Document:

Assest Purchase Agreement

 Exhibit 10.16 
  
 EXECUTION COPY 
  
 ASSET PURCHASE AGREEMENT 
  
 dated November 20, 2003 
  
 among 
  
 Bio-Imaging Technologies, Inc. 
  
 and 
  
 CapMed
Corporation 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE I        THE ASSET PURCHASE
	  	1
	     1.1
	  	Purchase and Sale of Assets.	  	1
	     1.2
	  	Assumption of Liabilities.	  	1
	     1.3
	  	Purchase Price	  	1
	     1.4
	  	Escrow	  	2
	     1.5
	  	The Closing.	  	2
	     1.6
	  	Allocation	  	3
	     1.7
	  	Further Assurances	  	3
	ARTICLE II        REPRESENTATIONS AND WARRANTIES OF THE SELLER	  	3
	     2.1
	  	Organization, Qualification and Corporate Power	  	3
	     2.2
	  	Authorization of Transaction	  	4
	     2.3
	  	Noncontravention	  	4
	     2.4
	  	Financial Statements	  	4
	     2.5
	  	Absence of Certain Changes	  	4
	     2.6
	  	Ownership and Condition of Assets.	  	6
	     2.7
	  	Intellectual Property	  	6
	     2.8
	  	Contracts.	  	8
	     2.9
	  	Insurance	  	9
	     2.10
	  	Litigation	  	9
	     2.11
	  	Warranties	  	9
	     2.12
	  	Employees.	  	10
	     2.13
	  	Real Property	  	10
	     2.14
	  	Legal Compliance	  	10
	     2.15
	  	Customers and Suppliers	  	10
	     2.16
	  	Permits	  	10
	     2.17
	  	Brokers’ Fees	  	11
	     2.18
	  	Disclosure	  	11
	     2.19
	  	Certain Securities Laws Representations	  	11
	ARTICLE III        REPRESENTATIONS AND WARRANTIES OF THE BUYER	  	12
	     3.1
	  	Organization and Corporate Power	  	12
	     3.2
	  	Authorization of the Transaction	  	12
	     3.3
	  	Noncontravention	  	12
	     3.4
	  	Broker’s Fees	  	12
	     3.5
	  	Certificate of Incorporation and By-Laws	  	12
	     3.6
	  	Capitalization.	  	13
	     3.7
	  	Reports and Financial Statements	  	13
	     3.8
	  	Absence of Material Adverse Change	  	14
	     3.9
	  	Litigation	  	14
	     3.10
	  	Legal Compliance	  	14
	ARTICLE IV        CONDITIONS TO CLOSING	  	15
	     4.1
	  	Conditions to Obligations of the Buyer	  	15
	     4.2
	  	Conditions to Obligations of the Seller	  	16
	ARTICLE V        POST-CLOSING COVENANTS	  	17
	     5.1
	  	Assigned Contracts	  	17
	     5.2
	  	Solicitation and Hiring	  	17
	     5.3
	  	Non-Competition.	  	18

					
	     5.4
	  	Tax Matters	  	18
	     5.5
	  	Sharing of Data.	  	18
	     5.6
	  	Use of Name	  	19
	     5.7
	  	Collection and Billing of Accounts Receivable	  	19
	     5.8
	  	Listing of Shares	  	19
	     5.9
	  	Bulk Transfer Laws	  	19
	     5.10
	  	Piggyback Registration Rights	  	19
	     5.11
	  	Confidential Information	  	20
	 ARTICLE VI        INDEMNIFICATION
	  	21
	     6.1
	  	Indemnification by the Seller	  	21
	     6.2
	  	Indemnification by the Buyer	  	21
	     6.3
	  	Indemnification Claims.	  	22
	     6.4
	  	Survival of Representations and Warranties	  	24
	     6.5
	  	Limitations.	  	24
	     6.6
	  	Treatment of Indemnity Payments	  	25
	 ARTICLE VII        DEFINITIONS
	  	25
	 ARTICLE VIII        MISCELLANEOUS
	  	33
	     8.1
	  	Press Releases and Announcements	  	33
	     8.2
	  	No Brokers	  	33
	     8.3
	  	No Third Party Beneficiaries	  	33
	     8.4
	  	Entire Agreement	  	33
	     8.5
	  	Succession and Assignment	  	33
	     8.6
	  	Counterparts and Facsimile Signature	  	33
	     8.7
	  	Headings	  	34
	     8.8
	  	Notices	  	34
	     8.9
	  	Governing Law	  	35
	     8.10
	  	Amendments and Waivers	  	35
	     8.11
	  	Severability	  	35
	     8.12
	  	Expenses	  	35
	     8.13
	  	Service of Process	  	35
	     8.14
	  	Specific Performance	  	35
	     8.15
	  	Construction.	  	36

			
	Exhibits	  	 
		
	 Exhibit A -
	  	Escrow Agreement
	 Exhibit B -
	  	Bill of Sale
	 Exhibit C -
	  	Trademark Assignment and Patent Assignment
	 Exhibit D -
	  	Instrument of Assumption
	 Exhibit E -
	  	Opinion of Seller’s counsel
	 Exhibit F -
	  	Opinion of Buyer’s counsel
	 Exhibit G -
	  	Final Closing Balance Sheet
		
	 Schedules
	  	 
		
	 Disclosure Schedules
	  	 
	 Schedule 1.1(a) -
	  	Acquired Assets
	 Schedule 1.1(b) -
	  	Excluded Assets
	 Schedule 1.3(a)(i) -
	  	Sellers’ Creditors
	 Schedule 1.3(a)(ii) -
	  	Payment to and Releases from Creditors
	 Schedule 1.6 -
	  	Allocation of Purchase Price
	 Schedule 4.1(c)
	  	Assigned Contracts

  
  

 ASSET PURCHASE AGREEMENT 
  
 This Asset Purchase Agreement is entered into as of November 20, 2003 by and among Bio-Imaging Technologies, Inc., a
Delaware corporation (the “Buyer”), and CapMed Corporation, a Delaware corporation (the “Seller”). 
  
 This Agreement contemplates a transaction in which the Buyer will purchase from the Seller certain assets of the Seller’s business as defined under
Article VII hereof. 
  
 Capitalized terms used in this Agreement
shall have the meanings ascribed to them in Article VII. 
  
 In
consideration of the representations, warranties and covenants herein contained, the Parties agree as follows. 
  
 ARTICLE I 
  
 THE ASSET PURCHASE 
  
 1.1 Purchase and Sale of
Assets. 
  
 (a) Upon and subject to the terms and conditions
of this Agreement, the Buyer shall purchase from the Seller, and the Seller shall sell, transfer, convey, assign and deliver to the Buyer, at the Closing, for the consideration specified below in this Article I, all right, title and interest in, to
and under the Acquired Assets as set forth on Schedule 1.1(a). 
  
 (b) Notwithstanding the provisions of Section 1.1(a), the Acquired Assets shall not include the Excluded Assets as set forth on Schedule 1.1(b). 
  

1.2 Assumption of Liabilities. 
  
 (a) Upon and subject to the terms and conditions of this Agreement, the Buyer shall assume and become responsible for, from and after the Closing, the
Assumed Liabilities. 
  
 (b) Notwithstanding the terms of Section
1.2(a) or any other provision of this Agreement to the contrary, the Buyer shall not assume or become responsible for, and the Seller shall remain liable for, the Retained Liabilities. 
  
 1.3 Purchase Price. The Purchase Price to be paid by the Buyer for the Acquired Assets at the Closing shall be
$550,000, payable as follows: 
  
 (a) Payment to
Creditors. Up to $300,000 to be paid by the Buyer directly to the creditors of the Seller as of the Closing as set forth on Schedule 1.3(a)(ii) hereto. Schedule 1.3(a)(i) sets forth a list of all creditors of the Seller as of the
Closing, and Schedule 1.3(a)(ii) sets forth those credits of the Seller that will deliver an unconditional and irrevocable release of the Seller and the Buyer from any and all claims that such creditor had or may have had prior to the Closing
as further set forth in Section 4.1(b) below; and 
  
 (b)
Common Stock Issued to Seller. $250,000 in shares (the “Stock Consideration”) of the Buyer’s common stock, $0.00025 par value per share (the “Common Stock”), calculated by dividing the Stock Consideration by the
Exchange Price (as defined below). 

 (c) In the event that less than $300,000 is required to satisfy the Seller’s obligations to its
creditors, the difference between $300,000 and the amount paid to such creditors (the “Cash Balance”) shall be paid to the Seller in shares of Common Stock. The exact number of shares shall be calculated by dividing the Cash Balance by the
Exchange Price that would result on the Closing. The “Exchange Price” is defined as the average closing price of the Buyer’s Common Stock as reported on the American Stock Exchange (or such successor securities exchange or market on
which the Common Stock is then traded) over the twenty (20) consecutive trading days ending two (2) business days prior to the Closing. 
  
 1.4 Escrow. At the Closing, such number of shares of the Buyer’s Common Stock calculated by dividing $74,292.24 (the “Escrow”) by
the Exchange Price shall be held in escrow for the purpose of securing any indemnification obligations of the Seller which may arise from the date of the Closing until twelve (12) months after the Closing, as set forth in the Escrow Agreement
attached hereto as Exhibit A. 
  
 1.5 The Closing.

  
 (a) The Closing shall take place at the offices of Hale and
Dorr LLP, 650 College Road East, Princeton, New Jersey 08540 commencing at 9:00 a.m. local time on the Closing Date. All transactions at the Closing shall be deemed to take place simultaneously, and no transaction shall be deemed to have been
completed and no documents or certificates shall be deemed to have been delivered until all other transactions are completed and all other documents and certificates are delivered. 
  
 (b) At the Closing: 
  
 (i) the Seller shall deliver to the Buyer the various certificates, instruments and documents referred to in Section 4.1; 
  
 (ii) the Buyer shall deliver to the Seller the various certificates,
instruments and documents referred to in Section 4.2; 
  
 (iii)
the Seller shall execute and deliver to the Buyer a bill of sale in substantially the form attached hereto as Exhibit B, a trademark assignment and patent assignment in substantially the form attached hereto as Exhibit C, and such
other instruments of conveyance (such as assigned certificates or documents of title, assigned negotiable instruments and stock transfer powers) as the Buyer may reasonably request in order to effect the sale, transfer, conveyance and assignment to
the Buyer of valid ownership of the Acquired Assets; 
  
 (iv) the
Buyer shall execute and deliver to the Seller an instrument of assumption in substantially the form attached hereto as Exhibit D and such other instruments as the Seller may reasonably request in order to effect the assumption by the Buyer of
the Assumed Liabilities; 
  

 - 2 - 

 (v) the Buyer shall pay to the Seller the Purchase Price set forth in Section 1.3, by tendering payment
to the Seller’s creditors and delivering the shares of Common Stock to the Seller; and 
  
 (vi) the Seller shall deliver to the Buyer, or otherwise put the Buyer in possession and control of, all of the Acquired Assets of a tangible nature. 
  
 1.6 Allocation. The Buyer and the Seller agree to allocate the Purchase Price (and all other capitalizable costs)
among the Acquired Assets and the non-solicitation and non-competition covenants set forth in Sections 5.2 and 5.3 for all purposes (including financial accounting and tax purposes) in accordance with the allocation schedule attached hereto as
Schedule 1.6 which the parties have mutually agreed upon. 
  
 1.7 Further Assurances. At any time and from time to time after the Closing subject to any other provisions of this Agreement to the contrary, at the request of the Buyer and without further consideration, the Seller shall execute
and deliver such other instruments of sale, transfer, conveyance and assignment and take such actions as the Buyer may reasonably request to more effectively transfer, convey and assign to the Buyer, and to confirm the Buyer’s rights to, title
in and ownership of, the Acquired Assets and to place the Buyer in actual possession and operating control thereof. 
  
 ARTICLE II 
  
 REPRESENTATIONS AND WARRANTIES OF THE SELLER 
  
 The Seller represents and warrants to the Buyer that the statements contained in this Article II are true and correct, except as set forth in the Disclosure Schedule. The Disclosure Schedule shall be arranged in sections and subsections
corresponding to the numbered and lettered sections and subsections contained in Article II of this Agreement. The disclosures in any section or subsection of the Disclosure Schedule shall qualify only the corresponding section or subsection in this
Article II, or any other section hereof where it is reasonably clear, upon a reading of such disclosure without any independent knowledge on the part of the reader regarding the matter disclosed, that the disclosure is intended to apply to such
other section. For purposes of this Article II, the phrase “to the knowledge of the Seller” or any phrase of similar import shall be deemed to refer to the actual knowledge of the Seller’s Chief Executive Officer, Wendy Angst, and
David Sills. 
  
 2.1 Organization, Qualification and Corporate
Power. The Seller is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. The Seller is duly qualified to conduct business and is in corporate and tax good standing under the laws of each
jurisdiction listed in Section 2.1 of the Disclosure Schedule. The Seller has all requisite corporate power and authority to carry on the Business and to own and use the properties owned and used by it in the Business. The Seller has furnished to
the Buyer complete 

  

 - 3 - 

 
and accurate copies of its Certificate of Incorporation and by-laws. The Seller is not in violation of any provision of its Certificate of Incorporation or
by-laws. The Seller does not have any Subsidiaries. 
  
 2.2
Authorization of Transaction. The Seller has all requisite corporate power and authority to execute and deliver this Agreement and the Ancillary Agreements and to perform its obligations hereunder and thereunder. The execution and delivery by
the Seller of this Agreement, the performance by the Seller of this Agreement and the Ancillary Agreements and the consummation by the Seller of the transactions contemplated hereby and thereby have been duly and validly authorized by all necessary
corporate action on the part of the Seller. This Agreement has been duly and validly executed and delivered by the Seller and constitutes, and each of the Ancillary Agreements, upon its execution and delivery by the Seller, will constitute, a valid
and binding obligation of the Seller, enforceable against the Seller in accordance with its terms, subject to applicable bankruptcy and equitable principles. 
  
 2.3 Noncontravention. Neither the execution and delivery by the Seller of this Agreement or the Ancillary Agreements, nor the consummation by the
Seller of the transactions contemplated hereby or thereby, will (a) conflict with or violate any provision of the Certificate of Incorporation or by-laws of the Seller, (b) require on the part of the Seller any notice to or filing with, or any
permit, authorization, consent or approval of, any Governmental Entity, (c) conflict with, result in a breach of, constitute (with or without due notice or lapse of time or both) a default under, result in the acceleration of obligations under,
create in any party the right to terminate, modify or cancel, or require any notice, consent or waiver under, any contract or instrument to which the Seller is a party or by which the Seller is bound or to which any of the Acquired Assets is subject
which, in all such cases, relate primarily to the Business, except for (i) any conflict, breach, default, acceleration, termination, modification or cancellation which would not adversely affect the consummation of the transactions contemplated
hereby or (ii) any notice, consent or waiver, the absence of which would not adversely affect the consummation of the transactions contemplated hereby, (d) result in the imposition of any Security Interest upon any assets of the Business or (e) to
its knowledge, violate any order, writ, injunction, decree, statute, rule or regulation applicable to the Business. 
  
 2.4 Financial Statements. The Seller has provided to the Buyer the Financial Statements of the Business. The Financial Statements have been
prepared in accordance with GAAP applied on a consistent basis throughout the periods covered thereby, fairly present the consolidated financial condition, results of operations and cash flows of the Seller as of the respective dates thereof and for
the periods referred to therein and are consistent with the books and records of the Seller; provided, however, that the Financial Statements are subject to normal recurring year-end adjustments (which will not be material) and do not
include footnotes. 
  
 2.5 Absence of Certain
Changes. Since December 31, 2002, (a) there has occurred no event or development which, individually or in the aggregate, has had, or could reasonably be expected to have in the future, a Seller Material Adverse Effect, and (b) the Seller has
conducted the Business in the Ordinary Course of Business and in material compliance with all applicable laws and regulations and, to the extent consistent therewith, used its Reasonable Best Efforts to 

  

 - 4 - 

 
keep the physical assets of the Business in good working condition, keep available the services of the current officers and employees of the Business and
preserve its relationships with the Business’s customers, suppliers and others having business dealings with it. Without limiting the generality of the foregoing, since December 31, 2002, the Seller has not, solely with respect to the Business:

  
 (a) entered into, adopted or amended any Employee Benefit
Plan or any employment or severance agreement or other arrangement or (except for normal increases in the Ordinary Course of Business for employees who are not Affiliates), increased in any manner the compensation or fringe benefits of, or
materially modified the employment terms of, its directors, officers or employees, generally or individually, or paid any bonus or other benefit to its directors, officers or employees or hired any new officers or (except in the Ordinary Course of
Business) any new employees; 
  
 (b) acquired, sold, leased,
licensed or disposed of any assets or property, other than purchases and sales of assets in the Ordinary Course of Business; 
  
 (c) mortgaged or pledged any of its property or assets or subjected any such property or assets to any Security Interest; 
  
 (d) discharged or satisfied any Security Interest or paid any obligation or
liability other than in the Ordinary Course of Business; 
  
 (e)
amended its charter, by-laws or other organizational documents in a manner that could have an adverse effect on the transactions contemplated by this Agreement; 
  

(f) changed its accounting methods, principles or practices, except insofar as may be required by a generally applicable change in GAAP, or made any
new elections, or changes to any current elections, with respect to Taxes that affect the Acquired Assets; 
  
 (g) entered into, amended, terminated, took or omitted to take any action that would constitute a violation of or default under, or waived any rights
under, any contract or agreement of a nature required to be listed in Section 2.7 or Section 2.8 of the Disclosure Schedule; 
  
 (h) made or committed to make any capital expenditure in excess of $1,000 per item or $10,000 in the aggregate; 
  
 (i) instituted or settled any Legal Proceeding; 
  
 (j) from the date hereof until the Closing Date, took any action or failed to
take any action permitted by this Agreement with the knowledge that such action or failure to take action would result in (i) any of the representations and warranties of the Seller set forth in this Agreement becoming untrue or (ii) any of the
conditions to the Closing set forth in Article IV not being satisfied; or 
  

 - 5 - 

 (k) agreed in writing or otherwise to take any of the foregoing actions. 
  
 2.6 Ownership and Condition of Assets. 
  
 (a) The Seller is the true and lawful owner, and has good title to, all of
the Acquired Assets, free and clear of all Security Interests, except as set forth in Section 2.6(a) of the Disclosure Schedule. Upon execution and delivery by the Seller to the Buyer of the instruments of conveyance referred to in Section
1.5(b)(iii), the Buyer will become the true and lawful owner of, and will receive good title to, the Acquired Assets, free and clear of all Security Interests other than those set forth in Section 2.6(a) of the Disclosure Schedule. 
  
 (b) The Acquired Assets are sufficient for the conduct of the Seller’s
Business as presently conducted and as presently proposed to be conducted in the Seller’s development plan dated April 9, 2003 (the “Development Plan”), and constitute all assets necessary to conduct the Business as presently
conducted and as presently proposed to be conducted in the Development Plan. Each tangible Acquired Asset is free from material defects, has been maintained in accordance with normal industry practice, is in good operating condition and repair
(subject to normal wear and tear) and is suitable for the purposes for which it presently is used. 
  
 (c) Section 2.6(c) of the Disclosure Schedule lists individually (i) all Acquired Assets which are fixed assets (within the meaning of GAAP) having a book
value greater than $500, indicating the cost, accumulated book depreciation (if any) and the net book value of each such fixed asset as of the Most Recent Balance Sheet Date, and (ii) all other Acquired Assets of a tangible nature (other than
inventories) whose book value exceeds $1,000. 
  
 (d) Each item of
equipment, motor vehicle and other asset that is being transferred to the Buyer as part of the Acquired Assets and that the Seller has possession of pursuant to a lease agreement or other contractual arrangement is in such condition that, upon its
return to its lessor or owner under the applicable lease or contract, the obligations of the Seller to such lessor or owner will have been discharged in full. 
  

2.7 Intellectual Property. With respect to the Intellectual Property used exclusively in the conduct of the Business: 
  
 (a) Section 2.7(a) of the Disclosure Schedule lists (i) each patent, patent
application, copyright registration or application therefor, mask work registration or application therefor, and trademark, service mark and domain name registration or application therefor of the Business and (ii) each Customer Deliverable of the
Business. 
  
 (b) The Seller owns or has the right to use all
Intellectual Property necessary (i) to use, manufacture, have manufactured, market and distribute the Customer Deliverables and (ii) to operate the Internal Systems. Upon execution and delivery by the Seller to the Buyer of the instruments of
conveyance referred to in Section 1.5(b)(iii), each item of Seller Intellectual Property will be owned or available for use by the Buyer immediately following the Closing on substantially identical terms and conditions as it was immediately prior to
the Closing. The 

  

 - 6 - 

 
Seller has taken reasonable measures to protect the proprietary nature of each item of Seller Intellectual Property, and to maintain in confidence all trade
secrets and confidential information, that it owns or uses with respect to the Business. To the knowledge of the Seller, no other person or entity has any rights to any of the Seller Intellectual Property owned by the Seller (except pursuant to
agreements or licenses specified in Section 2.7(d) of the Disclosure Schedule), and, to the knowledge of the Seller, no other person or entity is infringing, violating or misappropriating any of the Seller Intellectual Property. 
  
 (c) To the knowledge of the Seller, none of the Customer Deliverables, or the
marketing, distribution, provision or use thereof, infringes or violates, or constitutes a misappropriation of, any Intellectual Property rights of any person or entity. To the knowledge of the Seller, none of the Internal Systems, or the use
thereof, infringes or violates, or constitutes a misappropriation of, any Intellectual Property rights of any person or entity. Section 2.7(c) of the Disclosure Schedule lists any complaint, claim or notice, or written threat thereof, received by
the Seller alleging any such infringement, violation or misappropriation; and the Seller has provided to the Buyer complete and accurate copies of all written documentation in the possession of the Seller relating to any such complaint, claim,
notice or threat. The Seller has provided to the Buyer complete and accurate copies of all written documentation in the Seller’s possession relating to claims or disputes known to the Seller concerning any Seller’s Intellectual Property.

  
 (d) Section 2.7(d) of the Disclosure Schedule identifies each
license or other agreement pursuant to which the Seller has licensed, distributed or otherwise granted any rights to any third party with respect to, any Seller Intellectual Property. Except as described in Section 2.7(d) of the Disclosure Schedule,
the Seller has not agreed to indemnify any person or entity against any infringement, violation or misappropriation of any Intellectual Property rights with respect to any Customer Deliverables. 
  
 (e) Section 2.7(e) of the Disclosure Schedule identifies each item of Seller
Intellectual Property that is owned by a party other than the Seller, and the license or agreement pursuant to which the Seller uses it (excluding off-the-shelf software programs licensed by the Seller pursuant to “shrink wrap” licenses).

  
 (f) The Seller has not disclosed the source code for the
Software or other confidential information constituting, embodied in or pertaining to the Software to any person or entity, except to its employees, agents and contractors who have executed confidentiality agreements with the Seller, or pursuant to
the agreements listed in Section 2.7(f) of the Disclosure Schedule, and the Seller has taken reasonable measure to prevent disclosure of such source code. 
  
 (g) All of the copyrightable materials (including Software) incorporated in or bundled with the Customer Deliverables that have been created in the past
three years have been created by employees of the Seller within the scope of their employment by the Seller or by independent contractors of the Seller who have executed agreements expressly assigning all right, title and interest in such
copyrightable materials to the Seller. No portion of such copyrightable materials was jointly developed with any third party. 
  

 - 7 - 

 (h) To the knowledge of the Seller, the Customer Deliverables and the Internal Systems necessary to
conduct the Business are free from significant defects or programming errors and conform in all material respects to the written documentation and specification therefor. 
  
 2.8 Contracts. 
  
 (a) Section 2.8 of the Disclosure Schedule lists the following agreements (written or oral) to which the Seller is a party as of the date of this
Agreement and which is primarily related to the Business: 
  
 (i) any agreement (or group of related agreements) for the lease of real property or personal property from or to third parties providing for lease payments in excess of $1,000 per annum or having a remaining term longer than twelve (12)
months; 
  
 (ii) any agreement (or group of related agreements)
for the purchase or sale of products or for the furnishing or receipt of services (A) which calls for performance over a period of more than one year, (B) which involves more than the sum of $1,000, or (C) in which the Seller has granted
manufacturing rights, “most favored nation” pricing provisions or marketing or distribution rights relating to any products or territory or has agreed to purchase a minimum quantity of goods or services or has agreed to purchase goods or
services exclusively from a certain party; 
  
 (iii) any
agreement concerning the establishment or operation of a partnership, joint venture or limited liability company; 
  
 (iv) any agreement (or group of related agreements) under which it has created, incurred, assumed or guaranteed (or may create, incur, assume or
guarantee) indebtedness (including capitalized lease obligations) involving more than $1,000 or under which it has imposed (or may impose) a Security Interest on any of its assets, tangible or intangible; 
  
 (v) any agreement for the disposition of any material portion of the assets
primarily related to the Business (other than sales of products in the Ordinary Course of Business) or any agreement for the acquisition of such assets (other than purchases of inventory or components in the Ordinary Course of Business); 

 
 (vi) any agreement concerning confidentiality or noncompetition;

  
 (vii) any employment or consulting agreement; 
  
 (viii) any agreement involving any current or former officer, director or
stockholder of the Seller or an Affiliate thereof; 
  
 (ix) any
agreement under which the consequences of a default or termination would reasonably be expected to have a Seller Material Adverse Effect; 
  

 - 8 - 

 (x) any agreement which contains any provisions requiring the Seller to indemnify any other party
(excluding indemnities contained in agreements for the purchase, sale or license of products entered into in the Ordinary Course of Business); and 
  
 (xi) any other agreement (or group of related agreements) either involving more than $1,000 or not entered into in the Ordinary Course of Business.

  
 (b) The Seller has made available to the Buyer a complete and
accurate copy of each agreement listed in Section 2.7 or Section 2.8 of the Disclosure Schedule. With respect to each agreement so listed: (i) the agreement is legal, valid, binding and enforceable and in full force and effect as to the Seller; (ii)
for those agreements to which the Seller is a party, the agreement is assignable by the Seller to the Buyer without the consent or approval of any party (except as set forth in Section 2.3 of the Disclosure Schedule) and will continue to be legal,
valid, binding and enforceable and in full force and effect immediately following the Closing in accordance with the terms thereof as in effect immediately prior to the Closing; and (iii) neither the Seller nor, to the knowledge of the Seller, any
other party, is in material breach or violation of, or default under, any such agreement, and, to the knowledge of the Seller, no event has occurred, is pending or is threatened, which, after the giving of notice, with lapse of time, or otherwise,
would constitute a material breach or default by the Seller or, to the knowledge of the Seller, any other party under such agreement. 
  
 2.9 Insurance. Section 2.9 of the Disclosure Schedule lists each insurance policy (including fire, theft, casualty, comprehensive general
liability, workers compensation, business interruption, environmental, product liability and automobile insurance policies and bond and surety arrangements) to which the Seller is a party and which is primarily related to the Business, all of which
are in full force and effect. Such insurance policies are of the type and in amounts customarily carried by organizations conducting businesses or owning assets similar to those of the Business. There is no material claim pending under any such
policy as to which coverage has been questioned, denied or disputed by the underwriter of such policy. All premiums due and payable under all such policies have been paid, and the Seller is otherwise in compliance in all material respects with the
terms of such policies. 
  
 2.10 Litigation. There
is no Legal Proceeding which is pending or has been threatened in writing against the Seller related to the Business which (a) seeks either damages in excess of $1,000 or equitable relief or (b) in any manner challenges or seeks to prevent, enjoin,
alter or delay the transactions contemplated by this Agreement. There are no judgments, orders or decrees outstanding against the Seller with respect to the Business. 
  
 2.11 Warranties. No product or service manufactured, sold, leased, licensed or delivered by the Seller primarily
related to the Business is subject to any guaranty, warranty, right of return, right of credit or other indemnity other than (i) the applicable standard terms and conditions of sale or lease of the Seller, which are set forth in Section 2.11 of the
Disclosure Schedule, and (ii) manufacturers’ warranties for which the Seller has, to its knowledge, any actual or potential liability. 
  

 - 9 - 

 2.12 Employees. 
  
 (a) Section 2.12 of the Disclosure Schedule contains a list of all employees of the Business, along with the position and
the annual rate of compensation of each such person. Each current or past employee of the Business has entered into a customary invention assignment, confidentiality, non-competition and non-solicitation agreement with the Seller. Section 2.12 of
the Disclosure Schedule contains a list of all employees of the Business who are a party to a non-competition agreement with the Seller; copies of such agreements have been made available to the Buyer. To the knowledge of the Seller, no key employee
or group of employees of the Business has any plans to terminate employment with the Seller (other than for the purpose of accepting employment with the Buyer following the Closing). 
  
 (b) The Seller is not a party to or bound by any collective bargaining agreement, nor experienced any strikes, grievances,
claims of unfair labor practices or other collective bargaining disputes, in each case with respect to employees of the Business. The Seller has no knowledge of any organizational effort made or threatened, either currently or within the past two
years, by or on behalf of any labor union with respect to employees of the Business. 
  
 2.13 Real Property. The Seller does not have any ownership or leasehold interest in any real property. 
  
 2.14 Legal Compliance. The Seller is currently conducting, and has at all times conducted, the Business in compliance with each applicable law
(including rules and regulations thereunder) of any federal, state, local or foreign government, or any Governmental Entity, except for any violations or defaults that, individually or in the aggregate, have not had and would not reasonably be
expected to have a Seller Material Adverse Effect. The Seller has not received any written notice or communication from any Governmental Entity alleging noncompliance with any applicable law, rule or regulation. 
  
 2.15 Customers and Suppliers. Schedule 2.15 sets forth a list
of the top five (5) customers of the Business (by revenues generated over the past twelve (12) months) and the amount of revenues accounted for by such customer during each such period and (b) each supplier that is the sole supplier of any
significant product or service to the Business. 
  
 2.16
Permits. Section 2.16 of the Disclosure Schedule sets forth a list of all Permits issued to or held by the Seller. Such listed Permits are the only Permits that are required for the Seller to conduct the Business as presently conducted,
except for those the absence of which, individually or in the aggregate, have not had and would not reasonably be expected to have a Seller Material Adverse Effect. Each such Permit is in full force and effect; the Seller is in material compliance
with the terms of each such Permit; and, to the knowledge of the Seller, no suspension or cancellation of such Permit is threatened. Each such Permit is assignable by the Seller to the Buyer without the consent or approval of any party. 

 

 - 10 - 

 2.17 Brokers’ Fees. The Seller does not have any liability or obligation to pay any fees or
commissions to any broker, finder or agent with respect to the transactions contemplated by this Agreement. 
  
 2.18 Disclosure. No representation or warranty by the Seller contained in this Agreement, and no statement contained in the Disclosure Schedule or
any other document, certificate or other instrument delivered by or on behalf of the Seller pursuant to this Agreement, contains any untrue statement of a material fact or omits to state any material fact necessary, in light of the circumstances
under which it was made, in order to make the statements herein or therein not misleading. 
  
 2.19 Certain Securities Laws Representations. With respect to the Common Stock to be acquired in connection with the purchase of the Acquired Assets hereunder: 
  
 (a) (i) The Seller is a “sophisticated investor” as such term is
defined in Rule 506(b)(2)(ii) promulgated under the Securities Act of 1933, as amended (the “Securities Act”); or 
  
 (ii) The Seller has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of the
investment in the Common Stock. 
  
 (b) The Seller is receiving
the Common Stock for investment for its own account and not with a view to, or for resale in connection with, the distribution or other disposition thereof, other than a distribution by the Seller to its stockholders or as otherwise contemplated
hereby. 
  
 (c) The Seller has been advised that a restrictive
legend in substantially the following form shall be placed on the certificates representing such shares: 
  
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES ACT
OF ANY STATE AND MAY NOT BE OFFERED, SOLD, OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE 1933 ACT OR APPLICABLE STATE SECURITIES ACTS OR, IN THE OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE
ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH. 
  

 - 11 - 

 ARTICLE III 
  
 REPRESENTATIONS AND WARRANTIES OF THE BUYER 
  
 Except as set forth in the Buyer Reports (as defined below), the Buyer represents and warrants to the Seller as follows:
 
  
 3.1 Organization and Corporate Power.
The Buyer is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. The Buyer has all requisite corporate power and authority to carry on the businesses in which it is engaged and to own and use
the properties owned and used by it. 
  
 3.2 Authorization of
the Transaction. The Buyer has all requisite power and authority to execute and deliver this Agreement and the Ancillary Agreements and to perform its obligations hereunder and thereunder. The execution and delivery by the Buyer of this
Agreement and the Ancillary Agreements, the performance by the Buyer of this Agreement and the Ancillary Agreements, and the consummation by the Buyer of the transactions contemplated hereby and thereby have been duly and validly authorized by all
necessary corporate action on the part of the Buyer. This Agreement has been duly and validly executed and delivered by the Buyer and constitutes, and each of the Ancillary Agreements, upon execution and delivery by the Buyer, will constitute, a
valid and binding obligation of the Buyer, enforceable against it in accordance with its terms. 
  
 3.3 Noncontravention. Neither the execution and delivery by the Buyer of this Agreement or the Ancillary Agreements, nor the consummation by the
Buyer of the transactions contemplated hereby or thereby, will (a) conflict with or violate any provision of the Certificate of Incorporation or by-laws of the Buyer, (b) require on the part of the Buyer any notice to or filing with, or permit,
authorization, consent or approval of, any Governmental Entity, (c) conflict with, result in breach of, constitute (with or without due notice or lapse of time or both) a default under, result in the acceleration of obligations under, create in any
party any right to terminate, modify or cancel, or require any notice, consent or waiver under, any contract or instrument to which the Buyer is a party or by which it is bound or to which any of its assets is subject, except for (i) any conflict,
breach, default, acceleration, termination, modification or cancellation which would not adversely affect the consummation of the transactions contemplated hereby or (ii) any notice, consent or waiver the absence of which would not adversely affect
the consummation of the transactions contemplated hereby, or (d) violate any order, writ, injunction, decree, statute, rule or regulation applicable to the Buyer or any of its properties or assets. 
  
 3.4 Broker’s Fees. The Buyer has no liability or obligation to
pay any fees or commissions to any broker, finder or agent with respect to the transactions contemplated by this Agreement. 
  
 3.5 Certificate of Incorporation and By-Laws. True, correct and complete copies of the Certificate of Incorporation and By-Laws or equivalent
organizational documents, each as amended to date, of the Buyer have been made available to the Seller. The Certificate of 

  

 - 12 - 

 
Incorporation and By-Laws, or equivalent organizational documents, of Buyer are in full force and effect. Buyer is not in violation of any provision of its
Certificate of Incorporation, By-Laws or equivalent organizational documents. 
  
 3.6 Capitalization. 
  
 (a) The authorized capital stock of the Buyer consists of 18,000,000 shares of Common Stock, par value $0.00025 per share, and 1,750,000 shares of Preferred Stock, par value $0.00025 per share. As of the date hereof, 10,642,352 shares of
the Buyer’s Common Stock were issued and outstanding and none of the shares of the Buyer’s Preferred Stock were issued and outstanding. All of the issued and outstanding shares of the Buyer’s Common Stock have been validly issued, and
are fully paid and nonassessable, and are not subject to preemptive rights. Each share of the Buyer’s Common Stock to be issued in connection with this Agreement has been duly authorized and, when so issued, will be fully paid and
nonassessable, free and clear of any liens, will not be subject to preemptive rights, and will be freely transferable. 
  
 (b) Except as set forth in the Buyer Reports (as defined below): (i) there are no options, warrants or other agreements, arrangements or commitments of
any character to which the Buyer is a party, requiring the Buyer to grant, issue or sell any shares of the capital stock or other equity interests of the Buyer; (ii) the Buyer has no obligation, contingent or otherwise, to repurchase, redeem or
otherwise acquire any shares of the capital stock or other equity interests of the Buyer; and (iii) there are no voting trusts, proxies or other agreements or understandings to or by which the Buyer is a party or is bound with respect to the voting
of any shares of capital stock or other equity interests of the Buyer. 
  
 3.7 Reports and Financial Statements. The Buyer has previously furnished or made available to the Seller complete and accurate copies, as amended or supplemented, of (a) its Annual Report on Form 10-KSB for the fiscal year ended
December 31, 2002, as filed with the Securities and Exchange Commission (the “SEC”), (b) its Proxy Statement and related materials filed with the SEC in connection with its 2003 Annual Meeting of Stockholders, and (c) all other reports
filed by the Buyer under Section 13 or subsections (a) or (c) of Section 14 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) with the SEC since December 31, 2002 (such reports are collectively referred to herein as
the “Buyer Reports”). The Buyer Reports constitute all of the documents required to be filed by the Buyer under the Securities Act or the Exchange Act with the SEC from December 31, 2002 through the date of this Agreement. The Buyer
Reports complied in all material respects with, the requirements of the Securities Act, Exchange Act and the rules and regulations thereunder when filed. As of their respective dates, or if amended as of the date of the last such amendment, the
Buyer Reports did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading. All documents required to be filed by the Buyer with the SEC after the date hereof and prior to the Closing will comply in all material respects with the requirements of the Securities Act, Exchange Act and the rules and regulations
thereunder and none of such documents will contain any untrue statement of a material fact or will omit to state a material fact required to be stated therein or necessary to 

  

 - 13 - 

 
make the statements therein, in light of the circumstances in which they were made, not misleading. The audited financial statements and unaudited interim
financial statements of the Buyer included in the Buyer Reports to be included in any reports required to be filed after the date hereof and prior to Closing, (i) complied, or will comply, as to form in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC with respect thereto when filed, (ii) were prepared, or will be prepared, in accordance with GAAP applied on a consistent basis throughout the periods covered thereby (except
as may be indicated therein or in the notes thereto, and in the case of quarterly financial statements, as permitted by Form 10-QSB under the Exchange Act), (iii) fairly present, or will fairly present, the consolidated financial condition, results
of operations and cash flows of the Buyer as of the respective dates thereof and for the periods referred to therein, and (iv) are consistent, or will be consistent, with the books and records of the Buyer. Since December 31, 2002, the Buyer has not
incurred any liabilities or obligations of any nature, individually or in the aggregate, that would have a Buyer Material Adverse Effect. 
  
 3.8 Absence of Material Adverse Change. Since December 31, 2002, the Buyer has conducted its business and operations in the ordinary and usual
course consistent with past practice, except where such failure would not have a Buyer Material Adverse Effect, and there has not occurred: (i) any event, condition or occurrence having or that would have, individually or in the aggregate, a Buyer
Material Adverse Effect; (ii) any damage, destruction or loss (whether or not covered by insurance) having or which would have, individually or in the aggregate, a Buyer Material Adverse Effect; or (iii) a distribution of any kind by the Buyer on
any class of its capital stock. 
  
 3.9 Litigation. Except
as disclosed in the Buyer Reports, there is no Legal Proceeding which is pending or, to the Buyer’s knowledge, threatened against the Buyer or any subsidiary of the Buyer which, if determined adversely to the Buyer or such subsidiary, could
have, individually or in the aggregate, a Buyer Material Adverse Effect or which in any manner challenges or seeks to prevent, enjoin, alter or delay the transactions contemplated by this Agreement. There are no judgments, orders or decrees
outstanding against the Buyer. 
  
 3.10 Legal Compliance.
The Buyer is currently conducting, and has at all times conducted, its business in compliance with applicable law (including rules and regulations thereunder) of any federal, state, local or foreign government, or any Governmental Entity, except for
any violation or defaults that, individually or in the aggregate, have not had and would not reasonably be expected to have a Buyer Material Adverse Effect. The Buyer has not received any notice or communication from any Governmental Entity alleging
noncompliance with any applicable law, rule or regulation. 
  

 - 14 - 

 ARTICLE IV 
  

CONDITIONS TO CLOSING 
  
 4.1 Conditions to Obligations of the Buyer. The obligation of the Buyer to consummate the transactions contemplated by this Agreement to be
consummated at the Closing is subject to the satisfaction of the following conditions: 
  
 (a) the Seller shall have obtained at its own expense (and shall have provided copies thereof to the Buyer) all of the assignments, waivers, permits, consents, approvals or other authorizations, and effected all of
the registrations, filings and notices, including from all applicable Governmental Entities and necessary third parties, which are required on the part of the Seller, except for any failure of which to obtain or effect would not, individually or in
the aggregate, have a material adverse effect on the right of the Buyer to own, operate or control the Acquired Assets following the Closing or on the ability of the Parties to consummate the transactions contemplated by this Agreement; 

 
 (b) each of the Seller’s creditors designated on Schedule
1.3(a)(ii) hereto shall deliver an unconditional and irrevocable release of the Seller and the Buyer from any and all claims that such creditor had or may have had prior to the Closing; 
  
 (c) the Seller shall have cured all defaults under, and shall have assigned
to the Buyer, the Assigned Contracts designated by the Buyer on Schedule 4.1(c) hereto; 
  
 (d) the representations and warranties of the Seller set forth in the first sentence of Section 2.1 and in Section 2.2 and any representations and warranties of the Seller set forth in this Agreement that are
qualified as to materiality shall be true and correct in all respects, and all other representations and warranties of the Seller set forth in this Agreement shall be true and correct in all material respects, in each case as of the date of this
Agreement and as of the Closing as though made as of the Closing, except to the extent such representations and warranties are specifically made as of a particular date (in which case such representations and warranties shall be true and correct as
of such date); 
  
 (e) the Buyer and its attorneys, accountants
and other representatives and agents shall have satisfactorily completed their due diligence investigation of the Seller and the Business, after having been given full access to (i) the accounting books and other business and financial records,
reports and documents of the Seller and the Business, (ii) the Seller’s facilities for the purposes of inspection and examination, and (iii) the officers, management and consultants of the Seller; 
  
 (f) the Seller shall have performed or complied with in all material respects
its agreements and covenants required to be performed or complied with under this Agreement as of or prior to the Closing; 
  
 (g) no Legal Proceeding shall be pending or threatened relating primarily to the Business wherein an unfavorable judgment, order, decree, stipulation or
injunction would in any reasonably foreseeable way (i) prevent consummation of the transactions contemplated by this Agreement, (ii) cause the transactions contemplated by this Agreement to be rescinded following consummation or (iii) affect
adversely the right of the Buyer to own, operate or control any of the Acquired Assets, or to conduct the Business as currently conducted, following the Closing, and no such judgment, order, decree, stipulation or injunction shall be in effect;

  
 (h) the Seller shall have delivered to the Buyer the Seller
Certificate; 
  

 - 15 - 

 (i) the Seller shall have delivered to the Buyer an update, as of the Closing Date, of each list
contained in the Disclosure Schedule that lists or describes Acquired Assets; 
  
 (j) the Seller shall have delivered to the Buyer documents evidencing the release or termination of all Security Interests on the Acquired Assets, and copies of filed UCC termination statements with respect to all UCC
financing statements evidencing Security Interests; 
  
 (k) the
Buyer shall have received from counsel to the Seller an opinion in substantially the form attached hereto as Exhibit E, addressed to the Buyer and dated as of the Closing Date; 
  
 (l) the Buyer shall have received such other certificates and instruments (including certificates of good standing of the
Seller in its jurisdiction of organization and the various foreign jurisdictions in which it is qualified, certified charter documents, certificates as to the incumbency of officers and the adoption of authorizing resolutions of the Seller’s
Stockholders and Board of Directors) as it shall reasonably request in connection with the Closing; 
  
 (m) the Buyer shall have received a copy of the source code of the Seller, and be able to compile such source code and test it satisfactory to the Buyer
prior to Closing; and 
  
 (n) the Buyer shall have entered
into an Employment Agreement with Wendy Angst and an Offer Letter with Beth Hurter, in the form to be agreed upon between the Buyer and each of Ms. Angst and Ms. Hurter. 
  
 4.2 Conditions to Obligations of the Seller. The obligation of the Seller to consummate the transactions contemplated
by this Agreement to be consummated at the Closing is subject to the satisfaction of the following conditions: 
  
 (a) the representations and warranties of the Buyer set forth in the first sentence of Section 3.1 and in Section 3.2 and any representations and
warranties of the Buyer set forth in this Agreement that are qualified as to materiality shall be true and correct in all respects, and all other representations and warranties of the Buyer set forth in this Agreement shall be true and correct in
all material respects, in each case as of the date of this Agreement and as of the Closing as though made as of the Closing, except to the extent such representations and warranties are specifically made as of a particular date (in which case such
representations and warranties shall be true and correct as of such date); 
  
 (b) the Buyer shall have performed or complied in all material respects with its agreements and covenants required to be performed or complied with under this Agreement as of or prior to the Closing; 
  
 (c) no Legal Proceeding shall be pending or threatened wherein an unfavorable
judgment, order, decree, stipulation or injunction would (i) prevent consummation of the transactions contemplated by this Agreement or (ii) cause the transactions contemplated by this Agreement to be rescinded following consummation; 
  

 - 16 - 

 (d) the Buyer shall have delivered to the Seller the Buyer Certificate; 
  
 (e) the Seller shall have received from counsel to the Buyer an opinion in
substantially the form attached hereto as Exhibit F, addressed to the Seller and dated as of the Closing Date; and 
  
 (f) the Seller shall have received such other certificates and instruments (including certificates of good standing of the Buyer in its jurisdiction of
organization, certificates as to the incumbency of officers and the adoption of authorizing resolutions) as it shall reasonably request in connection with the Closing. 
  
 ARTICLE V 
  
 POST-CLOSING COVENANTS 
  
 5.1 Assigned Contracts. If (i) any of the Assigned Contracts or other assets or rights constituting Acquired Assets may not be assigned and
transferred by the Seller to the Buyer (as a result of either the provisions thereof or applicable law) without the consent or approval of a third party, (ii) the Seller, after using its Reasonable Best Efforts, is unable to obtain such consent or
approval prior to the Closing and (iii) the Closing occurs nevertheless, then (A) such Assigned Contracts and/or other assets or rights shall not be assigned and transferred by the Seller to the Buyer at the Closing and the Buyer shall not assume
the Seller’s liabilities or obligations with respect thereto at the Closing, (B) the Seller shall continue to use its Reasonable Best Efforts to obtain the necessary consent or approval as soon as practicable after the Closing, (but Seller
shall not be required to make any payment to any Person or forego any benefits to obtain such consent or approval) and (C) upon the obtaining of such consent or approval, the Buyer and the Seller shall execute such further instruments of conveyance
(in substantially the form executed at the Closing) as may be necessary to assign and transfer such Assigned Contracts and/or other assets or rights (and the associated liabilities and obligations of the Seller) to the Buyer within thirty (30) days
of the Closing Date. 
  
 5.2 Solicitation and Hiring. For a
period of two (2) years after the Closing Date, neither the Seller nor the Buyer shall (i) request, induce or attempt to influence any distributor or supplier of goods or services to any other party to curtail or cancel any business they may
transact with the other party, (ii) request, induce or attempt to influence any customers of any other party that have done business with or potential customers which have been in contact with the other party to curtail or cancel any business they
may transact with the other party, (iii) request, induce or attempt to influence any employee of any other party to terminate his or her employment or consulting agreement with such other party or (iv) request, induce or attempt to influence any
Governmental Entity or regulatory authority to terminate, revoke or materially and adversely alter or impair any license held, owned, used or reserved for the other party. 
  

 - 17 - 

 5.3 Non-Competition. 
  
 (a) For a period of two (2) years after the Closing Date, the Seller shall not, either directly or indirectly as a
stockholder, investor, partner, consultant or otherwise, (i) design, develop, manufacture, market, sell or license any product or provide any service anywhere in the world which is competitive with any product designed, developed (or under
development), manufactured, sold or licensed or any service provided by the Business within the one-year period prior to the Closing Date or (ii) engage anywhere in the world in any business competitive with the Business as conducted as of the
Closing Date or during the one-year period prior to the Closing Date; provided, however, the Seller may make an investment in any public traded competing business for up to two percent (2%) of the outstanding capital stock of such
company; and, provided, further, that if the Seller subcontracts for services, at the request of a client, substantially similar to the Business, such action shall not be deemed to be competitive to the Business as provided above.

  
 (b) The Seller agrees that the duration and geographic scope
of the non-competition provision set forth in this Section 5.3 are reasonable. In the event that any court determines that the duration or the geographic scope, or both, are unreasonable and that such provision is to that extent unenforceable, the
Parties agree that the provision shall remain in full force and effect for the greatest time period and in the greatest area that would not render it unenforceable. The Parties intend that this non-competition provision shall be deemed to be a
series of separate covenants, one for each and every county of each and every state of the United States of America and each and every political subdivision of each and every country outside the United States of America where this provision is
intended to be effective. 
  
 (c) The Seller shall, and shall use
its Reasonable Efforts to cause its Affiliates to, refer all inquiries regarding the Business to the Buyer. 
  
 5.4 Tax Matters. All transfer taxes, deed excise stamps and similar charges related to the sale of the Acquired Assets contemplated by this
Agreement shall be paid by the Seller. 
  
 5.5 Sharing of
Data. 
  
 (a) The Seller shall have the right for a period of
seven years following the Closing Date to have reasonable access to such books, records and accounts, including financial and tax information, correspondence, production records, employment records and other records that are transferred to the Buyer
pursuant to the terms of this Agreement for the limited purposes of concluding its involvement in the Business conducted prior to the Closing Date and for complying with its obligations under applicable securities, tax, environmental, employment or
other laws and regulations. The Buyer shall have the right for a period of seven years following the Closing Date to have reasonable access on advance notice and during regular business hours to those books, records and accounts, including financial
and accounting records (including the work papers of the Seller’s independent accountants), tax records, correspondence, production records, employment records and other records relating primarily to the Business that are retained by the Seller
pursuant to the terms of this Agreement to the extent that any of the foregoing is needed by the Buyer for the purpose of conducting the Business after the Closing 

  

 - 18 - 

 
and complying with its obligations under applicable securities, tax, environmental, employment or other laws and regulations. Neither the Buyer nor the
Seller shall destroy any such books, records or accounts retained by it outside of the Ordinary Course of Business without first providing the other Party with the opportunity to obtain or copy such books, records, or accounts at such other
Party’s expense. 
  
 (b) Promptly upon written request by the
Buyer made at any time following the Closing Date, the Seller shall, at the Buyer’s expense, authorize the release to the Buyer of all files pertaining to the Acquired Assets held by any federal, state, county or local authorities, agencies or
instrumentalities. 
  
 (c) At any time after the Closing, at the
request of the Buyer, the Seller shall introduce the Buyer to the Seller’s principal suppliers, customers and employees to facilitate discussions between such persons and the Buyer in regard to the Buyer’s conduct of the Business following
the Closing. 
  
 5.6 Use of Name. The Seller shall not use,
and shall not permit any Affiliate to use, the names “CapMed”, “CapMed Logo”, “Personal Health Record”, “PHR”, “Personal Healthkey” and “PHR Money” or any name reasonably similar thereto
after the Closing Date in connection with any business related to, competitive with, or an outgrowth of, the business conducted by the Seller on the date of this Agreement; provided, however, that the Seller shall be permitted to use its corporate
name for purposes of winding up its business. 
  
 5.7
Collection and Billing of Accounts Receivable. The Seller agrees that it shall forward promptly to the Buyer any monies, checks or instruments received by the Seller after the Closing Date with respect to the accounts receivable earned by the
Buyer for services rendered by the Buyer after the Closing. The Buyer agrees that it shall forward promptly to the Seller any monies, checks or instruments received by the Buyer after the Closing Date with respect to the accounts receivable earned
by the Seller for services rendered by the Seller prior to the Closing Date. 
  
 5.8 Listing of Shares. The Buyer shall cause such shares of the Buyer’s Common Stock issued to be listed for trading on the American Stock Exchange or on such securities exchange or market on which such
shares are then listed. 
  
 5.9 Bulk Transfer Laws. The
Buyer hereby waives compliance by the Seller with the provisions of any so-called “bulk transfer law” (including without limitation bulk transfer laws relating to Taxes) of any jurisdiction in connection with the sale of the Acquired
Assets to the Buyer. 
  
 5.10 Piggyback Registration
Rights. If at any time the Buyer determines to register under the Securities Act (including pursuant to a demand of any security holder of the Buyer exercising registration rights), any of its Common Stock (except securities to be issued solely
in connection with any acquisition of any entity or business, shares issuable solely upon exercise of stock options, shares issuable solely pursuant to employee benefit plans or stock purchase plans, or shares to be registered on any registration
form that does not permit secondary sales, and 

  

 - 19 - 

 
except for any registration statement the Buyer currently has filed with the SEC and is not yet effective), it shall give to the Seller written notice of
such determination at least fifteen (15) days prior to each such filing. If, within five (5) days after receipt of such notice, the Seller so requests in writing, the Buyer will use all commercially reasonable efforts to include all or any part of
the Seller’s Common Stock in such registration statement (to the extent permitted by applicable regulation) that the Seller requests to be registered (the “Registrable Securities”); provided, however, (i) the number of
shares of Registrable Securities may be reduced as required to first accommodate the registration of the Common Stock held by stockholders of the Buyer as of the date hereof that are entitled to registration in such offering, and (ii) in the event
any registration pursuant to this Section 5.10 shall be, in whole or in part, an underwritten public offering of Common Stock, the number of shares of Registrable Securities to be included in such an underwriting may be reduced if and to the extent
that the managing underwriter is of the opinion that such inclusion would materially and adversely affect the marketing of the securities to be sold therein. The registration of the Seller’s Common Stock pursuant to this Section 5.10 shall be
at the expense of the Buyer; provided, however, the Seller shall be responsible for all commissions and discounts, if any, related to the registration of the Seller’s Common Stock. Any Registrable Securities which are included in
any underwritten public offering under this Section 5.10 will be sold upon such terms as the managing underwriters reasonably request. If the Seller disapproves of the terms of such underwriting, the Seller may elect to withdraw therefrom by written
notice to the Buyer and the underwriter. Notwithstanding the foregoing provisions, the Buyer may withdraw any registration statement referred to in this Section 5.10 without thereby incurring any liability to the Seller. The rights granted to Seller
pursuant to this Section 5.10 shall also extend to any stockholder or affiliate of the Seller to whom all or any portion of the Seller’s Common Stock is transferred. 
  
 5.11 Confidential Information. Buyer, its affiliates and subsidiaries, and their respective employees, agents and
representatives (collectively, “Representatives”), shall hold in strict confidence and trust all information disclosed or made available to such parties by Seller or its Representatives (the “Confidential Information”), and shall
not directly or indirectly disclose any Confidential Information to any person or entity except those of Buyer’s Representatives who need to know such information to enable Buyer to evaluate and/or consummate the transactions contemplated
herein. Buyer and its Representatives shall not use the Confidential Information for any other purpose whatsoever. For purposes of this Agreement, Confidential Information shall include, without limitation, Seller’s financial information,
services, products, technology, software, object code, source code, know-how, trade secrets, trade practices, and marketing plans and materials (including, without limitation, the Development Plan); the names, addresses and any other characteristics
or identifying information of Seller’s existing or potential customers, suppliers and contractors; and, all analyses, compilations, studies or other materials prepared by Buyer or its Representatives containing or based in whole or in part upon
such information. Confidential Information shall not include any information which (i) is or becomes available to the public other than as the consequence of a breach of any obligation of confidentiality; (ii) is actually known to or in the
possession of Buyer without any limitation on use or disclosure prior to receipt from Seller; or (iii) is rightfully received from a third party (other than a Seller Representative) in possession of such information who is not under obligation to
Seller not to disclose the information. Upon termination or expiration of this 

  

 - 20 - 

 
Agreement, for any reason, Buyer and its Representatives shall promptly return to Seller or, at Seller’s option, destroy all Confidential Information in
their possession or under their control, including any and all copies or duplicates thereof. Buyer understands that in the event it or any of its Representatives fails to comply with the terms of this paragraph, Seller may suffer irreparable harm
which would not be adequately compensated for by monetary damages alone. Buyer, therefore, agrees that in the event of a breach or threatened breach of this paragraph, Seller shall be entitled to injunctive and/or other equitable relief, in addition
to any other remedies available at law, without having to prove actual damages or to post a bond. 
  
 ARTICLE V I 
  
 INDEMNIFICATION 
  
 6.1 Indemnification by the
Seller. The Seller shall indemnify the Buyer in respect of, and hold the Buyer harmless against, Damages incurred or suffered by the Buyer or any Affiliate thereof resulting from, relating to or constituting: 
  
 (a) any breach of any representation or warranty of the Seller contained in
this Agreement, any Ancillary Agreements or any other agreement or instrument (including the Seller Certificate) furnished by the Seller to the Buyer pursuant to this Agreement, which is qualified as to materiality, or any material breach of any
representation or warranty of the Seller which is not so qualified; 
  
 (b) any failure to perform any material covenant or agreement of the Seller contained in this Agreement, any Ancillary Agreement or any agreement or instrument furnished by the Seller to the Buyer pursuant to this Agreement; 
  
 (c) any Retained Liabilities; 
  
 (d) the failure of the Buyer and the Seller, in connection with the sale of
the Acquired Assets by the Seller to the Buyer pursuant to this Agreement, to comply with, and obtain for the Buyer the benefits afforded by compliance with, any applicable bulk transfers laws; or 
  
 (e) the failure by the Seller to deliver the Acquired Assets free of the
Security Interests relating to those financing statements set forth on Section 2.6(c) of the Disclosure Schedule. 
  
 6.2 Indemnification by the Buyer. The Buyer shall indemnify the Seller in respect of, and hold it harmless against, any and all Damages incurred or
suffered by the Seller resulting from, relating to or constituting: 
  
 (a) any breach of any representation or warranty of the Buyer contained in this Agreement, any Ancillary Agreement or any other agreement or instrument (including the Buyer Certificate) furnished by the Buyer to the Seller pursuant to this
Agreement; 
  

 - 21 - 

 (b) any failure to perform any covenant or agreement of the Buyer contained in this Agreement, any
Ancillary Agreement or any other agreement or instrument furnished by the Buyer to the Seller pursuant to this Agreement; or 
  
 (c) any Assumed Liabilities. 
  
 6.3 Indemnification Claims. 
  
 (a) An Indemnified Party shall give written notification to the Indemnifying Party of the commencement of any Third Party Action. Such notification shall
be given within twenty (20) days after receipt by the Indemnified Party of notice of such Third Party Action, and shall describe in reasonable detail (to the extent known by the Indemnified Party) the facts constituting the basis for such Third
Party Action and the amount of the claimed damages; provided, however, that no delay or failure on the part of the Indemnified Party in so notifying the Indemnifying Party shall relieve the Indemnifying Party of any liability or obligation hereunder
except to the extent of any damage or liability caused by or arising out of such failure. Within twenty (20) days after delivery of such notification, the Indemnifying Party may, upon written notice thereof to the Indemnified Party, assume control
of the defense of such Third Party Action with counsel reasonably satisfactory to the Indemnified Party; provided that the Indemnifying Party may not assume control of the defense of Third Party Action involving criminal liability or in which
equitable relief is sought against the Indemnified Party. If the Indemnifying Party does not, or is not permitted under the terms hereof to, so assume control of the defense of a Third Party Action, the Indemnified Party shall control such defense.
The Non-controlling Party may participate in such defense at its own expense. The Controlling Party shall keep the Non-controlling Party advised of the status of such Third Party Action and the defense thereof and shall consider in good faith
recommendations made by the Non-controlling Party with respect thereto. The Non-controlling Party shall furnish the Controlling Party with such information as it may have with respect to such Third Party Action (including copies of any summons,
complaint or other pleading which may have been served on such party and any written claim, demand, invoice, billing or other document evidencing or asserting the same) and shall otherwise cooperate with and assist the Controlling Party in the
defense of such Third Party Action. The fees and expenses of counsel to the Indemnified Party with respect to a Third Party Action shall be considered Damages for purposes of this Agreement if (i) the Indemnified Party controls the defense of such
Third Party Action pursuant to the terms of this Section 6.3(a) or (ii) the Indemnifying Party assumes control of such defense and the Indemnified Party reasonably concludes that the Indemnifying Party and the Indemnified Party have conflicting
interests or different defenses available with respect to such Third Party Action. The Indemnifying Party shall not agree to any settlement of, or the entry of any judgment arising from, any such Third Party Action without the prior written consent
of the Indemnified Party, which shall not be unreasonably withheld, conditioned or delayed; provided that the consent of the Indemnified Party shall not be required if the Indemnifying Party agrees in writing to pay any amounts payable pursuant to
such settlement or judgment and such settlement or judgment includes a complete release of the Indemnified Party from further liability and has no other materially adverse effect on the Indemnified Party. The Indemnified Party shall not agree to any
settlement of, or the entry of any judgment arising from, any such Third Party Action without the prior written consent of the Indemnifying Party, which shall not be unreasonably withheld, conditioned or delayed. 
  

 - 22 - 

 (b) In order to seek indemnification under this Article VI, an Indemnified Party shall deliver a Claim
Notice to the Indemnifying Party and, with respect to any Claim by a Buyer Indemnified Party, to the Escrow Agreement. 
  
 (c) Within twenty (20) days after delivery of a Claim Notice, the Indemnifying Party shall deliver to the Indemnified Party the Response, in which the
Indemnifying Party shall do one of the following: (i) agree that the Indemnified Party is entitled to receive all of the Claimed Amount (in which case the written response shall be accompanied by a payment by the Indemnifying Party to the
Indemnified Party of the Claimed Amount, by check or by wire transfer); (ii) agree that the Indemnified Party is entitled to receive the Agreed Amount (in which case the written response shall be accompanied by a payment by the Indemnifying Party to
the Indemnified Party of the Agreed Amount, by check or by wire transfer); or (iii) dispute that the Indemnified Party is entitled to receive any of the Claimed Amount. If the Response creates a Dispute, the Indemnifying Party and the Indemnified
Party shall follow the procedures set forth in Section 6.3(d) for the resolution of such Dispute. 
  
 (d) During the ninety (90)-day period following the delivery of a Response that reflects a Dispute, the Indemnifying Party and the Indemnified Party shall
use good faith efforts to resolve the Dispute. If the Dispute is not resolved within such ninety (90)-day period, the Indemnifying Party and the Indemnified Party shall discuss in good faith the submission of the Dispute to an ADR Procedure. In the
event the Indemnifying Party and the Indemnified Party agree upon an ADR Procedure, such parties shall, in consultation with the ADR Service, promptly agree upon a format and timetable for the ADR Procedure, agree upon the rules applicable to the
ADR Procedure, and promptly undertake the ADR Procedure. The provisions of this Section 6.3(d) shall not obligate the Indemnifying Party and the Indemnified Party to pursue an ADR Procedure or prevent either such party from pursuing the Dispute in a
court of competent jurisdiction; provided that, if the Indemnifying Party and the Indemnified Party agree to pursue an ADR Procedure, neither the Indemnifying Party nor the Indemnified Party may commence litigation or seek other remedies with
respect to the Dispute prior to the completion of such ADR Procedure. Any ADR Procedure undertaken by the Indemnifying Party and the Indemnified Party shall be considered a compromise negotiation for purposes of federal and state rules of evidence,
and all statements, offers, opinions and disclosures (whether written or oral) made in the course of the ADR Procedure by or on behalf of the Indemnifying Party, the Indemnified Party or the ADR Service shall be treated as confidential and, where
appropriate, as privileged work product. Such statements, offers, opinions and disclosures shall not be discoverable or admissible for any purposes in any litigation or other proceeding relating to the Dispute (provided that this sentence shall not
be construed to exclude from discovery or admission any matter that is otherwise discoverable or admissible). Notwithstanding the foregoing, all Claims against Seller or any Seller Indemnifying Party shall be satisfied first from the Escrow Fund.
The fees and expenses of any ADR Service used by the Indemnifying Party and the Indemnified Party shall be shared equally by the Indemnifying Party and the Indemnified Party. 
  

 - 23 - 

 6.4 Survival of Representations and Warranties. All representations and warranties contained in
this Agreement, the Seller Certificate or the Buyer Certificate shall (a) survive the Closing and (b) shall expire on the date twelve (12) months following the Closing Date, except that (i) the representations and warranties set forth in Sections
2.1, 2.2, 2.3, 3.1, 3.2, 3.3 and 3.6 (and the portion of the Seller Certificate or the Buyer Certificate relating thereto) shall survive the Closing without limitation. If an Indemnified Party delivers to an Indemnifying Party, before expiration of
a representation or warranty, either a Claim Notice based upon a breach of such representation or warranty, or an Expected Claim Notice, then the applicable representation or warranty shall survive until, but only for purposes of, the resolution of
the matter covered by such notice. If the legal proceeding or written claim with respect to which an Expected Claim Notice has been given is definitively withdrawn or resolved in favor of the Indemnified Party, the Indemnified Party shall promptly
so notify the Indemnifying Party. Notwithstanding the foregoing, all Claim Notices must be given prior to the first anniversary of the Closing Date. 
  
 6.5 Limitations. 
  
 (a) Notwithstanding anything to the contrary herein, (i) the aggregate liability of the Seller for Damages under Section 6.1 shall not exceed and shall be
limited to $300,000 plus the lesser of (A) the Fair Market Value (as defined below) of the Stock Consideration as of the date a potential indemnification claim is made, or (B) the value of the Stock Consideration at the Exchange Price on the Closing
Date, and (ii) the Seller shall not be liable under Section 6.1 unless and until the aggregate Damages for which it would otherwise be liable exceed $1,000 (at which point the Seller shall become liable for the aggregate Damages including the
$1,000); provided, that, the limitations set forth in this sentence shall not apply to a claim pursuant to Sections 6.1(a) and/or 6.1(b) relating to a breach of the representations and warranties set forth in Sections 2.1 or 2.2 (or
the portion of the Seller Certificate relating thereto) or to a breach of the covenants set forth in Sections 5.2 and 5.3. For purposes of this Section 6.5, the term Fair Market Value shall mean the average closing price of the Buyer’s Common
Stock as reported on the American Stock Exchange (or such successor securities exchange or market on which the Common Stock is then traded) over the twenty (20) consecutive trading days ending two (2) business days prior to the date an
indemnification claim is made. 
  
 (b) Notwithstanding anything to
the contrary herein, (i) the aggregate liability of the Buyer for Damages under Section 6.2 shall not exceed and shall be limited to the Purchase Price, and (ii) the Buyer shall not be liable under Section 6.2 unless and until the aggregate Damages
for which it would otherwise be liable exceed $1,000 (at which point the Seller shall become liable for the aggregate Damages, including the $1,000). For purposes solely of this Article VI, all representations and warranties of the Buyer in Article
III shall be construed as if the term “material” and any reference to “Buyer Material Adverse Effect” (and variations thereof) were omitted from such representations and warranties. 
  
 (c) Except with respect to claims based on fraud, after the Closing, the
rights of the Indemnified Parties under this Article VI shall be the exclusive remedy of the Indemnified Parties with respect to claims resulting from or relating to any misrepresentation, breach of warranty or failure to perform any covenant or
agreement contained in this Agreement. 
  

 - 24 - 

 6.6 Treatment of Indemnity Payments. Any payments made to an Indemnified Party pursuant to this
Article VI shall be treated as an adjustment to the Purchase Price for tax purposes. 
  
 ARTICLE VII 
  
 DEFINITIONS 
  
 For purposes of this Agreement,
each of the following terms shall have the meaning set forth below. 
  
 “ADR Procedure” shall mean a mutually acceptable alternative dispute resolution procedure, which may be non-binding or binding upon the parties, as they agree in advance. 
  
 “ADR Service” shall mean the chosen dispute resolution
service for an ADR Procedure. 
  
 “Acquired
Assets” shall mean all of the assets, properties and rights of Seller primarily used in the Business existing as of the Closing, including: 
  
 (a) the computers, machinery, equipment, tools and tooling, furniture, fixtures, supplies, leasehold improvements, motor vehicles, inventories and other
tangible personal property listed on Schedule 1.1(a); 
  
 (b) the Intellectual Property listed on Schedule 1.1(a); 
  
 (c) all rights under Assigned Contracts; 
  
 (d) all claims, prepayments, deposits, refunds, causes of action, choses in action, rights of recovery, rights of setoff and rights of recoupment applicable solely to the Business; 
  
 (e) the Permits listed on Schedule 1.1(a); and 
  
 (f) the books, records, accounts, ledgers, files, documents, correspondence,
lists (including customer and prospect lists), employment records, manufacturing and procedural manuals, Intellectual Property records, sales and promotional materials, studies, reports and other printed or written materials relating to the Acquired
Assets. 
  
 “Affiliate” shall mean
any affiliate, as defined in Rule 12b-2 under the Exchange Act. 
  
 “Agreed Amount” shall mean part, but not all, of the Claimed Amount. 
  
 “Ancillary Agreements” shall mean the Escrow Agreement, bill of sale, trademark assignments and other instruments of conveyance referred to in Section 1.5(b)(iii) of this Agreement, the instrument of
assumption and other instruments referred to in Section 1.5(b)(iv) of this Agreement. 
  

 - 25 - 

 “Assigned Contracts” shall mean any contracts, agreements or instruments listed on
Schedule 4.1(c). 
  
 “Assumed Liabilities”
shall mean (a) the obligations of the Seller to its creditors set forth on Schedule 1.3(a)(ii) as of the Closing, in an amount up to $300,000, which shall be paid by the Buyer directly to such creditors on the Closing Date, and (b) all
obligations arising after the Closing under the Assigned Contracts. 
  
 “Business” shall mean the development, customization and commercialization of personal health management tools, including, but not limited to, Personal Health Record, Personal HealthKey and PHR Money. 
  
 “Buyer” shall have the meaning set forth in the first
paragraph of this Agreement. 
  
 “Buyer
Certificate” shall mean a certificate to the effect that each of the conditions specified in clauses (a) through (c) (insofar as clause (c) relates to Legal Proceedings involving the Buyer) of Section 4.2 of this Agreement is satisfied in
all respects. 
  
 “Buyer Material Adverse Effect”
shall mean a material adverse effect on the assets, business, condition (financial or otherwise) or results of operations of the Buyer, taken as a whole. 
  
 “CERCLA” shall mean the federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended. 
  
 “Claimed Amount” shall mean the amount of any Damages
incurred or reasonably expected to be incurred in good faith by the Indemnified Party. 
  
 “Claim Notice” shall mean written notification which contains (i) a description of the Damages incurred or reasonably expected in good faith to be incurred by the Indemnified Party and the Claimed
Amount of such Damages, to the extent then known, (ii) a statement that the Indemnified Party is entitled to indemnification under Article VI of this Agreement for such Damages and a reasonable explanation of the basis therefor, and (iii) a demand
for payment (in the manner provided in Section 6.3 of this Agreement) in the amount of such Damages. 
  
 “Closing” shall mean the closing of the transactions contemplated by this Agreement. 
  
 “Closing Date” shall mean November 20, 2003, or, if all of
the conditions to the obligations of the Parties to consummate the transactions contemplated hereby (excluding the delivery at the Closing of any of the documents set forth in Article IV hereof) have not been satisfied or waived by such date, such
mutually agreeable later date as soon as practicable (and in any event not later than three business days) after the satisfaction or waiver of all such conditions. 
  
 “Code” shall mean the Internal Revenue Code of 1986, as amended. 
  

 - 26 - 

 “Contracts” shall mean, for purposes of Section 1.3(b), any fully executed contracts,
agreements or instruments, to which the Seller is a party related primarily to the Business, including any agreements or instruments securing any amounts owed to the Seller, any employment contracts and any licenses or sublicenses relating to
Intellectual Property. 
  
 “Controlling Party”
shall mean the party controlling the defense of any suit or proceeding relating to a third party claim for which indemnification is sought pursuant to Article VI of this Agreement. 
  
 “Customer Deliverables” shall mean (a) the products related to the Business that the Seller (i) currently
manufactures, markets, sells or licenses, or (ii) has manufactured, marketed, sold or licensed within the previous three years, or (iii) currently plans to manufacture, market, sell or license in the future as set forth in the Development Plan and
(b) the services related to the Business that the Seller (i) currently provides, or (ii) has provided within the previous three years, or (iii) currently plans to provide in the future as set forth in the Development Plan. 
  
 “Damages” shall mean any and all debts, monetary damages,
fines, fees, penalties, interest obligations, deficiencies, losses and expenses (including amounts paid in settlement, interest, court costs, costs of investigators, reasonable fees and expenses of attorneys, accountants, financial advisors and
other experts, and other reasonable expenses of litigation). 
  
 “Disclosure Schedule” shall mean the disclosure schedule provided by the Seller to the Buyer on the date hereof. 
  
 “Dispute” shall mean the dispute resulting if the Indemnifying Party in the Response disputes its liability for all or part of the
Claimed Amount. 
  
 “Employee Benefit Plan” shall
mean any “employee pension benefit plan” (as defined in Section 3(2) of ERISA), any “employee welfare benefit plan” (as defined in Section 3(1) of ERISA), and any other written or oral plan, agreement or arrangement involving
direct or indirect compensation, including insurance coverage, severance benefits, disability benefits, deferred compensation, bonuses, stock options, stock purchase, phantom stock, stock appreciation or other forms of incentive compensation or
post-retirement compensation. 
  
 “Environmental
Law” shall mean any federal, state or local law, statute, rule or regulation or the common law relating to the environment or occupational health and safety, including any statute, regulation, administrative decision or order pertaining to
(i) treatment, storage, disposal, generation and transportation of industrial, toxic or hazardous materials or substances or solid or hazardous waste; (ii) air, water and noise pollution; (iii) groundwater and soil contamination; (iv) the release or
threatened release into the environment of industrial, toxic or hazardous materials or substances, or solid or hazardous waste, including emissions, discharges, injections, spills, escapes or dumping of pollutants, contaminants or chemicals; (v) the
protection of wild life, marine life and wetlands, including all endangered and threatened species; (vi) storage tanks, vessels, containers, abandoned or discarded barrels and other closed receptacles; (vii) health and safety of employees and other
persons; and (viii) manufacturing, processing, using, distributing, treating, storing, disposing, transporting or handling of materials regulated 

  

 - 27 - 

 
under any law as pollutants, contaminants, toxic or hazardous materials or substances or oil or petroleum products or solid or hazardous waste. As used
above, the terms “release” and “environment” shall have the meaning set forth in CERCLA. 
  
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 
  
 “ERISA Affiliate” shall mean any entity which is, or at any
applicable time was, a member of (1) a controlled group of corporations (as defined in Section 414(b) of the Code), (2) a group of trades or businesses under common control (as defined in Section 414(c) of the Code), or (3) an affiliated service
group (as defined under Section 414(m) of the Code or the regulations under Section 414(o) of the Code), any of which includes or included the Seller. 
  
 “Excluded Assets” shall mean the following assets of the Seller: 
  
 (a) cash balances; 
  
 (b) all trade and other accounts receivable and notes and loans receivable that are payable to the Seller, for products delivered or services provided
prior to the Closing, together with any security held by the Seller for the payment thereof; 
  
 (c) the corporate charter, qualifications to conduct business as a foreign corporation, arrangements with registered agents relating to foreign qualifications, taxpayer and other identification numbers, seals, minute
books, stock transfer books and other documents relating to the organization and existence of the Seller as a corporation; 
  
 (d) all rights relating to refunds, recovery or recoupment of Taxes; 
  
 (e) any of the rights of the Seller under this Agreement or under the Ancillary Agreements; and 
  
 (f) those assets listed on Schedule 1.1(b) attached hereto.

  
 “Expected Claim Notice” shall mean a notice
that, as a result a legal proceeding instituted by or claim made by a third party, the Indemnified Party reasonably expects to incur Damages. 
  
 “Financial Statements” shall mean: 
  
 (a) the unaudited balance sheets and unaudited statements of income, changes in stockholders’ equity and cash flows of the Seller related to the
Business for the year ended December 31, 2002 and as of and for the nine (9) month period ended on the Most Recent Balance Sheet Date, and 
  
 (b) the Final Closing Balance Sheet and the unaudited consolidated statements of income, changes in stockholders’ equity and cash flows for the ten
(10) months ended as of the Closing Date. 
  

 - 28 - 

 “Final Closing Balance Sheet” shall mean the final balance sheet prepared in accordance
with GAAP for the period ended on the Closing Date, and attached hereto as Exhibit G. 
  
 “GAAP” shall mean United States generally accepted accounting principles. 
  
 “Governmental Entity” shall mean any court, arbitrational tribunal, administrative agency or commission or other governmental or
regulatory authority or agency. 
  
 “Indemnified
Party” shall mean a party entitled, or seeking to assert rights, to indemnification under Article VI of this Agreement. 
  
 “Indemnifying Party” shall mean the party from whom indemnification is sought by the Indemnified Party. 
  
 “Intellectual Property” shall mean all intellectual property
of Seller that is used primarily for the Business, including, but limited to the following: 
  
 (a) patents, patent applications, patent disclosures and all related continuation, continuation-in-part, divisional, reissue, reexamination, utility model, certificate of invention and design patents, patent
applications, registrations and applications for registrations; 
  
 (b) trademarks or service marks, whether registered or under common law, trade dress, Internet domain names, logos, trade names and corporate names and registrations and applications for registration thereof, including, but not limited to,
the names “CapMed”, CapMed Logo”, “Personal Health Record”, “PHR”, “Personal Healthkey” and “PHR Money”; 
  

(c) copyrights and registrations and applications for registration thereof; 
  
 (d) mask works and registrations and applications for registration thereof; 
  
 (e) computer software, data and documentation; 
  
 (f) inventions, trade secrets and confidential business information, whether
patentable or nonpatentable and whether or not reduced to practice, know-how, manufacturing and product processes and techniques, research and development information, copyrightable works, financial, marketing and business data, pricing and cost
information, business and marketing plans and customer and supplier lists and information; 
  
 (g) formulae, processes, customer lists, designs and manufacturing know-how; 
  
 (h) other proprietary rights relating to any of the foregoing (including remedies against infringements thereof and rights of protection of interest
therein under the laws of all jurisdictions); and 
  
 (i) copies
and tangible embodiments thereof. 
  

 - 29 - 

 “Internal Systems” shall mean the internal systems of the Seller that are primarily used
for the Business, including computer hardware systems, software applications and embedded systems used in the operation of the Business. 
  
 “Invention Assignment Agreement” shall mean the Buyer’s form of invention assignment agreement, which includes provisions for
non-disclosure, non-solicitation and confidentiality. 
  
 “Legal Proceeding” shall mean any action, suit, proceeding, claim, arbitration or investigation before any Governmental Entity or before any arbitrator. 
  
 “Materials of Environmental Concern” shall mean any chemicals, pollutants or contaminants, hazardous
substances (as such term is defined under CERCLA), solid wastes and hazardous wastes (as such terms are defined under the Resource Conservation and Recovery Act), toxic materials, oil or petroleum and petroleum products or any other material subject
to regulation under any Environmental Law. 
  
 “Most
Recent Balance Sheet” shall mean the unaudited consolidated balance sheet of the Seller related to the Business as of the Most Recent Balance Sheet Date. 
  
 “Most Recent Balance Sheet Date” shall mean September 30, 2003. 
  
 “Non-controlling Party” shall mean the party not controlling
the defense of any suit or proceeding relating to a third party claim for which indemnification is sought pursuant to Article VI of this Agreement. 
  
 “Ordinary Course of Business” shall mean the ordinary course of business consistent with past custom and practice. 
  
 “Parties” shall mean the Buyer and the Seller. 

 
 “Permits” shall mean all permits, licenses,
registrations, certificates, orders, approvals, franchises, variances and similar rights issued by or obtained from any Governmental Entity and which (i) relate primarily to the Business and (ii) are material to the Business. 
  
 “Purchase Price” shall mean the purchase price to be paid by
the Buyer for the Acquired Assets at the Closing, as set forth in Section 1.3 of this Agreement. 
  
 “Reasonable Best Efforts” shall mean best efforts, to the extent commercially reasonable. 
  
 “Response” shall mean a written response containing the
information provided for in Section 6.3(c). 
  
 “Retained
Liabilities” shall mean any and all liabilities or obligations (whether known or unknown, absolute or contingent, liquidated or unliquidated, due or to become due and accrued or unaccrued, and whether claims with respect thereto are
asserted before or after the Closing) of the Seller which are not Assumed Liabilities, including those liabilities set forth on Schedule 1.3(a)(i)  

  

 - 30 - 

 
which are not otherwise listed on Schedule 1.3(a)(ii). The Retained Liabilities shall also include, without limitation, all liabilities and
obligations of the Seller: 
  
 (a) for income, transfer, sales,
use or other Taxes arising in connection with the consummation of the transactions contemplated by this Agreement (including any income Taxes arising as a result of (i) the transfer by the Seller to the Buyer of the Acquired Assets, (ii) the Seller
having an “excess loss account” (within the meaning of Treasury Regulation §1.1502-19) in the stock of any Subsidiary of the Seller, or (iii) the acceleration of any intracompany items pursuant to Treasury Regulation
§1.1502-13)); 
  
 (b) for costs and expenses incurred in
connection with this Agreement or the consummation of the transactions contemplated by this Agreement; 
  
 (c) under this Agreement or the Ancillary Agreements; 
  
 (d) for any Taxes, including deferred taxes or taxes measured by income of the Seller earned prior to the Closing, any liabilities for federal or state
income tax and FICA taxes of employees of the Seller which the Seller is legally obligated to withhold, any liabilities of the Seller for employer FICA and unemployment taxes incurred, and any liabilities of the Seller for sales, use or excise taxes
or customs and duties; 
  
 (e) under any agreements, contracts,
leases or licenses which are listed on Schedule 1.1(b); 
  
 (f) arising prior to the Closing under the Assigned Contracts, and all liabilities for any breach, act or omission by the Seller prior to the Closing under any Assigned Contract; 
  
 (g) for repair, replacement or return of products manufactured or sold prior to the Closing; 
  
 (h) arising out of events, conduct or conditions existing or occurring prior
to the Closing that constitute a violation of or non-compliance with any law, rule or regulation (including Environmental Laws), any judgment, decree or order of any Governmental Entity, or any Permit or that give rise to liabilities or obligations
with respect to Materials of Environmental Concern; 
  
 (i) to pay
severance benefits to any employee of the Seller whose employment is terminated (or treated as terminated) in connection with the consummation of the transactions contemplated by this Agreement, and all liabilities resulting from the termination of
employment of employees of the Seller prior to the Closing that arose under any federal or state law or under any Employee Benefit Plan established or maintained by the Seller. 
  
 (j) to indemnify any person or entity by reason of the fact that such person or entity was a director, officer, employee, or
agent of the Seller or was serving at the request of the Seller as a partner, trustee, director, officer, employee, or agent of another entity (whether such indemnification is for judgments, damages, penalties, fines, costs, amounts paid in
settlement, losses, expenses, or otherwise and whether such indemnification is pursuant to any statute, charter document, bylaw, agreement, or otherwise); 
  

 - 31 - 

 (k) injury to or death of persons or damage to or destruction of property occurring prior to the Closing
(including any workers compensation claim); and 
  
 (l) for
medical, dental and disability (both long-term and short-term benefits), whether insured or self-insured, owed to employees or former employees of the Seller based upon (A) exposure to conditions in existence prior to the Closing or (B) disabilities
existing prior to the Closing (including any such disabilities which may have been aggravated following the Closing). 
  
 “Security Interest” shall mean any liability, obligation, mortgage, pledge, security interest, encumbrance, charge or other lien (whether
arising by contract or by operation of law), other than (i) mechanic’s, materialmen’s, and similar liens, (ii) liens arising under worker’s compensation, unemployment insurance, social security, retirement, and similar legislation,
(iii) liens on goods in transit incurred pursuant to documentary letters of credit, in each case arising in the Ordinary Course of Business of the Seller and not material to the Seller, and (iv) liens for Taxes not yet due and payable. 

 
 “Seller” shall have the meaning set forth in the first
paragraph of this Agreement. 
  
 “Seller
Certificate” shall mean a certificate to the effect that each of the conditions specified in clauses (c), (d), (f) and (g) (insofar as clause (g) relates to Legal Proceedings involving the Seller) of Section 4.1 of this Agreement is
satisfied in all respects. 
  
 “Seller Intellectual
Property” shall mean the Intellectual Property owned by or licensed to the Seller and covering, incorporated in, underlying or used in connection with the Customer Deliverables or the Internal Systems. 
  
 “Seller Material Adverse Effect” shall mean a material
adverse effect on the assets, business, condition (financial or otherwise) or results of operations of the Business, taken as a whole. 
  
 “Software” shall mean any of the software owned by the Seller and used primarily in the Business. 
  
 “Subsidiary”, individually, and
“Subsidiaries”, collectively, shall mean each corporation, partnership, limited liability company, joint venture or other business association or entity in which the Seller has, directly or indirectly, an equity interest
representing 50% or more of the capital stock thereof or other equity interests therein or voting power thereof. 
  
 “Taxes” shall mean all taxes, charges, fees, levies or other similar assessments or liabilities, including income, gross receipts, ad
valorem, premium, value-added, excise, real property, personal property, sales, use, transfer, withholding, employment, unemployment, insurance, social security, business license, business organization, environmental, workers 

  

 - 32 - 

 
compensation, payroll, profits, license, lease, service, service use, severance, stamp, occupation, windfall profits, customs, duties, franchise and other
taxes imposed by the United States of America or any state, local or foreign government, or any agency thereof, or other political subdivision of the United States or any such government, and any interest, fines, penalties, assessments or additions
to tax resulting from, attributable to or incurred in connection with any tax or any contest or dispute thereof. 
  
 “Third Party Action” shall mean any suit or proceeding by a person or entity other than a Party for which indemnification may be sought
by a Party under Article VI. 
  
 ARTICLE VIII 
  
 MISCELLANEOUS 
  
 8.1 Press Releases and Announcements. Neither Party shall issue any
press release or public announcement relating to the subject matter of this Agreement without the prior written approval of the other Party; provided, however, that either Party may make any public disclosure it believes in good faith
and upon advice of securities counsel is required by applicable law, regulation or stock market rule (in which case the disclosing Party shall use reasonable effort to advise the other Party and provide it with a copy of the proposed disclosure
prior to making the disclosure). 
  
 8.2 No Brokers. The
Buyer on the one hand, and the Seller on the other hand, represent and warrant that they have not retained any finder, broker, investment banker or the like with respect to this Agreement and the transactions contemplated thereby, and each party
agrees to indemnify, defend and hold harmless the other party from any claim from any claim arising therefrom. 
  
 8.3 No Third Party Beneficiaries. This Agreement shall not confer any rights or remedies upon any person other than the Parties and their
respective successors and permitted assigns. 
  
 8.4 Entire
Agreement. This Agreement (including the documents referred to herein) constitutes the entire agreement between the Parties and supersedes any prior understandings, agreements, or representations by or between the Parties, written or oral, with
respect to the subject matter hereof. 
  
 8.5 Succession and
Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties named herein and their respective successors and permitted assigns. Neither Party may assign either this Agreement or any of its rights, interests, or
obligations hereunder without the prior written approval of the other Party; provided that the Buyer may assign some or all of its rights, interests and/or obligations hereunder to one or more Affiliates of the Buyer with the prior consent of
Seller, which consent shall not be unreasonably withheld. 
  
 8.6
Counterparts and Facsimile Signature. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. This Agreement may be executed
by facsimile signature. 
  

 - 33 - 

 8.7 Headings. The section headings contained in this Agreement are inserted for convenience only
and shall not affect in any way the meaning or interpretation of this Agreement. 
  
 8.8 Notices. All notices, requests, demands, claims, and other communications hereunder shall be in writing. Any notice, request, demand, claim, or other communication hereunder shall be deemed duly delivered
four business days after it is sent by registered or certified mail, return receipt requested, postage prepaid, or one business day after it is sent for next business day delivery via a reputable nationwide overnight courier service, in each case to
the intended recipient as set forth below: 
  
 If to the
Seller: 
  
 David Sills 
 CapMed Corporation 
 105 Foulk Road

 Wilmington, Delaware 19803 
  
 With a Copy to: 
  
 Deborah L. Spranger, Esq. 
 Saul Ewing
LLP 
 1200 Liberty Ridge Drive, Suite 200 
 Wayne, Pennsylvania 19087 
  
 If to the Buyer: 
  
 Mark L. Weinstein

 Chief Executive Officer 
 Bio-Imaging Technologies, Inc. 
 826 Newtown-Yardley Road 
 Newtown, Pennsylvania 18940-1721 
  
 With a Copy to: 
  
 William J. Thomas, Esq. 
 Hale and Dorr LLP

 650 College Road East 
 Princeton, New Jersey 08540 
  
 Either Party may give any
notice, request, demand, claim, or other communication hereunder using any other means (including personal delivery, expedited courier, messenger 

  

 - 34 - 

 
service, telecopy, telex, ordinary mail, or electronic mail), but no such notice, request, demand, claim, or other communication shall be deemed to have been
duly given unless and until it actually is received by the party for whom it is intended. Either Party may change the address to which notices, requests, demands, claims, and other communications hereunder are to be delivered by giving the other
Party notice in the manner herein set forth. 
  
 8.9 Governing
Law. This Agreement shall be governed by and construed in accordance with the internal laws (and not the law of conflicts) of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of
Delaware or any other jurisdiction) that would cause the application of laws of any jurisdictions other than those of the State of Delaware. 
  
 8.10 Amendments and Waivers. The Parties may mutually amend any provision of this Agreement at any time prior to the Closing. No amendment of any
provision of this Agreement shall be valid unless the same shall be in writing and signed by each of the Parties. No waiver by either Party of any right or remedy hereunder shall be valid unless the same shall be in writing and signed by the Party
giving such waiver. No waiver by either Party with respect to any default, misrepresentation, or breach of warranty or covenant hereunder shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or
covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence. 
  
 8.11 Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect
the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction. If the final judgment of a court of competent
jurisdiction declares that any term or provision hereof is invalid or unenforceable, the Parties agree that the court making the determination of invalidity or unenforceability shall have the power to limit the term or provision, to delete specific
words or phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this
Agreement shall be enforceable as so modified. 
  
 8.12
Expenses. Except as set forth in Article VI, each Party shall bear its own costs and expenses (including legal fees and expenses) incurred in connection with this Agreement and the transactions contemplated hereby. 
  
 8.13 Service of Process. Either Party may make service on the other
Party by sending or delivering a copy of the process to the Party to be served at the address and in the manner provided for the giving of notices in Section 8.8. Nothing in this Section 8.13, however, shall affect the right of either Party to serve
legal process in any other manner permitted by law. 
  
 8.14
Specific Performance. Each Party acknowledges and agrees that the other Party would be damaged irreparably in the event any of the provisions of this Agreement (including Sections 5.1, 5.2 and 5.3 hereof) are not performed in accordance with
their specific terms or otherwise are breached. Accordingly, each Party agrees that the other Party shall be entitled to 

  

 - 35 - 

 
an injunction and other equitable relief to prevent breaches of the provisions of this Agreement and to enforce specifically this Agreement and the terms and
provisions hereof in any action instituted in any court of the United States or any state thereof having jurisdiction over the Parties and the matter, in addition to any other remedy to which it may be entitled, at law or in equity. 
  
 8.15 Construction. 
  
 (a) The language used in this Agreement shall be deemed to be the language
chosen by the Parties to express their mutual intent, and no rule of strict construction shall be applied against either Party. 
  
 (b) Any reference to any federal, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated
thereunder, unless the context requires otherwise. 
  
 (c) Any
reference herein to “including” shall be interpreted as “including without limitation”. 
  

 - 36 - 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written.

  

			
	 BIO-IMAGING TECHNOLOGIES, INC.

		
	 By:
	 	 /s/ Mark L. Weinstein

	 	 	 Mark L. Weinstein

	 	 	 President and Chief Executive Officer

	
	 CAPMED CORPORATION

		
	 By:
	 	 /s/ Wendy Angst

	 Name:
	 	 Wendy Angst

	 Title:
	 	 Chief Executive Officer

  

 [Signature page to Asset Purchase Agreement] 

 Exhibit A 
  
 Escrow Agreement 

 Exhibit B 
  
 Bill of Sale 

 Exhibit C 
  
 Trademark Assignment and Patent Assignment 

 Exhibit D 
  
 Instrument of Assumption 

 Exhibit E 
  
 Opinion of Seller’s counsel 

 Exhibit F 
  
 Opinion of Buyer’s counsel 

 Exhibit G 
  
 Final Closing Balance Sheet 

 Disclosure SchedulesStock Agreement

 Exhibit 10.17 
  
 EXECUTION COPY 
  
 SHARE PURCHASE AGREEMENT 
  
 between 
  
 REIBER CONSULTANCY B.V. 
  
 and 
  
 LIBERTATIS ERGO
HOLDING B.V. 
 as the Sellers, 
  
 and 
  
 BIO-IMAGING TECHNOLOGIES, INC. 
 as the Purchaser 
  

  
 for the acquisition by 
 the Purchaser of the entire issued share 
 capital of Heart Core B.V. 
  

  
 NautaDutilh 
 Strawinskylaan 1999 
 1077 XV Amsterdam

 TABLE OF CONTENTS 
  

					
	1.	  	INTERPRETATION	  	5
	1.1.	  	Definitions	  	5
	1.2.	  	Interpretation	  	9
	1.3.	  	Schedules and Annexes	  	10
	2.	  	PURCHASE, SALE AND TRANSFER OF THE SHARES	  	10
	2.1.	  	Purchase and sale of the Shares	  	10
	2.2.	  	Transfer of the Shares	  	10
	2.3.	  	Acknowledgement	  	11
	3.	  	PURCHASE PRICE AND PAYMENT	  	11
	3.1.	  	Purchase Price	  	11
	3.2.	  	Payment	  	11
	4.	  	Escrow	  	12
	5.	  	CLOSING	  	13
	5.1.	  	Place of Closing	  	13
	5.2.	  	Repayment of debt and release of guarantees	  	13
	5.3.	  	Further action to be taken at Closing	  	13
	6.	  	REPRESENTATIONS AND WARRANTIES	  	13
	6.1.	  	Representations and Warranties	  	13
	6.2.	  	Disclosures	  	14
	6.3.	  	Effects of Representations and Warranties and duty to investigate	  	14
	7.	  	COMPENSATION	  	14
	7.1.	  	General principle	  	14
	7.2.	  	Information with respect to Claim	  	15
	7.3.	  	Defence against Third Party Claims	  	15
	7.4.	  	Effect of Tax, specific provisions and insurance	  	16
	7.5.	  	Taxation on payments by the Sellers	  	16
	7.6.	  	Payment without deductions	  	16
	7.7.	  	No claims against Directors or Employees	  	17
	8.	  	LIMITATIONS TO COMPENSATION FOR BREACH OF REPRESENTATIONS AND WARRANTIES OR COVENANTS	  	17
	8.1.	  	Limitations in time	  	17
	8.2.	  	Limitations as to amount of Compensation for breach of Representations or Warranties	  	18
	9.	  	SPECIFIC covenants	  	18
	10.	  	NON-COMPETITION	  	19
	11.	  	CONFIDENTIALITY	  	20
	12.	  	MISCELLANEOUS	  	20
	12.1.	  	Invalid provisions	  	20
	12.2.	  	Further action	  	21
	12.3.	  	Amendment	  	21

  

 1 

					
	12.4.	  	Costs	  	21
	12.5.	  	No implied waiver; no forfeit of rights	  	21
	12.6.	  	Notice	  	21
	12.7.	  	Assignment or encumbrance	  	23
	12.8.	  	Civil Law Notary	  	23
	12.9.	  	Joint and several liability of the Sellers	  	23
	12.10.	  	Choice of Law	  	23
	12.11.	  	Disputes	  	23

  

			
	 	  	 Schedules

		
	1	  	Deed of Transfer
	2	  	Escrow Agreement
	3	  	Representations and Warranties
	4	  	Closing Balance Sheet
		
	 	  	Annexes
		
	 	  	Annex 2.3
	 	  	Annex 3.5
	 	  	Annex 3.6
	 	  	Annex 4.1A
	 	  	Annex 4.5
	 	  	Annex 5.4
	 	  	Annex 5.5
	 	  	Annex 6.1
	 	  	Annex 7.1
	 	  	Annex 8.2
	 	  	Annex 8.7
	 	  	Annex 8.10
	 	  	Annex 9.2
	 	  	Annex 10.5
	 	  	Annex 11.2
	 	  	Annex 11.4
	 	  	Annex 11.5A
	 	  	Annex 11.5B
	 	  	Annex 11.7
	 	  	Annex 12.2
	 	  	Annex 12.4
	 	  	Annex 12.5
	 	  	Annex 12.6
	 	  	Annex 13.1

  

 2 

			
	 	 	 Annex 13.2

	 	 	 Annex 13.3

	 	 	 Annex 13.5

	 	 	 Annex 13.8

	 	 	 Annex 13.9

	 	 	 Annex 14.3A

	 	 	 Annex 14.4

	 	 	 Annex 14.11

	 	 	 Annex 14.13

	 	 	 Annex 15

	 	 	 Annex 16

	 	 	 Annex 17.4

	 	 	 Annex 19.1

	 	 	 Annex 19.4

  

 3 

 SHARE PURCHASE AGREEMENT 
  
 THE UNDERSIGNED: 
  

	1.	Bio-Imaging Technologies Inc., a company organised under the laws of the State of Delaware, United States of America, whose principal office is at Newtown,
Pennsylvania, United States of America, (hereinafter referred to as the “Purchaser”); 

  
 and 
  

	2.	Reiber Consultancy B.V., a private company with limited liability incorporated under the laws of The Netherlands, whose corporate seat is at Rotterdam, The Netherlands
(hereinafter referred to as “Reiber”); 

  
 and 
  

	3.	Libertatis Ergo Holding B.V., a private company with limited liability incorporated under the laws of The Netherlands, whose corporate seat is at Leiden, The
Netherlands (hereinafter referred to as “Libertatis Ergo”); 

  
 (the latter two companies hereinafter jointly referred to as the “Sellers”); 
  
 WHEREAS 
  

	A.	The Purchaser wishes to purchase the Reiber Shares from Reiber and the Libertatis Ergo Shares from Libertatis Ergo; 

  

	B.	Reiber wishes to sell the Reiber Shares to the Purchaser. Libertatis Ergo wishes to sell the Libertatis Ergo Shares to the Purchaser; 

  

	C.	The Parties and the Company have signed the Letter of Intent; 

  

	D.	The Parties wish to lay down in this Agreement the terms and conditions of the sale and purchase of the Shares; 

  

 4 

 NOW HEREBY AGREE AS FOLLOWS 
  

	1.	INTERPRETATION 

  

	1.1.	Definitions 

  
 The following capitalised terms and expressions in this Agreement shall have the following meanings: 
  

			
	Accounts	 	the balance sheet as at the Balance Sheet Date and the profit and loss account of the Company for the period ended on the Balance Sheet Date together with the explanatory notes
thereto
		
	Agreement	 	this agreement
		
	Annex	 	an annex to a Schedule
		
	Articles	 	the Articles of Association (statuten) of the Company, attached as Annex 3.5 to Schedule 3
		
	Authority	 	a supranational, national, provincial, municipal or other governmental authority or court of a relevant jurisdiction
		
	Balance Sheet Date	 	31 December 2003
		
	Business Day	 	a day on which banks are generally open in both The Netherlands and the United States of America
		
	Civil Law Notary	 	civil law notary Wijnand Bossenbroek or another civil law notary of NautaDutilh, or any of their deputies
		
	Claim	 	any claim for payment made by the Purchaser under this Agreement
		
	Closing	 	the completion of the Transaction on the Closing Date

  

 5 

			
	Closing Balance Sheet	 	the balance sheet as at the Closing Balance Sheet Date
		
	Closing Balance Sheet Date	 	30 November 2004
		
	Closing Date	 	the date on which the Agreement is signed
		
	Company	 	Heart Core B.V., a company incorporated under the laws in The Netherlands, whose corporate seat is at Leiden, The Netherlands
		
	Compensation	 	an amount to be paid by the Sellers under a Claim pursuant to Clause 8
		
	Deed of Transfer	 	the notarial deed of transfer of the Shares referred to in Clause 2.2
		
	Director	 	a member of a board of management (bestuurder) or of a supervisory board (commissaris) or any other Person holding a similar position in a company in a jurisdiction other than The
Netherlands
		
	Employees	 	the employees of the Company listed in Annex 13.1 to Schedule 3
		
	Encumbrances	 	any rights of pledge, mortgage or usufruct, liens or attachments or similar charges
		
	Escrow Account	 	the escrow account referenced on Schedule A of the Escrow Agreement maintained with the Escrow Agent in which the Escrow Amount is deposited
		
	Escrow Agent	 	Wachovia Bank, National Association, a national banking association as escrow agent under the Escrow Agreement

  

 6 

			
		
	Escrow Agreement	 	the escrow agreement between the Sellers, the Purchaser and the Escrow Agent attached as Schedule 2
		
	Escrow Amount	 	the balance of the Escrow Shares (as defined in the Escrow Agreement) and the Escrow Cash (as defined in the Escrow Agreement) deposited with the Escrow Agent, together with any dividends and/or
interest thereon on the Escrow Account
		
	Euro or EUR	 	Euro
		
	Guarantor	 	Johan Hendrikus Christiaan Reiber
		
	Insurance Policies	 	the insurance policies listed in Annex 10 to Schedule 3
		
	Lease Agreements	 	The lease agreements listed in Annex 8.2 to Schedule 3
		
	Letter of Intent	 	the letter signed by the Purchaser and the Company dated 21 September 2004
		
	Libertatis Ergo Shares	 	the 150 shares in the share capital of the Company numbered D1 up to and including D150
		
	Material and Materially	 	representing a value in excess of EUR 50,000 (fifty thousand Euro).
		
	NautaDutilh	 	NautaDutilh N.V., lawyers, civil law notaries and tax advisers, acting as advisers to the Purchaser.
		
	Net Asset Value	 	the sum of the paid-up part of the issued share capital, share premium reserve, other reserves and the balance of accumulated profits and losses of the Company

  

 7 

			
	Parties	 	the parties to this Agreement
		
	Permits	 	licences, exemptions, consents or other authorisations or clearances, howsoever named, granted by an Authority
		
	Person	 	a natural person or a partnership, company, association, cooperative, mutual insurance society, foundation or any other body which operates externally as an independent unit or
organisation
		
	Purchaser’s Common Stock	 	175,853 shares of the Purchaser’s common stock with a USD 0.00025 par value per share
		
	Purchase Price	 	the purchase price for the Shares referred to in Clause 3
		
	Real Property Rented	 	the real property listed in listed in Annex 8.2 to Schedule 3
		
	Reiber Shares	 	the 450 shares in the share capital of the Company, A1 up to and including A150, B1 up to and including B150, and C1 up to and including C150
		
	Representations and Warranties	 	the representations and warranties set out in Schedule 3
		
	Schedule	 	a Schedule to this Agreement
		
	Shares	 	all of the 600 shares issued in the capital of the Company with a nominal value of EUR 45,38 each, divided in classes A, B, C, and D, each class containing 150 shares, and numbered per class
from 1 up to and including 150
		
	Tax	 	a tax, levy, duty, or other charge or withholding of a similar nature, as well as any contribution to any social security

  

 8 

			
	 	 	or employee social security scheme, including any penalty, interest or costs payable in connection with any failure to pay or any delay in paying any of the same
		
	Tax Authority	 	an Authority competent to impose and/or collect Tax
		
	US Dollar or USD	 	U.S. dollar
		
	Third Party Claim	 	a claim made by a third party against the Company
		
	Transaction	 	the transaction contemplated by this Agreement.

  

	1.2.	Interpretation 

  

	 	a.	No provision of this Agreement shall be interpreted adversely against a Party solely because that Party was responsible for drafting that particular provision.

  

	 	b.	Words denoting the singular shall include the plural and vice versa. Words denoting one gender shall include another gender. 

  

	 	c.	English language words used in this Agreement intend to describe Dutch legal concepts only and the consequences of the use of those words in English law or any other foreign law
shall be disregarded. 

  

	 	d.	This Agreement has been drawn up in English. In the event of any discrepancy between the English text of this Agreement or any agreement resulting therefrom or relating thereto and
any translation thereof, the English language version shall prevail. Subject to Clause 1.2 (c), the English (United Kingdom) language version shall also prevail for interpretation purposes. 

  

	 	e.	References to any Dutch legal concept shall, in respect of any jurisdiction other than The Netherlands, be deemed to include the concept which in that jurisdiction most closely
approximates the Dutch legal concept. 

  

 9 

	 	f.	The words “include”, “included” or “including” are used to indicate that the matters listed are not a complete enumeration of all matters covered.

  

	 	g.	The headings used in this Agreement are for convenience or reference only and are not to affect the construction of this Agreement or to be taken into consideration in the
interpretation of this Agreement. 

  

	 	h.	Unless otherwise stated, references to Clauses are to Clauses of this Agreement. 

  

	1.3.	Schedules and Annexes 

  
 Any Schedule and Annex referred to in this Agreement forms an integral and inseparable part of this Agreement. 
  

	2.	PURCHASE, SALE AND TRANSFER OF THE SHARES 

  

	2.1.	Purchase and sale of the Shares 

  
 Subject to the terms and conditions set out in this Agreement, the Purchaser hereby purchases the Reiber Shares from Reiber and Reiber hereby sells the
Reiber Shares to the Purchaser. 
  
 Subject to the terms and
conditions set out in this Agreement, the Purchaser hereby purchases the Libertatis Ergo Shares from Libertatis Ergo and Libertatis Ergo hereby sells the Libertatis Ergo Shares to the Purchaser. 
  

	2.2.	Transfer of the Shares 

  
 On the Closing Date Reiber shall transfer the Reiber Shares to the Purchaser through the execution of the Deed of Transfer before the Civil Law Notary. A
draft of the Deed of Transfer is attached hereto as Schedule 1. 
  
 On the Closing Date Libertatis Ergo shall transfer the Libertatis Ergo Shares to the Purchaser through the execution of the Deed of Transfer before the Civil Law Notary. A draft of the Deed of Transfer is attached hereto as Schedule
1. 
  

 10 

	2.3.	Acknowledgement 

  
 The Sellers shall procure that the Company shall acknowledge the transfer of the Shares on the Closing Date by co-signing the Deed of Transfer and
immediately to enter such transfer in its register of shareholders. 
  

	3.	PURCHASE PRICE AND PAYMENT 

  

	3.1.	Purchase Price 

  
 The Purchase Price shall be a sum equal to EUR 1,700,000 payable as follows: 
  

	 	(A)	to Reiber in consideration of the Reiber Shares an amount of EUR 1,275,000 shall be payable, of which 

  

	 	(i)	an amount of EUR 637,500 shall be payable in cash 

  
 and 
  

	 	(ii)	the Purchaser’s Common Stock, 

  
 and 
  

	 	(B)	to Libertatis Ergo in consideration of the Libertatis Ergo Shares an amount of EUR 425,000 shall be payable in cash. 

  

	3.2.	Payment 

  
 The Purchase Price shall be paid on the Closing Date as follows: 
  

	 	(I)	The Purchaser shall transfer the sum of the cash amounts of the Purchase Price ultimately on the Closing Date to the bank account in the name of Kwaliteitsrekening Notarissen
Amsterdam NautaDutilh N.V. with ABN AMRO Bank N.V., account number 45.24.77.999 with reference to file number 50058973. 

  
 The Civil Law Notary is hereby instructed by the Parties immediately after the Deed of Transfer shall have been executed to release the sum of the cash
amounts of the Purchase Price as follows 
  

 11 

	 	(a)	an amount of EUR 573,750 (five hundred seventy three thousand seven hundred and fifty Euro) to be transferred to the bank account of Reiber with Rabobank (account number
0170614875); 

  

	 	(b)	an amount of EUR 382,500 (three hundred eighty two thousand and five hundred Euro) to be transferred to the bank account of Libertatis Ergo with ABN AMRO bank (account number
603936105); and 

  

	 	(c)	an amount of EUR 106,250 (hundred six thousand two hundred fifty Euro (the Escrow Amount) to be transferred to the Escrow Account with Wachovia Bank, National Association (account
number 1572009437). 

  

	 	(II)	Subject to the Deed of Transfer having been executed on the Closing Date, the Purchaser shall transfer the Purchaser’s Common Stock as follows: 

  

	 	(a)	an amount of 158,268 shares of the Purchaser’s Common Stock to Reiber; and 

  

	 	(b)	an amount of 17,585 shares of the Purchaser’s Common Stock to the Escrow Account with Wachovia Bank, National Association (account number 1572009437). 

 
 The Parties hereby acknowledge that the transfer of the Purchaser’s
Common Stock will, as shall be evidenced by copies of an instruction letter and a legal opinion of Morgan, Lewis & Bockius LLP to the transfer agent, be effective as from the Closing Date, although the original stock certificates of the
Purchaser’s Common Stock will be delivered to Reiber and the Escrow Agent respectively within five (5) business days as from the Closing Date. 
  

	4.	ESCROW 

  
 Prior to or on the Closing Date the Parties shall open the Escrow Account with the Escrow Agent and shall execute the Escrow Agreement, is attached as
Schedule 2. The Escrow Agent shall operate the Escrow Account in accordance with the provisions of the Escrow Agreement. 
  

 12 

 The Sellers shall be entitled to require that the Purchaser satisfy any Claim from the Escrow Account to
the extent that the Escrow Amount is adequate. 
  

	5.	CLOSING 

  

	5.1.	Place of Closing 

  
 Closing shall take place on the Closing Date at the offices of NautaDutilh in Amsterdam, The Netherlands. 
  

	5.2.	Repayment of debt and release of guarantees 

  
 The Sellers shall procure at Closing 
  

	 	a.	the repayment of any amount owed to the Company by the Sellers or by any group company of the Sellers (other than the Company), or by the Directors or employees of the Sellers or of
any such group company, regardless of whether or not such amount is due for repayment; 

  

	 	b.	the release of the Company from any guarantee, indemnity, letter of comfort or Encumbrance or other similar liability given or incurred by it for the benefit of (i) the Sellers or
any group company of the Sellers (other than the Company) or (ii) any of the Directors or employees of the Sellers or of any group company of the Sellers, whether actual or contingent. 

  

	5.3.	Further action to be taken at Closing 

  
 At Closing the Parties shall further take such action and shall sign such documents as shall be required to be taken or signed in order to complete the
Transaction. 
  

	6.	REPRESENTATIONS AND WARRANTIES 

  

	6.1.	Representations and Warranties 

  
 The Sellers represent and warrant to the Purchaser that each of the Representations and Warranties set out in Schedule 3 is true and accurate at
the moment of signing this Agreement and shall be true and accurate at the Closing, save to the extent that any disclosures have explicitly, specifically and unambiguously been made in this Agreement. 
  

 13 

 Each of the Representations and Warranties shall be construed as a separate representation and/or
warranty and shall not be limited by the terms of any of the other Representations and/or Warranties, either expressly or by means of reference. 
  

	6.2.	Disclosures 

  
 Disclosures against any of the Representations and Warranties shall not be deemed to be disclosures against any other Representation and/or Warranty
unless such disclosure is explicitly repeated as a disclosure also against such other Representation and/or Warranty. 
  

	6.3.	Effects of Representations and Warranties and duty to investigate 

  

	6.3.1.	By giving the Representations and Warranties, the Sellers unconditionally accept the legal consequences set out in Clause 7 in the event that for whatever reason (including force
majeure, but excluding any reason which is imputable to the Purchaser) any fact or situation appears not to be as represented or warranted. 

  

	6.3.2.	In the event that any fact or situation appears not to be as represented or warranted the Sellers hereby expressly waive the right to argue in or out of court that in reliance upon
any action or omission on the part of the Purchaser or any Person acting for the Purchaser or upon the negotiations between the Parties it was entitled to assume that the Purchaser would investigate or further investigate such fact or situation
prior to Closing, save where the Sellers prove either that the Purchaser or such Person knew at that time that the fact or situation concerned was not as represented or warranted or that the breach of the Representation or Warranty is imputable to
the Purchaser. The aforegoing shall apply instead of Article 7:17 (5) of the Civil Code. 

  

	7.	COMPENSATION 

  

	7.1.	General principle 

  
 In the event of a breach of any of the Representations and Warranties, the Purchaser has the right to submit to the Sellers a Claim for Compensation
(without prejudice to any other right of the Purchaser, including the right 

  

 14 

 
to demand specific performance). In that event, the Sellers shall pay to the Purchaser or, at the option of the Purchaser, to the Company and/or any of the
Subsidiaries, by way of correction to the Purchase Price an amount, necessary to put the Purchaser, the Company and the Subsidiaries in the financial position they would have been in if the facts or circumstances giving rise to such breach had not
occurred or arisen. Such amount shall be increased by interest at the rate referred to in Article 6:120(2) of the Civil Code from and including the Closing Date until and including the date of payment. 
  

	7.2.	Information with respect to Claim 

  
 Where the Purchaser considers making a Claim for Compensation it shall, within a period of two months as from discovery of the circumstances giving rise
to such Claim, notify the Sellers giving reasonable particulars of the facts relating to such Claim and its best estimate of the likely amount of the Claim. Such a notification given within such period shall be considered a notification within the
meaning of Article 7:23(1) of the Civil Code. 
  

	7.3.	Defence against Third Party Claims 

  
 Where a Claim of the Purchaser for Compensation is based upon or relates to a Third Party Claim, the Purchaser or the Company shall notify the Sellers of
such Third Party Claim within two months after becoming aware thereof. As soon as possible following the date of that notification the Parties shall consult each other on the course of action to be taken. The Purchaser shall, however, at its sole
discretion and subject to any restriction under any insurance policy, be entitled to take, or procure the Company to take, any action necessary to defend the Third Party Claim. The Purchaser shall use reasonable endeavours to strike a fair balance
between the interests of the Sellers in keeping the Compensation as low as possible and the interests of the Purchaser and the Company to maintain good business relations with the third party concerned. The Company shall not be under any obligation
to rely on any general terms and conditions. 
  
 The Parties will
cooperate with each other in dealing with any Third Party Claim and will allow each other access to all relevant books and records during normal business hours and at the place where the same are normally kept, with full right to make copies thereof
or take extracts therefrom. Such books and records shall be subject to a duty of 

  

 15 

 
confidentiality except for disclosure necessary for resolving such Third Party Claim or otherwise required by applicable law or stock exchange rules.

  

	7.4.	Effect of Tax, specific provisions and insurance 

  
 In determining the financial position the Purchaser would have been in if a breach of the Representations and Warranties had not occurred or arisen (as
referred to in Clause 7.1) the following factors shall be taken into account 
  

	 	a.	i.        any Tax refund actually received by the Company or 

  

	 	ii.	any reduction in Tax actually payable by the Company with respect to the financial year to which the Accounts relate or any preceding year, to the extent that such refund or
reduction is directly attributable to the facts giving rise to the Claim; and/or 

  

	 	b.	the release of any specific provision, which is directly attributable to the facts giving rise to the Claim, or in the Accounts; and/or 

  

	 	c.	any amount actually received by the Company under any insurance policy or from any third party, to the extent that such amount is directly attributable to the facts giving rise to
the Claim. 

  

	7.5.	Taxation on payments by the Sellers 

  
 If any payment by way of Compensation forms part of the Purchaser’s or the Company’s taxable profit (or reduces its Tax losses) the Sellers
shall pay to the Purchaser or the Company such additional amount (taking into account any Tax payable in respect of such additional amount) as will ensure that the Purchaser or the Company receives and retains a net amount equal to the full amount
which it would have received and retained had the payment not formed part of the Purchaser’s or the Company’s taxable profit (or reduced its Tax losses). 
  

	7.6.	Payment without deductions 

  
 All sums payable by the Sellers to the Purchaser or the Company pursuant to any Claim for Compensation shall be paid free and clear of any deductions or
withholdings whatsoever save only as may be required 

  

 16 

 
by law. Where any deduction or withholding is required by law from any Compensation (save to the extent that the Purchaser or the Company may be credited for
such deduction or withholding), the Sellers shall be obliged to pay to the Purchaser or the Company such greater sum as will, after such deduction or withholding, leave the Purchaser or the Company with the same amount as it would have been entitled
to receive in the absence of any such deduction or withholding. 
  

	7.7.	No claims against Directors or Employees 

  
 The Sellers shall refrain from bringing any claim against any Director or Employee of the Company in respect of any information supplied by such Director
or Employee to the Purchaser or any of the persons authorised by the Purchaser in connection with the Company, save in the event of wilful intent or gross negligence. 
  

	8.	LIMITATIONS TO COMPENSATION FOR BREACH OF REPRESENTATIONS AND WARRANTIES OR COVENANTS 

  

	8.1.	Limitations in time 

  
 Without prejudice to any rights the Purchaser may have under 
  

	 	(i)	the Representations and Warranties set out in Sections 1, 2, 3, 4, 18 and 19 of Schedule 3, which shall survive the Closing Date for the period during which any party can
commence proceedings, as a result of which the Purchaser becomes aware of a fact or situation the presence or absence of which the Sellers have warranted or represented under this Agreement (which period shall be extended by three (3) months in
order to enable the Purchaser to submit a Claim for Compensation), and 

  

	 	(ii)	the Representations and Warranties set out in Sections 12.2 and 12.4 of Schedule 3, which shall survive the Closing Date for a period of 36 months; 

 
 the Purchaser shall no longer be entitled to claim any Compensation for
breach of any of the other Representations and Warranties, upon expiry of eighteen (18) months from the Closing Date. 
  
 The above shall apply instead of Article 7:23(2) of the Civil Code. 
  

 17 

	8.2.	Limitations as to amount of Compensation for breach of Representations or Warranties 

  

	8.2.1.	Maximum Compensation 

  
 The Purchaser shall not be entitled to claim any Compensation for breach of any of the Representations and Warranties insofar as the aggregate
Compensation due (other than for breach of any of the Representations and Warranties set out in the Sections referred to above) exceeds EUR 1,000,000 (one million Euro). 
  

	8.2.2	Threshold 

  
 The Purchaser shall not be entitled to any Compensation with respect to any Claim or Claims for breach of any of the Representations and Warranties unless the aggregate amount of Compensation due exceeds EUR 50,000
(fifty thousand Euro), but in that event the Sellers shall be liable for the whole amount of such Claim(s) and not merely for the excess. 
  

	9.	SPECIFIC COVENANTS 

  
 With respect to the Purchaser’s Common Stock to be acquired in connection with the purchase of the Shares under the Agreement: 
  

	 	a.	Reiber is an “accredited investor” as such term is defined in Rule 501(a) promulgated under the Securities Act of 1933, as amended (the “Securities Act”); and

  

	 	b.	Reiber has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of the investment in the Purchaser’s Common
Stock; and 

  

	 	c.	Reiber is receiving the Purchaser’s Common Stock for investment for its own account and not with a view to, or for resale in connection with, the distribution or other
disposition thereof, other than a distribution by Reiber to its stockholders or as otherwise contemplated hereby; and 

  

	 	d.	Reiber has been advised that the Purchaser’s Common Stock will be deemed to be restricted under the Securities Act, and that a restrictive legend in substantially the following
form shall be 

  

 18 

 placed on the certificates representing such shares: 
  
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES ACT OF ANY STATE AND MAY NOT BE OFFERED, SOLD, OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE 1933 ACT OR APPLICABLE STATE
SECURITIES ACTS OR, IN THE OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH. 
  

	10.	NON-COMPETITION 

  
 Each of Reiber and the Guarantor hereby undertakes towards both the Purchaser and the Company that it will not itself or allow any company of its group
without the prior written consent of the Purchaser 
  

	 	a.	for a period of three (3) years from the Closing Date in any capacity or in any way whatsoever in The Netherlands, either directly or indirectly be engaged in or concerned with, or
approach any Person with a view to being engaged in or concerned with, the conduct of any business involving the development or production of or the trading in any products developed, produced or traded, or the provision of services developed or
provided, by the Company as developed, produced, traded or provided at the Closing Date or which may compete therewith; 

  

	 	b.	for a period of three (3) years from the Closing Date persuade or cause, or attempt to persuade any employee or any distributor or commercial agent of the Company to terminate his
relationship with the Company, or employ or engage any such person within one (1) year of the effective termination of his relationship with the Company, or take any action that may result in the impairment of the relationship between such employee
or distributor or commercial agent and the Company; 

  

	 	c.	 for a period of three (3) years from the Closing Date persuade or 

  

 19 

 
cause or attempt to persuade any customer, supplier of or Person otherwise doing business with the Company to terminate his relationship with the Company or
take any action that may result in the impairment of such relationship or assist or cause or attempt to assist any competitor of the Company in the conduct of any business referred to in paragraph (a) hereof; 
  

	 	d.	use the name Heart Core B.V. or any abbreviation thereof or any combination including such name, or the logo of the Company. 

  
 Without limiting the generality of the foregoing, the Sellers shall refrain
from knowingly taking any action which may adversely affect the business of the Company. The Sellers shall also ensure that none of the companies of their groups shall take any such action. 
  

	11.	CONFIDENTIALITY 

  
 Each Party undertakes that it will not at any time disclose or use, with detrimental effect for the other Party, any confidential information concerning this Agreement, or concerning the business and affairs of
the other Party, except 
  

	 	a.	to the extent required by applicable law or stock exchange rules or by any Authority; 

  

	 	b.	to its professional advisers subject to a duty of confidentiality and only to the extent necessary for any lawful purpose; and 

  

	 	c.	to the extent that at the date hereof or hereafter such information is public knowledge other than through unlawful disclosure of which that Party at the time of disclosure was or
could reasonably have been aware that it was unlawful. 

  

	12.	MISCELLANEOUS 

  

	12.1.	Invalid provisions 

  
 In the event that a provision of this Agreement is null and void or unenforceable (either in whole or in part), the remainder of this Agreement shall
continue to be effective to the extent that, given this Agreement’s substance and purpose, such remainder is not inextricably related to the null and void or unenforceable provision. The Parties shall make every effort to reach agreement on a
new clause which differs as little as possible from the null and void or unenforceable provision, taking into account the substance and purpose of this Agreement. 
  

 20 

	12.2.	Further action 

  
 If at any time after Closing any further action is necessary or desirable in order to implement this Agreement, each Party shall at its own cost execute
and deliver any further documents and take all such necessary action as may reasonably be requested from each of it. 
  

	12.3.	Amendment 

  
 No amendment to this Agreement shall have any force or effect unless it is in writing and signed by the Parties. 
  

	12.4.	Costs 

  
 Each Party shall bear its own costs in connection with the preparation, negotiation and signing of this Agreement. 
  

	12.5.	No implied waiver; no forfeit of rights 

  

	 	a.	Any waiver under this Agreement must be given by notice to that effect. 

  

	 	b.	Where a Party does not exercise any right under this Agreement (which shall include the granting by a Party to any other Party of an extension of time in which to perform its
obligations under any provision hereof), this shall not be deemed to constitute a forfeit of any such rights (rechtsverwerking). 

  

	12.6.	Notice 

  

	 	12.6.1.	Any notice or other communication under or in connection with this Agreement shall be in writing and delivered by hand or sent by facsimile, by courier, or by registered mail and
shall be effective, in the absence of earlier receipt: 

  

	 	a.	 if sent by facsimile, two (2) business hours after receipt. Receipt shall be deemed to have occurred when transmission of such facsimile communication has been
completed and a positive transmission report has been produced by the transmitting 

  

 21 

 
machine. For the purposes of this provision, “business hour” shall mean any time between 09.00 and 18.00 hours on a Business Day in the country of
the addressee. 
  

	 	b.	if sent by courier service, three (3) days after dispatch, 

  

	 	c.	if sent by registered mail, three (3) days after dispatch. 

  

	12.6.2.	Notices under the Agreement shall be sent to the addresses of the Parties and the Company as specified below: 

  

			
	Purchaser	 	 
		
	Name	 	Bio-Imaging Technologies, Inc
	Address	 	826 Newtown Yardley Road
	 	 	Newtown, PA 18940
	 	 	United States of America
	Fax number	 	+1 267-757-3007
	Attn	 	Ted I. Kaminer
	With copy to	 	NautaDutilh N.V.
	Address	 	Strawinskylaan 1999
	 	 	1077 XV Amsterdam
	 	 	The Netherlands
	Fax number	 	+31 20 71 71 111
	Attn	 	Jaap Stoop
		
	Reiber	 	 
		
	Name	 	Reiber Consultancy B.V.
	Address	 	Nachtegaallaan 19
	 	 	3055 CN Rotterdam
	 	 	The Netherlands
	Fax number	 	+31 71 52 66 801
	E-mail	 	J.H.C.Reiber@lumc.nl
	 	 	hreiber@xs4all.nl
	Attn	 	Mr. J.H.C. Reiber
		
	Libertatis Ergo	 	 
		
	Name	 	Libertatis Ergo Holding B.V.
	Address	 	Rapenburg 70 kamer B0.09
	 	 	2311 EZ Leiden
	 	 	The Netherlands
	E-mail	 	hiddinga@leh.leidenuniv.nl
	Attn	 	Mr. B.P.Hiddinga

  

 22 

 or such other address as the Party to be given notice may have notified to the other Party from
time to time in accordance with this Clause for that purpose. 
  

	12.6.3.	The provisions of this Clause shall not apply in relation to the service of documents for the purpose of litigation. 

  

	12.7.	Assignment or encumbrance 

  
 No Party may assign this Agreement (contractsoverneming) or assign or encumber any of its rights thereunder without the prior written consent of
the others except that the Purchaser may assign this Agreement to a group company. 
  

	12.8.	Civil Law Notary 

  
 The Parties are aware of the fact that the Civil Law Notary works with NautaDutilh, the firm that advises the Purchaser in the Transaction. With reference
to the Code of Conduct (Verordening beroeps- en gedragsregels) established by the Royal Notarial Professional Organisation (Koninklijke Notariële Beroepsorganisatie), the Parties hereby explicitly agree (i) that the Civil Law
Notary shall execute any notarial deeds related to this Agreement and (ii) that the Purchaser is assisted and represented by NautaDutilh in relation to this Agreement and any agreements that may be concluded, or disputes that may arise, in
connection therewith. 
  

	12.9.	Joint and several liability of the Sellers 

  
 The Sellers shall be jointly and severally (hoofdelijk) liable for the performance of their obligations under this Agreement. 
  

	12.10.	Choice of Law 

  
 This Agreement shall be exclusively governed by and construed in accordance with the laws of The Netherlands, without regard to any conflict of law rules
under Dutch private international law. 
  

	12.11.	Disputes 

  
 Any dispute arising in connection with this Agreement shall be submitted 

  

 23 

 
to the jurisdiction of the competent court in Amsterdam, The Netherlands, which jurisdiction shall be exclusive subject to the next following sentence. The
submission to the jurisdiction of this court shall not limit the right of the Purchaser to institute proceedings in any other court of competent jurisdiction. 
  

This Agreement has been signed on 10 December 2004. 
  

			
	 For and on behalf of
 Bio-Imaging Technologies
Inc.
	 	 For and on behalf of
 Reiber Consultancy
B.V

		
	 /s/ Mark L. Weinstein

	 	 /s/ Johan Reiber

	By: M.L. Weinstein	 	By: J.H.C. Reiber
		
	For and on behalf of	 	 
	Libertatis Ergo Holding B.V.
		
	 /s/ B.P.Hiddinga

	 	 
	By: B.P.Hiddinga	 	 

  
  

 24 

 The Guarantor hereby irrevocably and unconditionally (i) guarantees to the Purchaser, as its own independent obligation
and not merely by way of surety (borg), the punctual performance by Reiber of all of Reiber’s obligations under this Agreement and (ii) agrees with the Purchaser to be jointly and severally (hoofdelijk) liable with Reiber towards
the Purchaser for the punctual performance by Reiber of all of Reiber’s obligations under this agreement and (iii) agrees with the Purchaser that if and to the extent such punctual performance is not possible on the part of the Guarantor, to
compensate the Purchaser for any loss the Purchaser may suffer as a result of any default of Reiber under any obligation under this Agreement (tekortkoming in de nakoming van zijn verbintenis). 
  
 The Guarantor further hereby explicitly agrees that the Civil Law Notary shall execute any
notarial deeds required for the transfer of any of the Shares. 
  
 The Guarantor
further hereby explicitly acknowledges and accepts to its obligations under Clause 10. 
  

			
	 For and on behalf of

	Johan Hendrikus Christiaan Reiber
	
	 /s/ Johan Reiber

	 By:
	 	 Johan Hendrikus Christiaan Reiber

  

 25

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}]]