any amounts to be paid under this Section 10.5 by Seller to a Buyer
Indemnified Person shall be paid by Seller immediately upon receipt of written
notice from Buyer demanding payment. 

     
     10.6     
INDEMNIFICATION AND PAYMENT OF DAMAGES BY BUYER. Buyer and
OCP agree, jointly and severally, to indemnify and hold harmless the Seller
Indemnified Persons, and will pay to Seller Indemnified Persons the amount of
any Damages arising, directly or indirectly, from or in connection with: 

          
          
                (a)     any Breach of any
representation or warranty made by Buyer in this Agreement or by Buyer or any
Related Person thereof in the European Share Purchase Agreement (without giving
effect to any supplement to any Schedule) or any other certificate or document
delivered by Buyer or such Related Person pursuant to this Agreement or the
European Share Purchase Agreement (provided, however, that this Section 10.6(a)
shall only apply if the Closing shall not occur), 

          
          
                (b)     any Breach of any
representation or warranty made by Buyer in this Agreement or by Buyer or any
Related Person thereof in the European Share Purchase Agreement as if such
representation or warranty were made on and as of the Closing Date (without
giving effect to any supplement to any Schedule), other than any such Breach
that is disclosed in a supplement to any Schedule and is expressly identified in
the certificate delivered pursuant to Section 2.4(b)(ii) as having caused the
condition specified in Section 8.1 not to be satisfied; 

          
          
                (c)     any Breach by Buyer of any covenant
or obligation of Buyer in this Agreement
 or by Buyer or any Related Person thereof in the European Share Purchase
Agreement;

62

          
          
                (d)     any claim by any Person
for brokerage or finder’s fees or commissions or similar payments based
upon any agreement or understanding made by such Person with Buyer (or any
Person acting on its behalf) in connection with any of the Contemplated
Transactions. 

     
     10.7     TIME LIMITATIONS.

          
          
                (a)     If the Closing occurs, Seller
will have no liability (for indemnification or otherwise) with respect to:

        
          
          
         
                    (i)     
any representation or warranty unless notice is given to Seller in accordance
with Section 10.10 or Section 10.11 prior to the expiration of the following
periods: 

           
           
           
         
                         (A)     for the representations
and warranties set forth in Sections 3.1 through 3.3, 3.12, 3.14, 3.16, 3.20, 3.21
and 3.23 through 3.25 - two years after the
Closing Date

           
           
           
         
                         (B)     for the representations and
warranties set forth in Sections 3.4 through 3.9, 3.13. 3.17, 3.18 and 3.22 - three
years after the Closing Date;

           
           
           
         
                         (C)     for the representations
and warranties set forth in Sections 3.10, 3.15, 3.19 and 3.26 - five years after
 the Closing Date; and

           
           
           
         
                         (D)     for the representations
and warranties set forth in Section 3.11 - 60 days following expiration of the applicable
 statute of limitations, or

        
          
          
         
                    (ii)     
any covenant or obligation to be performed and complied with prior to the
Closing Date unless on or before the fourth anniversary of the Closing Date
Buyer notifies Seller of a claim in accordance with Section 10.10 or Section
10.11. Seller shall have no liability for indemnification or reimbursement (x)
under Section 10.2 not based upon any representation or warranty, (y) under
Section 10.3, 10.4 or 10.5, or (z) with respect to any covenant or obligation to
be performed and complied with after the Closing Date, unless notice is given to
Seller in accordance with Section 10.10 or Section 10.11 prior to the expiration
of the periods (“Notice Periods”) set forth below:

           
           
           
         
                         (A)     For Section 10.3:

           
           
           
           
        
                              (I)     With respect
 to any Known Environmental Liabilities, the
Notice Period shall continue in perpetuity.

           
           
           
           
        
                              (II)     
With respect to any Environmental, Health and Safety Liabilities that are not Known
Environmental Liabilities
(the “Unknown Environmental Liabilities”), the Notice Period
shall run from the Closing Date until the tenth (10th) anniversary of
the Closing Date. Seller shall be required to indemnify the Buyer Indemnified
Persons for any Unknown Environmental Liabilities according to the following
schedule: For Unknown Environmental Liabilities notice of which is delivered to
Seller prior to the eighth (8th) anniversary of the Closing Date -
100%; for Unknown Environmental Liabilities notice of which is delivered to
Seller after the eighth (8th) 

63

anniversary, and prior to the ninth
(9th) anniversary of the Closing Date - 67%; and for Unknown
Environmental Liabilities notice of which is delivered to Seller after the ninth
(9th), and prior to the tenth (10th) anniversary of the
Closing Date - 33%. Notwithstanding the foregoing provisions of this clause
(II): (x) if Seller proves that any Release, act, omission or violation of
Environmental Law giving rise to any Unknown Environmental Liability first
occurred after the Closing Date, Seller shall have no indemnity obligation under
this Agreement with respect to such Unknown Environmental Liability, and (y)
with respect to a Release, act, omission or violation of Environmental Law
giving rise to an Unknown Environmental Liability that first occurs before the
Closing Date, if Seller can prove that an Acquired Company’s acts or
omissions after the Closing Date exacerbated the conditions giving rise to such
Unknown Environmental Liability, the Seller’s indemnity obligation under
Section 10.3 and as limited by this Section 10.7(a)(ii)(A)(II) will be reduced
in equitable proportion to the respective contribution of Seller (or its
Affiliates) and the Acquired Companies to the Unknown Environmental Liability. 

           
           
           
         
                         (B)     For Section 10.2 (i.e.,
indemnity claims not based on a breach of any representation or warranty), 10.4 or 10.5 or
for indemnity claims with
respect to any covenant to be performed and complied with after the Closing
Date, the Notice Period shall commence on the Closing Date and continue until
the longer of (y) the fifth anniversary of the Closing Date or (z) 60 days after
the applicable statute of limitations. 

          
          
                    (b)     If the Closing occurs,
Buyer will have no liability (for indemnification or otherwise) with respect to
any representation or warranty, or covenant or obligation to be performed and
complied with prior to the Closing Date, unless on or before fifth anniversary
of the Closing Date Seller notifies Buyer of a claim specifying the factual
basis of that claim in reasonable detail to the extent then known by Seller. 

          
          
                    (c)     If the Closing does not occur,
Buyer and Seller will have liability under Section 10.6 or 10.2 (as applicable)
only if notice is given to the other
party within one year after this Agreement has been terminated.

          
          
                    (d)     The indemnifying party's
obligations to indemnify for any matter notice of which is given within the applicable
notice period will continue thereafter
until satisfied.

     
     10.8     
LIMITATIONS ON AMOUNT--SELLER. Seller will have no
liability (for indemnification or otherwise) with respect to the matters
described in Sections 10.2(a) through 10.2(d), Section 10.2(f) and Section 10.3
until Buyer has suffered Damages in excess of a $500,000 aggregate Threshold
(the “Threshold”) at which point Seller will be obligated to indemnify
Buyer from and against such Damages relating back to the first dollar.
Notwithstanding the foregoing, there is no threshold with respect to
Seller’s indemnification obligations under Section 10.3 with respect to
Known Environmental Liabilities (provided, however, that if the Base Business
Plan includes any accrual for or otherwise includes expenses specifically
identical as intended to cover the cost of remediating any Known Environmental
Liability, Seller shall indemnify the Buyer Indemnified Persons only for the
amount of costs incurred in connection with such remediation in any year that
are in excess of the accrual or other amounts expressly identified for such
expenses in the Base Business 

64

Plan for that year or, for years after 2006, the
amount accrued for 2006 in the Base Business Plan). For clarification purposes,
there is also no Threshold with respect to Seller’s indemnification
obligations under Section 10.2(e), Section 10.2(g), Section 10.4 or Section
10.5. This Section 10.8 does not apply to any Breach of any of Seller’s
representations and warranties of which Seller had Knowledge at any time prior
to the date on which such representation and warranty is made or any intentional
Breach by Seller of any covenant or obligation, and Seller will be jointly and
severally liable for all Damages with respect to such Breaches. The parties
agree that the $500,000 aggregate Threshold can be satisfied by Damages that are
indemnifiable under this Agreement or the European Share Purchase Agreement. 

     
     10.9     
LIMITATIONS ON AMOUNT--BUYER. Buyer will have no liability
(for indemnification or otherwise) with respect to the matters described in
clause (a) or (b) of Section 10.6 until Seller shall has suffered Damages in
excess of a $500,000 threshold (at which point Buyer will be obligated to
indemnify Seller from and against such Damages relating back to the first
dollar). However, this Section 10.9 will not apply to any Breach of any of
Buyer’s representations and warranties of which Buyer had Knowledge at any
time prior to the date on which such representation and warranty is made or any
intentional Breach by Buyer of any covenant or obligation, and Buyer will be
liable for all Damages with respect to such Breaches. 

     
     10.10     
PROCEDURE FOR INDEMNIFICATION--THIRD PARTY CLAIMS.

          
          
                (a)     Promptly after receipt
by an Indemnified Party under Section 10.2, 10.4, or (to the extent provided in
Section 10.3) Section 10.3.3 of notice of the commencement of any Proceeding
against it, such Indemnified Party will, if a claim is to be made against an
Indemnifying Party under such Section, give notice to the Indemnifying Party of
the commencement of such claim, but the failure to notify the Indemnifying Party
will not relieve the Indemnifying Party of any liability that it may have to any
Indemnified Party, except to the extent that the Indemnifying Party demonstrates
that the defense of such action is prejudiced by the Indemnifying Party’s
failure to give such notice. 

          
          
                (b)     If any Proceeding
referred to in Section 10.9(a) is brought against an Indemnified Party and it
gives notice to the Indemnifying Party of the commencement of such Proceeding,
the Indemnifying Party will, unless the claim involves Taxes, be entitled to
participate in such Proceeding and, to the extent that it wishes (unless (i) the
Indemnifying Party is also a party to such Proceeding and the Indemnified Party
determines in good faith that joint representation would be inappropriate, or
(ii) the Indemnifying Party fails to provide reasonable assurance to the
Indemnified Party of its financial capacity to defend such Proceeding and
provide indemnification with respect to such Proceeding), to assume the defense
of such Proceeding with counsel satisfactory to the Indemnified Party and, after
notice from the Indemnifying Party to the Indemnified Party of its election to
assume the defense of such Proceeding, the Indemnifying Party will not, as long
as it diligently conducts such defense, be liable to the Indemnified Party under
this Section 10 for any fees of other counsel or any other expenses with respect
to the defense of such Proceeding, in each case subsequently incurred by the
Indemnified Party in connection with the defense of such Proceeding, other than
reasonable costs of investigation. If the Indemnifying Party assumes the defense
of a Proceeding, (A) it will be conclusively established for purposes of this
Agreement that the claims made

65

in that Proceeding are within the scope of and
subject to indemnification; (B) no compromise or settlement of such claims may
be effected by the Indemnifying Party without the Indemnified Party’s
consent unless (Y) there is no finding or admission of any violation of Legal
Requirements or any violation of the rights of any Person and no effect on any
other claims that may be made against the Indemnified Party, and (Z) the sole
relief provided is monetary damages that are paid in full by the Indemnifying
Party; and (C) the Indemnified Party will have no liability with respect to any
compromise or settlement of such claims effected without its consent. If notice
is given to an Indemnifying Party of the commencement of any Proceeding and the
Indemnifying Party does not, within ten Business Days after the Indemnified
Party’s notice is given, give notice to the Indemnified Party of its
election to assume the defense of such Proceeding, the Indemnifying Party will
be bound by any determination made in such Proceeding or any compromise or
settlement effected by the Indemnified Party. 

          
          
                (c)     Notwithstanding the
foregoing, if an Indemnified Party determines in good faith that there is a
reasonable probability that a Proceeding may adversely affect it or its
affiliates other than as a result of monetary damages for which it would be
entitled to indemnification under this Agreement, the Indemnified Party may, by
notice to the Indemnifying Party, assume the exclusive right to defend,
compromise, or settle such Proceeding, but the Indemnifying Party will not be
bound by any determination of a Proceeding so defended or any compromise or
settlement effected without its consent (which may not be unreasonably
withheld). 

     
     10.11     
PROCEDURE FOR INDEMNIFICATION--OTHER CLAIMS. A claim for
indemnification under Sections 10.2, 10.3, 10.4, 10.5 and/or 10.6 (as
applicable) for any matter not involving a third-party claim may be asserted by
notice to the party from whom indemnification is sought which notice shall set
forth in reasonable detail the basis for such claim to the extent their known by
such party. 

     
     10.12     
EXCLUSIVITY. The parties agree that, except in the case of
fraud, their sole and exclusive remedy for, under or in connection with this
Agreement, including any violations or any breach of this Agreement, is a claim
under and in accordance with the provisions of this Section 10. 

     
     10.13     DISPUTE RESOLUTION.

          
          
                (a)     Negotiated
Resolution. - If any dispute arises (i) out of or relating to,
this Agreement or any alleged Breach thereof, (ii) with respect to any of the
transactions or events contemplated hereby or (iii) with respect to any
Person’s right to indemnification (“Dispute”), the party desiring
to resolve such Dispute shall deliver a written notice describing such Dispute
with reasonable specificity to the other parties (“Dispute Notice”).
If any party delivers a Dispute Notice pursuant to this Section 10.13, the Chief
Executive Officers of the parties or their designees involved in the Dispute
shall meet at least twice within the 30 day period commencing with the date of
the Dispute Notice and in good faith shall attempt to resolve such Dispute,
including any rejected indemnification claim. 

66

          
          
                (b)     
Mediation. - If any Dispute is not resolved or settled by
the parties as a result of negotiation pursuant to Section 10.13(a) above, the
parties shall submit the Dispute to non-binding mediation in accordance with
Attachment P to the Members’ Agreement. 

          
          
                (c)     Arbitration. -
If the Dispute
is not resolved by mediation pursuant to Section 10.13(b) above, the Dispute shall
 be settled by arbitration conducted in
accordance with Attachment P to the Members' Agreement

          
          
                (d)     Equitable Relief. - The provisions
of this Section 10.14 shall not preclude Buyer from seeking an injunction or
other equitable relief to enforce the
provisions of Article 9 of the Members' Agreement.

11.     GENERAL
PROVISIONS

     
     11.1     EXPENSES.

          
          
                (a)     Except as otherwise expressly
provided in this Agreement, each party to this Agreement will bear its
respective expenses incurred in connection with the preparation, execution and
performance of this Agreement and the Contemplated Transactions, including all
fees and expenses of agents, representatives, counsel, accountants and
investment bankers. 

          
          
                (b)     Buyer and Seller will each pay one-half
of the HSR Act filing fee.

          
          
                (c)     Seller shall pay all costs of reorganizing
the Business into the Acquired Companies.

          
          
                (d)     In the event of
termination of this Agreement, the obligation of each party to pay its own
expenses will be subject to any rights of such party arising from a breach of
this Agreement by another party. In addition, Seller shall reimburse Buyer for
one-half of Buyer’s Search Expenses. 

     
     
     11.2     PUBLIC ANNOUNCEMENTS.

          
          
                (a)     Seller and Buyer agree
that, promptly after the execution and delivery of this Agreement or at such
times as otherwise agreed upon by the parties, they shall each issue a press
release substantially in the form for Seller and Buyer, respectively, that are
provided for in the Members’ Agreement. Unless required by Legal
Requirements, any other public announcement or similar publicity with respect to
this Agreement or the Contemplated Transactions will be issued prior to the
Closing, if at all, at such time and in such manner as Buyer and Seller may
mutually determine. Prior to the Closing, Buyer and Seller will consult with
each other concerning the means by which the Acquired Companies’ employees,
customers and suppliers and others having dealings with the Acquired Companies
will be informed of the Contemplated Transactions, and Buyer will have the right
to be present for any such communication. 

          
          
                (b)     With respect to public
communications on the Closing Date or otherwise with respect to the Closing,
Seller and Buyer shall consult in good faith regarding appropriate press
releases 

67

and, unless otherwise required by Legal Requirements, the form and
content of, any press release, public announcement or similar publicity relating
to the Closing, the Company and the parties will be mutually determined. 

     
     11.3     
CONFIDENTIALITY.

          
          
                (a)     Between the date of
this Agreement and the Closing Date, Buyer and Seller will maintain in
confidence, and will cause the directors, officers, employees, agents, and
advisors of Buyer and the Acquired Companies to maintain in confidence, and not
use to the detriment of another party or an Acquired Company any written, oral
or other information obtained in confidence from another party or an Acquired
Company in connection with this Agreement or the Contemplated Transactions,
unless (i) such information is already known to such party or to others not
bound by a duty of confidentiality or such information becomes publicly
available through no fault of such party, (ii) the use of such information is
necessary or appropriate in making any filing or obtaining any consent or
approval required for the consummation of the Contemplated Transactions, or
(iii) the furnishing or use of such information is required by or necessary or
appropriate in connection with legal proceedings. 

          
          
                (b) If the Contemplated
Transactions are not consummated, each party will return or destroy as much of
such written information as the other party may reasonably request. Whether or
not the Closing takes place, Seller waives and will, upon Buyer’s request,
cause the Acquired Companies to waive, any cause of action, right or claim
arising out of the access of Buyer or its representatives to any trade secrets
or other confidential information of the Acquired Companies except for the
intentional competitive misuse by Buyer of such trade secrets or confidential
information. 

          
          
                (c) Nothing herein
contained is intended to void, replace in whole or in part or limit the
application of any Confidentiality Agreements previously entered into by and
between the parties or their Related Persons which shall remain in full force
and effect in accordance with the terms thereof. 

     
     11.4     
NOTICES. All notices, consents, waivers, and other
communications under this Agreement must be in writing and will be deemed to
have been duly given when (a) delivered by hand (with written confirmation of
receipt), (b) sent by telecopier (with written confirmation of receipt),
provided that a copy is mailed by registered mail, return receipt requested, or
(c) when received by the addressee, if sent by a nationally recognized overnight
delivery service (receipt requested), in each case to the appropriate addresses
and telecopier numbers set forth below (or to such other addresses and
telecopier numbers as a party may designate by notice to the other parties): 

          
          Seller:

	 	
                Lennox International, Inc.
		
                P.O. Box 799900
		
                Dallas, Texas  75379-9900
		
                Attention: Carl E. Edwards, Jr.
		
                Facsimile No.: 972-497-5268

68

               
               
          Buyer or OCP:

		
                Outokumpu Copper Products Oy
		
                Riihitontuntie 7D
		
                P.O. Box 280
		
                Espoo, Finland   02201
		
                Attention: Corporate General Counsel
		
                Facsimile No.: 011-358-9-421-2428

               
               
          
        with a copy to:

		
                Hodgson Russ LLP
		
                One M&T Plaza, Suite 2000

		
                Buffalo, New York  14203
		
                Attention:  Robert B. Fleming, Jr., Esq.
		
                Facsimile No.:  716-849-0349

     
     11.5     
JURISDICTION; SERVICE OF PROCESS. Except as otherwise set
forth in Section 10.13 or elsewhere in this Agreement, any action or proceeding
seeking to enforce any provision of, or based on any right arising out of, this
Agreement may be brought in the courts of the State of Florida, Dade County, or,
if it has or can acquire jurisdiction, in the United States District Court for
the Southern District of Florida. Each of the parties consents to the
jurisdiction of such courts (and of the appropriate appellate courts) in any
such action or proceeding and waives any objection to venue laid therein.
Process in any action or proceeding referred to in the preceding sentence may be
served on any party anywhere in the world. 

     
     11.6     FURTHER ASSURANCES; INFORMATION.

          
          
                (a)     The parties agree
(i) to furnish upon request to each other such further information,
(ii) to execute and deliver to each other such other documents, and
(iii) to do such other acts and things, all as the other party may
reasonably request for the purpose of carrying out the intent of this Agreement
and the documents referred to in this Agreement. 

          
          
                (b)     From and after the
Closing, Seller and its Representatives will be allowed, upon reasonable
request, to inspect and copy at their expense the business records and accounts
of the Company. Buyer agrees with Seller that the Company shall not destroy or
abandon any business records or accounts relating to the Business except upon
thirty (30) days’ advance written notice to Seller for a period of five (5)
years thereafter. If Seller requests the surrender of such records or

69

accounts,
then the Company shall surrender, at Seller’s expense, such records or
accounts so required rather than proceeding with such destruction. 

          
          
                (c)     From and after the
Closing, Buyer, the Acquired Companies and their Representatives will be allowed
upon reasonable request to inspect and copy at their expense the records of
Seller and its Related Persons relating to the Acquired Companies and the
Business through the Closing Date that are in the possession or control of
Seller or any of its Related Persons and are not transferred to the Acquired
Companies, including all financial records and tax returns relating to the
Business. Seller agrees not to destroy or abandon any such records for a period
of five (5) years following the Closing. 

          
          
                (d)     If at any time within
three (3) years after the date of this Agreement, Buyer or any of its Related
Persons proposes to register under the Securities Act of 1933, as amended, any
securities in connection with any registered offering thereof and in connection
therewith the Securities and Exchange Commission (“SEC”) makes any
comments or requests any information with respect to accounting information
presented in the registration statement pertaining to any period prior to the
Closing Date, then Seller will cooperate fully in responding promptly to such
comments or questions, and will use its reasonable best efforts to cause
Seller’s Accountants to respond to comments on the relevant financial
statements or to provide such information as the SEC requests in order to cause
the SEC to declare effective such registration statement, at the expense of
Buyer or its designated Related Persons, as the case may be. In addition, Seller
will provide to any underwriter relating to financial information pertaining to
any period prior to the Closing Date as required by Legal Requirements or
applicable regulations or guidance of the accounting profession. 

     
     11.7     
WAIVER. The rights and remedies of the parties to this
Agreement are cumulative and not alternative. Neither the failure nor any delay
by any party in exercising any right, power or privilege under this Agreement or
the documents referred to in this Agreement will operate as a waiver of such
right, power or privilege, and no single or partial exercise of any such right,
power or privilege will preclude any other or further exercise of such right,
power or privilege or the exercise of any other right, power or privilege. To
the maximum extent permitted by applicable law, (a) no claim or right
arising out of this Agreement or the documents referred to in this Agreement can
be discharged by one party, in whole or in part, by a waiver or renunciation of
the claim or right unless in writing signed by the other party, (b) no
waiver that may be given by a party will be applicable except in the specific
instance for which it is given, and (c) no notice to or demand on one party
will be deemed to be a waiver of any obligation of such party or of the right of
the party giving such notice or demand to take further action without notice or
demand as provided in this Agreement or the documents referred to in this
Agreement. 

     
     11.8     ENTIRE
AGREEMENT AND MODIFICATION. This Agreement supersedes all prior
agreements between the parties with respect to its subject matter (including
without limitation the Memorandum of Agreement between Outokumpu Oyj and Seller
dated on or about April 9, 2002) and constitutes (along with the Schedules and
documents referred to in this Agreement) a complete and exclusive statement of
the terms of the agreement between the parties with respect to its subject
matter. 

70

This Agreement may not be amended except by a written agreement executed
by the party to be charged with the amendment. 

     
     11.9     
ASSIGNMENTS, SUCCESSORS AND NO THIRD-PARTY RIGHTS. Neither
party may assign any of its rights under this Agreement without the prior
consent of the other parties, except that Buyer or Seller may assign any of its
rights under this Agreement to any Subsidiary of Buyer or Seller. Subject to the
preceding sentence, this Agreement will apply to, be binding in all respects
upon and inure to the benefit of the successors and permitted assigns of the
parties. Nothing expressed or referred to in this Agreement will be construed to
give any Person other than the parties to this Agreement any legal or equitable
right remedy, or claim under or with respect to this Agreement or any provision
of this Agreement. This Agreement and all of its provisions and conditions are
for the sole and exclusive benefit of the parties to this Agreement and their
successors and assigns. 

     
     11.10     
SEVERABILITY. If any provision of this Agreement is held
invalid or unenforceable by any court of competent jurisdiction, the other
provisions of this Agreement will remain in full force and effect. Any provision
of this Agreement held invalid or unenforceable only in part or degree will
remain in full force and effect to the extent not held invalid or unenforceable.

     
     11.11     SECTION
HEADINGS, CONSTRUCTION. The headings of Sections in this
Agreement are provided for convenience only and will not affect its construction
or interpretation. All references to “Section” or “Sections”
refer to the corresponding Section or Sections of this Agreement. All references
to “Schedule” or “Schedules” refer to the corresponding
Schedule or Schedules attached to and made a part of this Agreement. All words
used in this Agreement will be construed to be of such gender or number as the
circumstances require. Unless otherwise expressly provided, the word
“including” does not limit the preceding words or terms. 

     
     11.12     TIME OF ESSENCE.
With regard to all dates and time periods set forth or referred to in this Agreement,
time is of the essence.

     
     11.13     GOVERNING LAW.
     This Agreement is governed by the laws of the State of
 New York without regard to conflicts of laws principles.

     
     11.14     
COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which will be deemed to be an original copy of this
Agreement and all of which, when taken together, will be deemed to constitute
one and the same agreement. 

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71

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

			
        Seller:

			
			
			
                LENNOX INTERNATIONAL, INC.

			
			
			
                By:  /s/ Robert E. Schjerven  
			
                Name:  Robert E. Schjerven
			Title:
                   Chief Executive Officer

			
                Buyer:

			
                OUTOKUMPU COPPER

                HOLDINGS, INC.

			
                By:  /s/ Kalevi Nikkilä  

                Name:  Kalevi Nikkilä

                Title:    President

			OCP:

                OUTOKUMPU COPPER PRODUCTS OY

			
                By:  /s/ Kalevi Nikkilä  

                Name:  Kalevi Nikkilä

                Title:    President

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