Document:

ASSET
      PURCHASE AGREEMENT

    

    This
      Asset Purchase Agreement (the “Agreement”), made and entered this 28th
      day of
      November 2005 (the “Effective Date”) by and between V-Secure Technologies (US)
      Inc., a Delaware corporation, having its principal place of business at Park
      80
      West, Plaza II, Suite 200, Saddle Brook, NJ 07663 (hereinafter referred to
      as
“V-Secure”) and V-Secure (2000) Ltd., a wholly-owned subsidiary of V-Secure
      (“V-Secure Ltd.”); and Radware Ltd., a company registered in Israel, having its
      principal place of business at 22 Raoul Wallenberg St., Tel Aviv 69710 Israel
      (hereinafter referred to as “Radware");

    

    W
      I T N E
      S S E T H :

    

    WHEREAS,
      V-Secure develops, manufactures, markets and sells Intrusion Prevention
      Solutions, sold under the name/s V-10,
      V-100 and V-1000,
      which
      incorporate V-Secure’s proprietary hardware and software (the “Products”);
      and

    

    WHEREAS,
      V-Secure desires to sell to Radware, and Radware desires to purchase from
      V-Secure, certain of the business assets of V-Secure utilized in the
      development, manufacturing and sale of the Products, including all rights in
      the
      Products and any software and hardware incorporated therein, designs, customers
      lists and contracts, together with V-Secure's intellectual property rights
      pertaining thereto all as described below, upon the terms and subject to the
      conditions set forth in this Agreement; and

    

    NOW,
      THEREFORE, in consideration of the mutual benefits to be

    derived
      and the representations and warranties, conditions and promises
      herein

    contained,
      and intending to be legally bound hereby, V-Secure, V-Secure Ltd. and Radware
      hereby agree as follows:

     

    

    1.  
      Definitions

    

    1.1 For
      purposes of this Agreement (including any and all Exhibits and amendments made
      to or incorporated herein now or in the future), the following capitalized
      terms
      shall have the following meaning:

    

    “Closing”
      means
      the
      consummation of
      the
      transactions contemplated under this Agreement, as defined in Section 8
      herein.

    “Closing
      Date”
      means
      the time and date on which the Closing is actually held.

    “Confidential
      Information”
      shall
      mean all information relating to a party’s commercial and business information,
      including, without limitation, relating to products, activity, plans, employees,
      customers and suppliers, including, without derogating from the foregoing,
      all
      or any portion or phase of any scientific, technical or non-technical data,
      documents, computer programs and related documentation, products, prototypes,
      patents, ideas, codes, designs, patterns, processes, methods, schematics,
      configurations, specifications, techniques, compilations, drawings, prices,
      computations, financial plans, advertising
      and marketing concepts, technical concepts,
      customers, suppliers and/or distributors lists and including any such
      information relating to such party’s subsidiaries and affiliates.

    “DefensePro”
      means
      Radware’s DefensePro product, including any existing and future
      version.

    “End-users”
      means
      the
      end-customers using the Products.

     “Escrow
      Account”
      means
      the account referred to in Section 8.4 herein, holding funds for the purpose
      of
      payment of bonuses pursuant to the provisions of section 7.4 herein and for
      the
      purpose of payment of indemnification for breach of warranties pursuant to
      section 10.2 herein or for the benefit of V-Secure, all as provided in the
      Escrow Agreement.

    “Escrow
      Agreement” means
      an
      agreement entered into between Radware, V-Secure and an escrow agent designated
      by the parties, which shall be negotiated in good faith by V-Secure and Radware,
      and which shall govern the management and withdrawal from the Escrow Account.
      However, it is agreed that the Escrow Agreement will include the terms
      stipulated in Exhibit
      A
      herein.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     “Intellectual
      Property”
      means
      all
      works protectible by copyright, trademark, patent and trade secret laws or
      by
      any other statutory protection obtained or obtainable, and any Confidential
      Information that meets one of the foregoing criteria relating to the Products,
      including without limitation, models; drawings; designs, programs and any
      inventions including the Patent Applications, the Trademark Application/s and
      any Confidential Information pertaining to the Products. 

    “Integrated
      Product”
      means a
      generally available version of the DefensePro which integrates the Owned
      Intellectual Property and provides a behavioral intrusion prevention module
      based on V-Secure’s Products’ functionality.

    “Knowledge”
with
      respect to V-Secure means matters actually known by any executive officer or
      Director of V-Secure.

    “Licensed
      Intellectual Property”
means
      the Intellectual Property which is licensed, or otherwise made available for
      use, to V-Secure as of the date hereof as listed on Exhibit
      B.

    “Liens”
      means
      liens, mortgages, pledges, security interests, restrictions, prior assignments,
      encumbrances and claims of every kind, nature or character.

    “NSS
      Approval”
      means
      written notification by The NSS Group Ltd. that a product was tested by them
      and
      obtained the “NSS Approved” certification with multi-gigabit
      performance.

    “Owned
      Intellectual Property”
means
      the Intellectual Property owned by V-Secure as set forth on Exhibit
      C
      as of
      the date hereof, and excluding, for the avoidance of doubt, any Licensed
      Intellectual Property and excluding the patent application originally developed
      by V-secure Technologies Ltd. (an Israeli company formed prior to the formation
      of V-Secure and not owned by V-Secure and whose technology has not been
      implemented in the Products or used for any other purpose by V-Secure).

    “Partners”
      means
      V-Secure’s distributors, resellers, partners and customers, as well as
      prospective customers evaluating the Products or negotiating the purchase of
      Products from V-Secure.

    “Partner
      Agreements” means
      the
      agreements between V-Secure and its Partners.

    “Patent
      Applications” means
      the
      patent applications filed with the U.S. Patent and Trademark Office listed
      in
Exhibit
      C,
      attached hereto. 

    “Products”
      shall
      mean the V-10, V-100 and V-1000 and including, without limitation, all goodwill
      associated with the products, all software, hardware and technology incorporated
      therein, source codes, specifications and design documents.

    “Products’
      Associated Rights”
      means
      all rights associated with the Products, their development, manufacturing,
      marketing and sale, including, without limitation, the sole and exclusive right
      (except as otherwise provided in this Agreement) to develop, integrate, create
      derivative works, manufacture, sell, market and distribute the Products and
      any
      Owned Intellectual Property.

    “Products’
      Intellectual Property”
      means
      the Owned Intellectual Property and the Licensed Intellectual
      Property.”

    “Product
      Inventory” means
      the
      Product inventory owned by V-Secure listed in Exhibit
      D attached
      hereto to be transferred to Radware.

    “Purchase
      Orders” means
      any
      and all purchase orders for Products received by V-Secure and not yet delivered,
      as well as any additional purchase orders for Products which shall be received
      by V-Secure following the Effective Date. 

    “Purchased
      Assets”
      means
      all the rights and assets purchased under this Agreement, including the
      Products’ Associated Rights, the Owned Intellectual Property, the Product
      Inventory, Customer lists and information and any right assigned to Radware
      in
      connection with the Partners. 

    “Service
      Agreements”
      means
      the service agreements entered between V-Secure and certain
      End-Users.

    “Trademark
      Applications”
      means
      the trademark applications listed in Exhibit
      C.
      

    “V-Secure
      Employees” means
      the
      employees of V-Secure and V-Secure Ltd. 

    

    	1.2  	
            The
              Preamble to this Agreement and the Exhibits attached hereto shall form
              an
              integral part of this Agreement.

          

     

    
 

    
      
         

      

      
         

        
          

        

      

      
        2

      

    

    

    	1.3  	
            List
              of Exhibits and Schedules

          

    

    
      	
              Exhibits

            	 	 
	 	 	 
	
              Exhibit
                A

            	
              -

            	
              Escrow
                Terms 

            
	
              Exhibit
                B

            	
              -

            	
              Licensed
                IP

            
	
              Exhibit
                C

            	
              -

            	
              Owned
                IP

            
	
              Exhibit
                D

            	
              -

            	
              Product
                Inventory

            
	
              Exhibit
                E

            	
              -

            	
              Service
                Agreement Migration and Termination procedure

            
	
              Exhibit
                F

            	
              -

            	
              Confidentiality
                and Non-Disclosure Agreement

            
	 	 	 
	
              Schedules

            	 	 
	 	 	 
	
              Schedule
                4

            	
            	
              Form
                of Warrants

            
	
              Schedule
                7.3 -

            	
            	
              List
                of V-Secure Employees required by Radware

            
	
              Schedule
                8.3(b)

            	
            	
              List
                of approvals and certifications required for Closing.

            
	
              Schedule
                8.3(e)

            	
            	
              Form
                of consent by V-Secure’s external auditors.

            
	
              Schedule
                8.3(f)

            	
            	
              Consent
                by V-Secure’s external auditors in connection with additional
                filings.

            
	
              Schedule
                9.1(e)-

            	
            	
              List
                of Agreements provided to Radware

            
	
              Schedule
                9.1(f)-

            	
            	
              List
                of Financial Information provided to Radware

            
	
              Schedule
                9.1(g)-

            	
            	
              List
                of Licenses and Certifications 

            
	 	 	 

    

    

     2.     
      Sale
      and Purchase of Assets

    

    	2.1         
            	
            Purchased
              Assets.
              

          

    	(a)        
             	
            Upon
              the terms and subject to the conditions set forth in this Agreement,
              on
              the Closing Date, V-Secure shall sell, convey, assign, grant, transfer
              and
              deliver to Radware, and Radware shall purchase, acquire and receive
              from
              V-Secure (i) the Owned Intellectual Property, (ii) the Product Inventory,
              (iii) the Products Associated Rights and (iv) any right or asset granted
              or assigned to Radware pursuant to this Agreement, free and clear of
              all
              Liens.

          

    	(b)      
              	
            From
              and after the Effective Date, V-Secure shall give to Radware and its
              representatives free and unrestricted access to the books, files, e-mails
              and records of V-Secure relating to the Products. Prior to destroying
              or
              disposing of such books, files and records, V-Secure shall give 30-days
              notice to Radware of the intended destruction or disposition, and Radware
              shall have the right to take possession of the same or to make copies
              of
              the same at its expense.

          

    	(c)      
              	
            On
              the Closing Date, V-Secure shall deliver to Radware and Radware shall
              accept the Purchased Assets.

          

    	(d)      
              	
            For
              the avoidance of doubt, any Owned Intellectual Property, which was
              developed by V-Secure or any of its employees or subcontractors, shall
              be
              deemed to be included within the Purchased Assets and to be the property
              of Radware.

          

    

    	
            2.2          
              

              

          	
            Excluded
              Assets. For
              the avoidance of doubt, the assets being sold to Radware shall not
              include
              any right, title, interest and claims of V-Secure as the same may exist
              on
              the Closing Date, and that are not specifically included as part of
              the
              Purchased Assets, including without limitation any of the following
              assets: cash and cash equivalents; tax returns; articles of incorporation
              and by-laws of V-Secure; corporate minutes; seals and stock books of
              V-Secure; bank deposits or accounts of V-Secure; refunds or claims
              for
              refunds of taxes; security or similar deposits, insurance policies,
              advance payments, all accounts receivable, inventory not included in
              Product Inventory, any contracts that V-Secure does not have the right
              to
              assign, and any contracts and any other assets tangible or intangible,
              which do not relate to the Products, the Products’ Associated Rights or
              the Products’ Intellectual Property. 

          

    

    
      
         

      

      
         

        
          

        

      

      
        4

      

       

    

    	2.3       
              	
            No
              Liabilities Assumed by Radware. Radware
              shall not assume any liabilities, payments or obligations of V-Secure
              or
              V-Secure Ltd. (absolute, contingent or otherwise) arising out of
              V-Secure’s ownership or V-Secure’s or V-Secure Ltd’s operation of any of
              the Purchased Assets, or the consummation of the transactions under
              this
              Agreement or otherwise, including, but not limited to, any purchase
              order,
              frame agreement, sale agreement, agreements with suppliers and
              consultants, support agreement or joint development
              agreement.

          

    

     3.           
      Purchase
      of Owned Intellectual Property and Products’ Associated
      Rights

    

    	3.1        
             	
            V-Secure
              agrees to sell, assign and transfer to Radware all rights and title
              in the
              Product Inventory, the
              Owned Intellectual Property, and
              Products’ Associated Rights. As of the Closing Date, Radware shall have
              the sole and exclusive right (except as otherwise provided in this
              Agreement) to manufacture, market, sell, license and distribute the
              Products, the Owned Intellectual Property and the Products’ Associated
              Rights.

          

    	3.2       
              	
            On
              the Closing Date V-Secure will assign and transfer to Radware all
              Trademark Applications. 

          

    	3.3       
              	
            On
              the Closing Date V-Secure will assign and transfer to Radware all Patent
              Applications. 

          

    	3.4       
              	
            V-Secure
              agrees to provide Radware by Closing with all Product information,
              including, without limitation, Product design documents, Product release
              notes, bug-fixes, Product documentation, installation guides, marketing
              materials, presentations, road maps, Patent Applications files and
              any
              additional documentation reasonably requested by Radware in order to
              execute the rights purchased under this
              Agreement.

          

    	3.5       
              	
            V-Secure
              agrees to request approval from The NSS Group Ltd. for the transfer
              and
              assignment of its approval of V-Secure’s Products to Radware’s name, and
              cooperate with NSS and Radware as required for obtaining such approval.
              

          

    

    4.           
      Consideration

    

    In
      consideration of the sale, conveyance, transfer, assignment and delivery of
      the
      Purchased Assets, Radware shall (i) pay V-Secure an
      aggregate purchase price (the Purchase Price”) of $15,000,000 , of which, (a)
      $300,000 has been previously advanced to V-Secure, $300,000 will be payable
      within 2 business days of execution of this Agreement and $8,400,000 will be
      payable at the Closing (together, the “Base Consideration”), (b) an amount of
      $6,000,000 will be payable upon achievement of the milestone set forth in (A)
      below (the “Milestone Consideration”) and (ii) deliver to V-Secure, subject to
      Closing, warrants to purchase 45,454 Ordinary Shares of Radware (in the form
      attached hereto as Schedule 4) (the “Warrants”). 

    	(A)  	
            The
              Parties agree that they will use their best efforts to obtain NSS Approval
              within 3 months from the Closing. The Milestone Consideration will
              be paid
              to V-Secure in the event that Radware obtains NSS Approval for the
              Integrated Product within a maximum of 6 months from the Closing Date
              (the
              “Milestone Period”). If NSS approval is obtained within the Milestone
              Period, within 5 business days of such approval Radware shall transfer
              90%
              of the Milestone Consideration ($5,400,000) to V-Secure and 10% of
              the
              Milestone Consideration ($600,000) to the Escrow Account to be used
              in
              accordance with the Escrow Agreement. It is agreed that that if within
              the
              Milestone Period, the test is concluded successfully and Radware receives
              a draft report from NSS confirming that the Integrated Product passed
              the
              test and will receive “NSS Approved” status, the Milestone Consideration
              will be paid even if the formal Approval Certificate is received after
              the
              Milestone Period, however, payment shall be made within 5 business
              days of
              receipt of the formal certificate. Radware undertakes that it will
              act in
              good faith with the intention to obtain the NSS Approval within the
              Milestone Period .
              It
              is agreed that if NSS discontinues its business for testing and approvals
              for intrusion prevention products, or if NSS advises Radware that there
              is
              no available testing slot any time during the Milestone Period, the
              Parties will agree
              in good faith on alternative comparable
              certification.

          

     

     

    
      
         

      

      
         

        
          

        

      

      
        5

      

    

     

    
      	(B)  	
              In
                the event Radware enters into a binding agreement for the acquisition
                of
                Radware by a third party (the “Acquisition Agreement”), during the
                Milestone Period, and prior to obtaining the NSS Approval, Radware
                shall
                pay V-Secure the Milestone Consideration as part of the purchase
                price for
                the Purchased Assets and subsection 4(A) will be
                cancelled.

            

    

     

    All
      cash
      amounts payable to V-Secure pursuant to this Agreement shall be paid by wire
      transfer of immediately available funds to the account or accounts designated
      in
      writing by V-Secure and to the escrow account/s as detailed in Section 8.4
      herein.

    

    5.            
      Distributors
      and End-Users

    

    5.1          
      V-Secure
      agrees to assist Radware with respect to any of its Partners, by:

    

    	(a)    
              	
            Participating
              with an introduction meeting or conference call and/or sending a letter
              (per Radware’s choice) with/to each Partner at a date agreed upon by the
              parties which shall be within the 90 days following
              Closing;

          

    	(b)    
              	
            Providing
              Radware with each Partner’s full contact details (name and title of
              contact person, telephone and fax numbers, office address and e-mail
              address) on the Closing Date;

          

    	(c)    
              	
            On
              the Closing Date, assigning to Radware of the Partners Agreements,
              to the
              extent that such agreements are assignable and to the extent Radware
              requests their assignment.

          

    	(d)    
              	
            V-Secure
              will keep personnel as necessary for the performance of its obligations
              under this subsection 5.1 and bear the costs related
              thereto.

          

    

    
      	
              5.2

            	
              It
                is Agreed and understood that Radware assumes no liability under
                any of
                the Service Agreements and that V-Secure shall continue to be responsible
                for its obligations under the Service Agreements. However, V-Secure
                undertakes and Radware agrees that V-Secure shall contact all Partners
                under Service Agreements with the intention to have the Partners
                agree to
                terminate the Service Agreements, by trading-in the Products for
                Radware
                products, by being compensated for early termination of the Service
                Agreement or in another manner acceptable to V-Secure and the Partner,
                all
                in accordance with the procedure attached hereto as
                Exhibit E. 

            

    

    

    
      	
              5.3

            	
              As
                of the Closing Date, V-Secure will assign to Radware the Products
                Inventory. For the avoidance of doubt, the Product Inventory excludes
                all
                units of inventory not listed in Exhibit
                D,
                which are intended to be used by V-Secure in the negotiation of
                termination of the Service Agreements, as well as for customer support,
                both pursuant to section 5.2 and Exhibit E
                herein.

            

      	 	 

      	6.	Intentionally omitted.

      	 	 

      	7.	Employees

      	 	 

      	7.1	
              Radware
                may hire any employee of V-Secure. However, any employment of V-Secure
                employees shall be subject to an agreement between Radware and the
                respective employee regarding the scope of work and terms and conditions
                of employment.

            

      	 	 

      	7.2	
              V-Secure
                and its CEO shall use reasonable efforts to convince V-Secure Employees
                who receive an offer from Radware to take the
                offer.

            

      	 	 

      	7.3	
              It
                is agreed that in order to preserve and develop the Products’ Intellectual
                Property Radware must be able to hire at least 5 out of the V-Secure
                Employees listed in Schedule
                7.3
                herein, and therefore, in the event that at or prior to the Closing
                at
                least such five (5) employees have not agreed to join Radware, Radware
                shall have the right (but no obligation) to terminate this agreement
                without any penalty, and in such case V-Secure shall return to Radware
                the
                advance payment of $300,000 within 20 business days.
                

            

    

     

    
      
         

      

      
         

        
          

        

      

      
        6

      

    

     

    
      

      
        	
                7.4

              	In order to encourage such V-Secure Employees
                to join
                Radware V-Secure agrees that out of the Base Consideration the sum
                of
                US$400,000 (four hundred thousand dollars) will be used for providing
                such
                employees with incentive bonuses if they remain with Radware for
                no less
                than 12 to 24 months. The above sum will be deposited in the Escrow
                Account and will be used by Radware for payment of such incentive
                bonuses
                as per a pre-determined bonus plan concluded with the V-Secure Employees
                who will join Radware. Any amount not used for bonus payments to
                the
                V-Secure Employees (as a result of termination of employment prior
                to the
                lapse of 24 months, under the terms of the bonus plan) will be returned
                to
                V-Secure or any third party designated by V-Secure immediately after
                it
                becomes known that such amount will not be paid to the designated
                V-Secure
                Employees, as will be set forth in the Escrow Agreement. Radware
                will
                provide written notice (certified by its CFO) to V-Secure (or its
                designee) every six months of the status of the amounts deposited
                with
                respect to this Escrow Account and of V-Secure’s right of return of unused
                amounts. .

        	 	 

        	7.5	V-Secure and/or V-Secure Ltd., respectively, will
                terminate the employment of all V-Secure Employees hired by Radware
                by
                November 6, 2005 and be solely responsible for payment of their severance,
                notice, salary, social charges and any payments resulting from an
                employer-employee relationship up to the date of termination.
                

        	 	 

        	8.	Closing

      

    

    

    
      	
              8.1

            	
              The
                Closing.
                The Closing shall be held at the offices of Radware Ltd. within 60
                days
                from the Effective Date, unless required otherwise by law or tax
                concerns
                or such other place, time and date as Radware and V-Secure may mutually
                select. 

            

      	 	 

      	8.2	
              Documents
                to be delivered at Closing. On
                the Closing Date, subject to the terms and conditions of this Agreement,
                V-Secure shall deliver to Radware such bills of sale, assignments,
                endorsements and other recordable instruments of assignment, transfer
                and
                conveyance, in form and substance reasonably satisfactory to Radware
                and
                its counsel, as shall be effective to vest in Radware all of the
                right,
                title and interest of V-Secure in and to the Purchased Assets free
                and
                clear of all Liens.

            

      	 	 

      	8.3	
              Conditions
                to Closing.
                Radware’s obligation to consummate the purchase of the Purchased Assets
                hereunder and to transfer the consideration specified above at the
                Closing
                is subject to the fulfillment at or prior to the Closing of the following
                conditions precedent (any of which, except for the execution of the
                Escrow
                Agreement (which is also a condition of V-Secure’s obligations), may be
                waived by Radware):

            

    

     

    	(a)        
             	
            Delivery
              by V-Secure of all the Purchased Assets and all associated documents,
              materials, consents and permits detailed in Section
              8.2.

          

    	(b)      
              	
            Delivery
              by V-Secure of any other permit, consent and/or authorization required
              for
              the transfer and assignment of the Purchased Assets to Radware, if
              required, and as specified in schedule 8.3(b), including any approval
              of
              the Israeli Ministry of Defense and the US National Security Authority
              relating to encryption technology, if such approvals are required.
              

          

    	(c)         
            	
            Delivery
              by V-Secure of the contact details required under section 5.1(b)
              above.

          

    	(d)      
              	
            Delivery
              by V-Secure of confirmation from the Israeli Chief Scientist in a form
              that establishes that the Purchased Assets are not subject to any
              limitation under the Law for the Encouragement of Research and Development
              in the Industry, 1984, and the regulations promulgated thereunder,
              as a
              result of requests for grants submitted by V-Secure or V-Secure Ltd.
              to
              the Office of the Chief Scientist. 

          

    	(e)      
              	
            Delivery
              by V-Secure of SEC compliant financial statements for the year 2004
              (including comparable figures for 2003) accompanied by the consent
              of
              V-Secure’s external auditors, in the form attached hereto as Schedule
              8.3(e).

          

     

    
      	(f)      
                	
              Delivery
                by V-Secure of the consent of their external auditors in the form
                attached
                hereto as Schedule 8.3(f).

            

    

     

    
      
         

      

      
         

        
          

        

      

      
        7

      

    

     

    
      	(g)     
                	
              Execution
                of the Escrow Agreement.

            

      	(h)     
                	
              Resolution
                of the majority shareholders of V-Secure approving this Agreement.
                

            

      	(i)      
                	
              Delivery
                by V-Secure and V-Secure Ltd. of written confirmation attesting that
                all
                of the representations, warranties and undertakings provided by it
                this
                Agreement are true, correct and effective in all material respects
                on and
                as of the Closing Date. 

            

       

    

    

    	8.4       
              	
            Transfer
              of Consideration. Upon
              Closing, Radware will transfer $7,100,000 to V-Secure, $400,000 to
              an
              escrow account to be used for payment of incentive bonuses to the Radware
              Employees, in accordance with the terms and conditions of section 7.4
              above, the Warrants, and $900,000 to an escrow account to secure
              V-Secure’s indemnity obligations in accordance with sections 9 and 10.2.
              herein and Schedule 8.3(h) herein, to be used in accordance with the
              Escrow Agreement. Additional amounts will be transferred to the Escrow
              Account to secure V-Secure’s indemnity obligations in accordance with
              Sections 9 and 10.2 and Schedule 8.3(h) herein (in accordance with
              the
              terms of the Escrow Agreement), in accordance with the terms of Section
              4.
              For the avoidance of doubt, the above cash consideration totaling
              $8,400,000 is in addition to the aggregate advance payments of $600,000
              paid prior to signing this Agreement and pursuant to section 4
              herein.

          

    	 	 

    	8.5          
            	
            Termination.
              This Agreement may be terminated at any time prior to the Closing (by
              written notice by the terminating party to the other party)
              by
              either party if the Closing shall not have occurred within 120 days
              from
              the Effective Date; provided,
              however,
              that the right to terminate this Agreement under this Section 8.5 shall
              not be available to any party whose breach of any obligation under
              this
              Agreement or whose failure to effect the Closing when the other party
              has
              complied with all of its obligations has been the cause of, or resulted
              in, the failure of the Closing to occur on or before such
              date.

          

    	 	 

    	8.6          
            	
            Effect
              of Termination/Failure to Close. 

          

     

    
      	
            	(a)	
              In
                the event of the termination and abandonment of this Agreement pursuant
                to
                Section 8.5 of this Agreement, this Agreement shall become void and
                have
                no effect and no party shall have any obligation to the other parties
                hereto with respect to this Agreement, except that (i) V-Secure shall
                return the advance payment of $300,000 to Radware within 20 business
                days
                of such termination, (ii) the provisions of this Section 8.6 shall
                survive any termination and abandonment, and (iii) a termination
                pursuant
                to Sections 8.5 of this Agreement shall not relieve or release the
                breaching party from liability for an uncured willful breach of a
                representation, warranty, covenant, or agreement giving rise to such
                termination, of this Agreement. 

            

    

    

    
      	
            	(b)	
              Upon
                any termination of this Agreement prior to closing, Radware shall
                promptly
                return to V-Secure all property and documentation delivered to Radware
                in
                connection with this Agreement, destroy any copies and/or summaries
                of the
                Products’ Intellectual Property and shall refrain from using any of the
                Products’ Intellectual Property and or derivatives thereto and V-Secure
                shall remain with full ownership of the Products’ Intellectual Property.
                

            

    

     

    
      	 	 

      	8.6          
              	
              Effect
                of Termination/Failure to Close. 

            

       

      
        	9.	
                Representations
                  and Warranties

              

      

    

    

    
      	9.1	
              Representations
                and Warranties of V-Secure
                and V-Secure Ltd. V-Secure and V-Secure Ltd. represent and warrant
                to
                Radware, jointly and severally, as follows, and acknowledge and confirm
                that Radware is relying upon such representations and warranties
                in
                connection with the execution, delivery and performance of this
                Agreement:

            

    

    

    
      
         

      

      
         

        
          

        

      

      
        8

      

       

    

    	(a)  
             	
            Organization
              and Good Standing.
              Each of V-Secure and V-Secure Ltd. are corporations duly organized,
              validly existing and in good standing under the laws of the State of
              Delaware and the State of Israel,
              respectively.

          

    	(b) 
              	
            Consents,
              Authorizations, Binding Effect, Etc.
              V-Secure and V-Secure Ltd. may execute, deliver and perform this Agreement
              without the necessity of any consent, approval, authorization or waiver
              or
              giving any notice or otherwise, except for the approval of V-Secure’s
              stockholders and such consents, approvals, authorizations, waivers
              and
              notices which have been obtained and are unconditional and remain in
              full
              force and effect and such notices which have been given. Upon approval
              of
              V-Secure’s stockholders, which shall be provided prior to Closing, this
              Agreement has been duly authorized, executed and delivered by V-Secure
              and
              V-Secure Ltd. and this Agreement constitutes the legal, valid and binding
              obligation of V-Secure and V-Secure Ltd., enforceable against V-Secure
              and
              V-Secure Ltd. in accordance with its terms. The execution, delivery
              and
              performance of this Agreement by V-Secure and V-Secure Ltd. will not
              (i)
              constitute a violation of the respective Certificate of Incorporation
              and/or Articles of Incorporation and/or bylaws of V-Secure and V-Secure
              Ltd., as amended and in effect on the date hereof (ii) conflict with,
              result in the breach of or constitute a default under any contract,
              lease,
              agreement, license, commitment or order of, or binding upon, V-Secure
              or
              V-Secure Ltd., to which the Purchased Assets are subject except for
              those
              that will not have a material adverse effect on the transfer of the
              Purchased Assets and Radware’s right to be obtained under this Agreement,
              (iii) constitute a violation of any statute, judgment, order, decree
              or
              regulation or rule of any court, governmental authority or arbitrator
              applicable or relating to V-Secure or V-Secure Ltd. or the Purchased
              Assets, or (iv) result in the creation of any Lien upon any of the
              Purchased Assets pursuant to the provisions of any of the foregoing.
              Each
              Purchased Asset will be owned or available for use by Radware immediately
              subsequent to the Closing, on the same basis as V-Secure used such
              asset
              or right, free and clear of any Lien.

          

    	(c) 
              	
            Litigation
              and Compliance.
              There are no actions, suits, claims or proceedings, whether in equity
              or
              at law, pending or threatened, and there are no governmental or
              administrative investigations pending or threatened, against V-Secure
              or
              V-Secure Ltd. with respect to the Purchased Assets and/or the Products’
              Intellectual Property rights or any other rights associated therewith.
              To
              V-Secure’s Knowledge, there are no actions, suits, claims or proceedings,
              whether in equity or at law, pending or
              threatened.

          

    	(d) 
              	
            Intellectual
              Property.
              V-Secure owns or has the right to use pursuant to written license,
              sublicense, agreement or permission all Products Intellectual Property
              and
              any additional proprietary rights necessary for the use, sale,
              implementation and operation of the Purchased Assets. Each of V-Secure
              and
              V-Secure Ltd. is not aware of any basis for any claim by any third
              party
              that the Products or the development, sale, marketing or distribution
              thereof, infringes the patents, trademarks, copyrights, trade secrets
              or
              other intellectual property rights of any third party. V-Secure has
              made
              no claims that a third party has violated or infringed any of V-Secure’s
              trademarks, copyrights, trade secrets or other proprietary
              rights.

          

    

    Exhibits
      B and C and schedule 9.1(e) set forth all patent applications, copyright
      registrations and license agreements or other rights related to the foregoing
      and any rights or causes of action resulting from any infringement or violation
      of any of the foregoing. Except as disclosed in Exhibit B V-Secure has not
      made
      any registration or application with respect to any of the Owned Intellectual
      Property transferred to Radware hereunder. V-Secure is the applicant of record
      in all Patent Applications, and no opposition, extension of time to oppose,
      interference, rejection, or refusal to register has been received in connection
      with any such Patent Applications. No order, holding, decision or judgment
      has
      been rendered by any governmental authority, and no agreement, consent or
      stipulation exists, which would limit V-Secure’s use of any intellectual
      property included in the Purchased Assets. V-Secure is and always has been
      the
      sole owner of the Intellectual Property included in the Purchased Assets. For
      the avoidance of doubt V-Secure Ltd. warrants and confirms that it was never
      the
      owner of any Intellectual Property included in the Purchased Assets, and any
      development work performed, if any, with respect to the Purchased Assets was
      performed solely on the basis of works made for hire to the benefit of V-Secure,
      and V-Secure Ltd. hereby waives any right it may have in connection with the
      Purchased Assets and/or any Intellectual Property associated with the Purchased
      Assets. 

    

    
      
         

      

      
         

        
          

        

      

      
        9

      

    

    Exhibit
      B
      identifies each item of intellectual property that any third party owns and
      that
      V-Secure uses pursuant to license, sublicense, agreement or permission. V-Secure
      has made available to representatives of Radware correct and complete copies
      of
      all such licenses, sublicenses, agreements and permissions (as amended to date),
      a list of which is annexed hereto as Exhibit B. With respect to each such item
      of intellectual property that is part of the Purchased Assets, the license,
      sublicense, agreement or permission covering the item is legal, valid, binding,
      enforceable and in full force and effect and will continue to be legal, valid,
      binding, enforceable and in full force and effect following the consummation
      of
      the transactions contemplated by this Agreement.

    

    	(e) 
              	
            Contracts.
              All
              contracts, leases, instruments, licenses, commitments, orders and other
              agreements relating to the Purchased Assets are listed on Schedule
              9.1(e) hereto
              (the “Agreements”). V-Secure warrants and certifies that Radware has been
              provided with full, true and correct copies of all such Agreements
              and
              there are no existing material defaults by V-Secure under any of such
              Agreements, other than defaults under Service Agreement that may arise
              as
              a result of this Agreement or the transaction contemplated
              hereby.

          

    

    	(f) 
              	
            Financial
              Information. V-Secure
              and V-Secure Ltd. warrant and certify that the financial information
              listed in Schedule
              9.1(f) (the
              “Financial Information”) has
              been provided to Radware, that the Financial Information provided is
              true,
              accurate and complete; that financial statements, listed in Schedule
              9.1(f) (“Financial Statements”) have been prepared in accordance with the
              requirements of US GAAP, that there are no liabilities that are required
              to be disclosed in such Financial Statements (as of the date of such
              Financial Statements) that are not disclosed therein, other than
              liabilities incurred in the ordinary course of business and that Radware
              has been provided with any and all financial information in connection
              with the Products, Products sales, Products pricing and Product
              COGs.

          

    

    	(g)  
             	
            Licenses
              and certifications.
              V-Secure warrants and certifies that, the Products carry any licenses
              and
              certifications required for their sale and export where they have been
              sold by V-Secure. A list of such licenses and certifications is attached
              hereto as Schedule
              9.1(g).

          

    

    	(h) 
              	
            No
              Other Representations.
              Neither V-Secure or V-Secure Ltd. are providing any representations
              to
              Radware other than the representations contained in this Agreement.
              

          

    

    
      	9.2	
              Representations
                and Warranties of Radware.
                Radware represents and warrants to V-Secure as follows, and acknowledges
                and confirms that V-Secure is relying upon such representations and
                warranties in connection with the execution, delivery and performance
                of
                this Agreement:

            

    

    

    
      
         

      

      
         

        
          

        

      

      
        10

      

       

    

    	(a) 
              	
            Organization
              and Good Standing.
              Radware is a corporation duly organized, validly existing and in good
              standing under the laws of the State of
              Israel.

          

    

    	(b) 
              	
            Consents,
              Authorizations, Binding Effect, Etc.
              Radware may execute, deliver and perform this Agreement without the
              necessity of any consent, approval, authorization or waiver or giving
              any
              notice or otherwise, except for such consents, approvals, authorizations,
              waivers and notices which have been obtained and are unconditional
              and
              remain in full force and effect and such notices which have been given.
              This Agreement has been duly authorized, executed and delivered by
              Radware
              and this Agreement constitutes legal, valid and binding obligation
              of
              Radware, enforceable against Radware in accordance with its terms.
              The
              execution, delivery and performance of this Agreement by Radware will
              not
              (i) constitute a violation of the Articles of Association of Radware,
              as
              amended and in effect on the date hereof (ii) conflict with, result
              in the
              breach of or constitute a default under any contract, lease, agreement,
              license, commitment or order of, or binding upon, Radware, or (iii)
              constitute a violation of any statute, judgment, order, decree or
              regulation or rule of any court, governmental authority or arbitrator
              applicable or relating to Radware.

          

    

    
      	10.	
              Additional
                Agreements

            

    

    

    
      	10.1	
              Confidentiality.
                Each party hereto shall hold in confidence and have
                all of its respective employees, agents, representatives and affiliated
                companies hold in confidence all documents and other written material
                containing information of a confidential nature belonging to the
                other
                party. The parties shall enter into the Non-Disclosure Agreement
                attached
                hereto as Exhibit
                F.

            

    

    

    
      	10.2	
              Indemnity.
                V-Secure and V-Secure Ltd. shall indemnify and hold Radware harmless
                from
                any liability, claims, suits, expenses (including reasonable attorney’s
                fees) and damages (“Claims”) resulting from any actions or omissions or
                misrepresentations of V-Secure or V-Secure Ltd. under this Agreement,
                or
                resulting from infringement, or alleged infringement of any third
                party’s
                patents or copyrights or misappropriation of any third party’s trade
                secrets, in any case where the infringement claim by such third party
                is
                attributable to the Purchased Assets sold hereunder provided that
                : (i)
                Radware shall provide V-Secure / V-Secure Ltd. written notice of
                such
                claim, loss, expense, damage, liability or lawsuit, as soon as
                practicable; (ii) Radware shall reasonably cooperate with V-Secure
                /
                V-Secure Ltd. in the defense and/or settlement thereof, V-Secure
                /
                V-Secure Ltd. shall indemnify Radware for reasonable out-of pocket
                expenses incurred as a result of such cooperation; and (iii) V-Secure
                or
                V-secure Ltd. shall have an opportunity to assume control of such
                defense
                and/or settlement negotiations, provided Radware may hire a separate
                legal
                counsel at its own expense. V-Secure or V-Secure Ltd. shall not enter
                into
                any settlement, which imposes any liability on Radware or requires
                any
                admission by Radware without Radware’s written consent, which will not be
                unreasonably delayed or withheld. Radware shall not enter into any
                settlement, which imposes any liability on V-Secure or requires any
                admission by V-Secure without V-Secure’s written consent, which will not
                be unreasonably delayed or withheld. V-Secure’s obligations for Claims,
                and Radware’s sole remedy, shall be governed by the terms of the Escrow
                Agreement and be limited to the amounts specified
                therein.

            

      	 	 

      	 	
              Notwithstanding
                the foregoing, any Claim by an indemnified party against any indemnifying
                party pursuant to this Agreement shall be payable by the indemnifying
                party only in the event that the accumulated amount of the Claims
                in
                respect of such indemnifying party’s obligations to indemnify under this
                Agreement shall exceed $20,000 in the aggregate (the “Indemnification
                Threshold”),
                and only for amounts in excess of the Indemnification Threshold.
                The
                amount of any loss otherwise recoverable under this Section 10.2
                by an
                indemnified party shall be reduced (i) by any amounts recovered by
                the
                indemnified party under insurance policies (net of any costs incurred
                in
                connection with the collection thereof), (ii) by any indemnity,
                contribution or similar payment actually received from third parties,
                and
                (iii) to take account of any net tax benefit actually realized by
                the
                indemnified party, in respect of the taxable year in which such loss
                is
                incurred or paid and, with respect to a tax benefit arising in a
                year
                subsequent to the year in which the loss is paid or incurred, the
                indemnified party shall pay to the indemnifying party the amount
                of such
                tax benefit when such tax benefit is actually realized.
                

            

    

    

    
      
         

      

      
         

        
          

        

      

      
        11

      

       

    

    
      	10.3	
              Taxes.
                Except as expressly provided otherwise herein, all transfer, sales,
                use
                and similar taxes, if any, payable by reason of this transaction
                or the
                sale, transfer or delivery of the Purchased Assets pursuant to this
                Agreement shall be paid and borne by Vsecure. Radware will withhold
                applicable taxes required by law (if any) and transfer such amounts
                to the
                appropriate authorities.

            

    

    

    
      	10.4	
              Employees.
                Radware
                may hire any employee of V-Secure, but is under no obligation to
                do so. No
                additional consideration will be paid to V-Secure with respect to
                the hire
                of any V-Secure employees.

            

    

    

    
      	10.5	
              Non-compete.
                Upon Closing, V-Secure, V-Secure Ltd. undertake, for a period of
                5 years,
                not to develop, integrate, market, distribute and/or sell any products
                competing with the Products, meaning, any Intrusion Prevention solutions
                (“IPS”), and not to consult or provide services, or own any interest,
                directly or indirectly, to or in any third party offering competing
                solutions. However, the above does not preclude V-Secure from the
                right to
                continue to support Partners under Service Agreements that remain
                in force
                after Closing. Izhar Shay will commit to abide by the existing non-compete
                provisions of his employment agreement as applied to Radware.
                .

            

    

    

    
      	10.6	
              Further
                Assurances.
                V-Secure, at any time after the Closing, at the request of Radware,
                shall
                execute, acknowledge and deliver any further assignments, conveyances
                and
                other assurances, documents and instruments of transfer, and will
                take any
                other action consistent with the terms of this Agreement, that may
                reasonably be necessary for the purpose of assigning, granting and
                confirming to Radware all Purchased Assets to be conveyed pursuant
                to this
                Agreement.

            

    

    

    
      	11.	
              Miscellaneous

            

    

    

    
      	11.1	
              Expenses.
                Whether
                or not the transactions contemplated by this Agreement are consummated
                and, except as otherwise may be expressly provided herein, each party
                shall pay its own fees, expenses and disbursements and those of its
                respective agents, representatives, consultants, accountants and
                counsel
                incurred in connection with this Agreement and all other costs and
                expenses incurred in the performance and compliance with all conditions
                to
                be performed by such party under this
                Agreement.

            

    

    

    
      	11.2	
              No
                Third Party Beneficiaries. Unless
                otherwise expressly provided, no provisions of this Agreement are
                intended
                or shall be construed to confer upon or give to any person or entity
                other
                than Radware and V-Secure any rights, remedies or other benefits
                under or
                by reason of this Agreement. For the avoidance of doubt, the V-Secure
                Employees shall not be considered third party beneficiaries under
                this
                Agreement.

            

    

    

    
      	11.3	
              Broker's
                Fees.
                Except for a fee owed by V-Secure to CE Unterberg Towbin, V-Secure
                and
                Radware represent and warrant to the other that each has no obligation
                or
                liability to any broker or finder by reason of the transactions which
                are
                the subject of this Agreement. 

            

    

     

    
      
        12

      

      
         

        
          

        

      

      
         

      

    

    
 

    
      	11.4	
              Survival
                of Representations and Warranties. All
                representations and warranties contained herein or made pursuant
                hereto,
                and any right to seek indemnification pursuant to Section 10.2 above,
                shall survive the Closing of the transactions hereunder until June
                30,
                2007, or for 18 months after Closing, whichever occurs later (limited
                to
                the amounts specified in the Escrow Agreement and Exhibit
                A).

            

    

    

    
      	11.5	
              Notices.
                Any notice required or permitted to be given by either party under
                this
                Agreement shall be in writing and shall be personally delivered or sent by
                a reputable overnight mail service, or by first class mail (certified
                or
                registered), or by facsimile confirmed by first class mail (registered
                or
                certified). Notices will be deemed effective: (a) three (3) working
                days
                after deposit, postage prepaid, if mailed; (b) the next day if sent
                by
                overnight mail; or (c) the same day if sent by facsimile and confirmed
                as
                set forth above. A copy of any notice shall be sent to the
                following:

            

      	 	 

      	 	
              to
                Radware:

              Radware,
                Ltd. 

              22
                Raoul Wallenberg St.

              Tel-Aviv
                69710

              Israel
                

              Fax
                : 972-3-7668982

              Attention:
                Roy Zisapel, CEO

              With
                CC: Legal Department

            

      	 	 

      	 	to: V-Secure:

      	 	 

      	 	
              c/o
                Sharir, Shiv, Friedman & Co. Law Offices

              3
                Azreili Center, Triangular Tower, 39th
                Floor

              Tel
                Aviv 67023 Israel

              Fax:
                972-3-6074778

              Attention:
                Alex Berman, Adv.

            

    

     

    
      	11.6	
              Waiver
                and Modification.
                Failure by either party to enforce any provision of this Agreement
                will
                not be deemed a waiver of future enforcement of that or any other
                provision. Any waiver, amendment or other modification of any provision
                of
                this Agreement will be effective only if in writing and signed by
                the
                parties.

            

    

    

    
      	11.7	
              No
                assignment of Liabilities. Notwithstanding
                anything in this Agreement to the contrary, Radware shall not assume,
                pay,
                perform, or discharge, and V-Secure shall solely retain, pay, perform
                and
                discharge, all obligations and liabilities of V-Secure, and V-Secure
                shall
                not assume, pay, perform, or discharge, and Radware shall solely
                retain,
                pay, perform and discharge, all obligations and liabilities of Radware,
                whether disclosed, undisclosed, direct, indirect, fixed or contingent,
                known or unknown, incurred in the ordinary course of business or
                otherwise.

            

    

    

    
      	11.8	
              Severability.
                If for any reason a court of competent jurisdiction finds any provision
                of
                this Agreement to be unenforceable, that provision of the Agreement
                will
                be enforced to the maximum extent permissible so as to affect the
                intent
                of the parties, and the remainder of this Agreement will continue
                in full
                force and effect.

            

    

    

    
      	11.9	
              Governing
                Law.
                This Agreement and any action related thereto shall be governed,
                controlled, interpreted and defined by and under the laws of the
                State of
                Israel, without regard to the conflicts of laws provisions
                thereof.

            

    

    

    
      	11.10	
              Entire
                Agreement.
                This Agreement, including all exhibits and schedules which are
                incorporated herein by reference, constitutes the entire agreement
                between
                the parties with respect to the subject matter hereof, and supersedes
                and
                replaces all prior and contemporaneous understandings or agreements,
                written or oral, regarding such subject matter.

            

    

    

    
      
         

      

      
         

        
          

        

      

      
        13

      

       

    

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

     

     

    
 

    
      	Radware:	 	V-Secure:
	 	 	 
	___________________     	 	__________________    
	Radware Ltd V-Secure	 	Technologies (US) Inc.
	 	 	 
	 	
              ______________ 

            	 
	 	
              V-Secure
                (2000) Ltd.

            	 

    

         

    
      
         

      

      
         

        
          

        

      

      
        14

      

    

     

    Exhibit
      A - Escrow
      Terms 

    Exhibit
      B - Licensed
      IP

    Exhibit
      C - Owned
      IP

    Exhibit
      D - Product
      Inventory

    Exhibit
      E - 
      Service
      Agreement migration and termination procedure

    Exhibit
      F
      -  Confidentiality and Non-Disclosure Agreement

     

    
 

    
      
         

      

      
         

        
          

        

      

      
        15

      

    

    Exhibit
      A

    

    Escrow
      Agreement

    

    The
      Escrow Agreement will be negotiated in good faith by the Parties and signed
      prior to Closing. However, it is agreed that the Escrow Agreement will include
      the following terms:

    

    	a.  	
            The
              Escrow Agreement will refer to two separate amounts in
              escrow:

          

    	i.  	
            $400,000,
              which will be used for providing certain V-Secure Employees with incentive
              bonuses if they remain with Radware for no less than 12 to 24 months,
              in
              accordance with the provisions of Section 7.4 of this Agreement (the
              “Bonus Deposit”).

          

    	ii.  	
            An
              amount between $900,000 and $1,500,000 (pursuant to Sections 4 and
              8.4)
              which will be used to secure V-Secure’s and V-Secure Ltd.’s indemnity
              obligations under the agreement, including their obligations, warranties
              and representations under Sections 9, 10.2 and this Schedule 8.3 (h)
              of
              the Agreement (the “Indemnity Deposit”).

          

    	b.  	
            Any
              amounts remaining in the Bonus Deposit after payment of all the bonuses
              pursuant to a pre-determined bonus plan to be attached to the Escrow
              agreement, will be returned to V-Secure or its designee(s) immediately
              after it becomes known that such amount will not be paid to the designated
              V-Secure Employees under such bonus plan.

          

    	c.  	
            With
              respect to the Indemnity Deposit, it is agreed that on January 1, 2007
              or
              12 months following closing, whichever occurs later, the Indemnity
              Deposit
              will be reduced to $500,000 and that the remaining deposit will be
              released to V-Secure or its designee(s) within an additional 6 months,
              all
              subject to any claims made by Radware pursuant to the terms of the
              Escrow
              Agreement prior to such date.

          

     

    
 

    
      
        16

      

      
         

        
          

        

      

      
         

      

    

    

    EXHIBIT
      B

    Licensed
      Intellectual Property

    

    

    	1.  	
            IP
              licensed under Windriver Agreement as supplied to Radware in
              hardcopy

          

    	 	 

    	2.  	
            IP
              licensed under MySQL Agreement as supplied to Radware in
              hardcopy

          

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
        17

      

       

    

    EXHIBIT
      C

    Owned
      Intellectual Property

    

    A. 
      Patents

     

    Patent
      Application Name: “Stateful
      Attack Protection”

    
      	 	
              Serial
                No: 11/018,255.

            

      	 	
              Filed:
                Dec 22,2004

            

      	 	
              Projected
                Publication date: Jun, 22 2006

            

      	 	
              First
                Inventor: Avi Chesla

            

    

    

      Patent
        Application Name: “Dynamic
        Network Protection”

      	 	
              Serial
                No: 10/441,971

            

      	 	
              Filed:
                May 19, 2003

            

      	 	
              Publication
                date: Dec 9, 2004

            

      	 	 

    

     

    B. 
      Trademarks

     

    
      	1.  	
              Israeli
                trademark application 157235 (NetProtect) (US corresponding case
                -
                76/464,313)

            

    

    
      	2.  	
              Israeli
                trademark application 157236 (NetProtect Enterprise) (US corresponding
                case - 76/464,312). 

            

    

               
      Trade mark application (NetProtect Enterprise) was issued in the European
      community as well.

    
      	3.  	
              Israeli
                trademark application 157237 (NetProtect Provider) (US corresponding
                case
                - 76/464,311)

            

    

    
      	4. 	Israeli trademark application 157238 (NetProtect
              Infrastructure) (US corresponding case -
              76/464,310)

    

             

    

    C.  Intellectual
      Property

    

    Know-how,
      inventions, research records, trade secrets, confidential information, product
      designs, engineering specifications and drawings, technical information, or
      formulas relating to the Products, including source code (supplied on CD),
      bug
      list for Products (supplied on CD), design documents and release notes (supplied
      on CD), other documentation for Products (supplied on CD), and all of Company’s
      rights in white papers and articles related to the Products.

     

    
      
         

      

      
         

        
          

        

      

      
        18

      

    

     

    EXHIBIT
      E

    

    Termination
      of Service Agreements for US customers

    Exhibit
      E of the Asset Purchase Agreement

    

    

    Within
      90
      days from signing of the Asset Purchase Agreement V-Secure will:

    

    
      	·  	
              V-Secure
                will send a letter to V-Secure Partners and Customers, with the text
                shown
                in the bottom of this document

            

    

    
      	·  	
              V-Secure
                will contact each of the Partners and/or Customers under existing
                valid
                warranty and offer them the
                following:

            

    

    
      	o  	
              V-Secure’s
                tech support will continue to fulfill its obligations until 28 February
                2006

            

    

    
      	o  	
              V-Secure
                will offer customers a V-Secure “box” (V-10, V-100, V-1000) per each box
                under warranty

            

    

    
      	o  	
              In
                exchange for the box, V-Secure will ask for a signed form releasing
                it
                from its further obligations to this
                customer

            

    

    
      	o  	
              Where
                needed, V-Secure will offer to give back a pro-rated share of the
                customer
                warranty payments, in exchange for a signed form releasing it from
                its
                further obligations to this
                customer

            

    

    
      	·  	
              V-Secure
                will maintain its customer support line and emails during this
                period

            

    

    
      	·  	
              V-Secure
                will strongly recommend that its existing customers migrate to Radware’s
                DefensePRo IPS and DoS solution. 

            

    

    
      	·  	
              V-Secure
                will advise its customers that Radware has been given V-Secure’s customer
                contacts and that Radware will be contacting them to discuss a special
                V-Secure customer migration program that will provide V-Secure customers
                with a limited time offer to purchase DefensePro at a special low
                price,
                subject to Radware’s agreement to such a plan and
                incentives

            

    

     

    

    
      
         

      

      
         

        
          

        

      

      
        19

      

    

    

    Letter
      to Partners and Customers:

    

    Dear
      V-Secure Customer / Partner,

    

    As
      you
      may have heard, V-Secure has recently sold its Assets to Radware (Nasdaq: RDWR)
      the global leader in integrated application delivery solutions. Radware’s
      products deliver
      full availability, maximum performance
      and
complete
      security
      of all
      business critical networked applications while dramatically cutting operating
      and scaling costs.

    

    Upon
      completion of Radware’s acquisition of V-Secure’s innovative Intrusion
      Prevention technology, Radware will integrate our unique behavioral analysis
      capabilities into Radware’s multi-gigabit enterprise scale APSoluteTM application
      delivery solutions. The integration of V-Secure’s technology into Radware’s
      DefensePro security switch creates a leading unique IPS and DoS security
      offering. 

    

    We
      will
      be contacting you shortly to discuss how this acquisition may affect you. You
      are a valued partner/customer and we want to ensure that we offer you the right
      path to migrate your V-Secure intrusion prevention products to Radware’s
      platforms. Radware has designed a special migration offer, with a limited time
      frame, available only to V-Secure customers under current service agreements.
      We
      strongly recommend that you take advantage of this offer. It will provide you
      with a superior solution, and most importantly, provide a smooth transition
      to
      ensure business continuity.

    

    Please
      feel free to contact us with any questions or comments that you may
      have.

    

    Sincerely,

    

    Izhar
      Shay

    

    CEO,
      V-Secure Technologies

    

     

    

    
      
         

      

      
         

        
          

        

      

      
        20

      

    

     

    Exhibit
      F

    

    CONFIDENTIALITY
      AND NON DISCLOSURE AGREEMENT

    

    THIS
      CONFIDENTIALITY AND NON DISCLOSURE AGREEMENT(hereinafter referred to as the
      “Agreement”) is made and entered into effective as of the 28th
      day of
      November 2005 by and between RADWARE LTD., an Israeli company with its principle
      place of business at 22 Raoul Wallenberg St., Tel Aviv, Israel (hereinafter
      referred to as “RADWARE”) and---- between V-Secure Technologies (US) Inc., a
      Delaware corporation, having its principal place of business at Park 80 West,
      Plaza II, Suite 200, Saddle Brook, NJ 07663 (hereinafter referred to as
“V-Secure”) and V-Secure (2000) Ltd., a wholly-owned subsidiary of V-Secure
      (“V-Secure Ltd.”);

    

    WITNESSETH:

     

    
      	WHEREAS	
              Radware,
                V-Secure and V-Secure Ltd. entered into an Asset Purchase Agreement
                (the
                “Asset Purchase Agreement”), pursuant to which Radware shall purchase,
                subject to certain terms and conditions assets of V-Secure;
                and

            
	 	 
	WHEREAS	
              Each
                of Radware and V-Secure is willing to disclose confidential and
                proprietary information and data to the other party, pursuant to
                the terms
                and subject to the conditions hereinafter set forth, and for the
                purposes
                stated herein; and 

            

    

    

    NOW
      THEREFORE, for and in consideration of the premises, and the mutual covenants,
      representations and warranties hereinafter set forth, the adequacy and
      sufficiency of which are hereby acknowledged, the parties agree as
      follows:

    

    1. 
Each
      party may disclose to the other party certain confidential and proprietary
      information and data, relating to its products and/or its business activity.
      All
      such information and data which may furnished to by one party to the other
      is
      for the sole purpose of performing the parties’ obligations pursuant to the
      Asset Purchase Agreement. Except as expressly provided herein, terms defined
      in
      the Asset Purchase Agreement shall bear the same meaning in the
      Agreement.

    All
      confidential and proprietary information disclosed by the parties relating
      to
      the whole or any portion or phase of any scientific, technical or non-technical
      data, commercial information, design, pattern, process, formula, device, method,
      technique, compilation, program, drawing, financial plans, product plans or
      list
      of actual or potential customers or suppliers shall hereinafter be referred
      to
      as “Trade Secrets”. Upon
      Closing - the Owned Intellectual Property included in the Purchased Assets
      and
      any confidential information relating to the Purchased Assets shall be
      considered Radware’s Trade Secrets for the purposes of this
      Agreement.

     

    2. 
Each
      party (hereinafter: the “Receiving Party”) hereby acknowledges that all such
      Trade Secrets furnished by the other party and/or its agents and/or its officers
      and employees (hereinafter: the “Disclosing Party”) is proprietary to the
      Disclosing Party and the Receiving Party agrees that all such Trade Secrets
      will
      remain the property of the Disclosing Party and will be kept
      confidential.

     

    3. 
The
      Receiving Party shall, for a Period of 7 years:

     

    
      	 	
              (a)

            	
              make
                no use of any of the Trade Secrets except for the purpose stated
                in the
                foregoing paragraph 1 or as permitted pursuant to the terms of the
                Asset
                Purchase Agreement;

            

    

     

    
      	(b)        
                	
              shall
                not disclose, implement, or use the Trade Secrets or to make all
                or any
                part of the Trade Secrets available to any other person or group
                for any
                other purpose;

            

    

     

    
      	 	
              (c)

            	
              limit
                its officers, employees, agents and representatives who are provided
                with
                the Trade Secrets only to those required to be aware of it for the
                purpose
                stated in the foregoing paragraph 1 and who are bound to it by obligations
                of confidentiality; and

            

    

    

    
      
         

      

      
         

        
          

        

      

      
        21

      

       

    

    
      	 	
              (d)

            	
              take
                such other precautions as it takes with its own confidential and
                proprietary information to prevent disclosure of the Trade Secrets
                to
                third parties.

            

    

    4. 
Notwithstanding
      any of the foregoing, the obligations of non-use and non-disclosure hereunder
      shall not apply to any Trade Secrets that the Receiving Party can show by
      competent proof:

    

    
      	(a)  	
              was
                generally known to the public at the time of disclosure by the Disclosing
                Party;

            

    

    

    
      	(b)  	
              becomes
                generally known to the public after disclosure by the Disclosing
                Party
                through no act or omission of the Receiving Party or its officers,
                employees, agents, or
                representatives;

            

    

    

    
      	(c)  	
              was
                disclosed to Receiving Party, prior to the time of disclosure by
                the
                Disclosing Party by a third party having a bona fide right both to
                possess
                the information and to disclose the information to the Receiving
                Party.

            

    

    

    
      	(d)  	
              is
                independently developed by the Receiving Party, as can be evidenced
                by
                written records.

            

    

    

    
      	(e)  	
              Is
                disclosed pursuant to enforceable governmental or legal requirements
                provided that the Receiving Party informs the Disclosing Party prior
                to
                such disclosure and abides by the reasonable requirements of the
                Disclosing Party in respect of such
                disclosure.

            

    

    

    However,
      the above exclusions shall not apply the Owned Intellectual Property included
      in
      the Purchased Assets and any confidential information relating to the Purchased
      Assets.

     

     

    
      
         

      

      
         

        
          

        

      

      
        22

      

       

    

    5. 
Each
      Receiving Party shall deliver to the Disclosing Party or destroy at Disclosing
      Party’s option promptly upon its request, all originals, copies and excerpts of
      the Trade Secrets. Upon completion of the delivery or destruction, as the case
      may be, of all the Trade Secrets, Receiving Party shall deliver to Disclosing
      Party written certification of same signed by a duly authorized
      representative.

     

    6. 
Each
      party shall not, without the other party’s express prior written consent,
      disclose in any form to any third parties the substantive content of this
      Agreement or of any discussions between the parties to this
      Agreement.

     

    7. 
The
      provisions of this Agreement shall be construed and enforced in accordance
      with
      the internal law of the State of Israel. If a judicial determination is made
      that any of the provisions contained in this Agreement constitute an
      unreasonable or otherwise unenforceable restriction against either party, such
      provision or provisions shall be rendered void or invalid only to the extent
      that such judicial determination finds such provisions to be unreasonable or
      otherwise unenforceable, and the remainder of this Agreement shall remain
      operative and in full force and effect.

     

    8. 
In
      any
      event the Receiving Party breach or threaten to commit a breach of this
      Agreement, the Disclosing Party will, in addition to any other remedies
      available to, be entitle to injunction relief. 

     

    9.              
      It
      is
      agreed and understood that in the event of any litigation between the parties
      to
      this Agreement to enforce any rights hereunder, the unsuccessful party to such
      litigation will pay to the prevailing party therein all cost and expenses
      including, but not limited to, reasonable attorney’s fees and cost, actually
      incurred by the prevailing party.

     

    10.           
      No
      right
      or license to use any Information disclosed hereunder, either express or
      implied, is granted by the Disclosing Party.

     

    11.           
      This
      Agreement shall be binding upon and shall inure to the benefit of the parties
      and their respective successors, assigns and legal representatives.

     

    12.           
      This
      Agreement constitutes the entire agreement between the parties hereto and
      supersedes all prior agreements between the parties hereto with respect to
      the
      subject matter hereof. No change or modification of the Agreement shall be
      valid
      or binding on the parties hereto unless made in writing, signed by authorized
      representatives of the parties hereto.

     

    13.           
      The
      failure of any party hereto to require the performance of any provisions of
      this
      Agreement shall in no manner affect the right to enforce the same. No waiver
      by
      any party hereto of any provisions or of any breach of any provisions of this
      Agreement shall be deemed or construed either as a further or continuing waiver
      of any such provisions or breach waiver or as a waiver of any other provision
      or
      breach of any other provision of this Agreement. No waiver of any provision
      or
      any breach of any provision of this Agreement shall be valid or binding on
      the
      parties hereto unless made in writing signed by an authorized representative
      of
      the party against whom the same is sought to be enforced.

    

    IN
      WITTNESS WHEREOF, the parties hereto by their authorized representative have
      executed this Agreement as of the date first above written.

    

    

    
      	RADWARE LTD.	 	V-SECURE TECHNOLOGIES (US) INC.
	 	 	 
	By: ___________________  	 	By:    ____________________
	Name: _________________  	 	
              Name:
                ___________________

            
	Title: __________________  	 	
              Title:  
                ___________________

            
	 	 	 
	 	
              V-SECURE
                (2000) LTD.

            	 
	 	 	 
	 	
              By:
                ________________

            	 
	 	
              Name:
                ______________

            	 
	 	
              Title:
                _______________

            	 

    

    
       

    

    

    
      
         

      

      
         

        
          

        

      

      
        23

      

    

     

    

    Schedule
      4

    

    Form
      of Warrants

     

    

    
      
         

      

      
         

        
          

        

      

      
        24

      

    

    

    

    Schedule
      7.3

    List
      of V-Secure Employees required by Radware

    

    Avi
      Chesla

    Sagit
      Tadir

    Dima
      Wolfson

    Zoya
      Khmelnik

    Eran
      Danino

     

    

    
      
         

      

      
         

        
          

        

      

      
        25

      

    

    

    

    Schedule
      8.3(b)

    List
      of approvals and certifications required for Closing. 

    

    Stockholder
      Approval of V-Secure

    

    Whether
      MOD (relating to encryption) or NSA (relating to encryption) approval is
      required to be confirmed prior to Closing

     

    

    
      
         

      

      
         

        
          

        

      

      
        26

      

    

    

    

    Schedule
      8.3(e)

    Form
      of consent by V-Secure’s external auditors.

    

    

    

    CONSENT
      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

     

    We
      consent to the reference to our firm under the caption "Experts" and to the
      use
      of our reports dated XXX, 2005, with respect to the financial statement
      schedules of V-secure Technologies (US) Inc. for the years ended December
      31, 2004 and 2003, included in the Annual Report (Form 20-F No. XX) of Radware
      Ltd. for 2005 filed with the Securities and Exchange Commission.

     

     

     

    

    
      
         

      

      
         

        
          

        

      

      
        27

      

       

    

    Schedule
      8.3(f)

    Consent
      by V-Secure’s external auditors in connection with additional
      filings

    

    E&Y
      understands that Radware Ltd. may be required to file the financial statements
      of V-Secure Inc, and related schedules, as well as our report with respect
      thereto, with the U.S. Securities and Exchange Commission in future filings
      under the Securities Exchange Act of 1934 or Securities Act of 1933 and E&Y
      agrees not to unreasonably withhold its consent thereto.

    

    

     

    

    
      
         

      

      
         

        
          

        

      

      
        28

      

    

    

    

    

    Schedule
      9.1(e)-  

    List
      of contracts, leases, instruments, licenses, commitments, orders and other
      agreements relating to the Purchased Assets

     

    

    
      
         

      

      
         

        
          

        

      

      
        29

      

    

    

    

    Schedule
      9.1(f)-

    List
      of Financial Information provided to Radware

    

    

    Financial
      Information

    

    

    

    
      	1.  	
                
                V-Secure’s Financial Statements under US GAAP for the years 2002, 2003,
                2004.

            

    

    
      	2.  	
                
                V-Secure’s Financial Statements for the periods Q1/05 and
                Q2/05.

            

    

    
      	3.  	
                
                Solo Statements of V-Secure (2000) Ltd and V-secure Technologies
                Inc. as
                of December 31st,
                2004.

            

    

    
      	4.  	
                
                Solo Statements of V-Secure (2000) Ltd and V-secure Technologies
                Inc. as
                of June 30th,
                2005.

            

    

    
      	5.  	
                
                Fixed Assets Report

            

    

    
      	6.  
              	
                
                Inventory Report

            

    

    
      	7.  	
                
                Units Allocation Report 

            

    

    
      	8.  	
                
                All the Financial Entries from January 2004 until October
                2005.

            

    

    
      	9.  	
                
                Service Agreements Payment Summary

            

    

    
      	10.  	
                
                Deferred Maintenance report as of December 31st,
                2004 and June 30th
                2005

            

    

    

    

    Financial
      Statements

    

    V-Secure’s
      Financial Statements for the year ended 2004.

    V-Secure’s
      Financial Statements for the periods Q1/05 and Q2/0

     

     

    
      
         

      

      
         

        
          

        

      

      
        30

      

    

    

    

    

    Schedule
      9.1(g)-

    List
      of Licenses and Certifications required for the production, sale and export
      of
      the Products

    

    Encryption
      license from Israeli Ministry of DefenseSTOCK
      PURCHASE AGREEMENT

    

    

    by
      and among

    

    A.
      REYAZ FAROOK,

    

    MKI
      REYAZ, 

    

    and

    

    HTL
      LOGISTICS LIMITED (a Cayman Island Corporation)

    

    and

    

    PACIFIC
      CMA INC.

    

    

    

    As
      of April 20, 2006

    

    

    

    
      

      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    STOCK
      PURCHASE AGREEMENT, (the
      “Agreement”)
      dated
      as of April 20, 2006, by and among, A. REYAZ FAROOK AND MKI REYAZ (each a
“Seller,”
and
      collectively, the “Sellers”),
      HTL
      Logistics Limited, a Cayman Island corporation (the “Company”) and
      Pacific CMA, Inc., a Delaware corporation (the “Purchaser”).

    

    W
      I T N E S S E T H:

    

    WHEREAS,
      the
      Company, which owns the capital stock of certain non-United States entities
      in
      the amounts set forth on Schedule
      1 annexed
      hereto (collectively, the “Subsidiaries”),
      provides cargo services including the shipment of general cargo, perishables,
      pharmaceuticals, garments, and information technology products (collectively,
      the “Subsidiaries”);
      and

    

    WHEREAS,
      Purchaser is
      a
      global, non-asset based logistics/freight forwarder providing supply chain
      logistics services; and

    

    WHEREAS,
      Company
      is authorized to issue a total of five hundred thousand (500,000) shares of
      capital stock (the “Company
      Shares”),
      three
      hundred thirty thousand (330,000) of which authorized Company Shares are issued
      and outstanding, all of which are owned by the Sellers in the amounts set forth
      on Schedule
      2
      annexed
      hereto; and

    

    WHEREAS,
      Purchaser
      and Sellers agree that Purchaser shall acquire (the “Acquisition”)
      from
      the Sellers (i) 231,000 Company Shares which Company Shares constitute seventy
      (70%) percent of the issued and outstanding Company Shares (the “Acquisition
      Shares”),
      and
      (ii) a three (3) year option, the form of which is annexed hereto as
Exhibit
      A
      (the
“Option”)
      to
      acquire the remaining 99,000 Company Shares (the “Option
      Shares”),
      all
      on the terms set forth herein; and 

    

    WHEREAS,
      Purchaser is a corporation subject to the reporting requirements of
      Section 12(b) of the Securities Exchange Act of 1934, as amended (the
“Exchange
      Act”);

    

    WHEREAS,
      Purchaser’s shares of common stock (the “Common
      Stock”)
      are
      listed for trading on the American Stock Exchange (the “AMEX”)
      under
      the symbol “PAM;” and

    

    NOW,
      THEREFORE,
      in
      consideration of the premises and the mutual covenants, representations and
      warranties contained herein, the parties hereto do hereby agree as
      follows:

    

    1. SALE
      OF SECURITIES, ETC.

    

    1.1 Certain
      Definitions.
      Certain
      terms that are not otherwise defined in other sections of this Agreement are
      defined in Section
      12.1 hereafter.
      

    

    1.2 Acquisition
      Shares.
      Subject
      to the terms and conditions of this Agreement, at the Closing (as defined in
      Section 2.1
      below)
      to be held pursuant to Section 2
      below,
      Sellers shall sell, assign, transfer, convey and deliver to Purchaser, and
      Purchaser shall purchase and acquire from Sellers, good and marketable title
      to
      the 231,000 Acquisition Shares, all free and clear of Liens of every kind and
      character. 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1.3 Purchase
      Price.
      In
      consideration for Sellers’ sale of the 231,000 Acquisition Shares and issuance
      of the Option to the Purchaser, the Purchaser shall, at the Closing, (i) pay
      to
      the Sellers an aggregate purchase price of One Million Three Hundred Thirty
      Thousand Dollars (US$1,330,000), less all funds paid prior to such date (the
      “Cash
      Portion”),
      and
      (ii) issue to Sellers Two Million Eight Hundred Thousand (2,800,000) shares
      of
      restricted Common Stock (the “PAM
      Shares”).
      The
      amount of PAM Shares and Cash Portion of the Purchase Price to be provided
      to
      each Seller shall be as set forth on Schedule
      1.3
      annexed
      hereto.

    

    1.4 Option.
      At
      Closing, the Sellers shall issue to the Purchaser the Option, pursuant to which
      the Purchaser shall have the right for a period of three (3) years from the
      Closing to purchase the 99,000 Option Shares (which 99,000 Option Shares shall
      constitute all of issued and outstanding shares of Company Stock owned by the
      Sellers following the Closing). The Option may be exercised at any time by
      the
      Purchaser by the Purchaser purchasing all of the Option Shares as provided
      below. The exercise price of the Option Shares shall be (i) $570,000, and (ii)
      such number of shares of Common Stock, as follows (collectively, the
“Exercise
      Price”):

    

    
      	
              Time
                following Closing when 

            	 	 
	
              the
                Option Exercised

            	 	
              Number
                of Shares

            
	 	 	 	 	 
	
              1.

            	 	
              0-12
                months

            	 	
              1,320,000
                shares of restricted Common Stock

            
	 	 	 	 	 
	
              2.

            	 	
              12
                months - 24 months

            	 	
              1,440,000
                shares of restricted Common Stock

            
	 	 	 	 	 
	
              3.

            	 	
              24
                months - 36 months

            	 	
              (i)
                1,800,000 shares of restricted Common Stock if the Net Profit is
                between
                $1,200,000 and $2,200,000; (ii) 2,000,000 shares of restricted Common
                Stock if the Net Profit is between $2,200,000 and $2,400,000; or
                (iii)
                2,200,000 shares of restricted Common Stock if the Net Profit is
                $2,400,000 or above.

            

    

    

    1.5 Escrow
      of Option Shares.
      At
      Closing, the Seller shall deliver to Gusrae, Kaplan, Bruno & Nusbaum PLLC
      (the “Escrow
      Agent”),
      the
      99,000 Option Shares, which Option Shares shall be held in escrow by the Escrow
      Agent pursuant to and on the terms and conditions set forth in an escrow
      agreement, the form of which is annexed hereto as Exhibit
      B
      (the
“Escrow
      Agreement”),
      pending exercise of the Option and payment of the Exercise Price.

    

    1.6 Incentive
      Shares.
      As
      further consideration for the Sellers entering into this Agreement, for the
      fiscal years ended December 31, 2006, 2007 and 2008, in the event the Net Profit
      in any such year is greater than the $500,000 (if Net Profit is less than
      $500,000, no Incentive Shares will be issued), then the Sellers shall be
      entitled to receive restricted shares of Common Stock (the “Incentive
      Shares”)
      proportionate to their ownership of the Company (as set forth on Schedule
      2
      hereto),
      the number of which Incentive Shares to be issued for such year shall equal
      the
      product obtained by multiplying (i) the Net Profit for such year by (ii) 0.45;
      provided,
      however,
      that
      notwithstanding anything to the contrary provided herein or elsewhere, in no
      event shall the Sellers be entitled to receive in any year more than 750,000
      Incentive Shares.  Prior
      to
      any issuance of any Incentive Shares, if ever, the Sellers shall have no
      beneficial or other right to any Incentive Shares including, but not limited
      to,
      no right to vote, encumber, sell, hypothecate and/or other transfer or claim
      any
      ownership rights to any Incentive Shares. 

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    1.7 Employment
      Agreement.
      At the
      Closing, Mr. Farook shall enter into a three (3) year employment contract (the
      “Farook
      Agreement”)
      in the
      form annexed hereto as Exhibit
      C,
      pursuant to which he shall be a Director of the Purchaser and the Chief
      Executive officer of the Company and receive a salary of US$8,195.00 per month
      (subject to annualized 20% raises as provided therein).

    

    1.8 Return
      of Funds.
      In the
      event for any reason or no reason, the Acquisition does not occur by July 1,
      2006 or earlier if a condition to closing set forth in Section
      6
      of this
      Agreement does not occur, then the Sellers and/or the Company shall wire to
      the
      Purchaser all funds previously paid by the Purchaser to the Sellers and/or
      the
      Company no later than the date five (5) days following the date of written
      notice by the Purchaser to the Sellers and/or the Company requesting such
      repayment. 

    

    2. THE
      CLOSING

    

    2.1 Place
      and Time.
      The
      closing of the Acquisition (the “Closing”)
      shall
      take place at the offices of Gusrae, Kaplan, Bruno & Nusbaum, PLLC, 120 Wall
      Street, New York, New York at 10:00 a.m. on such date as the parties hereto
      have satisfied all closing conditions as set forth in Section 7 and
      Section
      8
      but in
      no event later than July 1, 2006 (unless otherwise agreed to by the parties)
      or
      at such other place, date and time as the parties may agree in writing (the
      “Closing
      Date”).

    

    2.2 Deliveries
      by Sellers and Company.
      At the
      Closing, Sellers and Company shall deliver to Purchaser the
      following:

    

    (a) A
      stock
      certificate(s) with appropriately executed transfer documents for the transfer
      of all of the Acquisition Shares by Seller to Purchaser;

    

    (b) The
      Option, executed by each of the Sellers;

    

    (c) A
      certificate issued by an authorized government official (an “Authorized
      Official”)
      of
      each jurisdiction in which the Company and each Subsidiary is incorporated
      as to
      the good standing of Company and each Subsidiary in the appropriate
      jurisdiction, as of a then recent date;

    

    (d) The
      Executed Escrow Agreement;

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (e) A
      legal
      opinion by legal counsel opining to, among other items, the Company and each
      Subsidiary is in good standing and all of its issued and outstanding capital
      stock is owned, as set forth on Schedule
      2.2
      hereto;

    

    (f) Consolidated
      financial statements including footnotes thereto of the Company and each of
      its
      Subsidiaries that comply in all respects with U.S. GAAP and SEC Rule
      S-X;

    

    (g) Stock
      certificates for the 99,000 Option Shares to be held by the Escrow Agent
      pursuant to the Escrow Agreement pending exercise of the Option by the
      Purchaser;

    

    (h) A
      true
      and complete copy of the charter documents (as amended) of the Company and
      each
      Subsidiary, certified as of a then recent date, by an authorized
      official;

    

    (i) A
      true
      and correct copy of the By-Laws (as amended), as in effect as of the Closing
      Date, certified by the Secretary of Company;

    

    (j) Certificates
      of an officer of the Company attesting to the compliance by each of the terms
      and conditions of this Agreement to be complied with by the Sellers and Company,
      respectively, and the accuracy of the Company’s representations and warranties
      made in this Agreement;

    

    (k) Resolutions
      of the shareholders of the Company’s Board of Directors (or similar governing
      authority) authorizing all transactions contemplated by this
      Agreement;

    

    (l) Resolutions
      of the shareholders of the Company, to the extent that the approval of the
      shareholders is required in order to consummate the transactions contemplated
      by
      this Agreement; and

    

    (m) The
      Stock
      Certificates representing the Company ownership of the
      Subsidiaries;

    

    (n) The
      resignations of all officers and directors of the Company and each Subsidiary,
      (except Reyaz Farook who shall remain in his current position) and resolutions
      of the Company and each Subsidiary appointing such officers and directors as
      the
      Purchaser shall so request; and

    

    (o) All
      other
      documents, instruments and writings required (or reasonably requested by
      Purchaser and/or its counsel). 

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    2.3 Deliveries
      by Purchaser.
      At the
      Closing, Purchaser shall deliver the following to Seller:

    

    (a) Bank,
      certified or cashier’s checks in the full amount of the Cash Portion of the
      Purchase Price payable to the order of Seller, or a wire transfer of funds
      to
      Seller’s account, in the full amount of the Purchase Price, pursuant to wire
      transfer instructions provided by Seller;

    

    (b) A
      certificate executed by an officer of Purchaser, attesting to the compliance
      by
      Purchaser of the terms and conditions of this Agreement to be complied with
      by
      Purchaser and the accuracy of the representations and warranties of Purchaser
      made in this Agreement;

    

    (c) A
      restricted stock certificate for the 2,800,000 PAM Shares;

    

    (d) An
      executed copy of the Escrow Agreement;

    

    (e) An
      executed copy of the Farook Agreement;

    

    (f) Resolutions
      of the Purchaser’s Board of Directors authorizing all transactions contemplated
      by this Agreement; and

    

    (g) All
      other
      documents, instruments and writings required (or reasonably requested by Sellers
      and/or their counsel) by this Agreement to be delivered by Purchaser at the
      Closing.

    

    
      
        3.
          REPRESENTATIONS
          AND WARRANTIES OF SELLER AND COMPANY

      

    

    

    The
      Sellers and Company (which for purposes solely of this Section
      3,
      the
      definition “Company”
shall
      include the Company and all of its Subsidiaries, unless otherwise expressly
      stated otherwise herein) jointly and severally represent, warrant and covenant
      to and with Purchaser, both as of the date of this Agreement and as of the
      Closing Date, as an inducement to Purchaser to enter into this Agreement and
      to
      consummate the transactions contemplated hereby as follows:

    

    3.1 Authorization
      of Agreement.
      The
      Sellers and Company are each fully able, authorized and empowered to execute
      and
      deliver this Agreement and each other agreement, document, instrument and
      certificate to be executed by the Sellers and/or Company in connection with
      the
      consummation of the transactions contemplated by this Agreement, including,
      but
      not limited to, the Option and the Escrow Agreements (collectively, the
“Transaction
      Documents”),
      and
      to perform each of their covenants and agreements hereunder and thereunder.
      This
      Agreement and the other Transaction Documents, upon execution and delivery
      by
      the Sellers and the Company (and assuming due execution and delivery hereof
      and
      thereof by the other parties hereto and thereto), will constitute valid and
      legally binding obligations of each of Sellers and Company, enforceable against
      each of them in accordance with their terms, except as such enforceability
      may
      be limited by applicable bankruptcy, insolvency, moratorium, reorganization
      or
      similar laws from time to time in effect which affect creditors’ rights
      generally and by legal and equitable limitations on the availability of specific
      performance and other equitable remedies against Seller or Company under or
      by
      virtue of this Agreement and the other Transaction Documents. Upon delivery
      of
      the Option and the Acquisition Shares (and the Option Shares upon due exercise),
      Purchaser will acquire good and marketable title to the Acquisition Shares,
      the
      Option and the Option Shares, free and clear of any Liens, claims or rights
      of
      another.

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    3.2 No
      Breach.
      Neither
      the execution and delivery of this Agreement nor compliance by Sellers and
      Company with any of the provisions hereof nor the consummation of the
      transactions and actions contemplated hereby will: 

    

    (a) violate
      or conflict with any provision of the Sellers’, the Company’s or any
      Subsidiaries’ charter documents;

    

    (b) violate
      or, alone or with notice of the passage of time, result in the material breach
      or termination of, or otherwise give any contracting party the right to
      terminate, or declare a material default under, the terms of any material
      agreement or other document or undertaking, oral or written to which the
      Sellers, the Company and/or any Subsidiary is a party or by which any of their
      properties or assets may be bound;

    

    (c) result
      in
      the creation of any Lien upon any of the properties or assets of the Sellers,
      the Company and/or any Subsidiary pursuant to the terms of any such material
      agreement or instrument;

    

    (d) violate
      any statute, ordinance, regulation judgment, order, injunction, decree or award
      of any court or Governmental Body against, or binding upon the Sellers, any
      Subsidiaries or the Company or upon any of their properties or assets;
      or

    

    (e) violate
      any law or regulation of any jurisdiction relating to Sellers, the Company
      or
      any of their securities, assets or properties.

    

    3.3 Obligations;
      Authorizations.
      Neither
      the Sellers, any Subsidiary nor the Company is (i) in violation of any
      judgment, order, injunction, award or decree which is binding on it or any
      of
      its assets, properties, operations or business which violation, by itself or
      in
      conjunction with any other such violation, would materially and adversely affect
      the consummation of the transactions contemplated hereby; or (ii) in
      violation of any law or regulation or any other requirement of any Governmental
      Body, court or arbitrator relating to it, or to its assets, operations or
      businesses which violation, by itself or in conjunction with other violations
      of
      any other Law, would materially adversely affect the consummation of the
      transactions contemplated hereby.

    

    3.4 Consents.
      All
      requisite consents of third parties, including, but not limited to, governmental
      or other regulatory agencies, federal, state or municipal, required to be
      received by or on the part of Sellers, any Subsidiaries and/or the Company
      for
      the execution and delivery of this Agreement and the performance of their
      obligations hereunder have been obtained and are in full force and effect.
      Each
      of Seller, the Subsidiaries and the Company has fully complied with all
      conditions of any such consents.

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    3.5 Organization.
      The
      Company and each Subsidiary is a corporation duly organized, validly existing
      and in good standing as set forth on Schedule
      3.5
      hereto
      and each has full power and authority to own, lease and operate its properties
      and to carry on its business as now being and as heretofore conducted. The
      Company is duly qualified as a foreign corporation in the other jurisdictions
      listed on Schedule
      3.5.
      Neither
      the Company nor any Subsidiary is qualified or licensed to do business as a
      foreign corporation in any other jurisdiction and neither the location of its
      assets nor the nature of its business requires it to be so
      qualified.

    

    3.6 Capitalization.
      As of
      the date of this Agreement, the Company has 500,000 Company Shares authorized,
      of which 330,000 are issued and outstanding, and all of which are owned by
      Sellers as provided in Schedule
      2
      hereto,
      and have been duly authorized, and are validly issued, fully paid and
      non-assessable. The Company has no other securities issued and outstanding
      other
      than the Option Shares subject to the Option. In addition, (i) there is no
      option, warrant, call, right, commitment or other agreement of any character
      to
      which the Company and the Sellers are a party; (ii) there are no securities
      of Company outstanding which upon conversion or exchange would result in the
      issuance of Company Shares; and (iii) there are no appreciation rights, or
      other similar rights based on securities of Company which, in the case of
      clauses (i), (ii) or (iii), would require the issuance, sale or
      transfer of Company Stock or any other securities of Company, or other
      securities convertible into, exchangeable for or evidencing the right to
      subscribe for or purchase Company Shares or other equity securities of the
      Company. Neither Seller nor Company is a party to, nor is either of them aware
      of, any voting trust or other voting agreement with respect to any of the
      securities of Company or of any agreement relating to the issuance, sale,
      redemption, transfer or other disposition of the Company Stock on other
      securities of Company.

    

    3.7 Charter
      Documents and By-Laws.
      Annexed
      hereto as Exhibit
      D
      is a
      true and complete copy of the charter documents and By-Laws of Company as in
      effect on the date hereof, certified by the Secretary of Company in the case
      of
      the By-Laws and by an Authorized Official in the case of the charter
      documents.

    

    3.8 Subsidiaries,
      Joint Ventures, Partnerships, etc.
      Other
      than as set forth on Schedule
      3.5,
      the
      Company does not have any subsidiaries. In addition, except as set forth on
      Schedule 3.8,
      the
      Company is not a party to any joint venture, partnership or similar arrangement
      in which Company participates. 

    

    3.9 Financial
      Statements.
      The
      Sellers, the Company and the Subsidiaries have provided Purchaser with audited
      financial statements of the Company and the Subsidiaries, annexed hereto as
      Exhibit
      E,
      for the
      years ended December 31, 2005, 2004, 2003, including all notes related thereto
      (the “Financial
      Statements”),
      which
      Financial Statements (i) are in accordance with the books and records of
      Company, (ii) are correct and complete in all material respects,
      (iii) present fairly the financial position and results of operations of
      Company as of the respective dates indicated; (iv) have been prepared in
      accordance with U.S GAAP and comply with SEC Rule S-X in all
      respects.

    

    3.10 No
      Undisclosed Liabilities.
      Except
      as set forth on Schedule 3.10,
      Company
      does not have any liabilities (whether accrued, absolute, contingent or
      otherwise, and whether due or to become due or asserted or unasserted), except
      (i) obligations under Contract described in Schedule 3.10,
      (ii) liabilities provided for in the Financial Statements (other than
      liabilities which, in accordance with U.S. GAAP, need not be disclosed), and
      (iii) liabilities (other than accounts payable) incurred since December 31,
      2005, in the ordinary course of business consistent with past practices, the
      sum
      of which is, in the aggregate, not greater than US$10,000.

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    3.11 Absence
      of Certain Developments.
      Except
      as set forth on Schedule 3.11
      and
      since December 31, 2005:

    

    (a) there
      has
      not been any Material Adverse Change nor has any event occurred which could
      reasonably be expected to result in any Material Adverse Change;

    

    (b) there
      has
      not been any declaration, setting a record date, setting aside or authorizing
      the payment of, any distribution in respect of the Company Stock or any other
      securities of Company, or any repurchase, redemption or other acquisition by
      Company of any of the outstanding securities of, or other ownership interest
      in,
      Company;

    

    (c) there
      has
      not been any transfer, issue, sale or other disposition by the Company of
      Company Stock or other securities of Company or any grant of options, warrants,
      calls or other rights to purchase or otherwise acquire Company Stock or such
      other securities;

    

    (d) Company
      has not (i) awarded or paid any bonuses to Employees or Representatives of
      Company; (ii) entered into any employment, deferred compensation, severance
      or similar agreements (nor amended any such agreement); (iii) agreed to
      increase the compensation payable or to become payable by Company to any of
      Company’s Employees or Representatives; or (iv) agreed to increase the
      coverage or benefits available under any severance pay, deferred compensation,
      bonus or other incentive compensation, pension or other employee benefit plan,
      payment or arrangement made to, for or with such Employees or Representatives,
      other than in the ordinary course of business consistent with past practice
      which increases in the aggregate do not exceed US$10,000 in annual cost to
      Company and consistent with the operating expense budget of Company, and other
      than as may have been required by law or insurers;

    

    (e) Company
      has not made any loans, advances (other than advances to officers and employees
      of Company, which advances are made in the ordinary course of business and
      do
      not exceed per individual the reasonable anticipated expenses for legitimate
      business purposes), or capital contributions to, or investments in, any Person
      or paid any fees or expenses to any Affiliate of the Company;

    

    (f) Company
      has not transferred or granted any rights under any Contracts, leases, licenses,
      agreements or Intellectual Property (defined hereafter) used by Company in
      its
      business;

    

    (g) there
      has
      not been any damage, destruction or loss, whether or not covered by insurance,
      with respect to the property or assets of Company;

    

    (h) Company
      has not mortgaged, pledged or subjected to any Lien any of its assets, or
      acquired any assets or sold, assigned, transferred, conveyed, leased or
      otherwise disposed of any assets of Company except for assets acquired or sold,
      assigned, transferred, conveyed, leased or otherwise disposed of in the ordinary
      course of business;

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (i) Company
      has not canceled or compromised any debt or claim, or amended, canceled,
      terminated, relinquished, waived or released any Contract or right, except
      in
      the ordinary course of business consistent with past practice and which,
      individually or in the aggregate, would not be material to Company;

    

    (j) Company
      has not made any binding commitment to make any capital expenditures or capital
      additions or betterments;

    

    (k) Company
      has not incurred any debts, obligations or liabilities, whether due or to become
      due, except current liabilities incurred in the ordinary course of business,
      none of which current liabilities (individually or in the aggregate) could
      result in a Material Adverse Change;

    

    (l) Company
      has not entered into any transaction other than in the ordinary course of
      business except for this Agreement;

    

    (m) Company
      has not encountered any labor difficulties or labor union organizing
      activities;

    

    (n) Company
      has not made any change in the accounting principles, methods or practices
      followed by it or depreciation or amortization policies or rates theretofore
      adopted;

    

    (o) Company
      has not disclosed to any Person any material trade secrets except for
      disclosures made to Persons subject to valid and enforceable confidentiality
      agreements;

    

    (p) Company
      has not suffered or experienced any material change in the relationship or
      course of dealings between the Company and any of its suppliers or customers
      which supply goods or services to Company or purchase goods or services from
      Company; and

    

    (q) Company
      has not made any payment to, or received any payment from, or made or received
      any investment in, or entered into any transaction or series of related
      transactions (including without limitation, the purchase, sale, exchange or
      lease of assets, property or services, or the making of a loan or guarantee)
      with any Affiliate (each, an “Affiliate
      Transaction”).

    

    3.12 Taxes.
      Except
      as set forth on Schedule
      3.12,
      Company
      has filed all Tax returns (including statements of estimated Taxes owed) and
      reports required to be filed within the applicable periods (subject to
      extensions) for such filings and has paid all Taxes required to be paid. Such
      Tax returns and reports are true and correct in all material respects. No
      deficiencies for any Tax are currently assessed against Company, and, no Tax
      returns of Company have ever been audited by a Governmental Body, and, to the
      knowledge of Seller and Company, there is no such audit pending or contemplated.
      There is no Tax Lien, whether imposed by any international, national, state
      or
      local taxing authority, outstanding against the assets, properties or business
      of Company other than Liens for Taxes which are not yet due. Company has not
      executed any waiver of the statute of limitations on the assessment or
      collection of any Tax or governmental charge. Company has properly charged,
      collected and paid all applicable stamp, sales, use and other similar Taxes
      on
      or before the Closing Date.

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    3.13 Real
      Property.

    

    (a) Schedule 3.13
      sets
      forth a complete list of all real property and interests in real property leased
      by Company (each, a “Real
      Property Lease,”
and
      collectively, the “Real
      Property Leases”)
      as
      lessee or lessor. Company has good, legal and marketable title to the leasehold
      estates in all Real Property Leases in each case free and clear of all Liens.
      Company does not have any reason to believe that such title would not be
      insurable subject to customary exceptions.

    

    (b) Each
      of
      the Real Property Leases is valid and enforceable in accordance with its terms,
      subject to applicable bankruptcy, insolvency, reorganization, moratorium and
      similar laws affecting creditors’ rights and remedies generally and subject, as
      to enforceability, to general principles of equity (regardless of whether
      enforcement is sought in a proceeding at law or in equity), and there is no
      default under any Real Property Lease by Company or, to the knowledge of the
      Seller and/or Company, by any other party thereto, and no event has occurred
      that with the lapse of time or the giving of notice or both would constitute
      a
      default thereunder.

    

    (c) No
      previous or current party to any Real Property Lease has given notice of or
      made
      a claim with respect to any breach or default thereunder. With respect to those
      Real Property Leases that were assigned or subleased to Company by a third
      party, all necessary consents to such assignments or subleases have been
      obtained.

    

    3.14 Tangible
      Personal Property; Assets.
      Except
      as set forth on Schedule 3.14,
      Company
      has good, legal and marketable title to or valid leasehold interests in, all
      of
      its personal property and assets. The personal property owned by Company are
      held in each case free and clear of all Liens, other than Permitted Liens.
      With
      respect to the personal property and assets that Company leases, the lessee
      thereunder is in compliance with such leases except for such noncompliance
      as
      would not have a Material Adverse Effect and the lessee holds a valid leasehold
      interest free and clear of any Liens, other than Permitted Liens. All material
      items of personal property and assets owned or leased by Company are in good
      operating condition, normal wear and tear excepted.

    

    3.15 Intellectual
      Property.
      Except
      as set forth in the on Schedule 3.15,
      Company
      owns or possesses adequate licenses or other rights to use all patents, patent
      applications, trademarks, trademark applications, service marks, service mark
      applications, trade names, copyrights, manufacturing processes, software,
      formulae, trade secrets and know how (collectively, the “Intellectual
      Property”)
      necessary to the conduct of its business as conducted. Schedule 3.15
      sets
      forth a correct and complete list of all of the registered Intellectual Property
      of Company. No claim is pending or, to the knowledge of Seller and/or Company,
      threatened to the effect that the operations of Company infringe upon or
      conflict with the asserted rights of any other Person under any Intellectual
      Property, and neither Seller nor Company knows of any basis for any such claim
      (whether or not pending or threatened). No claim is pending or, to the knowledge
      of Seller and/or Company, threatened to the effect that any such Intellectual
      Property owned or licensed by Company, or which Company otherwise has the right
      to use, is invalid or unenforceable by Company, and neither Seller nor Company
      knows of any basis for any such claim (whether or not pending or threatened).
      Company has not granted or assigned to any other Person any right to provide
      the
      services or proposed services of Company.

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    3.16 Material
      Contracts.

    

    (a) Except
      as
      set forth on Schedule 3.16,
      neither
      Company nor any of its properties or assets is a party to or bound by any
      (i) Contract not made in the ordinary course of business, or involving a
      commitment or payment by Company in excess of US$25,000 or, in Sellers’ and/or
      Company’s belief, otherwise material to the business of Company;
      (ii) Contract among members or granting a right of first refusal or for a
      partnership or a joint venture or for the acquisition, sale or lease of any
      assets or share capital of Company or any other Person or involving a sharing
      of
      profits; (iii) mortgage, pledge, conditional sales contract, security
      agreement, factoring agreement or other similar Contract with respect to any
      real or tangible personal property of Company; (iv) loan agreement, credit
      agreement, promissory note, guarantee, subordination agreement, letter of credit
      or any other similar type of Contract, (v) Contract with any Governmental
      Body outside the ordinary course of business, (vi) Contract with respect to
      the discharge, storage or removal of hazardous materials or (vii) binding
      commitment or agreement to enter into any of the foregoing.

    

    (b)  (i) Each
      of
      the Contracts described on Schedule 3.16
      is valid
      and enforceable against Company in accordance with its terms, subject to
      applicable bankruptcy, insolvency, reorganization, moratorium and similar laws
      affecting creditors’ rights and remedies generally and subject, as to
      enforceability, to general principles of equity (regardless of whether
      enforcement is sought in a proceeding at law or in equity), and there is no
      default under any such Contract by Company or, to the knowledge of Seller and/or
      Company, by any other party thereto, which is likely to have a Material Adverse
      Effect, and no event has occurred that with the lapse of time or the giving
      of
      notice or both would constitute a default by Company thereunder which is likely
      to have a Material Adverse Effect.

    

    (ii) No
      previous or current party to any Contract has given written notice to Company
      or
      Seller, or made a claim with respect to any breach or default thereunder and
      neither Seller nor Company has any knowledge of any notice of or claim with
      respect to any such breach or default.

    

    (c) With
      respect to the Contracts described on Schedule 3.16
      that
      were assigned to Company by a third party, all necessary consents to such
      assignment have been obtained.

    

    3.17 Employee
      Benefits.
      Except
      as set forth on Schedule 3.17,
      Company
      does not have in effect any employment agreements, consulting agreements,
      deferred compensation, pension or retirement agreements or arrangements, bonus,
      incentive or profit-sharing plans or arrangements, or labor or collective
      bargaining agreements, written or oral. Company is in compliance in all material
      respects with all applicable Laws relating to labor, employment, fair employment
      practices, terms and conditions of employment, and wages and hours.

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    3.18 Employees.
      

    

    (a) To
      the
      knowledge of Seller, the Company, and/or any Subsidiary, no Key Employee and
      no
      group of Employees or independent contractors of Company has any plans to
      terminate his, her or its employment or relationship as an Employee or
      independent contractor with Company, except for those Employees requested to
      resign by the Purchaser.

    

    (b) Schedule 3.18
      sets
      forth a true and complete list of (i) each Employee of the Company and/or
      any Subsidiary whose current annual compensation is US$25,000 or more, together
      with such person’s job title and amounts and forms of compensation and fringe
      and severance benefits and (ii) each consultant, contractor or
      subcontractor equivalent of Company and/or any Subsidiary whose annual
      compensation payable by Company and/or any Subsidiary is US$10,000 or more,
      together with such person’s amounts and forms of compensation.

    

    (c) To
      the
      best of Seller’s and Company’s knowledge, no Key Employee or any other Employee
      of Company is a party to or is otherwise bound by any agreement or arrangement
      (including, without limitation, confidentiality agreements, non-competition
      agreements, licenses, covenants, or commitments of any nature), or subject
      to
      any judgment, decree, or Order of any court or Governmental Body, (i) that
      would conflict with such Employee’s obligation diligently to promote and further
      the interest of Company or (ii) that would conflict with Company’s business
      as now conducted or as proposed to be conducted.

    

    (d) Schedule 3.18
      sets
      forth a list of each of the Key Employees of Company who have entered into
      a
      confidentiality agreement with Company.

    

    3.19  Litigation.
      There
      are no Legal Proceedings pending or, to the knowledge of Seller and/or Company,
      threatened that question the validity of this Agreement or any of the other
      Transaction Documents or any action taken or to be taken by Company in
      connection with the consummation of the transactions contemplated hereby or
      thereby. Except as set forth on Schedule 3.19,
      there
      are no Legal Proceedings pending or, to the knowledge of Seller and/or Company,
      threatened against or affecting Company or any of its properties or assets,
      and
      there is no reasonable basis for any such Legal Proceeding. There is no
      outstanding or, to the knowledge of Seller and/or Company, threatened Order
      of
      any Governmental Body against, in respect of, or naming Company, or in respect
      of any of its properties or assets or against Company.

    

    3.20 Compliance
      with Laws; Permits.

    

    (a) Company
      is and at all times has been in compliance in all material respects with all
      material Laws and material Orders promulgated by any Governmental Body
      applicable to Company, or to the conduct of the business or operations of
      Company, or the use of any of its properties (including any leased properties)
      and assets. Company has not received any notices of violation or alleged
      violation of any such Law or Order by any Governmental Body.

    

    (b) Company
      has all Permits necessary for the conduct of its business where the failure
      to
      have such Permits could have a Material Adverse Effect. In addition, (i) Company
      has complied in all material respects with all conditions of such Permits
      applicable to it; (ii) no default or violation, or event that with the lapse
      of
      time or giving of notice or both would become a default or violation which
      could
      have a Material Adverse Effect, has occurred in the due observance of any such
      Permit; (iii) all such Permits are in full force and effect without further
      consent or approval of any Person; and (iv) none of Seller or Company has
      received any notice from any source to the effect that there is lacking any
      such
      material Permit required in connection with the current operations of
      Company.

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    3.21 Environmental
      and Safety Laws.
      Company
      is not in violation of any applicable Laws relating to the environment or
      occupational health and safety where the failure to so comply could have a
      Material Adverse Effect and no material expenditures are or will be required
      in
      order to comply with any such existing Laws.

    

    3.22 Investment
      Company Act.
      Company
      is not, nor is it directly or indirectly controlled by or acting on behalf
      of,
      any Person that is an investment company within the meaning of the Investment
      Company Act of 1940, as amended.

    

    3.23 Affiliate
      Transactions.
      Schedule 3.23
      sets
      forth each Affiliate Transaction of Company, including the parties, material
      terms (including amounts due from Company or owed to the Company), restrictions
      and obligations of Company in connection with each such Affiliate Transaction.
      Each such Affiliate Transaction is on an arm’s-length basis and on terms no less
      favorable to Company than could be obtained from non-related
      parties.

    

    3.24  Insurance.
      There
      is in full force and effect one or more policies of insurance issued by insurers
      of recognized responsibility, insuring Company and its properties, business
      and
      projects against such losses and risks, and in such amounts, as are customary
      in
      the case of businesses of established reputation engaged in the same or similar
      business and similarly situated. Company has not been refused any insurance
      coverage sought or applied for, and Company has no reason to believe that it
      will be unable to renew its existing insurance coverage as and when the same
      shall expire upon terms at least as favorable as those presently in effect,
      other than possible increases in premiums that do not result from any act or
      omission of Company. There are no claims currently pending by Company under
      any
      insurance policy. Except as disclosed on Schedule 3.24,
      Company
      is not in default in any material respect with respect to any provision
      contained in any insurance policy maintained by Company, and has not failed
      to
      give any notice or present any presently existing claims under any insurance
      policy in due and timely fashion.

    

    3.25 Customers
      and Suppliers.
      Schedule 3.25
      sets
      forth a list of the ten (10) largest customers and the ten (10) largest
      suppliers of Company and the U.S. dollar amount of gross profit of sales for
      each such customer and total billing of purchases for each such supplier for
      the
      year ended December 31, 2005. There exists no actual or, to the knowledge of
      Seller and/or Company, threatened termination or cancellation of the business
      conducted by Company with any customer, supplier or group of customers or group
      of suppliers set forth on Schedule 3.25.

    

    3.26 No
      Broker, etc.
      Except
      as set forth in Schedule 3.26,
      no
      agent, broker, investment banker, finder, financial advisor or other Person
      is
      or will be entitled to any broker’s or finder’s fee or any other commission or
      similar fee from Seller or Company, directly or indirectly, in connection with
      the transactions contemplated by this Agreement or any other Transaction
      Document and no Person is entitled to any fee or commission or like payment
      from
      Seller or Company in respect thereof based in any way on agreements,
      arrangements or understandings made by or on behalf of the Seller or
      Company.

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    3.27 Investment
      Intent.
      The
      Sellers and the Company each are aware that the PAM Shares are not (and the
      Incentive Shares when issued will not be) registered under the United States
      Securities Act of 1933, as amended (the “Securities
      Act”),
      or
      under the Laws of any state or other jurisdiction. The
      PAM
      Shares are (and the Incentive Shares will be upon issuance) subject
      to restrictions on transferability and resale and may not be transferred or
      resold except as permitted under said Securities Act and such laws pursuant
      to
      registration or exemption therefrom.
      The
      Sellers and the Company are acquiring the PAM Shares (and the Incentive Shares)
      for their own accounts and not with a view to their distribution within the
      meaning of the Securities Act.

    

    3.28 Accredited
      Investor.
      The
Sellers
      and the Company
      each are
      an “accredited investor” as that term is defined in Regulation D under the
      Securities Act.

    

    3.29 Accurate
      Information.
      The
Sellers
      and the Company
      represents to the Purchaser that any information which the Sellers
      and/or the Company
      has
      heretofore furnished or are furnishing herewith to the Purchaser is complete
      and
      accurate and may be relied upon by the Purchaser. The Sellers
      and the Company
      further
      represent and warrant that they will notify and supply corrective information
      to
      the Purchaser immediately upon the occurrence of any change
      therein.

    

    3.30 Requested
      Documents.
      The
Sellers
      and the Company, their
      attorneys, accountants, representatives and tax advisors (collectively,
“Advisors”),
      have
      reviewed all Transaction Documents in detail, as well as all filings made by
      the
      Purchaser with the Securities and Exchange Commission (the “SEC
      Filings”).
      The
      Sellers, the Company
      and
      their Advisors have carefully reviewed all such documents and understand
      completely the information contained therein. In effectuating the Acquisition,
      the Sellers, the Company and the Advisors have relied upon the Transaction
      Documents and the SEC Filings. 

    

    3.31 Questions
      of Purchaser.
      The
Sellers,
      the Company
      and/or
      its Advisors, if any, have had a reasonable opportunity to ask questions of
      and
      receive answers from a person or persons acting on behalf of the Purchaser
      concerning the Agreement and the business, financial condition, results of
      operations and prospects of the Purchaser, and all such questions have been
      answered by the Purchaser to the full satisfaction of the Sellers,
      the Company
      and its
      Advisors, if any.

    

    3.32 Knowledge.
      The
Sellers
      and the Company,
      either
      alone or together with its Advisors, if any, have such knowledge and experience
      in financial, tax, and business matters, and, in particular, investments in
      securities, so as to enable them to utilize the information made available
      to
      them in connection with this Agreement to evaluate the merits and risks of
      such
      an investment and to make an informed investment decision with respect
      thereto.

    

    3.33 Satisfaction
      of Information.
      The
Sellers
      and the Company
      are
      satisfied that they has received adequate information with respect to all
      matters which it or its Advisors, if any, consider material to its decision
      to
      entering into this Agreement.

    

    
      
         

      

      
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    3.34 Condition
      of Properties.
      All
      facilities, machinery, equipment, fixtures, vehicles and other properties owned,
      leased or used by Company (i) are in good operating condition and repair
      (reasonable wear and tear excepted): (ii) are reasonably fit and usable for
      the
      purposes for which they are being used; (iii) are adequate and sufficient for
      the Company’s business; and (iv) conform in all material respects with all
      applicable Laws.

    

    3.35 Pending
      Changes.
      To the
      knowledge of Seller and/or Company, there is no pending or threatened change
      in
      any Law which materially affects or could materially affect Company or the
      business, assets, liabilities, prospects, properties, results of operations
      or
      condition (financial or otherwise) of Company.

    

    3.36 Books
      and Records.
      The
      books of account, ledgers, order books, records and documents of Company
      accurately and completely reflect all material information relating to the
      business of Company, the location and collection of its assets, and the nature
      of all transactions giving rise to the obligations or accounts receivable of
      Company.

    

    3.37 Disclosure;
      Survival.
      All
      representations and warranties of Sellers and Company set forth in this
      Agreement or in any of the other Transaction Documents or in any writing or
      certificate delivered in connection with this Agreement, or any of the other
      Transaction Documents, shall survive the execution and delivery of this
      Agreement or the applicable other Transaction Document, as the case may be,
      and
      the consummation of the transactions contemplated hereby or thereby, for a
      period commencing on the date hereof and reviewing two (2) years from the later
      of the date the Option is exercised or expires, unless otherwise specifically
      provided in this Agreement or such other Transaction Document (the “Survival
      Period”),
      and
      shall not be affected by any examination made for or on behalf of Purchaser,
      the
      knowledge of Purchaser, or the acceptance by Purchaser of any certificate or
      opinion. 

    

    4. REPRESENTATIONS
      AND WARRANTIES OF PURCHASER

    

    Purchaser
      represents and warrants to Company, both as of the date of this Agreement and
      as
      of the Closing Date as an inducement to the Company to enter into this Agreement
      and to consummate the transactions contemplated hereby, as follows:

    

    4.1 Authorization
      of Agreement.
      Purchaser is fully able, authorized and empowered to execute and deliver this
      Agreement and the other Transaction Documents, and to perform its obligations
      hereunder and thereunder. This Agreement and the other Transaction Documents,
      upon execution and delivery by Purchaser (and assuming due execution and
      delivery hereof and thereof by the other parties hereto and thereto), will
      constitute the legal, valid and binding obligations of Purchaser, enforceable
      against it in accordance with their terms, except as such enforceability may
      be
      limited by applicable bankruptcy, insolvency, moratorium, reorganization or
      similar laws from time to time in effect which affect creditors’ rights
      generally and by legal and equitable limitations on the availability of specific
      performance and other equitable remedies against Purchaser under or by virtue
      of
      this Agreement and the other Transaction Documents.

    

    4.2 Organization
      and Good Standing.
      Purchaser is duly organized, validly existing and in good standing under the
      laws of the State of Delaware and has the corporate power and authority to
      own,
      lease and operate its properties and assets and to carry on its business as
      now
      conducted.

    

    
      
         

      

      
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    4.3  Available
      Funds.
      Purchaser has readily available to it committed funds sufficient to pay
      the
      Purchase Price, as provided
      in Section
      1.3
      hereof,
      on
      a
      timely basis.

     

    4.4 Investment
      Intent.
      Purchaser is aware that the Option, the Acquisition Shares and the Option Shares
      are not registered under the United States Securities Act of 1933, as amended
      (the “Securities
      Act”),
      or
      under the Laws of any state or other jurisdiction. Purchaser is acquiring the
      Acquisition Shares for its own account and not with a view to their distribution
      within the meaning of the Securities Act.

    

    4.5 Disclosure;
      Survival.
      All
      representations and warranties of Purchaser set forth in this Agreement or
      in
      any of the other Transaction Documents or in any writing or certificate
      delivered in connection with this Agreement, or any of the other Transaction
      Documents, shall survive the execution and delivery of this Agreement or the
      applicable other Transaction Document, as the case may be, and the consummation
      of the transactions contemplated hereby or thereby, for one (1) year from the
      date hereof and shall not be affected by any examination made for or on behalf
      of Seller, the knowledge of Seller, or the acceptance by Seller of any
      certificate or opinion.

    

    5. PRE-CLOSING
      COVENANTS AND AGREEMENTS OF THE PARTIES

    

    The
      Sellers and the Company, on the one hand, and Purchaser, on the other hand,
      hereby covenant and agree that, from the date hereof and until the Closing
      Date:

    

    5.1 Access.
      Company
      shall afford to the officers, attorneys, accountants and other authorized
      representatives of Purchaser free and full access, during regular business
      hours
      and upon reasonable notice, to the Company’s and the Subsidiaries’ books,
      records, personnel and properties (including, without limitation, the work
      papers prepared by its auditors) so that Purchaser may have full opportunity
      to
      make such review, examination and investigation as it may desire of Company’s
      and the Subsidiaries’ business and affairs. The Company and its Subsidiaries
      will cause its employees, accountants and attorneys to cooperate fully with
      said
      review, examination and investigation and to make full disclosure to Purchaser
      of all material facts affecting Company’s and the Subsidiaries’ financial
      conditions and business operations.

    

    5.2 Conduct
      of Business.
      The
      Company and the Subsidiaries shall conduct their business only in the ordinary
      and usual course.

    

    5.3 Liabilities.
      Neither
      the Company nor any Subsidiary shall not incur any obligation or liability,
      absolute and continent, except only in the ordinary and usual course of its
      business.

    

    5.4 SEC
      Filings Relating to this Agreement.
      Purchaser shall file with the United States Securities and Exchange Commission
      (“SEC”)
      all
      required forms and disclosure items in a timely manner including, without
      limitation a Current Report on Form 8-K, in the form of Exhibit
      F
      annexed
      hereto (the “Form
      8-K”),
      disclosing Purchaser’s entering into this Agreement and the other Transaction
      Documents, and which forms and disclosure items shall be approved by legal
      counsel to the Purchaser prior to filing and/or disclosure. 

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    5.5 Public
      Announcements.
      No
      party hereunder shall, without the express prior written consent of the other
      parties hereto make any announcement or otherwise disclose any information
      regarding this Agreement and/or the transactions contemplated hereby other
      than
      as required by law or otherwise deemed advisable in counsel’s opinion to ensure
      compliance with public disclosure requirements under the federal securities
      laws; provided,
      however,
      that
      the parties hereto agree that the Form 8-K shall be filed with the SEC by
      Purchaser no later than four (4) business days following execution of this
      Agreement.

    

    5.6 Expenses.
      Each of
      the parties hereto agrees to bear its own expenses in connection with the
      negotiation, preparation, execution and delivery of this Agreement, the other
      Transaction Documents, and the consummation of the transactions contemplated
      hereby.

    

    5.7 Further
      Assurances.
      Each of
      the parties shall execute such documents or other papers and take such further
      actions as may be reasonably required or desirable to carry out the provisions
      hereof and the transactions contemplated in this Agreement.

    

    5.8 Certain
      Property.
      Sellers
      shall, in a manner mutually agreeable to the Sellers and the Purchaser prior
      to
      and/or after the Closing, transfer to Sellers the assets set forth on
Schedule
      5.8
      hereto
      (the “Assets”).

    

    5.9 Financial
      Statements.
      The
      Sellers and the Company shall use their best efforts to complete the Financial
      Statements and keep the Purchaser appraised of the status thereof.

    

    6. CONDITIONS
      PRECEDENT TO THE OBLIGATIONS OF PURCHASER TO CLOSE

    

    The
      obligations of Purchaser to effectuate the Closing is subject to the
      fulfillment, prior to the Closing Date, of each of the following conditions
      (any
      one or more of which may be waived by Purchaser unless such condition is a
      requirement of law):

    

    6.1 Representations
      and Warranties.
      All
      representations and warranties of Sellers and Company contained in this
      Agreement and in the other Transaction Documents shall be true and correct
      in
      all material respects as of the date hereof. Any changes in information set
      forth in the exhibits and schedules hereto shall be set forth on amended
      exhibits and schedules which shall be delivered to Purchaser at the Closing.
      Except as set forth in such amended exhibits and schedules, all representations
      and warranties of Sellers and Company contained in this Agreement and in any
      other Transaction Document delivered pursuant hereto or in connection with
      the
      transactions contemplated hereby shall be true and correct in all material
      respects as of the Closing Date.

    

    6.2 Covenants.
      Sellers
      and Company shall have performed and complied in all material respects with
      all
      covenants and other agreements required by (or contained in) this Agreement
      to
      be performed or complied with or by each of them prior to or on the Closing
      Date.

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    6.3 No
      Actions.
      No
      action, suit, proceeding or investigation shall have been instituted against
      Company, the Subsidiaries and/or the Sellers and be continuing before a court
      or
      before or by a Governmental Body, and be unresolved, to restrain or to prevent
      or to obtain damages in respect of, the carrying out of the transactions
      contemplated hereby or which might materially and adversely affect the rights
      of
      Purchaser to consummate the transactions contemplated hereby.

    

    6.4 Approvals.
      Sellers, the Subsidiaries and the Company shall have obtained all approvals
      and
      consents to consummate this Agreement and the transactions to be consummated
      at
      or immediately following the Closing, in accordance with all applicable
      Laws.

    

    6.5 Due
      Diligence.
      Purchaser and its legal counsel shall have completed to their sole satisfaction
      their due diligence of the Company, the Subsidiaries and all other items it
      deems necessary and/or advisable, and shall be satisfied with the results
      thereof.

    

    6.6 Closing
      Documents.
      Purchaser shall receive all of the documents (executed where applicable) set
      forth in Section
      2.2
      of this
      Agreement, which documents shall be in form and substance reasonably
      satisfactory to the parties and their respective legal counsel.

    

    6.7 Financing.
      The
      Purchaser shall have closed on its equity financing.

    

    6.8 AMEX.
      Legal
      counsel for the Purchaser has determined that the Acquisition and the proposed
      financing shall comply with, and shall not directly and/or indirectly violate
      any AMEX rules.

    

    6.9 Officers
      and Directors.
      All
      officers and directors of the Company and each Subsidiary, except for Mr. Farook
      who shall remain a director and officer of such entities, shall have resigned
      and certain other persons, as selected by the Purchaser, shall be appointed
      officers and directors of the Company and the Subsidiaries.

    

    7. CONDITIONS
      PRECEDENT TO THE OBLIGATION OF
      SELLER CLOSE

    

    The
      obligations of Sellers and the Company to effectuate the Closing to the
      Purchaser, is subject to the fulfillment, prior to the Closing Date, of each
      of
      the following conditions (any one or more of which may be waived by the Sellers
      and the Company, unless such condition is a requirement of law).

    

    7.1 Representations
      and Warranties.
      All
      representations and warranties of Purchaser contained in this Agreement and
      in
      any of the other Transaction Documents shall be true and correct in all material
      respects as of the date hereof. Any changes in information set forth in the
      exhibits and schedules hereto shall be set forth on amended exhibits and
      schedules which shall be delivered to Seller at the Closing. Except as set
      forth
      in such amended exhibits and schedules, all representations and warranties
      of
      Purchaser contained in this Agreement and in any other Transaction Document
      delivered pursuant hereto or in connection with the transactions contemplated
      hereby shall be true and correct in all material respects as of the Closing
      Date.

    

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    7.2 Covenants.
      Purchaser shall have performed and complied in all material respects with all
      covenants and other agreements required by (or contained in) this Agreement
      to
      be performed or complied with by it prior to or on the Closing
      Date.

    

    7.3 No
      Actions.
      No
      action, suit, proceeding or investigation shall have been instituted against
      Purchaser, and be continuing before a court or before or by a Governmental
      Body,
      and be unresolved, to restrain or to prevent or to obtain damages in respect
      of,
      the carrying out of the transactions contemplated hereby, or which might
      materially and adversely affect the rights of Seller to consummate the
      transactions contemplated hereby.

    

    7.4 Approvals.
      Purchaser shall have obtained all required consents and approvals to this
      Agreement and the transactions to be consummated at or immediately following
      the
      Closing, in accordance with all applicable Laws.

    

    7.5 Guarantee/Liens.
      Mr.
      Farook shall be released from all guarantees and/or liens on his assets
      undertaken in connection with loans made to the Company and/or any Subsidiary
      by
      a commercial bank.

    

    7.6 Closing
      Documents.
      The
      Sellers shall receive the Purchase Price and all of the documents set forth
      in
Section
      2.3 of
      this
      Agreement, which documents shall be in form and substance reasonably
      satisfactory to the parties and their respective legal counsel.

    

    8. POST-CLOSING
      COVENANTS

    

    8.1 Certain
      Assets.
      Sellers
      and Purchasers shall work together in good faith to transfer to the Sellers
      the
      Assets.

    

    8.2 Registration
      Rights.
      If, on
      the date twelve (12) months following the date of Closing, the Sellers shall
      unanimously request in writing that the Purchaser register for resale the PAM
      Shares, the Incentive Shares, the Purchaser shall register for resale under
      the
      Securities Act all such shares.

    

    8.3 Financial
      Statements.
      The
      Sellers and the Company shall use its best efforts to cause the Financial
      Statements to be delivered to the Purchaser no later than sixty (60) days from
      the Closing Date, if not delivered at the closing.

    

    9. INDEMNIFICATION
      BY SELLER

    

    Seller
      shall indemnify and hold Purchaser and its officers, directors, employees and
      agents harmless from and against any loss, damage or expense (including
      reasonable attorneys’ fees) caused by or arising out of any claim made against
      the Purchaser:

    

    (a) for
      any
      breach, in any material respect, or default in the performance by Company or
      Seller of any covenant or agreement of either of them contained in this
      Agreement or in any of the other Transaction Documents;

    

    (b) for
      any
      breach, in any material respect, by Company and/or Seller of any of the
      representations or warranties made by either of them in this Agreement, in
      any
      of the other Transaction Documents, or in any schedule, certificate or other
      instrument delivered by or on behalf of the Company and/or Seller pursuant
      hereto or thereto;

    

    
      
         

      

      
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    (c) for
      any
      broker’s or finder’s fee or any similar fee, charge or commission incurred by
      Company and/or the Seller prior to or in connection with this Agreement, or
      any
      of the transactions contemplated hereby; and

    

    (d) for
      any
      and all actions, suits, proceedings, claims, demands, judgments, costs and
      expenses (including reasonable legal and accounting fees) incident to any of
      the
      foregoing.

    

    10. INDEMNIFICATION
      BY PURCHASER

    

    Purchaser
      shall indemnify and hold Sellers and their officers, directors, employees and
      agents harmless from and against any loss, damage or expense (including
      reasonable attorneys’ fees) caused by or arising out of any claim made against
      Purchaser:

    

    (a) for
      any
      breach, in any material respect, or default in the performance by Purchaser
      of
      any covenant or agreement contained in this Agreement or in any of the other
      Transaction Documents;

    

    (b) for
      any
      breach, in any material respect, by Purchaser of any of the representations
      or
      warranties made it in this Agreement, in any of the other Transaction Documents,
      or in any schedule, certificate or other instrument delivered by or on behalf
      of
      the Purchaser pursuant hereto or thereto;

    

    (c) for
      any
      broker’s or finder’s fee or any similar fee, charge or commission incurred by
      Purchaser prior to or in connection with this Agreement, or any of the
      transactions contemplated hereby; and

    

    (d) for
      any
      and all actions, suits, proceedings, claims, demands, judgments, costs and
      expenses (including reasonable legal and accounting fees) incident to any of
      the
      foregoing.

    

    11. NOTICE
      AND OPPORTUNITY TO DEFEND

    

    Promptly
      after the receipt by Purchaser or Sellers of notice of any action, proceeding,
      claim or potential claim (any of which is hereinafter individually referred
      to
      as a “Circumstance”)
      which
      could give rise to a right to indemnification under this Agreement, such party
      (the “Indemnified
      Party”)
      shall
      give prompt written notice to the party or parties who may become obligated
      to
      provide indemnification hereunder (the “Indemnifying
      Party”).
      Such
      notice shall specify in reasonable detail the basis and amount, if
      ascertainable, of any claim that would be based upon the Circumstance. The
      failure to give such notice promptly shall relieve the Indemnifying Party of
      its
      indemnification obligations under this Agreement, unless the Indemnified Party
      establishes that the Indemnifying Party either had knowledge of the Circumstance
      or was not prejudiced by the failure to give notice of the Circumstance. The
      Indemnifying Party shall have the right, at its option, to compromise or defend
      the claim, at its own expense and by its own counsel, and otherwise control
      any
      such matter involving the asserted liability of the Indemnified Party, provided
      that any such compromise or control shall be subject to obtaining the prior
      written consent of the Indemnified Party which shall not be unreasonably
      withheld. An Indemnifying Party shall not be liable for any costs of settlement
      incurred without the written consent of the Indemnifying Party. If any
      Indemnifying Party undertakes to compromise or defend any asserted liability,
      it
      shall promptly notify the Indemnified Party of its intention to do so, and
      the
      Indemnified Party agrees to cooperate fully with the Indemnifying Party and
      its
      counsel in the compromise of or defense against any such asserted liability.
      All
      costs and expenses incurred in connection with such cooperation shall be borne
      by the Indemnifying Party, provided such costs and expenses have been previously
      approved by the Indemnifying Party. In any event, the Indemnified Party shall
      have the right at its own expense to participate in the defense of an asserted
      liability.

    

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    12. 
      MISCELLANEOUS

    

    12.1 Certain
      Definitions.

    

    “Affiliate”
of
      any
      Person means any Person that directly or indirectly controls, or is under
      control with, or is controlled by, such Person. As used in this definition,
      “control” (including with its correlative meanings, “controlled by” and “under
      control with”) shall mean the possession, directly or indirectly, of the power
      to direct or cause the direction of the management or policies of a Person
      (whether through ownership of securities or partnership or other ownership
      interests, by contract or otherwise). 

    

    “Contract”
means
      any contract, agreement, indenture, note, bond, loan, instrument, lease,
      conditional sales contract, mortgage, license, franchise, insurance policy,
      commitment or other arrangement or agreement, whether written or
      oral.

    

    “Employee”
means
      any current employee, officer or director of Company.

    

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

    

    “Governmental
      Body”
means
      any government or governmental or regulatory body thereof, or political
      subdivision thereof, whether federal, state, local or foreign, or any agency,
      instrumentality or authority thereof, or any court or arbitrator (public or
      private).

    

    “Law”
means
      any federal, state, local or foreign law (including law), statute, code,
      ordinance, rule, regulation or other requirement or guideline.

    

    “Legal
      Proceeding”
means
      any judicial, administrative or arbitral actions, suits, proceedings (public
      or
      private), claims or governmental proceedings.

    

    “Lien”
means
      any mortgage, pledge, security interest, encumbrance, lien or charge of any
      kind, including, without limitation, any conditional sale or other title
      retention agreement, any lease in the nature thereof and the filing of or
      agreement to give any financing statement under the Uniform Commercial Code
      (or
      similar laws) of any jurisdiction and including any lien or charge arising
      by
      statute or other law.

    

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    “Material
      Adverse Change”
means
      any material adverse change in the business, assets, liabilities, prospects,
      properties, results of operations or condition (financial or otherwise) of
      Company, taken as a whole, but will not be deemed to include (i) any changes
      resulting from general economic, regulatory or political conditions, (ii) acts
      attributable to any omission or action by Purchaser or its Affiliates, or (iii)
      circumstances that affect generally the industry in which Company
      operates.

    

    “Material
      Adverse Effect”
means
      any event, circumstance, condition, fact, effect, or other matter which has
      had
      or could reasonably be expected to have a material adverse effect (a) on
      the business, assets, liabilities, properties, results of operations or
      condition (financial or otherwise) of Company taken as a whole or (b) on
      the ability of Company to perform on a timely basis any material obligation
      under this Agreement or to consummate the transactions contemplated hereby,
      but
      will not be deemed to include (i) any effects resulting from general economic,
      regulatory or political conditions, (ii) acts attributable to any omission
      or
      action by Purchaser or its Affiliates, or (iii) circumstances that affect
      generally the industry in which Company operates.

    

    “Net
      Profit”
means
      for any year, the audited, consolidated net profit, after taxes, of the Company
      and the Subsidiaries for such year prepared in accordance with US GAAP and
      Rule
      S-X of the Securities Act.

    

    “Order”
means
      any order, injunction, judgment, decree, ruling, writ, assessment or arbitration
      award.

    

    “Permits”
means
      any approvals, authorizations, consents, licenses, permits or certificates
      by or
      of any Governmental Body.

    

    “Permitted
      Liens”
shall
      mean (i) Liens for ad valorem real or personal property taxes or
      assessments not yet due and payable or being contested in good faith
      (ii) Liens in respect of pledges or deposits under workers’ compensation
      laws or similar legislation, carriers’, warehousemen’s, mechanics’, laborers’,
      and materialmen’s and similar liens, if the obligations secured by such Liens
      are not then delinquent, (iii) Liens arising or resulting from any action taken
      by Purchaser or its Affiliates (iv) easements, rights of way, restrictions
      and
      other similar Liens, which cannot be released by Seller without unreasonable
      effort and expense, and that do not materially interfere with the ordinary
      conduct of operations, any (v) any other Liens set forth on Schedule
      12.1
      annexed
      hereto.

    

    “Person”
means
      any individual, corporation, partnership, firm, joint venture, association,
      joint-stock company, trust, unincorporated organization, Governmental Body
      or
      other entity.

    

    “Representatives”
of
      a
      Person means its officers, Employees, agents, legal advisors and
      accountants.

    

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    “Taxes”
means
      any federal, state, local or foreign income, gross receipts, license, payroll,
      employment, excise, severance, stamp, occupation, premium, windfall profits,
      environmental (including taxes under Section 59A of the Code), customs
      duties, share capital, franchise, profits, withholding, social security (or
      similar), unemployment, disability, real property, personal property, sales,
      use, transfer, 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.

    

    12.2 Successors
      and Assigns.
      This
      Agreement shall be binding upon and shall inure to the benefit of the parties
      hereto and their respective heirs, successors and permitted assigns. No
      assignment of this Agreement or of any rights hereunder shall relieve the
      assigning party of any of its obligations or liabilities hereunder

    

    12.3 Notices.
      All
      notices or other communications required or permitted to be given hereunder
      shall be in writing and shall be deemed to have been duly given if delivered
      by
      hand, overnight courier, facsimile transmission or prepaid cable or telegram
      and
      confirmed in writing, or mailed first class, postage prepaid, by registered
      or
      certified mail, return receipt requested (mailed notices and notices sent by
      facsimile transmission, cable or telegram shall be deemed to have been given
      on
      the date sent) as follows:

    

    If
      to
      Sellers, as follows:

    

    A.
      Reyaz
      Farook

    c/o
      HTL
      Logistics Limited

    95
      Anada
      Rajakarvka Mawatha, 

    Columbo
      10, Sri Lanka

    Fax
      No.
      0094-11-2697033

    

    If
      to
      Company, as follows:

     

    [TO
      COME]

    

    

    If
      to the
      Purchaser, as follows:

    

    Pacific
      CMA, Inc.

    Unit
      D
      11/F Garment Centre

    No.
      576-586 Castle Peak Road

    Cheungshawan,
      Kowloon

    Hong
      Kong

    Fax.
      No.
      852-2-953-0939

    

    With
      a
      copy to:

    

    Gusrae,
      Kaplan, Bruno & Nusbaum, PLLC

    120
      Wall
      Street, 11th
      Floor

    New
      York,
      New York 10005

    Attention:
      Lawrence G. Nusbaum, Esq.

    Fax
      No.
      (212) 809-5449

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    or
      in any
      case to such other address or addresses as hereafter shall be furnished as
      provided in this Section 12.3
      by a
      party hereto to the other parties hereto.

    

    12.4 Waiver;
      Remedies.
      No
      delay on the part of Sellers, Company, the Subsidiaries or the Purchaser in
      exercising any right, power or privilege hereunder shall operate as a waiver
      thereof, nor shall any waiver on the part of either of Seller, Company, the
      Subsidiaries or the Purchaser of any right, power or privilege hereunder operate
      as a waiver of any other right, power or privilege hereunder, nor shall any
      single or partial exercise of any right, power or privilege hereunder preclude
      any other or further exercise of any other right, power or privilege hereunder.
      The rights and remedies herein provided are cumulative and are not exclusive
      of
      any rights or remedies which the parties hereto may otherwise have at law or
      in
      equity.

    

    12.5 Entire
      Agreement.
      This
      Agreement, along with the other Transaction Documents, constitutes the entire
      agreement between the parties with respect to the subject matter hereof and
      supersedes all prior agreements or understandings (in writing, oral or
      otherwise) of the parties relating thereto.

    

    12.6 Amendment.
      No
      party may assign its rights under this Agreement without the express prior
      written consent of the other parties; provided, however, Purchaser may, upon
      providing written notice to Seller and Company, assign its rights and
      obligations hereunder to any Affiliate including, without limitation, any of
      its
      subsidiaries.

    

    12.7 Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed an original but all of which together shall constitute a single
      instrument.

    

    12.8 Governing
      Law.
      This
      Agreement shall be governed by and construed exclusively in accordance with
      the
      internal laws of the State of New York without regard to the conflicts of laws
      principles thereof. The parties hereto hereby expressly and irrevocably agree
      that any suit or proceeding arising directly and/or indirectly pursuant to,
      arising out of or under this Agreement, shall be brought solely and exclusively
      in a federal or state court located in the City, County and State of New York.
      By its execution hereof, the parties hereby expressly covenant and irrevocably
      submit to the in personam
      jurisdiction of the federal and state courts located in the City, County and
      State of New York and agree that any process in any such action may be served
      upon any of them personally, or by certified mail or registered mail upon them
      or their agent, return receipt requested, with the same full force and effect
      as
      if personally served upon them in New York City. The parties hereto expressly
      and irrevocably waive any claim that any such jurisdiction is not a convenient
      forum for any such suit or proceeding and any defense or lack of in personam
      jurisdiction with respect thereto. In the event of any such action or
      proceeding, the party prevailing therein shall be entitled to payment from
      the
      other party hereto of its reasonable counsel fees and disbursements in an amount
      judicially determined.

    

    12.9 Captions.
      All
      Section titles or captions contained in this Agreement, in any
      schedule referred to herein or in any exhibit annexed hereto are for
      convenience only, shall not be deemed a part of this Agreement and shall not
      affect the meaning or interpretation of this Agreement.

    

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    12.10 Confidential
      Information.
      Each
      party agrees that such party and its representatives will hold in strict
      confidence all information and documents received from the other party and,
      if
      the transactions herein contemplated shall not be consummated, each party will
      continue to hold such information and documents in strict confidence and will
      return to such other party all such documents (including the documents annexed
      to this Agreement) then in such receiving party’s possession without retaining
      copies thereof, provided,
      however,
      that
      each party’s obligations under this Section 12.10
      to
      maintain such confidentiality shall not apply to any information or documents
      that are in the public domain at the time furnished by the other or that become
      in the public domain thereafter through any means other than as a result of
      any
      act of the receiving party or of its agents, officers, directors or stockholders
      which constitutes a breach of this Agreement, or that are required by applicable
      law to be disclosed.

    

    13. TERMINATION
      AND WAIVER

    

    13.1 Termination.
      Notwithstanding anything herein or elsewhere to the contrary, this Agreement
      may
      be terminated and the transactions provided for herein abandoned at any time
      prior to the Closing Date as follows:

    

    (a) By
      mutual
      written consent of Sellers and Purchaser; 

    

    (b) By
      Purchaser, upon five (5) days prior written notice to Sellers and Company,
      if
      Purchaser is not reasonably satisfied with its due diligence review of Company,
      as provided in Section
      6.5
      hereof
      or the proposed financing does not occur.

    

    (c) By
      Seller
      or Purchaser on July 1, 2006, if the Closing does not occur on or prior to
      that
      date (unless extended by the parties or unless the failure to close is the
      result of the actions of Seller or Purchaser).

    

    13.2 Waiver.
      Any
      condition to the performance of any party hereto which legally may be waived
      on
      or prior to the Closing Date may be waived at any time by the party entitled
      to
      the benefit thereof by action taken or authorized by an instrument in writing
      executed by the relevant party or parties. The failure of any party at any
      time
      or times to require performance of any provision hereof shall in no manner
      affect the right of such party at a later time to enforce the same. No waiver
      by
      any party of the breach of any term, covenant, representation or warranty
      contained in this Agreement as a condition to such party’s obligations hereunder
      shall release or affect any liability resulting from such breach, and no waiver
      of any nature, whether by conduct or otherwise, in any one or more instances,
      shall be deemed to be or construed as a further or continuing waiver of any
      such
      condition or of any breach of any other term, covenant, representation or
      warranty of this Agreement.

    

    Remainder
      of Page Intentionally Left Blank

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have caused this Agreement to be duly executed and delivered on the
      day
      and year first above written.

    

     

    
      	 	
              HTL
                LOGISTICS LIMITED 

              (a
                Cayman Islands Corporation)

              

              

              By: /s/
                A. Reyaz
                Farook                                  
                

              Name:
                A. Reyaz Farook 

              Title:
                President/CEO

              

              

              /s/
                A. Reyaz
                Farook                                  
                

              A.
                Reyaz Farook

               

              

              /s/
                MKI
                Reyaz                                            

              MKI
                Reyaz

               

              

              

              PACIFIC
                CMA, INC.

              

              

              By: /s/
                Alfred
                Lam                                              
                

              Name:
                Alfred Lam

              Title:
                Chairman/CEO

            

    

    

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    LIST
      OF EXHIBITS

    

    Exhibits

    

    
      	
              Exhibit
                A

            	
              The
                Option

            
	 	 
	
              Exhibit
                B

            	
              Escrow
                Agreement

            
	 	 
	
              Exhibit
                C

            	
              Farook
                Agreement

            
	 	 
	
              Exhibit
                D

            	
              Charter
                Documents and By-Laws

            
	 	 
	
              Exhibit
                E

            	
              Audited
                Financial Statements (with accompanying Notes)

            
	 	 
	
              Exhibit
                F

            	
              SEC
                Filings

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LIST
      OF SCHEDULES

    

    
      	
              1

            	
              Subsidiaries
                of the Company

            
	 	 
	
              1.3

            	
              Acquisition
                Consideration to be Received by Each Seller

            
	 	 
	
              2.

            	
              Stock
                Ownership of the Company

            
	 	 
	
              2.2.

            	
              Legal
                Opinion

            
	 	 
	
              3.5

            	
              Organization
                Chart

            
	 	 
	
              3.10

            	
              Undisclosed
                Liabilities

            
	 	 
	
              3.11

            	
              Certain
                Developments

            
	 	 
	
              3.12

            	
              Taxes

            
	 	 
	
              3.13

            	
              Real
                Property

            
	 	 
	
              3.14

            	
              Tangible
                Personal Property; Assets

            
	 	 
	
              3.15

            	
              Intellectual
                Property

            
	 	 
	
              3.16

            	
              Material
                Contracts

            
	 	 
	
              3.17

            	
              Employee
                Benefits

            
	 	 
	
              3.18

            	
              Confidentiality
                Agreements for Key Employees 

            
	 	 
	
              3.19

            	
              Litigation

            
	 	 
	
              3.23

            	
              Affiliate
                Transactions

            
	 	 
	
              3.24

            	
              Insurance

            
	 	 
	
              3.25

            	
              Customers
                and Suppliers

            
	 	 
	
              3.26

            	
              Broker’s
                / Finder’s / Commissions or other Fees

            
	 	 
	
              5.8

            	
              Certain
                Property

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      A

    

    The
      Option

    

    

    

     

    
 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      B

    

    Escrow
      Agreement

     

     

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      C

    

    Farook
      Agreement

     

     

     

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      D

    

    Charter
      Documents and By-Laws

     

     

     

     

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      E

    

    Audited
      Financial Statements (with accompanying Notes)

    

     

     

     

     

     

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
      F

    

    SEC
      Filings

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