Document:

ex10-1.htm

    
      

      

    

    Exhibit
      10.1

     

    State
      Bancorp, Inc. and State Bank of Long Island

    Proposed
      Voluntary Exit Window Program

    

    
      	
              Eligibility:

            	
              All
                employees with twenty (20) years or more of continuous service,
                projected to December 31, 2007.

            

    

    

    
      	
               

            	
              Number
                Eligible:         22  (See
                attached census).

            

    

    

    
      	
              Terms:

            	
              Program
                window open from April 1, 2007 through May 31,
                2007.

            

    

    

    
      	
               

            	
              1.

            	
              Election
                to resign must be made irrevocably in writing during the program
                window.

            

    

    
      	
               

            	
              2.

            	
              Effective
                date of resignation or departure must be on June 29,
                2007.

            

    

    
      	
               

            	
              3.

            	
              To
                receive benefits, the departing employee must sign a release with
                restrictive covenants (including confidentiality, non-solicit and
                non-disturbance of employees and customers, and non-derogation) in
                a form
                to be provided.

            

    

    

    Benefits:                      Those
      resigning under the program will receive:

    

    
      	
               

            	
              1.

            	
              Cash
                Incentive Payment.

            

    

    

    
      	
               

            	
              One
                (1) year of base salary generally paid in immediate lump sum following
                termination plus an additional 5% in lieu of ESOP and 401(k) benefits
                foregone; except that payment may be capped in amount or
                deferred by six months (with interest at 120% of the "applicable
                short-term federal rate" for the month of termination) to the extent
                necessary to comply with Internal Revenue Code section 409A and avoid
                the
                imposition of a 20% excise tax.

            

    

    

    
      	
               

            	
              2.

            	
              Group
                Health Benefits.

            

    

    

    ►           Employer-paid
      group medical coverage for those who attain age 55 in or before 2007, on
      substantially the same terms (including premium sharing) as active employees,
      from the date of termination and ending on December 31, 2009.  During
      this period, the Employer will contribute the
      same
      percentage of the premium cost of the coverage that it currently pays;
provided, however, that the Employer will not pay more than the monthly
      dollar amount that it currently pays toward the coverage.

    

    ►           Employee-paid
      group medical coverage for those who attain age 55 in or before 2007 and remain
      enrolled in the group medical plan.  This coverage will begin when
      employer-paid coverage ends

    

    
      	
               

            	
              Group
                health benefits will continue until the earliest of (a) the date
                the
                employee opts to discontinue coverage or fails to pay premiums when
                due,
                (b) December 31, 2014 and (c) the date when the employee and the
                employee’s spouse are first eligible for coverage (whether employee-paid
                or employer-paid) through a new employer or through
                Medicare.

            

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ►           Statutory
      health insurance continuation coverage ("COBRA") will run concurrently
      with the coverage described above and will not extend the potential coverage
      period beyond December 31, 2014.

    

    ►           Opt-out
      Payment.  Those not eligible for, or who irrevocably revoke
      their right to, post-employment group health coverage other than COBRA will
      receive an additional one-time payment of Twenty Thousand Dollars ($20,000);
      except that payment may be capped in amount or deferred by six
      months (with interest at 120% of the "applicable short-term federal rate" for
      the month of termination) to the extent necessary to comply with Internal
      Revenue Code section 409A and avoid the imposition of a 20% excise
      tax.

    

    
      	
               

            	
              3.

            	
              Outplacement.

            

    

    

    
      	
               

            	
              Outplacement/career
                counseling for the period beginning upon accepting the exit package
                and
                continuing through December 31,
                2007.

            

    

    

    
      	
              Cost:

            	
              Approximately
                $3.25 million if all eligible individuals opt to
                participate.Unassociated Document

    

      

       

      

       

      

       

      ASSET
        PURCHASE AGREEMENT

       

      

       

      by
        and between

       

      

       

      Iceweb
        Virginia, Inc., a Virginia corporation(“Purchaser”), 

       

      True
        North Solutions, Inc., a Delaware corporation (“Seller”),

       

      and
        American Systems Corporation, a Virginia corporation ("American Systems"),
        and

       

      ASC-Acquisition,
        TNS, Inc., a Virginia corporation (the “Shareholder”)

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      ASSET
        PURCHASE AGREEMENT

       

      THIS
        ASSET PURCHASE AGREEMENT (this “Agreement”),
        made
        and entered into effective as of the ____ day of _________________, 2006
        (the
“Effective
        Date”),
        by
        and between Iceweb Virginia, Inc., a Virginia corporation (“Purchaser”), True
        North Solutions, Inc., a Delaware corporation (“Seller”), American Systems
        Corporation, a Virginia corporation (“American Systems”); and ASC
        Acquisition-TNS, Inc., a Virginia corporation (the “Shareholder”).

       

      RECITALS:

       

      R-1. Seller
        was previously engaged in the provision of preferred information security
        solutions for commercial and federal clients (the “Business”);

       

      R-2. Seller
        previously sold substantially all of Seller’s assets used in the portion of
        Seller’s business that related to the provision of preferred information
        security solutions to commercial and non-governmental professional services
        clients only (the “Commercial Business”), while retaining the governmental
        customer business (the “Government Business”);

       

      R-3. Seller
        desires to sell, and Purchaser desires to purchase, all or substantially
        all of
        Seller’s assets used in the Government Business.

       

      R-4. American
        Systems, through its wholly owned subsidiary, the Shareholder, beneficially
        owns
        all of the issued and outstanding shares of the capital stock of Seller.
        

       

      NOW,
        THEREFORE, in consideration of the premises and mutual representations,
        warranties and covenants herein contained, and other good and valuable
        consideration, the receipt, adequacy and legal sufficiency of which are hereby
        acknowledged, the parties agree as follows:

       

      Article
        I

       

      PURCHASE
        AND SALE OF ASSETS

       

      1.1 Purchase
        and Sale of Assets.
        Upon
        the terms and subject to the conditions of this Agreement, Purchaser agrees
        to
        purchase, accept, and acquire from Seller, and Seller agrees to sell, transfer,
        assign, convey, and deliver to Purchaser, at the Closing (as defined in Section
        9.1), all right, title, and interest of Seller in and to the Government
        Business, which is hereby defined and limited to (i) the Vendor Agreements
        listed on Schedule
        1.1(a),
        and
        (ii) all of those rights and assets, tangible or intangible, exclusively
        used in
        the performance of day to day business operations, as owned or held by Seller
        and as identified on Schedule
        1.1(b).
        The
        foregoing rights and assets shall hereinafter collectively be referred to
        as the
“Assets.”
        Without in any way limiting the generality of the foregoing, the Assets shall
        include all right and interest owned or held by Seller in the
        following:

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      (a) Vendor
        Agreements and Vendor Benefits.
        The
        Vendor Agreements, including all documents and files relating to Seller’s
        relationship that resulted in the execution of the Vendor Agreements, and
        further includes all authorizations to sell Vendor products from Seller’s GSA
        Schedule and authorizations to otherwise sell Vendor products to local, state,
        and federal governments and to international agencies. Included with said
        Vendor
        Agreements will be all data in Seller’s possession regarding rebates, credits,
        SPIFFs, special pricing arrangements, marketing funds available to Seller
        (collectively, the “Vendor Benefits”), and similar or comparable contract rights
        to Vendor Benefits. A list of the Vendor Agreements and Vendor Benefits is
        set
        forth in Schedule 1.1(a). Seller and Shareholder shall retain those records
        required for Seller's and Shareholder's accounting, audit, compliance and
        tax
        reporting purposes, provided, that Purchaser shall have reasonable access
        thereto if the original or a copy thereof is not otherwise provided to
        Purchaser.

       

      (b) Tangible
        Assets.
        The
        Tangible Assets are listed on Schedule 1.1(b).

       

      (c)
        Other
        Assets.
        Other
        Assets include and are limited to:

       

       

      1.
        Website. The
        rights of Seller in the content of Seller’s website related to the Government
        Business, provided, that the Purchaser will not obtain any rights to and
        will
        not be able to use the trade names "True North, True North Solutions, or
        any
        variation thereof, and Purchaser will not acquire any right, title or interest
        in the domain name truenorthsolutions.com or any variation thereof and will
        be
        required to refrain from use of such tradename, and together with all electronic
        files and other documentation and agreements relating thereto. At Closing
        Seller
        will cause Fishnet, the purchaser of the Commercial Business, to remove the
        Government Business web pages and links from the website previously transferred
        to Fishnet. 

       

      2.
        Databases. The
        rights of Seller in all electronic databases relating to the descriptions
        and
        pricing of the products for sale, including without limitation all prior
        and
        current databases and all modifications thereto.

       

      3.
        GSA Schedule and Other Government Contracts. Seller's GSA
        Schedule and all electronic files and access and other documentation of Seller
        relating to the GSA Associated Government Fee Report System, and all other
        federal government contracts, buying schedules, and purchasing vehicles under
        which goods and services provided by or through Seller are or may be purchased
        by agencies of the federal government. A copy of the GSA Schedule is attached
        as
Schedule
        1.1(c)(3)
        .

       

      4.
        Federal Client List. The
        listing of Federal Clients the Government Business has done business with
        or has
        identified in writing as federal agencies which Seller would seek to do business
        with in the future. The Federal Client list is set forth on Schedule
        1.1(c)(4)  

       

      5.
        Intellectual
        Property.
        Seller's
        intellectual property rights, trade secrets and other proprietary information
        exclusively used in the performance of the Government Business as owned or
        held
        by Seller and as specifically listed on Schedule
        1.1(c)(5)
        (the
“Intellectual
        Property”).

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      6.
        Quotes in Process. All
        quotes for the sale of hardware, software and professional services to Federal
        Clients by Seller, in process on and after the Effective Date. A list of
        quotes
        in process is set forth on Schedule
        1.1(c)(6).

       

      7.
        Contracts in Process. All
        of
        Seller's contracts for the sale of hardware, software and professional services
        to Federal Clients, in process on and after the Effective Date but not fully
        executed as of the Effective Date. A list of contracts in process is set
        forth
        on Schedule
        1.1(c)(7).

       

      Article
        II

       

      ASSUMPTION
        OF LIABILITIES

       

      2.1
        Except
        for the gsa schedule being assigned and novated, there
        are
        no liabilities being assumed by buyer. All assets being sold are free and
        clear
        of liabilities.

       

      Article
        III

       

      PRICE
        AND PAYMENT

       

      3.1 Purchase
        Price.
        The
        aggregate purchase price for the Assets shall be Three Hundred Fifty Thousand
        and NO/100 Dollars ($350,000.00). Two
        Hundred Fifty Thousand Dollars of the Purchase Price (the "Closing Cash
        Payment") shall be paid in cash at Closing, and the balance shall be evidenced
        by a promissory note (the "Deferred Purchase Money Note"), secured by collateral
        pledge of the Assets, payable immediately upon accomplishment of the novation
        of
        the GSA Schedule pursuant to Section 10.1. The Deferred Purchase Money Note
        and
        the security agreement and other instruments to perfect Seller's collateral
        interest shall be of a form and substance reasonably acceptable to Purchaser
        and
        Seller and containing terms and conditions customary for commercial finance
        transactions of a similar nature in the Commonwealth of Virginia. 

       

      Article
        IV

       

      REPRESENTATIONS
        AND WARRANTIES OF SELLER,
        American Systems AND SHAREHOLDER

       

      Seller,
        American Systems and Shareholder hereby represent and warrant to Purchaser
        as
        follows:

       

      4.1 Organization.
        Seller,
        American Systems and Shareholder are corporations validly existing and in
        good
        standing under the laws of their respective states of incorporation, with
        the
        corporate power and authority to conduct their respective businesses (including
        the performance of the Vendor Agreements and under the GSA Schedule) and
        to own
        and lease their respective properties and assets (including the
        Assets).

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      4.2 Power
        and Authority.
        Seller
        has the power and authority to execute, deliver, and perform this Agreement
        and
        the other agreements and instruments to be executed and delivered by it in
        connection with the transactions contemplated hereby and thereby, has taken
        all
        necessary corporate action to authorize the execution and delivery of this
        Agreement and such other agreements and instruments and the consummation
        of the
        transactions contemplated hereby and thereby. This Agreement is, and the
        other
        agreements and instruments to be executed and delivered by Seller in connection
        with the transactions contemplated hereby shall be, the legal, valid, and
        binding obligations of Seller, enforceable in accordance with their terms,
        except as limited by bankruptcy, moratorium, or similar laws for the protection
        of creditors generally.

       

      4.3 No
        Conflict.
        Neither
        the execution and delivery of this Agreement and the other agreements and
        instruments to be executed and delivered in connection with the transactions
        contemplated hereby or thereby, nor the consummation of the transactions
        contemplated hereby or thereby, will violate or conflict with (1) except
        for the
        Required Government Consents (as defined in Section 4.4), any federal, state,
        or
        local law, regulation, ordinance, zoning requirement, governmental restriction,
        order, judgment, or decree applicable to Seller or the Assets, (2) any provision
        of any charter, bylaw or other governing or organizational instrument of
        Seller,
        or (3) except insofar as Required Contract Consents (as defined in Section
        4.5)
        are to be procured prior to Closing, any mortgage, indenture, license,
        instrument, trust, contract, agreement, or other commitment or arrangement
        to
        which Seller is a party or by which Seller or any of the Assets is
        bound.

       

      4.4 Required
        Government Consents.
        Except
        for (1) the novation of the GSA Schedule Contract pursuant to Federal
        Acquisition Regulation (“FAR”)
        Subpart 42.12, and/or any other applicable FAR, GSA regulations, and/or the
        United States Code, no approval, authorization, certification, consent,
        variance, permission, license, or permit to or from, or notice, filing, or
        recording to or with, federal, state, or local governmental authorities is
        (a)
        necessary for the execution and delivery of this Agreement and the other
        agreements and instruments to be executed and delivered in connection with
        the
        transactions contemplated hereby or thereby by Seller or the consummation
        by
        Seller of the transactions contemplated hereby or thereby, or (b) the ownership
        and use of the Assets and the performance of the Assigned Contracts (including
        by Purchaser).

       

      4.5 Title
        to Personal Property.
        Except
        as set forth on Schedule
        4.5,
        Seller
        has, or will deliver as of Closing, good and marketable title to all of the
        Assets, free and clear of all liens, claims, encumbrances, options, pledges,
        restrictions on transfer, title defects, security interests, or other
        encumbrances of any kind or nature whatsoever (the “Liens”). Purchaser at
        Closing shall obtain good and marketable title to all of the Assets, free
        and
        clear of all Liens.

       

      4.6 Title
        to Intellectual Property.
        Purchaser shall receive all of Seller's rights in the Intellectual Property
        at
        Closing free and clear of all title defects, liens, restrictions, claims,
        charges, security interests, or other encumbrances of any nature whatsoever
        (except for liens for taxes not yet due and payable), and the Intellectual
        Property includes, all intellectual property rights, trade secrets, and other
        proprietary information reasonably necessary for the ownership and use of
        the
        Assets.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      4.7 Investigations.
        To the
        Seller’s knowledge, there is no irregularity, misstatement, act or omission
        arising under or relating to Assigned Contracts that has led or could reasonably
        be expected to lead, either before or after the Closing Date, to any
        administrative, civil (including, but not limited to, claims made under the
        False Claims Act, 18 U.S.C.§ 287) or criminal investigation, indictment or
        information, audit or internal investigation or to any other damage, penalty
        assessment, recoupment of payment, or disallowance of cost; and, with respect
        to
        performance under the GSA Schedule or any other sale of goods and/or services
        to
        Federal Clients, there has not been and there is no basis for the commencement
        of any proceedings to suspend or disbar Seller from doing business with any
        agency of the federal government.

       

      4.8 Claims
        and Disputes.
        Seller
        has no interest in any pending or potential claim or request for equitable
        adjustment against the Government or any subcontractor, vendor or other third
        party arising under or relating to the Assigned Contracts or any Team Member
        Agreement. There are no outstanding claims against Seller either by the
        Government or any subcontractor, vendor or other third party arising out
        of or
        relating to the Assigned Contracts or any Team Member Agreement, and to Seller’s
        knowledge, there are no facts that might give rise to or result in such a
        claim.
        There exist no disputes between Seller and the Government or any subcontractor,
        vendor or other third party, arising out of or relating to the Assigned
        Contracts or any Team Member Agreement or outstanding Active Proposal, and
        to
        Seller’s knowledge, there are no facts that might give rise to or result in such
        a dispute.

       

      4.9 AGF.
        Seller
        has filed all reports related to and paid all Associated Government Fees
        required to be paid by Seller under the Assigned Contracts through the Effective
        Date, including Industrial Funding Fees (“IFF”) or other fees, taxes, penalties
        or other exactions by or for the US General Services
        Administration.

       

      4.10 Litigation.
        Except
        as listed on Schedule 4.10,
        no
        claim, action, suit, proceeding, inquiry, hearing, arbitration, administrative
        proceeding, or investigation (collectively, “Litigation”)
        is
        pending, or, to Seller’s knowledge, threatened against Seller, its present or
        former directors, officers, or employees affecting, involving, or relating
        to
        any of the Assets.

       

      4.11 Court
        Orders, Decrees, and Laws.
        There
        is no outstanding or, to Seller’s knowledge, threatened order, writ, injunction,
        or decree of any court, governmental agency, or arbitration tribunal against
        Seller affecting, involving, or relating to the Assets. Seller is not in
        violation of any applicable federal, state, or local law, regulation, ordinance,
        zoning requirement, governmental restriction, order, judgment, or decree
        affecting, involving, or relating to the Assets.

       

      4.12 Broker’s
        or Finder’s Fees.
        Seller
        has not authorized any person to act as broker or finder or in any other
        similar
        capacity in connection with the transactions contemplated by this Agreement
        in
        any manner that may or will impose liability on Purchaser.

       

      4.13 Disclosure.
        No
        representation, warranty, or statement made by Seller in this Agreement or
        in
        any document or certificate furnished or to be furnished to Purchaser pursuant
        to this Agreement contains or will contain any untrue statement, or omits
        or
        fails to state any fact necessary to make the statements contained herein
        or
        therein not misleading.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      Article
        V

       

      REPRESENTATIONS
        AND WARRANTIES OF BUYER

       

      Purchaser
        hereby represents and warrants to Seller as follows:

       

      5.1 Organization.
        Purchaser is a corporation validly existing and in good standing under the
        laws
        of the Commonwealth of Virginia, with the corporate power and authority to
        conduct its business and to own and lease its properties and assets. Purchaser
        is duly qualified or licensed to do business and is in good standing as a
        foreign corporation in each state in which the failure to be so qualified
        or
        licensed would have a material adverse effect on its financial condition
        or
        operations.

       

      5.2 Power
        and Authority.
        Purchaser has the power and authority to execute, deliver, and perform this
        Agreement and the other agreements and instruments to be executed and delivered
        by it in connection with the transactions contemplated hereby and thereby,
        and
        Purchaser has taken all necessary corporate action to authorize the execution
        and delivery of this Agreement and such other agreements and instruments
        and the
        consummation of the transactions contemplated hereby and thereby. This Agreement
        is, and, when such other agreements and instruments are executed and delivered,
        the other agreements and instruments to be executed and delivered by Purchaser
        in connection with the transactions contemplated hereby and thereby shall
        be,
        the legal, valid, and binding obligation of Purchaser, enforceable in accordance
        with their terms, except as limited by bankruptcy, moratorium, or similar
        laws
        for the protection of creditors generally.

       

      5.3 No
        Conflict.
        Neither
        the execution and delivery by Purchaser of this Agreement and of the other
        agreements and instruments to be executed and delivered by Purchaser in
        connection with the transactions contemplated hereby or thereby, nor the
        consummation by Purchaser of the transactions contemplated hereby or thereby
        will violate or conflict with (1) any federal, state, or local law, regulation,
        ordinance, governmental restriction, order, judgment, or decree applicable
        to
        Purchaser, or (2) any provision of any charter, bylaw, or other governing
        or
        organizational instrument of Purchaser.

       

      Article
        VI

       

      COVENANTS
        OF SELLER AND BUYER PRIOR TO CLOSING

       

      6.1 Access.
        From
        the date of this Agreement to the Closing Date, Seller shall provide Purchaser
        with such information and access to such records as Purchaser may from time
        to
        time reasonably request with respect to the Active Proposals and related
        Team
        Member Agreements. Any investigation shall be conducted in such a manner
        as not
        to interfere unreasonably with the operation of the business of
        Seller.

       

      6.2 Approvals
        of Third Parties.
        Seller
        and Purchaser shall make good faith efforts, and shall cooperate with one
        another, to secure all Required Contract Consents that may be required by
        Vendors, provided, that the ability to secure any such Require Contract Consents
        shall not be
        a
        condition to Closing.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      6.3 Subcontract
        Agreement; Other Transition Requirements.
        The
        parties acknowledge that FAR Subpart 42.12 requires the Closing to occur
        prior
        to the novation of the GSA Schedule Contract to Purchaser. Throughout the
        novation process Purchaser and Seller will each use reasonable efforts, and
        will
        cooperate with each other, to obtain GSA’s approval of the Subcontract Agreement
        pursuant to FAR § 52.244-2 to allow Purchaser to perform throughout the novation
        process.
        Seller
        and Purchaser will (a) cooperate throughout the novation process, (b) honor
        all
        outstanding quotes, and (c) fulfill all delivery orders and purchase orders.
        From and after the Closing Date Purchaser will, at Purchaser’s sole expense,
        continue the government business without interruption and in the ordinary
        course, serving as Seller’s subcontractor until the novation process is
        completed. Purchaser will hold Seller harmless from any liability in connection
        with this Government Business from and after the Closing Date. 

       

      6.4 Hiring
        Employees. Seller
        will cooperate with all requests made by Purchaser for the purpose of allowing
        Purchaser to hire those employees of Seller designated by Purchaser and working
        in the Business, such employment to be effective as of the Closing Date;
        provided, however, that nothing in this Section 6.5 and no actions pursuant
        to
        this Section 6.5 will require Purchaser to hire any employee of
        Seller.

       

      6.5 Cancel
        Unfulfilled Purchase Orders with Vendors.  Immediately
        following the Closing, Seller and Shareholder shall take all steps necessary
        to
        cancel any unfilled purchase orders with vendors with respect to the Business
        unless Purchaser assumes such obligations and accepts delivery of performance
        by
        such vendors. 

       

      6.6 Name
        Change. Upon closing, Purchaser shall change the name under which it conducts
        the Government Business to a name other than one that would conflict with
        or
        could be confused with the names “True North”, “Solutions”, or “True North
        Solutions, Inc.” 

       

      Article
        VII

       

      CONDITIONS
        TO SELLER’S OBLIGATIONS

       

      Each
        of
        the obligations of Seller to be performed hereunder shall be subject to the
        satisfaction of (or waiver by) Seller at or prior to the Closing Date of
        each of
        the following conditions:

       

      7.1 Representations
        and Warranties True at Closing Date.
        Purchaser’s representations and warranties contained in this Agreement shall be
        true on and as of the Closing Date with the same force and effect as though
        made
        on and as of such date, and Purchaser shall have delivered to Seller a
        certificate dated the Closing Date and signed by a duly authorized officer
        of
        Purchaser to such effect.

       

      7.2 Performance.
        Purchaser shall have complied with the covenants and agreements set forth
        herein
        to be performed by it on or before the Closing Date; and Purchaser shall
        have
        delivered to Seller a certificate dated the Closing Date and signed by a
        duly
        authorized officer of Purchaser to such effect.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      7.3 Litigation.
        No
        Litigation shall be threatened or pending against Purchaser or Seller before
        any
        court or governmental agency that, in the reasonable opinion of counsel for
        Seller, could result in the restraint or prohibition of any such party, or
        the
        obtaining of damages or other relief from such party, in connection with
        this
        Agreement or the consummation of the transactions contemplated
        hereby.

       

      7.4 Documents
        Satisfactory in Form and Substance.
        All
        agreements, certificates, and other documents delivered by Purchaser to seller
        hereunder shall be in form and substance satisfactory to counsel for Seller,
        in
        the exercise of such counsel’s reasonable judgment.

       

      Article
        VIII

       

      CONDITIONS
        TO BUYER’S OBLIGATIONS

       

      Each
        of
        the obligations of Purchaser to be performed hereunder shall be subject to
        the
        satisfaction of (or waiver by) Purchaser at or prior to the Closing Date
        of each
        of the following conditions:

       

      8.1 Representations
        and Warranties True at Closing Date.
        Seller’s representations and warranties contained in this Agreement shall be
        true on and as of the Closing Date with the same force and effect as though
        made
        on and as of such date, and Seller shall have delivered to Purchaser a
        certificate dated the Closing Date and signed by a duly authorized officer
        of
        Seller to such effect.

       

      8.2 No
        Litigation.
        Except
        as set out on Schedule 8.2 no Litigation shall be threatened or pending against
        Purchaser or Seller before any court or governmental agency that, in the
        reasonable opinion of counsel for Purchaser, could result in the restraint
        or
        prohibition of any such party, or the obtaining of damages or other relief
        from
        such party, in connection with this Agreement or the consummation of the
        transactions contemplated hereby.

       

      Article
        IX

       

      CLOSING

       

      9.1 Closing.
        Unless
        this Agreement is first terminated as provided in Article XII, the closing
        of
        the purchase and sale of the Assets and the transfer and assumption of the
        Assumed Liabilities (the “Closing”)
        shall
        take place at the offices of Squire, Sanders & Dempsey L.L.P. (the
“Closing
        Agent”),
        at
        8000 Towers Crescent Drive, Suite 1400, Vienna, Virginia 22182, at 9:00 a.m.
        Eastern time o’clock on the week day which is five (5) days after the Effective
        Date, and if said day is not a week day, the next week day following the
        day
        which is thirty (30) days after the Effective Date, or on such other time,
        date,
        and place as the parties may agree (the “Closing
        Date”).

       

      9.2 Actions
        at Closing.
        At
        Closing, Purchaser and Seller shall take the following actions, in addition
        to
        such other actions as may otherwise be required under this
        Agreement:

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      (a) Payment
        of the Closing Cash Payment.
        Purchaser shall deliver the Closing Cash Payment to the Seller in full by
        check
        or wire transfer of immediately available funds to an account designated
        by
        Seller.

       

      (b) Conveyance
        Instruments.
        Seller
        shall deliver to Purchaser such warranty deeds, bills of sale, assignments,
        and
        other instruments of conveyance and transfer as Purchaser may reasonably
        request
        to effect the assignment to Purchaser of the Assets.

       

      (c) Deferred
        Purchase Money Note and Security Agreement. Purchaser
        shall execute and deliver the Deferred Purchase Money Note, a security
        agreement, and such financing statements as may be required to perfect Seller's
        collateral lien in the Assets.

       

      9.3 Further
        Assurances.
        At and
        after the Closing, without further consideration, Seller shall take all such
        other action and shall procure or execute, acknowledge, and deliver all such
        further certificates, conveyance instruments, consents, and other documents
        as
        Purchaser or its counsel may reasonably request (1) to vest in Purchaser,
        and
        perfect and protect Purchaser’s right, title, and interest in, and enjoyment of,
        the Assets or (2) to ensure more effectively the compliance of Seller with
        its
        agreements, covenants, warranties, and representatives under this
        Agreement.

       

      Article
        X

       

      COVENANTS
        OF SELLER AND BUYER FOLLOWING CLOSING

       

      10.1 Novation
        of GSA Contract.
        Following the Closing, Purchaser and Seller will each use reasonable efforts,
        and will cooperate with each other, to novate the Assigned Contracts to
        Purchaser pursuant to FAR Subpart 42.12 and will execute a novation agreement,
        in such form as may be reasonably required or requested by the Government.
        Seller shall render all necessary assistance to Purchaser in obtaining such
        novation in such manner as Purchaser reasonably requests; provided, however,
        that in seeking to obtain such novation, Seller shall not be required to
        make
        any additional payment or take any additional action not otherwise required
        under the terms of the Novated Contract. Purchaser shall bear, pay, discharge
        and satisfy all costs, expenses and considerations required to obtain the
        novation of the Contract. 

       

      10.2 Transfer
        Taxes.
        All
        sales, transfer, and similar taxes and fees (including all recording fees,
        if
        any) incurred in connection with this Agreement and the transactions
        contemplated hereby shall be borne by the party subject to such taxes under
        applicable law and the parties shall cooperate to make available and provide
        all
        necessary documentation with respect to such taxes.

       

      10.3 Confidentiality
        Obligation of Seller Following Closing.
        Following the Closing, Seller shall, and shall use its best efforts to cause
        its
        personnel and agents to, hold in strict confidence, not disclose to any person
        without the prior written consent of Purchaser, and not use in any manner
        whatsoever, any confidential business or technical information remaining
        in its
        possession concerning the Assets. Notwithstanding the foregoing, Seller may
        disclose confidential information (1) where necessary to any regulatory
        authorities or governmental agencies pursuant to legal process or (2) if
        required by court order or decree. For purposes of this Agreement, information
        shall not be deemed confidential (1) if such information is available in
        full
        from public sources; (2) if such information is received from a third party
        not
        under an obligation to keep such information confidential; or (3) if the
        recipient can conclusively demonstrate that such information was independently
        developed by the recipient.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      10.4 Seller
        and Shareholder’s Indemnity.

       

      (a) Subject
        to the terms and conditions of this Article X, , Seller and Shareholder shall,
        jointly and severally, indemnify, defend and hold harmless Purchaser, and
        its
        parent company Iceweb, Inc., a Delaware corporation, shareholders, employees,
        officers, directors, agents, attorneys, and Affiliates from and against all
        lawsuits, losses, claims, obligations, demands, assessments, penalties,
        liabilities, costs, damages, reasonable attorneys’ fees, expenses, and
        reasonable consulting fees (collectively, “Damages”), incurred by any or all of
        them or assessed against the Purchased Assets by reason of or resulting from
        or
        based upon:

       

      (i) The
        material inaccuracy of any representation or warranty, or the breach or default
        of or under any covenant or agreement, made by Seller or Shareholder in this
        Agreement, including any of the Exhibits and Schedules hereto or in any
        Ancillary Document delivered in connection with any of the transactions
        contemplated by this Agreement or any of the agreements contemplated hereby;
        and

       

      (ii) Any
        claims arising out of or relating to occurrences of any nature relating to
        the
        Government Business, the conduct thereof, or the ownership or operation of
        the
        Assets prior to the Closing, whether any such claims are asserted prior to
        or
        after the Closing;

       

      (iii) Any
        pending litigation or disputes involving Seller, the Government Business
        or the
        Assets, whether or not such litigation, proceeding or dispute in listed in
        one
        or more schedules to this Agreement;

       

      (iv) Any
        liability or claim arising out of or relating to occurrences of any nature
        relating to Seller’s conduct of the Business or ownership or operation of the
        Assets; or

       

      10.5 Purchaser’s
        Indemnity. Subject
        to the terms and conditions of this Article X, Purchaser shall indemnify,
        defend
        and hold harmless Seller, American Systems, and the Shareholder and Seller’s
        officers, employees, directors, agents, attorneys, and Affiliates harmless
        from
        and against all Damages asserted against or incurred by any or all of them
        by
        reason of or resulting from or based on:

       

      (a) The
        inaccuracy of any representation or warranty, or the breach or default of
        or
        under any covenant or agreement, made by Purchaser in this Agreement, including
        any of the Exhibits and Schedules hereto or in any Ancillary Document delivered
        in connection with any of the transactions contemplated by this Agreement
        or any
        of the agreements contemplated hereby; or 

       

      (b) Any
        liability or claim arising out of or relating to occurrences of any nature
        relating to the conduct of the Government Business from events occurring
        after
        the Closing, including, but not limited to, any loss, cost or expense that
        Seller may incur as a result of acting in an intermediate contracting role
        with
        respect to any Assigned Contracts pending completion of the novation.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      10.6 Limitations
        upon Indemnification Obligations. Except
        in
        the case of fraud or willful misconduct, indemnification shall not include
        any
        punitive damages. No claims for indemnification hereunder may be brought
        on or
        after eighteen months from the date of Closing. No claims for indemnification
        may be asserted by Purchaser against the Seller or the Shareholder until
        the
        aggregate amount of all Damages incurred in connection with the claims
        thereunder exceeds Twenty-Five Thousand Dollars ($25,000) in the aggregate
        or
        Ten Thousand Dollars ($10,000) for any single claim, (the “Indemnification
        Deductible”).

       

      10.7 Non-Competition
        Covenant By Seller, American Systems and Shareholder. Seller, American Systems,
        and Shareholder, jointly and severally, covenant that for a period of one
        (1)
        years from and after the Closing Date, none of them shall compete with Purchaser
        in the sale of any of the goods historically sold by Seller as the Government
        Business, to agencies of the federal government to which Seller sold or marketed
        goods. For purposes of this non-competition covenant, the narrowest definition
        of “agencies of the federal government” will be applied that fulfills the
        requirement of this covenant. By way of example only, if the United States
        Navy
        was a customer of Seller, but Seller only sold goods to the SPAWARs facility,
        Seller would not be precluded from selling to the Naval Ship Parts Depot
        in
        Mechanicsburg, Pennsylvania. 

       

      Article
        XI

       

      TERMINATION
        PRIOR TO CLOSING

       

      11.1 Termination
        of Agreement.
        This
        Agreement may be terminated at any time prior to the Closing:

       

      (a) Mutual
        Consent.
        By the
        mutual consent of Purchaser and Seller; or

       

      (b) Deadline.
        By
        Purchaser or Seller, in writing, if the Closing shall not have occurred on
        or
        before December 31, 2006.

       

      11.2 Termination
        of Obligations.
        Termination of this Agreement pursuant to this Article XI shall terminate
        all
        obligations of the parties hereunder.

       

      Article
        XII

       

      MISCELLANEOUS

       

      12.1 Entire
        Agreement.
        This
        Agreement and the other certificates, agreements, and other instruments to
        be
        executed and delivered by the parties in connection with the transactions
        contemplated hereby constitute the sole understanding of the parties with
        respect to the subject matter hereof. No amendment, modification, or alteration
        of the terms or provisions of this Agreement shall be binding unless the
        same
        shall be in writing and duly executed by the parties hereto.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      12.2 Parties
        Bound by Agreement; Successors and Assigns.
        The
        terms, conditions, and obligations of this Agreement shall inure to the benefit
        of and be binding upon the parties hereto and the respective successors and
        assigns thereof. Without the prior written consent of the other party, Purchaser
        may assign its rights, duties, or obligations hereunder or any part thereof
        to
        any other person or entity, which shall thereupon become Purchaser, provided
        that at the time of such assignment Purchaser unconditionally and irrevocably
        guarantees the payment and performance of any duties or obligations so
        assigned.

       

      12.3 Counterparts.
        This
        Agreement may be executed in one or more counterparts, each of which shall
        for
        all purposes be deemed to be an original and all of which shall constitute
        the
        same instrument.

       

      12.4 Headings.
        The
        headings of the Sections and paragraphs of this Agreement are inserted for
        convenience only and shall not be deemed to constitute part of this Agreement
        or
        to affect the construction hereof.

       

      12.5 Modification
        and Waiver.
        Any of
        the terms or conditions of this Agreement may be waived in writing at any
        time
        by the party that is entitled to the benefits thereof. No waiver of any of
        the
        provisions of this Agreement shall be deemed to or shall constitute a waiver of
        any other provision hereof (whether or not similar).

       

      12.6 Expenses.
        Seller
        and Purchaser shall each pay all costs and expenses incurred by it or on
        its
        behalf in connection with this Agreement and the transactions contemplated
        hereby, including fees and expenses of its own financial consultants, accounts,
        and counsel.

       

      12.7 Notices.
        Any
        notice, request, instruction, or other document to be given hereunder by
        any
        party hereto to any other party hereto shall be in writing and delivered
        personally or sent by registered or certified mail, postage prepaid, as
        follows:

       

      if
        to
        Seller to:

       

      American
        Systems Corporation

      13990
        Parkeast Circle

      Suite
        A

      Chantilly,
        VA 20151

      Attention:
        Joseph Kopfman, Vice President, Contracts

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      if
        to
        Purchaser to:

       

      Iceweb
        Virginia, Inc. 

      205
        Van
        Buren Street, Suite 150 

      Herndon,
        Virginia 20170 

      Attention:
        John Signorello, CEO

       

       

      or
        at
        such other address for a party as shall be specified by like notice. Any
        notice
        that is delivered personally in the manner provided herein shall be deemed
        to
        have been duly given to the party to whom it is directed upon actual receipt
        by
        such party (or its agent for notices hereunder). Any notice that is addressed
        and mailed in the manner herein provided shall be conclusively presumed to
        have
        been duly given to the party to which it is addressed at the close of business,
        local time of the recipient, on the fourth business day after the day it
        is so
        placed in the mail.

       

      12.8 Governing
        Law.
        This
        Agreement shall be construed in accordance with and governed by the laws
        of the
        Commonwealth of Virginia without giving effect to the principles of conflicts
        of
        law thereof.

       

      12.9 Public
        Announcements.
        Seller
        and Purchaser shall consult with each other before issuing any press releases
        or
        otherwise making any public statements with respect to this Agreement and
        the
        transactions contemplated hereby. Neither Seller nor Purchaser shall issue
        any
        such press release or make any public statement without the agreement of
        the
        other party, except as such party’s counsel advises in writing may be required
        by law.

       

      12.10 “Including.”
        Words of
        inclusion shall not be construed as terms of limitation herein, so that
        references to “included” matters shall be regarded as nonexclusive,
        noncharacterizing illustrations.

       

      12.11 References.
        Whenever reference is made in this Agreement to any Article or Section, such
        reference shall be deemed to apply to the specified Article or Section of
        this
        Agreement.

       

      

       

      [Signature
        page follows]

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN
        WITNESS WHEREOF, each of the parties hereto has caused this Agreement to
        be
        executed on its behalf as of the Effective Date.

       

      
        	 	
                American
                  Systems Corporation:

              
	 	 	 
	 	 	 
	 	
                By:
                  

              	  

	 	 	
                William
                  C. Hoover

              
	 	 	
                President
                  and Chief Executive Officer

              
	 	 	 
	 	 	 
	 	
                True
                  North Solutions, Inc.

              
	 	 	 
	 	 	 
	 	
                By:
                  

              	  

	 	 	
                William
                  C. Hoover

              
	 	 	
                President
                  and Chief Executive Officer

              
	 	 	 
	 	 	 
	 	
                ASC
                  Acquisition-TNS, Inc.

              
	 	 	 
	 	 	 
	 	
                By:

              	  

	 	 	
                William
                  C. Hoover

              
	 	 	
                President
                  and Chief Executive Officer

              
	 	 	 
	 	 	 
	 	
                Iceweb
                  Virginia, Inc.

              
	 	 
	 	
                By:
                  

              	  

	 	 	
                John
                  Signorello, CEO

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