Document:

EX-10.24

 

EXHIBIT (10-24)

Mark M. Leckie Employment Agreement

 

 

July 28, 2006

Dear Mark,

I’m following up from our previous conversation concerning your promotion to Group
President-Gillette Global Business Unit, reporting to the President and Chief Executive.

Though the Company generally does not execute written employment contracts with its officers, we
wish to describe the few items that have carried over from the benefit arrangements you had with
The Gillette Company as a result of the merger, which was effective on October 1, 2005 (the
“Effective Time”). In Sections 1-3 that follow, I’ve attached terms and conditions for your new
position. The terms and conditions that follow supersede any other personal agreement you have
with the Company or any of its subsidiaries concerning your employment, including the Change of
Control Employment Agreement between you and The Gillette Company, except that the non-competition
and other restrictive covenants which you previously accepted (including the choice of Ohio law and
courts) remain in force. Nothing in this letter, express or implied, is intended to or shall confer
upon any other person any right, benefit or remedy, except for those items that explicitly provide
benefits to your family members.

Like other P&G officers, you will continue to be an employee at will, which means you or P&G can
end the employment relationship at any time. Unless otherwise noted below, your benefit and
employment arrangements will be consistent with other similarly situated officers of the Company.

Please acknowledge your concurrence by signing below and returning this letter to me, saving a copy
for your own records. Thank you.

	 	 	 
	 

	 	 
	 	 
	 
	Dick Antoine

Global Human Resources Officer

	 	 

	 	 	 
	 

	 	Acknowledged and accepted:

	 

	 	 
	 

	 	Mark M. Leckie

 

 

1. Employment Arrangements

	 	 	 	 	 	 
	 	Salary and Bonus

	 	 	Your bonus, long-term incentive,
stock option, and salary
arrangements will be consistent with
other similarly situated officers of
the Company.	 
	 	Deferred Compensation

	 	 	For at least two years following the
Effective Time and while employed
with P&G, you will be able to
participate in the same or
substantially similar deferred
compensation programs, either
through the Gillette deferred
compensation plans or through
deferred compensation opportunities
available to similarly situated P&G
executives. Amounts currently
accrued in Gillette’s Supplemental
Savings Plan will be cashed out
according to your prior election.	 
	 	Health, Welfare, and Executive
Benefit Programs

	 	 	During Employment. For two years
following the Effective Time, P&G
will provide the same or similar
level of aggregate health, welfare,
and executive benefit programs that
are no less favorable in the
aggregate than those provided by
Gillette immediately prior to the
Effective Time. This includes the
medical, prescription, dental,
disability, employee / spouse /dependant
life insurance and travel
accident insurance plans and
programs, as well as executive life
insurance, the estate preservation
plan, executive parking, and the
financial planning reimbursement
program (up to a maximum financial
planning reimbursement of $11,000
per year plus gross-up for any tax
liability resulting from receiving
this benefit). This commitment to
comparable benefits shall not apply
to programs other than the health,
welfare, and executive benefit
programs described above and
excludes, without limitation, all
equity, bonus, incentive, and
compensation programs, except as
provided in this Executive Offer
Agreement. In addition to executive
benefits available to similarly
situated Company officers, the
Company will provide you use of an
apartment with hotel services in the
Boston area and reimbursement for
travel and commutation between
Boston and Bethel, Connecticut,.	 
	 	 	 	 	After Termination. If you leave
employment for any reason other than
cause within two years of the
Effective Time, you (with your
family) will be entitled to
continued health, welfare, and
executive benefits that are at least
equal, in the aggregate, to those
provided to you immediately prior to
the Effective Time as if you
remained an active employee. Any
such continuation of benefits
post-termination shall end on the
third anniversary of your
Termination Date, provided, however,
that if you become reemployed with
another employer and are eligible to
receive medical or other welfare
benefits under another
employer-provided plan, the health
and welfare benefits described
herein shall be secondary to those
provided under such other plan
during such applicable period of
eligibility. If on the third
anniversary of your Termination Date
following such continuation of
benefits you are eligible for
retirement and do in fact retire,
you can then elect to receive
retiree medical benefits according
to the terms of the retiree medical
plan then in place, including any
applicable coverage for your family.

If at the time you leave the Company
you are eligible to retire and do
retire	 
	 

 

 

	 	 	 	 	 	 
	 	 

	 	 	under the applicable Company
retirement plan, you can opt instead
to receive retiree medical benefits
according to the terms of the plan
then in place, including any
applicable coverage for your family.	 
	 	Retirement

	 	 	Based on your prior election, you
will either a) automatically receive
three years pension credit upon
joining P&G or b) receive the lump
sum actuarial equivalent of a
three-year pension credit upon
termination from P&G as a Special
Separation or as a result of
Retirement.

The Gillette Company Employee’
Savings Plan and The Gillette
Company Supplemental Savings Plan
shall continue for at least two
years following the Effective Time.
During this time, you will continue
to have opportunity for employee
contribution and Company match. The
Gillette Company Retirement Plan
shall also continue for at least two
years following the Effective Time.
You will retain your accrued pension
for years worked at Gillette. You
will continue to accrue pension
credit after the Effective Time,
with credit continuing to accrue
based on years working for P&G until
you are integrated into the P&G
Profit Sharing Plan. Upon this
integration, your years at Gillette
and the years you have worked at P&G
before benefit harmonization will
both count towards establishing your
profit sharing entitlement.
Finally, any ESOP account balance
you may have will be maintained,
although there will be no new
contributions to this account.	 
	 	Outplacement

	 	 	For two years following the
Effective Time, your entitlement to
outplacement shall be according to
similarly situated P&G executives,
however, the scope and provider of
outplacement services shall be in
your discretion. After the second
anniversary of the Effective Time,
outplacement benefits shall be
consistent with other similarly
situated P&G executives.	 
	 	P&G Severance

	 	 	Your eligibility for the P&G
severance program begins on October
1, 2007. If you separate from the
Company before this time, you will
not be entitled to severance under
the P&G program.	 
	 

	2.	 	Non-Competition Covenant

	(a)	 	In order to better protect the goodwill of The Procter & Gamble Company, its subsidiaries and
affiliates including, without limitation, The Gillette Company (hereinafter, collectively, the
“Company”), and to prevent the disclosure of the Company’s or its subsidiaries’ and
affiliates’ trade secrets and confidential information and thereby help insure the long-term
success of the business, and in consideration of the payments, benefits, and position of
employment provided to you pursuant to the terms of the Executive Offer Agreement between you
and the Company to which this covenant is appended, you agree that you, without prior written
consent of the Company, will not engage in any activity or provide any services, whether as a
director, manager, supervisor, employee, adviser, consultant or otherwise, for a period of
three (3) years following the date of the your termination or cessation of employment with the
Company for any reason, in connection with the manufacture, development, advertising,
promotion, or sale of any product which is the same as or similar to or competitive with:

 

 

	 	(i)	 	any business of The Gillette Company or its subsidiaries immediately
prior to the Effective Time (including as relates to both existing products as well
as products known to you, as a consequence of your employment with The Gillette
Company or its subsidiaries, to be in development); or

	 	(ii)	 	any business of The Procter & Gamble Company or its subsidiaries in
which you are employed following the Effective Time (including as relates to both
existing products as well as products known to you, as a consequence of your
employment with The Procter & Gamble Company or one of its subsidiaries, to be in
development),

	 	 	 	with respect to which, in either case, your work has been directly involved at any time
during the two (2) years preceding termination of employment or with respect to which
during that period of time you acquired knowledge of trade secrets or other confidential
information of The Gillette Company, The Procter & Gamble Company, and/or any of their
subsidiaries as a result of your job performance and duties.
	 
	 	 	 	For purposes of this paragraph, it shall be conclusively presumed that you have
knowledge of information you were directly exposed to through actual receipt or review
of memos or documents containing such information, or through actual attendance at
meetings at which such information was discussed or disclosed.

	(b)	 	Unless otherwise provided pursuant to a termination settlement agreement with the Company or
any of its subsidiaries, while you are employed by the Company and for a period of eighteen
(18) months after the termination or cessation of such employment for any reason, you shall
not directly or indirectly, either alone or in association with others: (i) solicit or
encourage any employee or independent contractor of the Company to terminate his or her
relationship with the Company; or (ii) recruit, hire or solicit for employment or for
engagement as an independent contractor, any person who is or was employed by the Company at
any time during your employment with the Company; provided, that this Paragraph (b) shall not
apply to such person whose employment with the Company has been terminated for a period of six
months or longer.

	(c)	 	You agree not to use or disclose the Company’s or its subsidiaries’ trade secrets and
confidential information known to you until any particular trade secret or confidential
information become generally known (through no fault of yours), whereupon the restriction on
use and disclosure shall cease as to that item. Information regarding products in
development, in test marketing or being marketed or promoted in a discrete geographic region,
which information the Company or one of its subsidiaries is considering for broader use, shall
not be deemed generally known until such broader use is actually commercially implemented. As
used in this Section, “generally known” means known throughout the domestic U. S. industry or,
if you have job responsibilities outside of the United States, the appropriate foreign country
or countries’ industry. Without limiting the generality of the foregoing, you shall not:

	 	(i)	 	Disclose or use at any time any secret or confidential information or
knowledge obtained or acquired by you during, after, or by reason of, employment
with

 

 

	 	 	 	The Gillette Company or any of its subsidiaries, as provided under applicable law
and any and all agreements between you and The Gillette Company or any of its
subsidiaries regarding your employment with The Gillette Company or the
subsidiary; and

	 	(ii)	 	Disclose or use at any time any secret or confidential information or
knowledge obtained or acquired by you during, after, or by reason of, employment
with The Procter & Gamble Company or any of its subsidiaries, as provided under
applicable law and any and all agreements between you and The Procter & Gamble
Company or any of its subsidiaries regarding your employment with The Procter &
Gamble Company or the subsidiary.

	(d)	 	To the extent permitted by law, you shall not make, publish or state, or cause to be made,
published or stated, any defamatory or disparaging statement, writing or communication
pertaining to the character, reputation, business practices, competence or conduct of the
Company, its subsidiaries, stockholders, directors, officers, employees, agents,
representatives or successors.

	(e)	 	In accordance with any and all agreements between you and the Company or any of its
subsidiaries regarding your employment, you shall disclose promptly and transfer and assign to
the Company all improvements and inventions in certain fields made or conceived by you during
employment with the Company or its subsidiaries and within the prescribed periods thereafter.

	(f)	 	You acknowledge that if you were, without authority, to use, disclose, or threaten the use or
disclosure of the trade secrets or confidential information of The Gillette Company or its
subsidiaries or of The Procter & Gamble Company or its subsidiaries, the Company or one of its
subsidiaries would be entitled to injunctive and other appropriate relief to prevent you from
doing so. You acknowledge that the harm caused to the Company by the breach or anticipated
breach of these covenants is by its nature irreparable because, among other things, it is not
readily susceptible of proof as to the monetary harm that would ensue. You consent that any
interim or final equitable relief entered by a court of competent jurisdiction shall, at the
request of the Company or one of its subsidiaries, be entered on consent and enforced by any
court having jurisdiction over you, without prejudice to any rights either party may have to
appeal from the proceedings which resulted in any grant of such relief.

	(g)	 	If any of the provisions contained in hereof shall for any reason, whether by application of
existing law or law which may develop, be determined by a court of competent jurisdiction to
be overly broad as to scope of activity, duration, or territory, you agree to join the Company
or any of its subsidiaries in requesting such court to construe such provision by limiting or
reducing it so as to be enforceable to the extent compatible with then applicable law. If any
one or more of the terms, provisions, covenants, or restrictions of this Appendix shall be
determined by a court of competent jurisdiction to be invalid, void or unenforceable, then the
remainder of the terms, provisions, covenants, and restrictions of this Appendix shall remain
in full force and effect and shall in no way be affected, impaired, or invalidated.

 

 

	3.	 	Excise Tax-Gross Up

	(a)	 	In the event any payments to you from P&G or its subsidiaries (collectively, “P&G”) in
connection with the Executive Offer Agreement or CIC Payment Notice are subject to excise tax
under Section 4999 of the Internal Revenue Code, P&G or its subsidiaries will promptly fully
gross you up for such excise tax such that the net after tax amount retained by you is the
same as if no such excise tax had been imposed. Such additional payment made to you or for
your benefit shall be called a “Gross-Up Payment.”

	(b)	 	You agree to notify P&G in writing of any claim by the Internal Revenue Service that, if
successful, would require the payment by P&G of a Gross-Up Payment. Such notification shall
be given as soon as practicable but no later than 10 business days after you are informed in
writing of such claim and shall apprise P&G of the nature of such claim and the date on which
such claim is requested to be paid. You shall not pay such claim prior to the expiration of
the 30-day period following the date on which you give such notice to P&G (or such shorter
period ending on the date that any payment of taxes with respect to such claim is due). If
P&G notifies you in writing prior to the expiration of such period that P&G desires to contest
such claim, you shall:

	 	(i)	 	give P&G any information reasonably requested by P&G relating to such claim;

	 	(ii)	 	take such action in connection with contesting such claim as P&G shall
reasonably request in writing from time to time, including, without limitation,
accepting legal representation with respect to such claim by an attorney reasonably
selected by P&G;

	 	(iii)	 	cooperate with P&G in good faith in order effectively to contest such claim;
and

	 	(iv)	 	permit P&G to participate in any proceedings relating to such claim;

	 	 	 	provided, however, that P&G shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest, and shall
indemnify and hold you harmless, on an after-tax basis, for any excise tax (including
interest and penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions of this
paragraph (b), P&G shall control all proceedings taken in connection with such contest, and,
at its sole option, may pursue or forgo any and all administrative appeals, proceedings,
hearings and conferences with the applicable taxing authority in respect of such claim and
may, at its sole option, either direct you to pay the tax claimed and sue for a refund or
contest the claim in any permissible manner, and you agree to prosecute such contest to a
determination before any administrative tribunal, in a court of initial jurisdiction and in
one or more appellate courts, as P&G shall determine; provided, however, that, if P&G
directs you to pay such claim and sue for a refund, P&G shall advance the amount of such
payment to you, on an interest-free basis, and shall indemnify and hold you harmless, on an
after-tax basis, from any excise tax (including interest or penalties with respect thereto)
imposed with respect to such advance. Furthermore, P&G’s control of the contest shall be
limited to issues with respect to which the Gross-Up Payment would be payable hereunder, and
you shall be entitled to settle or contest, as the case may be, any other issue raised by
the Internal Revenue Service or any other taxing authority.

 

 

	(c)	 	If you become entitled to receive any refund of any amount made to you or for your benefit as
a Gross-Up Payment, you agree to promptly pay to P&G the amount of such refund (together with
any interest paid or credited thereon after taxes applicable thereto). If, after your receipt
of an amount advanced by P&G pursuant to paragraph (b), a determination is made that you shall
not be entitled to any refund with respect to such claim and P&G does not notify you in
writing of its intent to contest such denial of refund prior to the expiration of 30 days
after such determination, then the amount of such advance shall offset, to the extent thereof,
the amount of excise tax you have actually paid.EX-10.11

 

EXHIBIT 10.11

CONTRIBUTION AGREEMENT

DATED AS OF

AUGUST 25, 2006

AMONG

EXEGY INCORPORATED,

PICO HOLDINGS, INC.,

AND

HYPERFEED TECHNOLOGIES, INC.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page No.	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II THE SHARE CONTRIBUTION AND OPTION EXCHANGE
	 	 	1	 
	Section 2.1. Contribution of the HyperFeed Shares
	 	 	1	 
	Section 2.2. Consideration
	 	 	1	 
	Section 2.3. Cancellation of HyperFeed Options
	 	 	2	 
	Section 2.4. Equalization of Options
	 	 	2	 
	 
	 	 	 	 
	ARTICLE III CLOSING
	 	 	3	 
	Section 3.1. Closing
	 	 	3	 
	Section 3.2. Closing Deliveries by PICO
	 	 	3	 
	Section 3.3. Closing Deliveries by HyperFeed. At the Closing, HyperFeed shall deliver to Exegy:
	 	 	3	 
	Section 3.4. Closing Deliveries by Exegy. At the Closing, Exegy shall deliver to PICO:
	 	 	4	 
	 
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PICO
	 	 	4	 
	Section 4.1. Organization and Authority of PICO
	 	 	4	 
	Section 4.2. Governmental Authorization
	 	 	5	 
	Section 4.3. Non-Contravention
	 	 	5	 
	Section 4.4. Finders’ Fees
	 	 	5	 
	Section 4.5. Litigation
	 	 	6	 
	 
	 	 	 	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES OF HYPERFEED
	 	 	6	 
	Section 5.1. Organization and Qualification of HyperFeed
	 	 	6	 
	Section 5.2. HyperFeed SEC Documents
	 	 	6	 
	Section 5.3. Absence of Certain Changes
	 	 	7	 
	Section 5.4. Finders’ Fees
	 	 	7	 
	Section 5.5. Capitalization
	 	 	7	 
	Section 5.6. Taxes
	 	 	8	 
	Section 5.7. Employee Benefits
	 	 	8	 
	Section 5.8. Compliance with Laws; Licenses, Permits and Registrations
	 	 	10	 
	Section 5.9. Litigation
	 	 	10	 
	Section 5.10. Title to Properties
	 	 	10	 
	Section 5.11. Intellectual Property
	 	 	11	 
	Section 5.12. Environmental Matters
	 	 	12	 
	Section 5.13. Material Agreements
	 	 	12	 
	Section 5.14. Certain Business Practices
	 	 	12	 
	Section 5.15. Insurance
	 	 	13	 
	Section 5.16. Financial Statements; No Material Undisclosed Liabilities
	 	 	13	 
	 
	 	 	 	 
	ARTICLE VI REPRESENTATIONS AND WARRANTIES OF EXEGY
	 	 	14	 
	Section 6.1. Organization and Authority of Exegy
	 	 	14	 
	Section 6.2. Governmental Authorization
	 	 	14	 

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	 	 	Page No.	 
	Section 6.3. Non-Contravention
	 	 	14	 
	Section 6.4. Information to be Supplied
	 	 	15	 
	Section 6.5. Absence of Certain Changes
	 	 	15	 
	Section 6.6. Finders’ Fees
	 	 	15	 
	Section 6.7. Capitalization
	 	 	15	 
	Section 6.8. Subsidiaries
	 	 	16	 
	Section 6.9. Financial Statements; No Material Undisclosed Liabilities
	 	 	16	 
	Section 6.10. Litigation
	 	 	17	 
	Section 6.11. Taxes
	 	 	17	 
	Section 6.12. Employee Benefits
	 	 	18	 
	Section 6.13. Compliance with Laws; Licenses, Permits and Registrations
	 	 	20	 
	Section 6.14. Title to Properties
	 	 	20	 
	Section 6.15. Intellectual Property
	 	 	20	 
	Section 6.16. Environmental Matters
	 	 	21	 
	Section 6.17. Material Agreements
	 	 	22	 
	Section 6.18. Employment Agreements
	 	 	23	 
	Section 6.19. Certain Business Practices
	 	 	23	 
	Section 6.20. Insurance
	 	 	23	 
	 
	 	 	 	 
	ARTICLE VII COVENANTS
	 	 	23	 
	Section 7.1. HyperFeed Interim Operations
	 	 	23	 
	Section 7.2. Exegy Interim Operations
	 	 	25	 
	Section 7.3. Cooperation in Receipt of Consents
	 	 	27	 
	Section 7.4. Public Announcements
	 	 	28	 
	Section 7.5. Access to Information; Notification of Certain Matters
	 	 	28	 
	Section 7.6. Further Assurances
	 	 	29	 
	Section 7.7. Expenses
	 	 	30	 
	Section 7.8. Tax Matters
	 	 	30	 
	Section 7.9. Employee Compensation and Benefits; Service Recognition
	 	 	30	 
	Section 7.10. Cancellation of HyperFeed Warrants
	 	 	31	 
	Section 7.11. Capital Contributions
	 	 	31	 
	Section 7.12. Going-Private Transaction
	 	 	32	 
	Section 7.13. Termination of Merger Agreement
	 	 	32	 
	Section 7.14. Investor Rights Agreement
	 	 	32	 
	Section 7.15. Conversion of HyperFeed Debt
	 	 	33	 
	 
	 	 	 	 
	ARTICLE VIII CONDITIONS TO CLOSE
	 	 	33	 
	Section 8.1. Conditions to the Obligations of Each Party
	 	 	33	 
	Section 8.2. Conditions to the Obligations of Exegy
	 	 	33	 
	Section 8.3. Conditions to the Obligations of PICO
	 	 	34	 
	 
	 	 	 	 
	ARTICLE IX SURVIVAL OF REPRESENTATIONS AND WARRANTIES
	 	 	35	 
	Section 9.1. No Survival of Representations and Warranties
	 	 	35	 
	 
	 	 	 	 
	ARTICLE X TERMINATION
	 	 	35	 
	Section 10.1. Termination
	 	 	35	 

-ii-

 

	 	 	 	 	 
	 	 	Page No.	 
	Section 10.2. Effect of Termination
	 	 	36	 
	 
	 	 	 	 
	ARTICLE XI MISCELLANEOUS
	 	 	36	 
	Section 11.1. Notices
	 	 	36	 
	Section 11.2. Amendments; No Waivers
	 	 	37	 
	Section 11.3. Assignment
	 	 	38	 
	Section 11.4. Governing Law
	 	 	38	 
	Section 11.5. Counterparts; Effectiveness
	 	 	38	 
	Section 11.6. No Third Party Beneficiaries
	 	 	38	 
	Section 11.7. Interpretation
	 	 	38	 
	Section 11.8. Enforcement
	 	 	38	 
	Section 11.9. Entire Agreement
	 	 	38	 
	Section 11.10. Severability
	 	 	39	 

APPENDICES

Appendix I —  Definitions

EXHIBITS

Exhibit A —  HyperFeed Debt

Exhibit B —  Form of Indemnification Agreement

Exhibit C —  Certificate of Incorporation

-iii-

 

CONTRIBUTION AGREEMENT

          CONTRIBUTION AGREEMENT, dated as of August 25, 2006 (the “Agreement”), by and between Exegy
Incorporated, a Delaware corporation (“Exegy”), PICO Holdings, Inc., a California corporation
(“PICO”), and HyperFeed Technologies, Inc., a Delaware corporation (“HyperFeed”).

RECITALS:

          WHEREAS, Exegy and HyperFeed are parties to that certain Agreement and Plan of Merger, dated
June 19, 2006 (the “Merger Agreement”);

          WHEREAS, the parties hereto desire to terminate the Merger Agreement and enter into this
Agreement to consummate the transactions as further described herein; and

          WHEREAS, upon the terms and subject to the conditions set forth herein, PICO desires to
contribute to Exegy all of the outstanding shares of Common Stock of HyperFeed owned by PICO on the
Closing Date; and

          WHEREAS, in exchange for such contribution, upon the terms and subject to the conditions set
forth herein, Exegy desires to issue to PICO shares of Exegy’s Series A-3 Preferred Stock (the “A-3
Stock”).

          NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements
contained in this Agreement, the parties hereto hereby agree as follows:

ARTICLE I

DEFINITIONS

          For purposes of this Agreement, the capitalized terms used in this Agreement shall have the
meanings specified or referred to in Appendix I hereto which is incorporated herein by reference.

ARTICLE II

THE SHARE CONTRIBUTION AND OPTION EXCHANGE

          Section 2.1.
Contribution of the HyperFeed Shares. At Closing, PICO shall contribute to
Exegy all of the outstanding shares of Common Stock of HyperFeed owned by PICO on the Closing Date
(including such shares of Common Stock of HyperFeed issued to PICO pursuant to the conversion of
debt as described in Section 9.2(d)) free and clear of all Liens (collectively, the “HyperFeed
Shares”).

          Section 2.2. Consideration. As consideration for PICO’s contribution of the HyperFeed
Shares to Exegy pursuant to Section 2.1 hereof, on the terms and subject to the conditions
of this Agreement and in reliance on the representations and warranties contained
herein, Exegy shall, at Closing, issue to PICO fifteen million, four hundred twenty-one
thousand,

 

 

sixty-seven (15,421,067) shares of A-3 Stock which Exegy represents and warrants to PICO
is equal to 50% of the outstanding shares of all classes of Exegy stock as of and on the Closing
Date on an “as converted” basis. The number of Exegy shares to be issued to PICO at Closing shall
be adjusted, if necessary, to equal 50% of the then outstanding shares of all classes of Exegy
stock as of the Closing Date on an “as converted” basis. Such adjustment shall not constitute a
breach of Exegy’s representation and warranty contained in this Section.

          Section 2.3. Cancellation of HyperFeed Options. Following the Closing, HyperFeed will
continue to maintain the HyperFeed Technologies, Inc. 1999 Combined Incentive and Non-Statutory
Stock Option Plan (the “Plan”) until the consummation of the Going-Private Transaction and all
options issued thereunder shall vest in accordance with the terms thereof. No option grants will
be made under the Plan following the date of this Agreement. If the current holders of HyperFeed
stock options have not, on or before the consummation of the Going-Private Transaction, exercised
any such vested and outstanding options, then HyperFeed shall cause such options to be cancelled
pursuant to Section 12(c) of the Plan.

          Section 2.4. Equalization of Options. Exegy and PICO acknowledge that the number of
outstanding Exegy options to acquire common stock granted pursuant to compensatory stock options
exceeds the number of outstanding HyperFeed warrants and options to acquire common stock, and agree
that those amounts should a be equal as of or immediately after the Closing. Accordingly, at the
Closing, Exegy shall:

               (a) issue new warrants to PICO for the purchase of 250,000 shares of Exegy common stock at an
exercise price per share no greater than $1.15 pursuant to a mutually acceptable warrant agreement
(the “PICO Warrants”);

               (b) with respect to each individual who is an employee of Exegy at Closing and who has one or
more HyperFeed stock options, Exegy shall, at Closing, grant to such person an option to purchase
a share of Exegy common stock for each HyperFeed stock option held by such person as of the
Closing Date (collectively, the “Employee Options”). The exercise price per share of such
Employee Options shall be the then fair market value of a share of Exegy common stock as determined
by Exegy’s Board of Directors. Such employee Options shall be granted pursuant to either a newly
adopted Exegy employee option plan or pursuant to an amendment of its existing equity based plan so
as to allow the granting of Employee Options;

               (c) either adopt a new Exegy employee option plan, or amend its existing equity based plan so
as to allow for the granting of compensatory stock options to those individuals eligible to
participate in HyperFeed’s equity based plan that number of stock options equal to the outstanding
Exegy options on the Closing Date minus the sum of (i) the PICO Warrants and (ii) the Employee
Options (the “Equalization Options”). The parties intend that as of or immediately after the
Closing Date the number of shares of Exegy common stock issuable upon exercise of the Equalization
Options, Employee Options and PICO Warrants shall equal the number of shares of Exegy common stock
issuable upon exercise of options granted under Exegy’s current equity based plan; and

               (d) reserve a sufficient number of shares of Exegy common stock to allow for in the aggregate:
(i) the conversion of all Exegy Preferred Stock; (ii) the conversion of

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the A-3 Stock; (iii) the
exercise of all Employee Options; and (iv) Equalization Options and for the exercise of PICO
Warrants.

ARTICLE III

CLOSING

          Section 3.1. Closing. Subject to the terms and conditions of this Agreement, the
contribution of the HyperFeed Shares contemplated hereby shall take place at a closing (the
“Closing”) to be held at 10:00 a.m., Central Time, on the later to occur of the fifth Business Day
following the satisfaction or waiver of all other conditions to the obligations of the parties set
forth in Article VII, at the offices of Stinson Morrison Hecker LLP, 100 South Fourth Street, St.
Louis, Missouri 63102, or at such other time or on such other date or at such other place as the
parties hereto may mutually agree upon in writing (the day on which the Closing takes place being
the “Closing Date”).

          Section 3.2. Closing Deliveries by PICO. At the Closing, PICO shall deliver to Exegy:
stock certificates evidencing the HyperFeed Shares, duly endorsed in blank or accompanied by stock
powers duly executed in blank;

               (a) the certificate required to be delivered pursuant to Section 8.2(a)(iii);

               (b) all consents, waivers or approvals obtained by PICO from third parties in connection with
this Agreement;

               (c) the Indemnification Agreement;

               (d) a certificate of good standing of PICO from the Secretary of State of the State of
California;

               (e) evidence reasonably satisfactory to Exegy that the HyperFeed Debt has been converted into
HyperFeed Common Stock;

               (f) a duly executed copy of the Investor Rights Agreement, signed by PICO;

               (g) evidence reasonably satisfactory to Exegy that all outstanding warrants of HyperFeed have
been surrendered by PICO and cancelled; and

               (h) such other agreements, documents, instruments and writings as are reasonably required to
be delivered by Exegy at or prior to the Closing Date pursuant to this Agreement.

          Section 3.3. Closing Deliveries by HyperFeed. At the Closing, HyperFeed shall deliver to
Exegy:

          (a) the certificate required to be delivered pursuant to Section 8.2(b)(iii); and

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          (b) a certificate of good standing of HyperFeed from the Secretary of State of the State of
Delaware.

          Section 3.4. Closing Deliveries by Exegy. At the Closing, Exegy shall deliver to
PICO:

               (a) stock certificates evidencing the A-3 Stock issuable pursuant to Section 2.2, duly
executed by an authorized officer of Exegy;

               (b) the certificate required to be delivered pursuant to Section 8.3(a)(iii);

               (c) all consents, waivers or approvals obtained by Exegy from third parties in connection with
this Agreement;

               (d) evidence reasonably satisfactory to PICO that the Third Amended and Restated Certificate
of Incorporation was duly filed;

               (e) a certificate of good standing of Exegy from the Secretary of State of the State of
Delaware;

               (f) a duly executed copy of the Investor Rights Agreement to be signed by PICO;

               (g) the PICO Warrants;

               (h) Employee Options for delivery to existing HyperFeed option holders as provided for in
Section 2.3 hereof; and

               (i) such other agreements, documents, instruments and writings as are reasonably required to
be delivered by PICO at or prior to the Closing Date pursuant to this Agreement.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF PICO

          Except as disclosed in (a) any publicly available report, form, schedule, definitive
registration statement or definitive proxy statement filed since December 31, 2005 by PICO with
the SEC pursuant to the Securities Act, as amended, or the Exchange Act, as amended or (b) in the
PICO Disclosure Schedule delivered to Exegy separately prior to, or contemporaneously with, the
date hereof (each section or subsection of which qualifies the correspondingly numbered
representation or warranty to the extent specified therein), PICO represents and warrants to Exegy
that:

          Section 4.1. Organization and Authority of PICO. PICO is a corporation duly
organized, validly existing, and in good standing under the laws of the State of California and

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has
all requisite corporate power and authority to own the HyperFeed Shares, to execute and deliver
this Agreement, to consummate the transactions contemplated hereby and to carry on its business as
now conducted. The execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby have been duly and validly authorized by the Board of Directors of
PICO and no other corporate proceeding on the part of PICO is necessary to authorize this Agreement
or to consummate the transactions contemplated hereby. This Agreement has been duly and validly
executed and delivered by PICO, and constitutes a valid and binding agreement of PICO, enforceable
against PICO in accordance with its terms, except to the extent that the enforceability (i) may be
limited by applicable bankruptcy, insolvency, moratorium, or other similar laws affecting or
relating to enforcement of creditors’ rights generally or general principles of equity, (ii) may be
limited by the availability of the equitable remedy of specific performance and injunctive relief
so subject to the discretion of the court before which the proceeding may be brought, and (iii) the
enforceability of provisions relating to indemnification may be limited by applicable federal,
state, or other securities laws or the public policy underlying such laws.

          Section 4.2. Governmental Authorization. The execution, delivery and performance by
PICO of this Agreement and the consummation by PICO of the transactions contemplated hereby require
no action by or in respect of, or filing with, any Governmental Entity by PICO other than (a)
compliance with any applicable requirements of the Securities Act and the Exchange Act; (b) such as
may be required under any applicable state securities or blue sky laws; and (c) such other
consents, approvals, actions, orders, authorizations, registrations, declarations and filings that
in the case of this Section 4.2(c), if not obtained or made, would not, individually or in the
aggregate (x) be reasonably likely to have a PICO Material Adverse Effect, or (y) prevent or
materially impair the ability of PICO to consummate the transactions contemplated by this
Agreement.

          Section 4.3. Non-Contravention. The execution, delivery and performance by PICO of
this Agreement and the consummation by PICO of the transactions contemplated hereby do not and will
not (a) contravene or conflict with PICO’s Certificate of Incorporation or Bylaws, (b) assuming
compliance with the matters referred to in Section 4.2 of this Agreement, contravene or conflict
with or constitute a violation of any provision of any Law, regulation, judgment, injunction, order
or decree binding upon or applicable to PICO, (c) constitute a default under or give rise to a
right of termination, cancellation or acceleration of any right or obligation of PICO, or to a loss
of any benefit or status to which PICO, is entitled under any provision of any agreement, contract
or other instrument binding upon PICO or any license, franchise, permit or other similar
authorization held by PICO, or (d) result in the creation or imposition of any Lien on any asset of
PICO, other than, in the case of each of Sections 4.3(b), (c) and (d), any such items that would
not, individually or in the aggregate (x) be reasonably likely to have a PICO Material Adverse
Effect or (y) prevent or materially impair the ability of PICO to consummate the transactions
contemplated by this Agreement.

          Section 4.4. Finders’ Fees. There is no investment banker, broker, finder or other
intermediary that has been retained by, or is authorized to act on behalf of, PICO, who might be
entitled to any fee or commission upon consummation of the transactions contemplated by this
Agreement.

-5-

 

          Section 4.5. Litigation. There are no actions, suits, investigations, arbitrations
or other proceedings pending against, or to the Knowledge of PICO threatened against, PICO, or any
of its assets or properties before any arbitrator or Governmental Entity that are, individually or
in the aggregate, reasonably likely to (a) have a PICO Material Adverse Effect, or (b) prevent PICO
from performing its obligations under this Agreement or consummating the transactions contemplated
by this Agreement.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF HYPERFEED

          Except as disclosed in (a) any publicly available report, form, schedule, definitive
registration statement or definitive proxy statement filed since May 9, 2006 by HyperFeed with the
SEC pursuant to the Securities Act, as amended, or the Exchange Act, as amended (collectively,
“HyperFeed SEC Reports”) or (b) the HyperFeed Disclosure Schedule delivered to Exegy separately
prior to, or contemporaneously with, the date hereof (each section or subsection of which qualifies
the correspondingly numbered representation or warranty to the extent specified therein), HyperFeed
represents and warrants to Exegy that:

          Section 5.1. Organization and Qualification of HyperFeed. HyperFeed is a corporation
duly organized, validly existing, and in good standing under the laws of the State of Delaware,
with full power and authority to own, operate or lease its properties, and to conduct its business
as it is now being conducted and as described in the HyperFeed SEC documents. HyperFeed is duly
qualified to do business as a foreign entity and is in good standing under the laws of each state
or other jurisdiction in which either the ownership or use of the properties owned or used by it,
or the nature of the activities conducted by it, requires such qualification, except where the
failure to be so qualified would not individually or in the aggregate, reasonably be expected to
have a HyperFeed Material Adverse Effect. The execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby have been duly and validly authorized by the
Board of Directors of HyperFeed and no other corporate proceeding on the part of HyperFeed is
necessary to authorize this Agreement or to consummate the transactions contemplated hereby. This
Agreement has been duly and validly executed and delivered by HyperFeed, and constitutes a valid
and binding agreement of HyperFeed, enforceable against HyperFeed in accordance with its terms,
except to the extent that the enforceability (i) may be limited by applicable bankruptcy,
insolvency, moratorium, or other similar laws affecting or relating to enforcement of creditors’
rights generally or general principles of equity, (ii) may be limited by the availability of the
equitable remedy of specific performance and injunctive relief so subject to the discretion of the
court before which the proceeding may be brought, and (iii) the enforceability of provisions
relating to indemnification may be limited by applicable federal, state, or other securities laws
or the public policy underlying such laws.

          Section 5.2. HyperFeed SEC Documents.

               (a) HyperFeed has filed all reports, filings, schedules, registration statements and other
documents required to be filed or furnished by it with/to the SEC since January 1, 2003, except
where the failure to file such report, registration, schedule would not

-6-

 

individually or in the aggregate reasonably be expected to have a HyperFeed Material Adverse
Effect.

               (b) As of its filing date, each HyperFeed SEC Document complied as to form in all material
respects with the applicable requirements of the Securities Act and/or the Exchange Act, as the
case may be.

          Section 5.3. Absence of Certain Changes. Since December 31, 2005, except as disclosed
in (or incorporated by reference in) a HyperFeed SEC Document or otherwise expressly contemplated
by this Agreement, HyperFeed has conducted its business in all material respects in the ordinary
course and there has not been any action or event that, individually or in the aggregate, has had
or would be reasonably likely to have a HyperFeed Material Adverse Effect.

          Section 5.4. Finders’ Fees. There is no investment banker, broker, finder or other
intermediary that has been retained by, or is authorized to act on behalf of, HyperFeed or any
HyperFeed Subsidiary who might be entitled to any fee or commission upon consummation of the
transactions contemplated by this Agreement.

          Section 5.5. Capitalization.

               (a) The authorized capital stock of HyperFeed consists of (i) 50,000,000 shares of HyperFeed
Common Stock, and (ii) 5,000,000 shares of HyperFeed Preferred Stock. At the close of business on
August 24, 2006 (A) 7,643,474 shares of HyperFeed Common Stock were issued and outstanding, (B)
stock options to purchase an aggregate 773,140 shares of HyperFeed Common Stock were issued and
outstanding (of which options to purchase an aggregate of 136,477 shares of HyperFeed Common Stock
were exercisable), (C) warrants to purchase an aggregate of 250,000 shares of HyperFeed Common
Stock were issued and outstanding, (D) no shares of HyperFeed Common Stock or HyperFeed Preferred
Stock were held in its treasury, except as disclosed in the HyperFeed Financial Statements, (E) no
shares of HyperFeed Preferred Stock were issued and outstanding, and (F) no stock options or
warrants to purchase HyperFeed Preferred Stock were issued and outstanding. All of the issued and
outstanding shares of capital stock of HyperFeed have been duly authorized and validly issued and
outstanding and fully paid and nonassessable.

               (b) As of the date hereof, except (i) as set forth in this Section 4.9, and (ii) for changes
since December 31, 2005, resulting from the exercise of stock options outstanding on such date,
there are no outstanding (x) shares of capital stock or other voting securities of HyperFeed, (y)
securities of HyperFeed convertible into or exchangeable for shares of capital stock or voting
securities of HyperFeed, or (z) options or other rights to acquire from HyperFeed, and no
obligation of HyperFeed to issue, any capital stock, voting securities or securities convertible
into or exchangeable for capital stock or voting securities of HyperFeed (the items in clauses (x),
(y) and (z) being referred to collectively as the “HyperFeed Securities”). There are no
outstanding obligations of HyperFeed or any HyperFeed Subsidiary to

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repurchase, redeem or otherwise acquire any HyperFeed Securities. There are no outstanding
contractual obligations of HyperFeed to provide funds to, or make any investment (in the form of a
loan, capital contribution or otherwise) in, any other Person. As of the date hereof, other than
as specifically provided in the Articles of Incorporation of HyperFeed, there are no stockholder
agreements, voting trusts or other agreements or understandings to which HyperFeed is a party, or
of which HyperFeed is aware, relating to voting, registration or disposition of any shares of
capital stock of HyperFeed.

          Section 5.6. Taxes.

               (a) All material Tax returns (including information returns), declarations, statements,
reports and forms (collectively, the “HyperFeed Returns”) required to be filed by, or with respect
to, HyperFeed or any HyperFeed Subsidiary have been duly and timely filed and are correct and
complete in all materials respects.

               (b) Each of HyperFeed and each HyperFeed Subsidiary has timely paid all Taxes due and payable
(whether or not shown on any HyperFeed Return).

               (c) HyperFeed and each HyperFeed Subsidiary has made adequate provision for all unpaid Taxes,
being current Taxes not yet due and payable.

               (d) There is no action, suit, proceeding, audit or claim now pending or to HyperFeed’s
Knowledge proposed or threatened against or with respect to HyperFeed or any HyperFeed Subsidiary
in respect of any Tax.

               (e) HyperFeed has not been a member of an affiliated, consolidated, combined or unitary group
other than one of which HyperFeed or PICO was the common parent.

               (f) There are no Tax liens upon any of the assets of the Company, in each case except liens
for Taxes not yet due and payable.

               (g) Hyperfeed will not be required to include any item of income in, or exclude any item of
deduction from, taxable income for any taxable period (or portion thereof) ending after the Closing
as a result of any :(i) change in method of accounting for a taxable period ending on or prior to
the Closing; (ii) ”closing agreement” as described in Code section 7121 (or any corresponding or
similar provision of state, local or foreign income Tax law) executed on or prior to the Closing
Date; (iii) intercompany transactions or any excess loss amount described in Treasury Regulations
under Code section 1502 (or any corresponding or similar provision of state, local or foreign
income tax Tax law); (iv) installment sale or open transaction disposition made on or prior to the
Closing; or (v) prepaid amount received on or prior to the Closing.

          Section 5.7. Employee Benefits.

               (a) Section 5.7 of the HyperFeed Disclosure Schedule contains a correct and complete
list identifying each material “employee benefit plan,” as defined in Section 3(3) of Employee
Retirement Income Security Act of 1974 (“ERISA”), each employment, severance or similar contract,
plan, arrangement or policy and each other plan or

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arrangement (written or oral) providing for compensation, bonuses, profit-sharing, stock option or
other stock related rights or other forms of incentive or deferred compensation, vacation benefits,
insurance coverage (including any self-insured arrangements), health or medical benefits,
disability benefits, workers’ compensation, supplemental unemployment benefits, severance benefits
and post-employment or retirement benefits (including compensation, pension, health, medical or
life insurance benefits) that is maintained, administered or contributed to by HyperFeed or any
HyperFeed Subsidiary. Copies of such plans (and, if applicable, related trust agreements) and all
amendments thereto and written interpretations thereof have been furnished, or will be made
available upon request, to Exegy together with the most recent annual report (Form 5500 including,
if applicable, Schedule B thereto), all summary plan descriptions and material employee
communications prepared in connection with any such plan. Such plans are referred to collectively
herein as the “HyperFeed Employee Plans.” For purposes of this Section 5.7, “ERISA
Affiliate” of any Person means any other Person which, together with such Person, would be treated
as a single employer under Section 414 of the Code.

               (b) No HyperFeed Employee Plan is now or at any time has been subject to Part 3, Subtitle B of
Title I of ERISA or Title IV of ERISA. At no time has HyperFeed or any of its ERISA Affiliates
contributed to, or been required to contribute to, any “multiemployer plan,” as defined in Section
3(37) of ERISA (a “Multiemployer Plan”), or any other plan subject to Title IV of ERISA (a
“Retirement Plan”), and neither HyperFeed nor any of its ERISA Affiliates has, or ever has had, any
liability (contingent or otherwise) relating to the withdrawal or partial withdrawal from a
Multiemployer Plan.

               (c) Each HyperFeed Employee Plan that is intended to be qualified under Section 401(a) of the
Code now meets, and at all times since its inception has met, the requirements for such
qualification other than such requirements for which a remedial amendment period has not expired,
and each trust forming a part thereof is now, and at all times since its inception has been, exempt
from tax pursuant to Section 501(a) of the Code. Each such plan has received a favorable
determination letter from or is reasonably permitted to rely on a favorable opinion letter from,
the Internal Revenue Service to the effect that such plan is qualified and its related trust is
exempt from federal income taxes. HyperFeed has furnished, or will make available upon request, to
Exegy copies of the most recent Internal Revenue Service determination or opinion letters with
respect to each such HyperFeed Employee Plan. Each HyperFeed Employee Plan has been maintained and
administered in substantial compliance with its terms (except that in any case in which any
HyperFeed Employee Plan is currently required to comply with a provision of ERISA or of the Code,
but is not yet to be amended to reflect such provision, such plan has been maintained and
administered in accordance with the provision) and with the requirements prescribed by any and all
statutes, orders, rules and regulations, including but not limited to ERISA and the Code, which are
applicable to such HyperFeed Employee Plan. All material reports, returns and similar documents
with respect to each HyperFeed Employee Plan required to be filed with any governmental agency or
distributed to any HyperFeed Employee Plan participant have been duly timely filed and distributed.

               (d) There is no contract, agreement, plan or arrangement that, as a result of the transactions
contemplated by this Agreement, would be reasonably likely to obligate HyperFeed to make any
payment of any amount that would not be deductible pursuant to the terms of Section 162(m) or
Section 280G of the Code.

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               (e) Except as disclosed in writing to Exegy prior to the date hereof, there has been no
amendment to, written interpretation or announcement (whether or not written) relating to, or
change in employee participation or coverage under, any HyperFeed Employee Plan that would increase
materially the expense of maintaining such HyperFeed Employee Plan above the level of the expense
incurred in respect thereof for the fiscal year ended December 31, 2005.

               (f) No HyperFeed Employee Plan promises or provides post-retirement medical, life insurance or
other benefits due now or in the future to current, former or retired employees of HyperFeed or any
HyperFeed Subsidiary.

          Section 5.8. Compliance with Laws; Licenses, Permits and Registrations.

               (a) To the Knowledge of HyperFeed, neither HyperFeed nor any HyperFeed Subsidiary is in
violation of, nor has HyperFeed or any HyperFeed Subsidiary been notified that it has violated, any
applicable provisions of any Laws, statutes, ordinances, regulations, judgments, injunctions,
orders or consent decrees, except for any such violations that, individually or in the aggregate,
are not reasonably likely to have a HyperFeed Material Adverse Effect.

               (b) To the Knowledge of HyperFeed, HyperFeed and its Subsidiaries each have all permits,
licenses, approvals, authorizations of and registrations with and under all federal, state, local
and foreign laws, and from all Governmental Entities required by HyperFeed and/or any HyperFeed
Subsidiary to carry on their business as currently conducted, except where the failure to have any
such permits, licenses, approvals, authorizations or registrations, individually or in the
aggregate, would not be reasonably likely to have a HyperFeed Material Adverse Effect.

          Section 5.9. Litigation. There are no actions, suits, investigations, arbitrations or
other proceedings pending against, or to the Knowledge of HyperFeed threatened against, HyperFeed
or any of its assets or properties before any arbitrator or Governmental Entity that are,
individually or in the aggregate, reasonably likely to (a) have a HyperFeed Material Adverse
Effect, or (b) prevent HyperFeed from performing its obligations under this Agreement or
consummating the transactions contemplated by this Agreement.

          Section 5.10. Title to Properties.

               (a) HyperFeed has good and marketable title to, or valid leasehold interests in, all its
properties and assets reflected in the HyperFeed Financial Statements as being owned or leased by
HyperFeed, except for such as are no longer used or useful in the conduct of its business or as
have been disposed of in the ordinary course of business and except for defects in title,
easements, restrictive covenants and similar Liens, encumbrances or impediments that are not
reasonably likely to have a HyperFeed Material Adverse Effect. All such assets and properties,
other than assets and properties in which HyperFeed has leasehold interests, are free and clear of
all Liens, except for Liens which are not reasonably likely to have a HyperFeed Material Adverse
Effect.

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               (b) HyperFeed and each HyperFeed Subsidiary (i) is in substantial compliance with the terms of
all leases to which any of them, are, respectively, a party and under which it is in occupancy, and
all such leases are in full force and effect and (ii) enjoys peaceful and undisturbed possession
under all such leases.

          Section 5.11. Intellectual Property.

               (a) HyperFeed owns or has a valid license to use, free and clear of all liens all material:
(i) Marks; (ii) Patents; (iii) Copyrights; and (iv) Trade Secrets; necessary to (x) carry on the
business of HyperFeed as currently conducted, and (y) make, have made, use, distribute and sell all
products currently sold by HyperFeed.

               (b) HyperFeed has not received any notification or other communication of the existence of any
dispute or disagreement with respect to any agreement to which HyperFeed is a party, relating to
any of the Marks, Patents, Copyrights, or Trade Secrets owned by HyperFeed (collectively,
“HyperFeed Intellectual Property”), and to HyperFeed’s Knowledge, there are no such threatened
disputes or disagreements.

               (c) All current and former employees of HyperFeed who developed or have developed intellectual
property within the scope of their employment with HyperFeed have executed written contracts with
HyperFeed that assign to HyperFeed all rights to any inventions, improvements, discoveries, or
information relating to the business of HyperFeed. To HyperFeed’s Knowledge, no employee of
HyperFeed or any HyperFeed Subsidiary has entered into any contract that restricts or limits in any
way the scope or type of work in which the employee may be engaged or requires the employee to
transfer, assign, or disclose information concerning his work to anyone other than HyperFeed.

               (d) All Patents owned by HyperFeed which have been filed with a Patent Office are currently in
compliance with formal legal requirements (including payment of filing, examination, and
maintenance fees and proofs of working or use), are valid and enforceable, and are not subject to
any maintenance fees or taxes or actions except where the failure to have such ownership or license
is not reasonably likely to have a HyperFeed Material Adverse Effect.

               (e) HyperFeed uses reasonable procedures to keep Trade Secrets owned by HyperFeed
confidential, and Trade Secrets owned by HyperFeed have been disclosed only under written
agreements that require the recipient to hold such Trade Secrets confidential.

               (f) No Patent owned by HyperFeed has been or is now involved in any interference, reissue,
reexamination, or opposition proceeding. HyperFeed has not received notification of any
potentially interfering patent or patent application of any third party.

               (g) To HyperFeed’s Knowledge, no HyperFeed Intellectual Property is infringed or has been
challenged or threatened in any way. To HyperFeed’s Knowledge, none of the products manufactured
and sold or proposed to be sold, nor any process or know-how used, by HyperFeed or any HyperFeed
Subsidiary infringes or is alleged to infringe any Patent or other proprietary right of any other
Person.

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               (h) Other than the software licenses set forth in the HyperFeed Disclosure Schedule, HyperFeed
is not required to make any payments to any third parties in connection with third party technology
embedded in the HyperFeed Intellectual Property.

               (i) All products made, used, or sold under Patents owned by HyperFeed have been marked with
the proper patent notice except where the failure to have such ownership or license is not
reasonably likely to have a HyperFeed Material Adverse Effect.

          Section 5.12. Environmental Matters. With such exceptions as, individually or in the
aggregate, are not reasonably likely to have a HyperFeed Material Adverse Effect, (i) no written
notice, notification, demand, request for information, summons, complaint or order has been
received by HyperFeed or any HyperFeed Subsidiary, and no investigation, action, claim, suit,
proceeding or review is pending or to the Knowledge of HyperFeed, threatened by any Person against,
HyperFeed or any HyperFeed Subsidiary with respect to any applicable Environmental Law and (ii) to
the Knowledge of HyperFeed, HyperFeed and each HyperFeed Sub is and has been in compliance with all
applicable Environmental Laws.

          Section 5.13. Material Agreements.

               (a) As of the date of this Agreement, there are no material agreements, contracts, commitments
or other instruments to which HyperFeed or its Subsidiaries is a party which are required to be
filed, but have not yet been filed, as an exhibit to any HyperFeed SEC Documents under the
Securities Act, the Exchange Act, and rules and regulations of the SEC promulgated thereunder.

               (b) To the Knowledge of HyperFeed, neither HyperFeed nor any HyperFeed Subsidiary has
materially violated or breached, or committed any material default under, any contract or
agreement, and, to the Knowledge of HyperFeed, no other Person has materially violated or breached,
or committed any material default under, any contract or agreement to which HyperFeed or any
HyperFeed Subsidiary is a party. No event has occurred which, after notice or the passage of time
or both, would constitute a default by HyperFeed or any HyperFeed Subsidiary under any contract or
agreement or give any Person the right to (A) declare a default or exercise any remedy under any
contract or agreement, (B) receive or require a rebate, chargeback, penalty or change in delivery
schedule under any contract or agreement, (C) accelerate the maturity or performance of any
contract or agreement, or (D) cancel, terminate or modify any contract or agreement, in each case
which, together with all other events of the types referred to in clauses (A), (B), (C) and (D) of
this sentence has had or may reasonably be expected to have a HyperFeed Material Adverse Effect.
All such contracts and agreements will continue, after the Closing, to be binding in all material
respects in accordance with their respective terms until their respective expiration dates.

          Section 5.14. Certain Business Practices. Neither HyperFeed nor any HyperFeed
Subsidiary, nor to the Knowledge of HyperFeed, any director, officer or employee of HyperFeed has
(i) used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses
relating to political activity, or (ii) made any unlawful payment to foreign or domestic government
officials or employees or to foreign or domestic political parties or campaigns or violated any
provision of the Foreign Corrupt Practices Act of 1977, as amended.

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          Section 5.15. Insurance. HyperFeed has made available to Exegy a summary of all
material insurance policies and all material self-insurance programs and arrangements relating to
the business, assets and operations of HyperFeed. Subject to expirations and renewals of insurance
policies in the ordinary course of business, all of such insurance policies are in full force and
effect. Since December 31, 2003, HyperFeed has not received any notice or other communication
regarding any actual or possible (i) cancellation or invalidation of any material insurance policy,
(ii) refusal of any coverage or rejection of any material claim under any insurance policy, or
(iii) material adjustment in the amount of the premiums payable with respect to any insurance
policy. There is no pending workers’ compensation or other claim under or based upon any insurance
policy of HyperFeed other than claims incurred in the ordinary course of business.

          Section 5.16. Financial Statements; No Material Undisclosed Liabilities.

               (a) The audited consolidated balance sheets of HyperFeed as of December 31, 2003, 2004 and
2005, together with the related audited consolidated statements of operations, shareholders’ equity
and cash flows for the three months ended contained in HyperFeed SEC Documents filed on forms 10-K
or 10-Q, and the notes thereto (the “HyperFeed Financial Statements”) fairly present in all
material respects, in conformity with GAAP consistently applied (except as may be indicated in the
notes thereto or in the case of unaudited financial statements, as permitted by Form 10-Q and Rule
10-01 of Regulation S-X promulgated by the SEC), the financial position of HyperFeed as of their
respective dates and its results of operations, shareholders’ equity and consolidated cash flows
for the periods then ended (except that unaudited interim financial statements were or are subject
to normal and recurring year-end adjustments, and except for the absence of permitted footnote
disclosures in the unaudited financial statements).

               (b) Except as disclosed in the HyperFeed SEC Documents, there are no liabilities of HyperFeed
of any kind whatsoever, whether accrued, contingent, absolute, determined, determinable or
otherwise, in each case, that are required by GAAP to be set forth on a balance sheet of HyperFeed,
other than:

               (c) liabilities or obligations disclosed or provided for in the HyperFeed Balance Sheet or
disclosed in the notes thereto or which were fully incurred or paid after December 31, 2005 in the
ordinary course of business;

                    (i) liabilities or obligations under this Agreement or accrued in connection with the
transactions contemplated hereby; and

                    (ii) liabilities or obligations not referenced in Sections 5.15(b)(i) or (ii) above
that individually or in the aggregate, are not reasonably likely to have a HyperFeed Material
Adverse Effect.

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ARTICLE VI

REPRESENTATIONS AND WARRANTIES OF EXEGY

          Except as disclosed in the Exegy Disclosure Schedule delivered to PICO separately prior to, or
contemporaneously with, the date hereof (each section or subsection of which qualifies the
correspondingly numbered representation, warranty or covenant to the extent specified therein),
Exegy represents and warrants to PICO that:

          Section 6.1. Organization and Authority of Exegy. Exegy is a corporation duly
organized, validly existing, and in good standing under the laws of the State of Delaware and has
all requisite corporate power and authority to execute and deliver this Agreement, to consummate
the transactions contemplated hereby and to carry on its business as now conducted. The execution
and delivery of this Agreement and the consummation of the transactions contemplated hereby have
been duly and validly authorized by the Board of Directors of Exegy and no other corporate
proceeding on the part of Exegy is necessary to authorize this Agreement or to consummate the
transactions contemplated hereby. This Agreement has been duly and validly executed and delivered
by Exegy, and constitutes a valid and binding agreement of Exegy, enforceable against Exegy in
accordance with its terms, except to the extent that the enforceability (i) may be limited by
applicable bankruptcy, insolvency, moratorium, or other similar laws affecting or relating to
enforcement of creditors’ rights generally or general principles of equity, (ii) may be limited by
the availability of the equitable remedy of specific performance and injunctive relief so subject
to the discretion of the court before which the proceeding may be brought, and (iii) the
enforceability of provisions relating to indemnification may be limited by applicable federal,
state, or other securities laws or the public policy underlying such laws.

          Section 6.2. Governmental Authorization. The execution, delivery and performance by
Exegy of this Agreement and the consummation by Exegy of the transactions contemplated hereby
require no action by or in respect of, or filing with, any Governmental Entity by Exegy other than
(a) compliance with any applicable requirements of the Securities Act and the Exchange Act; (b)
such as may be required under any applicable state securities or blue sky laws; (c) such other
consents, approvals, actions, orders, authorizations, registrations, declarations and filings that,
in the case of this Section 6.2(c), if not obtained or made, would not, individually or in the
aggregate, (x) be reasonably likely to have an Exegy Material Adverse Effect, or (y) prevent or
materially impair the ability of Exegy to consummate the transactions contemplated by this
Agreement.

          Section 6.3. Non-Contravention. The execution, delivery and performance by Exegy of
this Agreement and the consummation by Exegy of the transactions contemplated hereby do not and
will not (a) contravene or conflict with Exegy’s Certificate of Incorporation or Bylaws, (b)
assuming compliance with the matters referred to in Section 6.2 of this Agreement, contravene or
conflict with or constitute a violation of any provision of any Law, regulation, judgment,
injunction, order or decree binding upon or applicable to Exegy, (c) constitute a breach or default
under or give rise to a right of termination, cancellation or acceleration of any right or
obligation of Exegy or any Exegy Subsidiary or to a loss of any benefit or status to which Exegy is
entitled under any provision of any agreement, contract or other instrument

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binding upon Exegy or any Exegy Subsidiary or any license, franchise, permit or other similar
authorization held by Exegy or any Exegy Subsidiary, or (d) result in the creation or imposition of
any Lien on any asset of Exegy; except in the case of each of Sections 6.3 (b), (c) and (d) of
this Agreement, any such items that would not, individually or in the aggregate (x) be reasonably
likely to have an Exegy Material Adverse Effect or (y) prevent or materially impair the
ability of Exegy to consummate the transactions contemplated by this Agreement.

          Section 6.4. Information to be Supplied. No representation or warranty made by it in
this Agreement nor any statement by it contained in the Exegy Disclosure Schedule, contains any
untrue statement of a material fact, or omits to state any material fact, required to be stated
therein, in light of the circumstances in which it was made, to make the statement herein or
therein contained not misleading.

          Section 6.5. Absence of Certain Changes. Since December 31, 2005, except as otherwise
expressly contemplated by this Agreement, Exegy and the Exegy Subsidiaries have conducted their
business in the ordinary course consistent with past practice and there has not been (a) any
damage, destruction or other casualty loss (whether or not covered by insurance) affecting the
business or assets of Exegy or any Exegy Subsidiary that, individually or in the aggregate, has had
or would be reasonably likely to have an Exegy Material Adverse Effect, (b) any action, event,
occurrence, development or state of circumstances or facts that, individually or in the aggregate,
has had or would be reasonably likely to have an Exegy Material Adverse Effect, (c) any incurrence,
assumption or guarantee by Exegy of any material indebtedness for borrowed money other than in the
ordinary course and in amounts and on terms consistent with past practices, or (d) any change in
accounting or Tax accounting method, or any material arrangements, agreements or elections made
with respect to Taxes.

          Section 6.6. Finders’ Fees. There is no investment banker, broker, finder or other
intermediary that has been retained by, or is authorized to act on behalf of, Exegy or any Exegy
Subsidiary or who might be entitled to any fee or commission upon consummation of the transactions
contemplated by this Agreement.

          Section 6.7. Capitalization.

               (a) The authorized capital stock of Exegy as of the date of this Agreement consists of (i)
26,246,376 shares of which 15,666,672 shares have been designated Common Stock; and 10,579,704
shares have been designated Exegy Preferred Stock, of which 3,333,328 shares have been designated
Series A Preferred Stock and 7,246,376 shares have been designated Series A-2 Preferred Stock. As
of August 22, 2006, (A) 2,000,000 shares of Exegy Common Stock were issued and outstanding, (B)
Stock Options to purchase an aggregate of 1,541,963 shares of Exegy Common Stock were issued and
outstanding (of which options to purchase an aggregate of 205,087 shares of Exegy Common Stock were
exercisable), (C) no shares of Exegy Common Stock were held in its treasury, except as disclosed in
the Exegy Financial Statements, (D) 10,025,690 shares of Exegy Preferred Stock were issued and
outstanding, (E) Stock Options to purchase an aggregate of -0- shares of Exegy Preferred Stock were
issued and outstanding (of which options to purchase an aggregate of -0- shares of Exegy Preferred
Stock were exercisable). All outstanding shares of capital stock of Exegy have been duly
authorized and validly issued and are fully paid and nonassessable. All Stock Options

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outstanding as of the date hereof (including the name of the option holder, the date of grant, the
exercise price and number of shares exercisable under such options) are set forth on Section
6.7 of the Exegy Disclosure Schedule.

               (b) As of the date hereof, except (i) as set forth in this Section 6.7, and (ii) for
changes since December 31, 2005, resulting from the exercise of stock options outstanding on such
date, there are no outstanding (x) shares of capital stock or other voting securities of Exegy, (y)
securities of Exegy convertible into or exchangeable for shares of capital stock or voting
securities of Exegy, or (z) options or other rights to acquire from Exegy, and no obligation of
Exegy to issue, any capital stock, voting securities or securities convertible into or exchangeable
for capital stock or voting securities of Exegy (the items in clauses (x), (y) and (z) being
referred to collectively as the “Exegy Securities”). There are no outstanding obligations of Exegy
or any Exegy Subsidiary to repurchase, redeem or otherwise acquire any Exegy Securities. There are
no outstanding contractual obligations of Exegy to provide funds to, or make any investment (in the
form of a loan, capital contribution or otherwise) in, any other Person. As of the date hereof,
other than as specifically provided in the Articles of Incorporation of Exegy, there are no
stockholder agreements, voting trusts or other agreements or understandings to which Exegy is a
party, or of which Exegy is aware, relating to voting, registration or disposition of any shares of
capital stock of Exegy.

          Section 6.8. Subsidiaries. Section 6.8 of the Exegy Disclosure Schedule sets forth a
true and complete list of all Exegy Subsidiaries.

          Section 6.9. Financial Statements; No Material Undisclosed Liabilities.

               (a) The audited consolidated balance sheets of Exegy as of December 31, 2003, December 31,
2004 and December 31, 2005, together with the related audited consolidated statements of
operations, stockholders’ equity and cash flows for the fiscal years then ended and the notes
thereto (the “Exegy Financial Statements”), fairly present in all material respects, in conformity
with GAAP consistently applied (except as may be indicated in the notes thereto), the financial
position of Exegy as of the dates thereof and its results of operations, stockholders’ equity and
consolidated cash flows for the periods then ended.

               (b) There are no liabilities of Exegy of any kind whatsoever, whether accrued, contingent,
absolute, determined, determinable or otherwise, in each case, that are required by GAAP to be set
forth on a balance sheet of Exegy, other than:

                    (i) liabilities or obligations disclosed or provided for in the Exegy Balance Sheet or
disclosed in the notes thereto or which were fully incurred or paid after December 31, 2005 in the
ordinary course of business;

                    (ii) liabilities or obligations under this Agreement or incurred in connection with the
transactions contemplated hereby; and

                    (iii) other liabilities or obligations that individually or in the aggregate, would not be
reasonably likely to have an Exegy Material Adverse Effect.

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          Section 6.10. Litigation. There are no actions, suits, investigations, arbitrations
or other proceedings pending against, or to the Knowledge of Exegy threatened against, Exegy or any
of its assets or properties before any arbitrator or Governmental Entity that are, individually or
in the aggregate, reasonably likely to (a) have an Exegy Material Adverse Effect, or (b) adversely
effect the ability of Exegy to perform its obligations under this
Agreement or to consummate the transactions contemplated by this Agreement.

          Section 6.11. Taxes.

               (a) All material Tax returns (including information returns), declarations, statements,
reports and forms (collectively, the “Exegy Returns”) required to be filed by or with respect to
Exegy or any Exegy Subsidiary have been duly and timely filed and are correct and complete in all
materials respects.

               (b) Each of Exegy and each Exegy Subsidiary has timely paid all Taxes due and payable (whether
or not shown on any Exegy Return).

               (c) Exegy and each Exegy Subsidiary has made adequate provision for all unpaid Taxes being
current Taxes not yet due and payable.

               (d) There is no action, suit, proceeding, audit or claim now pending or to Exegy’s Knowledge
proposed or threatened against or with respect to Exegy or any Exegy Subsidiary in respect of any
Tax.

               (e) Neither Exegy nor any Exegy Subsidiary has been a member of an affiliated, consolidated,
combined, unitary or similar group (other than one of which Exegy currently is the common parent).

               (f) Neither Exegy nor any Exegy Subsidiary has ever owned any debt or equity interests in any
Person (other than the Exegy Subsidiaries with respect to Exegy).

               (g) None of Exegy or any of the Exegy Subsidiaries (A) is the beneficiary of any extension of
time within which to file an Exegy Return, (B) is the subject of a waiver of any statute of
limitations in respect of Taxes, or (C) is subject to any extension of time with respect to a Tax
assessment or deficiency.

               (h) No written claim has ever been made by an authority in a jurisdiction where any of Exegy
or any Exegy Subsidiary does not file Exegy Returns that any of them is subject to taxation by that
jurisdiction.

               (i) Each of Exegy and the Exegy Subsidiaries has withheld and timely paid all material Taxes
required to have been withheld and paid and has complied, in all material respects, with all
information reporting and backup withholding requirements.

               (j) Neither Exegy nor any Exegy Subsidiary is a party to any Tax indemnity, sharing or
allocation agreement.

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               (k) There are no Liens for Taxes upon any of the assets or property of any of the Exegy
Subsidiaries.

               (l) Exegy has never been a United States real property holding corporation within the meaning
of Section 897(c)(2) of the Code.

               (m) None of Exegy or any of the Exegy Subsidiaries has made any payments, is obligated to make
any payments or is a party to any agreement that could obligate it to make payments that would
result in a nondeductible expense under Section 280G of the Code.

               (n) None of Exegy or any of Exegy Subsidiaries has agreed to or is required to make any
adjustment under Section 481 of the Code.

               (o) None of Exegy or any of the Exegy Subsidiaries is subject to a private ruling from, or
agreement with, a tax authority.

               (p) None of Exegy or any of the Exegy Subsidiaries has any liability for the Taxes of any
other Person, other than under Section 1.1502-6 of the Treasury Regulations (or any similar
provision of state, local or foreign law) with respect to any combined, consolidated, unitary or
similar group of which such company currently is a member, (i) as a transferee or successor, (ii)
by contract or (iii) under Section 1.1502-6 of the Treasury Regulations (or any similar provision
of state, local or foreign law).

               (q) None of Exegy or any of Exegy’s Subsidiaries (A) is a party to any joint venture or
partnership, (B) has been a “distributing corporation” or a “controlled corporation” in a
distribution of stock intended to qualify for tax-free treatment under Section 355 of the Code or
(C) will be required to include any item in taxable income for any taxable period or portion
thereof ending after the Closing Date as a result of any installment sale, prepaid amount,
intercompany transaction or excess loss account.

          Section 6.12. Employee Benefits.

               (a) Section 6.12(a) of the Exegy Disclosure Schedule contains a correct and complete
list identifying each material “employee benefit plan,” as defined in Section 3(3) of ERISA, each
employment, severance or similar contract, plan, arrangement or policy and each other plan or
arrangement (written or oral) providing for compensation, bonuses, profit-sharing, stock option or
other stock related rights or other forms of incentive or deferred compensation, vacation benefits,
insurance coverage (including any self-insured arrangements), health or medical benefits,
disability benefits, workers’ compensation, supplemental unemployment benefits, severance benefits
and post-employment or retirement benefits (including compensation, pension, health, medical or
life insurance benefits) that is maintained, administered or contributed to by Exegy or any of its
ERISA Affiliates and covers any employee or former employee of Exegy or any Exegy Subsidiary.
Copies of such plans (and, if applicable, related trust agreements) and all amendments thereto and
written interpretations thereof have been furnished, or will be made available upon request, to
HyperFeed together with the most recent annual report (Form 5500 including, if applicable, Schedule
B thereto), all summary plan descriptions and material employee communications prepared in
connection with any such plan. Such plans are referred to collectively herein as the “Exegy
Employee Plans.” For purposes of

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this Section 6.12, “ERISA Affiliate” of any Person means any other Person which,
together with such Person, would be treated as a single employer under Section 414 of the Code.

               (b) No Exegy Employee Plan is now or at any time has been subject to Part 3, Subtitle B of
Title I of ERISA or Title IV of ERISA. At no time has Exegy or any of its ERISA Affiliates
contributed to, or been required to contribute to, any Multiemployer Plan, or any Retirement Plan,
and neither Exegy nor any of its ERISA Affiliates has, or ever has had, any liability (contingent
or otherwise) relating to the withdrawal or partial withdrawal from a Multiemployer Plan. To the
Knowledge of Exegy, no condition exists and no event has occurred that would be reasonably likely
to constitute grounds for termination of any Exegy Employee Plan that is a Retirement Plan or, with
respect to any Exegy Employee Plan that is a Multiemployer Plan, presents a material risk of a
complete or partial withdrawal under Title IV of ERISA and neither Exegy nor any of its ERISA
Affiliates has incurred any liability under Title IV of ERISA arising in connection with the
termination of, or complete or partial withdrawal from, any plan covered or previously covered by
Title IV of ERISA that would be reasonably likely to have an Exegy Material Adverse Effect. To the
Knowledge of Exegy, nothing has been done or omitted to be done and no transaction or holding of
any asset under or in connection with any Exegy Employee Plan has occurred that will make Exegy or
any Exegy Subsidiary, or any officer or director of Exegy or any Exegy Subsidiary, subject to any
liability under Title I of ERISA or liable for any tax pursuant to Section 4975 of the Code
(assuming the taxable period of any such transaction expired as of the date hereof) that would be
reasonably likely to have an Exegy Material Adverse Effect.

               (c) Each Exegy Employee Plan that is intended to be qualified under Section 401(a) of the Code
now meets, and at all times since its inception has met, the requirements for such qualification
other than such requirements for which a remedial amendment period has not expired, and each trust
forming a part thereof is now, and at all times since its inception has been, exempt from tax
pursuant to Section 501(a) of the Code. Each such plan has received a favorable determination
letter from or is reasonably permitted to rely on a favorable opinion letter from, the Internal
Revenue Service to the effect that such plan is qualified and its related trust is exempt from
federal income taxes. Exegy has furnished, or will make available upon request, to HyperFeed
copies of the most recent Internal Revenue Service determination letters with respect to each such
Exegy Employee Plan. Each Exegy Employee Plan has been maintained and administered in substantial
compliance with its terms (except that in any case in which any Exegy Employee Plan is currently
required to comply with a provision of ERISA or of the Code, but is not yet to be amended to
reflect such provision, such plan has been maintained and administered in accordance with the
provision) and with the requirements prescribed by any and all statutes, orders, rules and
regulations, including but not limited to ERISA and the Code, which are applicable to such Exegy
Employee Plan. All material reports, returns and similar documents with respect to each Exegy
Employee Plan required to be filed with any governmental agency or distributed to any Exegy
Employee Plan participant have been timely filed and distributed.

               (d) There is no contract, agreement, plan or arrangement that, as a result of the transactions
contemplated by this Agreement, would be reasonably likely to obligate Exegy or any Exegy
Subsidiary to make any payment of any amount that would not be deductible pursuant to the terms of
Section 162(m) or Section 280G of the Code.

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               (e) Except as disclosed in writing to HyperFeed prior to the date hereof, there has been no
amendment to, written interpretation or announcement (whether or not written) relating to, or
change in employee participation or coverage under, any Exegy Employee Plan that would increase
materially the expense of maintaining such Exegy Employee Plan above the level of the expense
incurred in respect thereof for the fiscal year ended December 31, 2005.

               (f) No Exegy Employee Plan promises or provides post-retirement medical, life insurance or
other benefits due now or in the future to current, former or retired employees of Exegy or any
Exegy Subsidiary.

          Section 6.13. Compliance with Laws; Licenses, Permits and Registrations.

               (a) Neither Exegy nor any Exegy Subsidiary is in violation of, nor has Exegy or any Exegy
Subsidiary been notified that it has violated, any applicable provisions of any Laws, statutes,
ordinances, regulations, judgments, injunctions, orders or consent decrees, except for any such
violations that, individually or in the aggregate, are not reasonably likely to have an Exegy
Material Adverse Effect.

               (b) Exegy and each Exegy Subsidiary has all permits, licenses, approvals, authorizations of
and registrations with and under all federal, state, local and foreign laws, and from all
Governmental Entities required by Exegy and/or its Subsidiaries to carry on its business as
currently conducted, except where the failure to have any such permits, licenses, approvals,
authorizations or registrations, individually or in the aggregate, would not be reasonably likely
to have an Exegy Material Adverse Effect.

          Section 6.14. Title to Properties.

               (a) Exegy has good and marketable title to, or valid leasehold interests in, all its
properties and assets reflected in the Exegy Financial Statements as being owned or leased by
Exegy, except for such as are no longer used or useful in the conduct of its business or as have
been disposed of in the ordinary course of business and except for defects in title, easements,
restrictive covenants and similar Liens, encumbrances or impediments that are not reasonably likely
to have an Exegy Material Adverse Effect. All such assets and properties, other than assets and
properties in which Exegy has leasehold interests, are free and clear of all Liens, except for
Liens that are not reasonably likely to have an Exegy Material Adverse Effect.

               (b) Exegy and each Exegy Subsidiary (i) is in substantial compliance with the terms of all
leases to which any of them are, respectively, a party and under which it is in occupancy, and all
such leases are in full force and effect and (ii) enjoys peaceful and undisturbed possession under
all such leases.

          Section 6.15. Intellectual Property.

               (a) Exegy owns or has a valid license to use, free and clear of all liens all material: (i)
Marks; (ii) Patents; (iii) Copyrights; and (iv) Trade Secrets; necessary to (x) carry on the
business of Exegy as currently conducted, and (y) make, have made, use, distribute and sell all
products currently sold by Exegy and all products in development.

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               (b) Exegy has not received any notification or other communication of the existence of any
dispute or disagreement with respect to any agreement to which Exegy is a party, relating to any of
Exegy’s Marks, Patents, Copyrights, or Trade Secrets (collectively, “Exegy Intellectual Property”),
and to the Knowledge of Exegy, there are no such threatened disputes or disagreements.

               (c) All former and current employees of Exegy have executed written contracts with Exegy that
assign to Exegy all rights to any inventions, improvements, discoveries, or information relating to
the business of Exegy. To the Knowledge of Exegy, no employee of Exegy or any Exegy Subsidiary has
entered into any contract that restricts or limits in any way the scope or type of work in which
the employee may be engaged or requires the employee to transfer, assign, or disclose information
concerning his work to anyone other than Exegy.

               (d) All of Exegy’s Patents are currently in compliance with formal legal requirements
(including payment of filing, examination, and maintenance fees and proofs of working or use), are
valid and enforceable, and are not subject to any maintenance fees or taxes or actions except where
the failure to have such ownership or license is not reasonably likely to have an Exegy Material
Adverse Effect.

               (e) Exegy uses reasonable procedures to keep its Trade Secrets confidential, and Exegy’s Trade
Secrets have been disclosed only under written agreements that require the recipient to hold such
Trade Secrets confidential.

               (f) No Patent has been or is now involved in any interference, reissue, reexamination, or
opposition proceeding. Exegy has not received notification of any potentially interfering patent
or patent application of any third party.

               (g) To the Knowledge of Exegy, no Exegy Intellectual Property is infringed or, to the
Knowledge of Exegy, has been challenged or threatened in any way. To the Knowledge of Exegy, none
of the products manufactured and sold or proposed to be sold, nor any process or know-how used, by
Exegy or any HyperFeed Subsidiary infringes or is alleged to infringe any Patent or other
proprietary right of any other Person.

               (h) Other than the software licenses set forth in the Exegy Disclosure Schedule, Exegy is not
required to make any payments to any third parties in connection with third party technology
embedded in the Exegy Intellectual Property.

               (i) All products made, used, or sold under the Exegy Patents have been marked with the proper
patent notice except where the failure to have such ownership or license is not reasonably likely
to have an Exegy Material Adverse Effect.

          Section 6.16. Environmental Matters. With such exceptions as, individually or in the
aggregate, are not reasonably likely to have an Exegy Material Adverse Effect, (i) no written
notice, notification, demand, request for information, summons, complaint or order has been
received by Exegy or any HyperFeed Subsidiary, and no investigation, action, claim, suit,
proceeding or review is pending or to the Knowledge of Exegy, threatened by any Person against,
Exegy or any Exegy Subsidiary with respect to any applicable Environmental Law and 

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(ii) to the Knowledge of Exegy, Exegy and each Exegy Subsidiary is and has been in compliance
with all applicable Environmental Laws.

          Section 6.17. Material Agreements.

               (a) Section 6.17 of the Exegy Disclosure Schedule lists all contracts and agreements
to which, as of the date hereof, Exegy or any Exegy Subsidiary is a party or by which any of them
is bound or under which Exegy or any Exegy Subsidiary has or may acquire any rights, which involve
or relate to (i) obligations of Exegy or any Exegy Subsidiary for borrowed money or other
indebtedness where the amount of such obligations exceeds $50,000 individually, (ii) the lease by
Exegy or any Exegy Subsidiary, as lessee or lessor, of real property for rent of more than $50,000
per annum, (iii) the purchase or sale of goods or services by Exegy or any Exegy Subsidiary with an
aggregate minimum purchase price of more than $50,000 per annum, (iv) rights to manufacture and/or
distribute any product which accounted for more than $50,000 of the consolidated revenues of Exegy
during the fiscal year ended December 31, 2005 or under which Exegy or any Exegy Subsidiary
received or paid license or other fees in excess of $50,000 during any year, (v) the purchase or
sale of assets or properties not in the ordinary course of business having a purchase price in
excess of $50,000, (vi) the right (whether or not currently exercisable) to use, license (including
any “in-license” or “outlicense”), sublicense or otherwise exploit any intellectual property right
or other proprietary asset of Exegy or any Exegy Subsidiary or any other Person which requires the
payment of a license or support fee or royalty in excess of $50,000, (vii) any collaboration or
joint venture or similar arrangement, (viii) the restriction on the right or ability of Exegy or
any Exegy Subsidiary (A) to compete with any other Person, (B) to acquire any product or other
asset or any services from any other Person, (C) to solicit, hire or retain any Person as an
employee, consultant or independent contractor, (D) to develop, sell, supply, distribute, offer,
support or service any product or any technology or other asset to or for any other Person, (E) to
perform services for any other Person, or (F) to transact business or deal in any other manner with
any other Person; (ix) individual capital expenditures or commitments in excess of $50,000; or (x)
powers of attorney. All such contracts and agreements are duly and validly executed by Exegy and
are in full force and effect in all material respects.

               (b) Exegy has not materially violated or breached, or committed any material default under,
any contract or agreement, and, to the Knowledge of Exegy, no other Person has materially violated
or breached, or committed any material default under, any contract or agreement. No event has
occurred which, after notice or the passage of time or both, would constitute a default by Exegy
under any contract or agreement or give any Person the right to (A) declare a default or exercise
any remedy under any contract or agreement, (B) receive or require a rebate, chargeback, penalty or
change in delivery schedule under any contract or agreement, (C) accelerate the maturity or
performance of any contract or agreement, or (D) cancel, terminate or modify any contract or
agreement, in each case which, together with all other events of the types referred to in clauses
(A), (B), (C) and (D) of this sentence has had or may reasonably be expected to have an Exegy
Material Adverse Effect. All such contracts and agreements will continue, after the Closing, to be
binding in all material respects in accordance with their respective terms until their respective
expiration dates.

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          Section 6.18. Employment Agreements. There exists no employment, consulting,
severance or indemnification agreement or other agreement or plan to which Exegy is a party that
would be altered or result in any bonus, golden parachute, severance or other payment or obligation
to any Person, or result in any acceleration of the time of payment or in the provision or vesting
of any benefits, as a result of the execution or performance of this Agreement or the transactions
contemplated hereby.

          Section 6.19. Certain Business Practices. Neither Exegy nor any Exegy Subsidiary, nor
to the Knowledge of Exegy, any director, officer or employee of Exegy or any Exegy Subsidiary has
(i) used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses
relating to political activity, or (ii) made any unlawful payment to foreign or domestic government
officials or employees or to foreign or domestic political parties or campaigns or violated any
provision of the Foreign Corrupt Practices Act of 1977, as amended.

          Section 6.20. Insurance. Exegy has made available to HyperFeed a summary of all
material insurance policies and all material self-insurance programs and arrangements relating to
the business, assets and operations of Exegy. Subject to expirations and renewals of insurance
policies in the ordinary course of business, all of such insurance policies are in full force and
effect. Since December 31, 2003, Exegy has not received any notice or other communication
regarding any actual or possible (i) cancellation or invalidation of any material insurance policy,
(ii) refusal of any coverage or rejection of any material claim under any insurance policy, or
(iii) material adjustment in the amount of the premiums payable with respect to any insurance
policy. There is no pending workers’ compensation or other claim under or based upon any insurance
policy of Exegy other than claims incurred in the ordinary course of business.

ARTICLE VII

COVENANTS

          Section 7.1. HyperFeed Interim Operations. Except as set forth in the HyperFeed
Disclosure Schedule or as otherwise expressly contemplated or permitted hereby, or as required by
any Governmental Entity of competent jurisdiction, without the prior consent of Exegy (which
consent will not be unreasonably withheld or delayed), from the date hereof until the Closing or
the termination of this Agreement, HyperFeed and its Subsidiaries shall conduct their businesses in
all material respects in the ordinary course consistent with past practice and shall use
commercially reasonable efforts to (i) preserve intact their present business organizations, (ii)
maintain in effect all material foreign, federal, state and local licenses, approvals and
authorizations, including, without limitation, all material licenses and permits that are required
for HyperFeed and its Subsidiaries to carry on their business, and (iii) preserve existing
relationships with their material customers, lenders, suppliers and others having material business
relationships with them. Without limiting the generality of the foregoing, except as otherwise
expressly contemplated or permitted by this Agreement, or as required by a Governmental Entity of
competent jurisdiction, from the date hereof until the Closing or the termination of this
Agreement, without the prior consent of Exegy (which consent will not be unreasonably withheld or
delayed), HyperFeed and its Subsidiaries shall not, except to the extent required to comply with
its obligations hereunder or required by law:

-23-

 

               (a) amend or propose to so amend their Certificates of Incorporation, Bylaws or other
governing documents;

               (b) split, combine or reclassify any shares of their capital stock or declare, set aside or
pay any dividend;

               (c) (i) issue, deliver or sell, or authorize the issuance, delivery or sale of, any shares of
their capital stock of any class or any securities convertible into or exercisable for, or any
rights, warrants or options to acquire, any such capital stock or any such convertible securities,
other than their Common Stock upon the exercise of stock options in accordance with their present
terms; or (ii) amend in any respect any term of any of their outstanding security of HyperFeed;

               (d) other than in connection with transactions not prohibited by Section 7.1(e), incur
any capital expenditures or any obligations or liabilities in respect thereof, except for those (i)
contemplated by the capital expenditure budgets for HyperFeed made available to Exegy, (ii)
disclosed in any HyperFeed SEC Document filed prior to the date hereof, or (iii) incurred in the
ordinary course of business of HyperFeed and consistent with past practice;

               (e) except in the ordinary course of business, acquire (whether pursuant to cash merger, stock
or asset purchase or otherwise) in one transaction or a series of related transactions (i) any
assets (including any equity interests) having a fair market value in excess of $100,000, or (ii)
all or substantially all of the equity interests of any Person or any business or division of any
Person having a fair market value in excess of $250,000, but in no event shall the expenditures,
commitments, obligations or liabilities made, incurred or assumed, as the case may be, by HyperFeed
pursuant to Sections 7.1(d) and 7.1(e) exceed $500,000 in the aggregate;

               (f) sell, lease, license, perform services, encumber or otherwise dispose of any assets, other
than (i) sales or licenses of finished goods or the performance of services in the ordinary course
of business consistent with past practice, (ii) equipment and property no longer used in the
operation of HyperFeed’s business and (iii) assets related to discontinued operations of HyperFeed
or any HyperFeed Subsidiary;

               (g) (i) incur any indebtedness for borrowed money or guarantee any such indebtedness, (ii)
issue or sell any debt securities or warrants or rights to acquire any debt securities of
HyperFeed, (iii) make any loans, advances or capital contributions to or investments in, any other
Person, or (iv) guarantee any debt securities or indebtedness of others, except, in each case, in
the ordinary course of business consistent with past practice;

               (h) (i) enter into any agreement or arrangement that limits or otherwise restricts HyperFeed
or any successor thereto or that would, after the Closing, limit or restrict HyperFeed, or any of
its Affiliates, from engaging or competing in any line of business or in any location, or (ii)
enter into, amend, modify or terminate any material contract, agreement or arrangement of HyperFeed
or otherwise waive, release or assign any material rights, claims or benefits of HyperFeed
thereunder; provided, however, that this Section 7.1(h) shall not prevent

-24-

 

HyperFeed from entering into material contracts with customers, suppliers or distributors, so long
as such contracts are entered into in the ordinary course and consistent with HyperFeed’s prior
practice;

               (i) (i) except as required by Law or a written agreement existing on or prior to the date
hereof, or as consistent with past practice and routine raises on anniversary dates, increase the
amount of compensation of any director or executive officer or make any increase in or commitment
to increase any employee benefits, (ii) except as required by Law, a written agreement existing on
or prior to the date hereof, or a HyperFeed severance policy existing as of the date hereof, grant
any severance or termination pay to any director, officer or employee of HyperFeed, (iii) adopt any
additional employee benefit plan or, except in the ordinary course of business consistent with past
practice and containing only normal and customary terms, make any contribution to any existing such
plan, (iv) except as may be required by Law or a written agreement or employee benefit plan
existing on or prior to the date hereof, or as contemplated by this Agreement, enter into, amend in
any respect, or accelerate the vesting under any HyperFeed Employee Plan, employment agreement,
option, license agreement or retirement agreements, or (v) hire any employee with an annual base
salary in excess of $180,000;

               (j) change (i) HyperFeed’s methods of accounting (or Tax accounting) in effect at December 31,
2005 except as required by changes in GAAP, as concurred with by its independent public
accountants, or (ii) HyperFeed’s fiscal year;

               (k) (i) settle, propose to settle or commence, any litigation, investigation, arbitration,
proceeding or other claim that is material to the business of HyperFeed, other than the payment,
discharge or satisfaction, in the ordinary course of business consistent with past practice of
liabilities (x) recognized or disclosed in the HyperFeed Financial Statements (or the notes
thereto) or (y) incurred since the date of such HyperFeed Financial Statements in the ordinary
course of business consistent with past practice, or (ii) make any material Tax election or enter
into any material settlement or compromise of any Tax liability;

               (l) enter into any new material line of business not previously disclosed in any HyperFeed SEC
Document filed prior to the date hereof; or

               (m) agree, resolve or commit to do any of the foregoing.

          Section 7.2. Exegy Interim Operations. Except as set forth in the Exegy Disclosure
Schedule or as otherwise expressly contemplated or permitted hereby, or as required by any
Governmental Entity of competent jurisdiction, without the prior consent of HyperFeed (which
consent will not be unreasonably withheld or delayed), from the date hereof until the Closing or
the termination of this Agreement, Exegy and its Subsidiaries shall conduct their businesses in all
material respects in the ordinary course consistent with past practice and shall use commercially
reasonable efforts to (i) preserve intact their present business organizations, (ii) maintain in
effect all material foreign, federal, state and local licenses, approvals and authorizations,
including, without limitation, all material licenses and permits that are required for Exegy and
its Subsidiaries to carry on their businesses and (iii) preserve existing relationships with their
material customers, lenders, suppliers and others having material business

-25-

 

relationships with them. Without limiting the generality of the foregoing, except as otherwise
expressly contemplated or permitted by this Agreement, or as required by a Governmental Entity of
competent jurisdiction, from the date hereof until the Closing or the termination of this
Agreement, without the prior consent of HyperFeed (which consent will not be unreasonably withheld
or delayed), Exegy and the Exegy Subsidiaries shall not, except to the extent required to comply
with its obligations hereunder or required by law:

               (a) amend or propose to so amend its Certificate of Incorporation, Bylaws or other governing
documents;

               (b) split, combine or reclassify any shares of capital stock of Exegy or declare, set aside or
pay any dividend;

               (c) (i) issue, deliver or sell, or authorize the issuance, delivery or sale of, any shares of
its capital stock of any class or any securities convertible into or exercisable for, or any
rights, warrants or options to acquire, any such capital stock or any such convertible securities,
other than its common stock upon the exercise of stock options in accordance with their present
terms, or (ii) amend in any respect any term of any outstanding security of Exegy;

               (d) other than in connection with transactions not prohibited by Section 7.2(e), incur
any capital expenditures or any obligations or liabilities in respect thereof, except for those (i)
contemplated by the capital expenditure budgets for Exegy made available to PICO, or (ii) incurred
in the ordinary course of business of Exegy and consistent with past practice;

               (e) except in the ordinary course of business, acquire (whether pursuant to cash merger, stock
or asset purchase or otherwise) in one transaction or a series of related transactions (i) any
assets (including any equity interests) having a fair market value in excess of $100,000 or (ii)
all or substantially all of the equity interests of any Person or any business or division of any
Person having a fair market value in excess of $250,000, but in no event shall the expenditures,
commitments, obligations or liabilities made, incurred or assumed, as the case may be, by Exegy
pursuant to Sections 7.2(d) and 7.2(e) exceed $500,000 in the aggregate;

               (f) sell, lease, license, perform services, encumber or otherwise dispose of any assets, other
than (i) sales or licenses of finished goods or the performance of services in the ordinary course
of business consistent with past practice, (ii) equipment and property no longer used in the
operation of Exegy’s business and (iii) assets related to discontinued operations of Exegy or any
Exegy Subsidiary;

               (g) (i) incur any material indebtedness for borrowed money or guarantee any such indebtedness,
(ii) issue or sell any debt securities or warrants or rights to acquire any debt securities of
Exegy, (iii) make any loans, advances or capital contributions to or investments in, any other
Person, or (iv) guarantee any debt securities or indebtedness of others, except, in each case, in
the ordinary course of business consistent with past practice;

               (h) (i) enter into any agreement or arrangement that limits or otherwise restricts Exegy or
any successor thereto or that would, after the Closing, limit or restrict Exegy,

-26-

 

or any of its Affiliates, from engaging or competing in any line of business or in any
location, or (ii) enter into, amend, modify or terminate any material contract, agreement or
arrangement of Exegy or otherwise waive, release or assign any material rights, claims or benefits
of Exegy thereunder; provided, however, that this Section 7.2(h) shall not prevent Exegy
from entering into material contracts with customers, suppliers or distributors, so long as such
contracts are entered into in the ordinary course and consistent with Exegy’s prior practice;

               (i) (i) except as required by Law or a written agreement existing on or prior to the date
hereof, or as consistent with past practice and routine raises on anniversary dates, increase the
amount of compensation of any director or executive officer or make any increase in or commitment
to increase any employee benefits, (ii) except as required by Law, a written agreement existing on
or prior to the date hereof, or an Exegy severance policy existing as of the date hereof, grant any
severance or termination pay to any director, officer or employee of Exegy, (iii) adopt any
additional employee benefit plan or, except in the ordinary course of business consistent with past
practice and containing only normal and customary terms, make any contribution to any existing such
plan, (iv) except as may be required by Law or a written agreement or employee benefit plan
existing on or prior to the date hereof, or as contemplated by this Agreement, enter into, amend in
any respect, or accelerate the vesting under any Exegy Employee Plan, employment agreement, option,
license agreement or retirement agreements, or (v) hire any employee with an annual base salary in
excess of $180,000;

               (j) change (i) Exegy’s methods of accounting (or Tax accounting) in effect at December 31,
2005 except as required by changes in GAAP, as concurred with by its independent public
accountants, or (ii) Exegy’s fiscal year;

               (k) (i) settle, propose to settle or commence, any litigation, investigation, arbitration,
proceeding or other claim that is material to the business of Exegy, other than the payment,
discharge or satisfaction, in the ordinary course of business consistent with past practice of
liabilities (x) recognized or disclosed in the Exegy Financial Statements (or the notes thereto) or
(y) incurred since the date of such Exegy Financial Statements in the ordinary course of business
consistent with past practice, or (ii) make any material Tax election or enter into any material
settlement or compromise of any Tax liability;

               (l) enter into any new material line of business not previously disclosed; or

               (m) agree, resolve or commit to do any of the foregoing.

          Section 7.3. Cooperation in Receipt of Consents.

               (a) The parties hereto shall cooperate with one another in (i) determining whether any other
action by or in respect of, or filing with, any Governmental Entity is required, or any actions,
consents, approvals or waivers are required to be obtained from parties to any material contracts,
in connection with the consummation of the transactions contemplated hereby, (ii) seeking any such
other actions, consents, approvals or waivers or making any such filings, furnishing information
required in connection therewith and seeking promptly to obtain any such actions, consents,
approvals or waivers.

-27-

 

               (b) Each party hereto shall afford the other parties hereto reasonable opportunities to review
any communication given by it to, and consult with each other in advance of any meeting or
conference with, any Governmental Entity or, in connection with any proceeding by a private party,
with any other Person, and to the extent permitted by the applicable Governmental Entity or other
Person, give the other parties the opportunity to attend and participate in such meetings and
conferences, in each case in connection with the transactions contemplated hereby.

          Section 7.4. Public Announcements. The parties hereto shall consult with each other
before issuing any press release or, to the extent practical, otherwise making any public statement
with respect to this Agreement or the transactions contemplated hereby; provided, however, that
nothing in this Section 7.4 shall be deemed to prohibit any party from making any timely disclosure
which its counsel deems necessary or advisable in order to satisfy such party’s disclosure
obligations under applicable Law if such party shall use reasonable efforts to notify the other
parties hereto of the contents of the disclosure prior to such disclosure.

          Section 7.5. Access to Information; Notification of Certain Matters.

               (a) From the date hereof until the Closing or the termination of this Agreement and subject to
applicable Law, Exegy shall (i) afford PICO and its counsel, financial advisors, auditors and other
authorized representatives reasonable access during normal business hours to Exegy’s offices,
properties, books, records, contracts, commitments, officers and employees and all other
information concerning it and its business, properties, assets, condition (financial or otherwise)
or prospects, (ii) consistent with its legal obligations, furnish or make available to PICO and its
counsel, financial advisors, auditors and other authorized representatives such financial and
operating data and other information as such other party may reasonably request and (iii) instruct
its employees, counsel, financial advisors, auditors and other authorized representatives to
cooperate with the reasonable requests of PICO in its investigation. Any investigation pursuant to
this Section 7.5(a) shall be conducted in such manner as not to interfere unreasonably with
the conduct of the business of Exegy. Except as otherwise agreed to in writing by Exegy, unless
and until the Closing, PICO agrees to be bound by, and all information received with respect to
Exegy pursuant to this Section 7.5(a) and otherwise shall be subject to, the terms of that
certain confidentiality agreement entered into by and between Exegy and HyperFeed, dated December
19, 2005 (the “Confidentiality Agreement”), as if PICO had been a party thereto. PICO affirms its
understanding that, in the event that this Agreement is terminated prior to Closing, the terms of
the Confidentiality Agreement will survive such termination and will continue in full force and
effect. No information or Knowledge obtained by PICO in any investigation pursuant to this
Section 7.5(a) shall affect or be deemed to modify any representation or warranty made by
Exegy hereunder.

               (b) From the date hereof until the Closing or the termination of this Agreement and subject to
applicable Law, HyperFeed shall (i) afford Exegy and its counsel, financial advisors, auditors and
other authorized representatives reasonable access during normal business hours to HyperFeed’s
offices, properties, books, records, contracts, commitments, officers and employees and all other
information concerning it and its business, properties, assets, condition (financial or otherwise)
or prospects, (ii) consistent with its legal obligations, furnish or make available to Exegy and
its counsel, financial advisors, auditors and other

-28-

 

authorized representatives such financial and operating data and other information as such other
party may reasonably request and (iii) instruct its employees, counsel, financial advisors,
auditors and other authorized representatives to cooperate with the reasonable requests of Exegy
in its investigation. Any investigation pursuant to this Section 7.5(b) shall be conducted
in such manner as not to interfere unreasonably with the conduct of the business of HyperFeed.
Except as otherwise agreed to in writing by HyperFeed, unless and until the Closing, Exegy will be
bound by, and all information received with respect to HyperFeed pursuant to this Section
7.5(b) and otherwise shall be subject to, the terms of the Confidentiality Agreement. Exegy
affirms its understanding that, in the event that this Agreement is terminated prior to Closing,
the terms of the Confidentiality Agreement will survive such termination and will continue in full
force and effect. No information or Knowledge obtained by Exegy in any investigation pursuant to
this Section 7.5(b) shall affect or be deemed to modify any representation or warranty made
by PICO or HyperFeed hereunder.

               (c) Each party hereto shall give prompt notice to each other party hereto of:

                    (i) the receipt by such party or any of such party’s Subsidiaries of any notice or other
communication from any Person alleging that the consent of such Person is or may be required in
connection with the transactions contemplated by this Agreement;

                    (ii) the receipt by such party or any of such party’s Subsidiaries of any notice or other
communication from any Governmental Entity in connection with any of the transactions contemplated
by this Agreement;

                    (iii) such party’s obtaining Knowledge of any actions, suits, claims, investigations or
proceedings commenced, threatened against, relating to or involving or otherwise affecting such
party, as the case may be, or any Subsidiary of any of them; or

                    (iv) such party’s obtaining Knowledge of the occurrence, or failure to occur, of any event
which occurrence or failure to occur will be likely to cause (A) any representation or warranty
contained in this Agreement to be untrue or inaccurate in any material respect, or (B) any material
failure of any party to comply with or satisfy any covenant, condition or agreement to be complied
with or satisfied by it under this Agreement; provided, however, that no such notification shall
limit or otherwise affect the representations, warranties, obligations or remedies of the parties
to the conditions to the obligations of the parties hereunder.

          Section 7.6. Further Assurances. Subject to the terms and conditions of this
Agreement, each of the parties hereto will use commercially reasonable efforts to take, or cause to
be taken, all action, and to do, or cause to be done, all things, necessary, proper, or advisable
to consummate and make effective the transactions contemplated hereby, including using commercially
reasonable efforts to obtain satisfaction of the conditions precedent to each party’s obligations
hereunder within its reasonable control. No party hereto will, without the prior written consent
of the other parties hereto, take any action which would reasonably be expected to prevent or
materially impede, interfere with or delay the transactions contemplated by this Agreement. From
time to time after the date hereof, each of the parties hereto will, at its own expense, execute
and deliver such documents to the other parties hereto as such other parties

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may reasonably request in order to more effectively consummate the transactions contemplated
hereby including, without limitation, the matters described in Article II and Section 7.11(g).

          Section 7.7. Expenses. Except to the extent specifically provided herein, and
irrespective of whether the transactions contemplated hereby are consummated, (i) all costs and
expenses incurred by Exegy in connection with this Agreement and the transactions contemplated
hereby will be borne by Exegy and either paid or accrued as a liability on Exegy’s balance sheet
before the Closing, (ii) all costs and expenses incurred by HyperFeed in connection with this
Agreement and the transactions contemplated hereby will be borne by HyperFeed and either paid or
accrued as a liability on HyperFeed’s balance sheet before the Closing, and (iii) all costs and
expenses incurred by PICO in connection with this Agreement and the transactions contemplated
hereby will be borne by PICO.

          Section 7.8. Tax Matters.

          The following provisions shall govern the allocation of responsibility as between the parties
hereto for certain Tax matters following the Closing Date:

               (a) Each of the parties hereto shall cooperate, and shall cause its Subsidiaries and
Affiliates to cooperate, as and to the extent reasonably requested in connection with the filing of
HyperFeed Returns and Exegy Returns, and any claim for refund, audit, litigation or other
proceeding with respect to Taxes. Such cooperation shall include the retention and (upon the
request of another party hereto) the provision of records and information which are reasonably
relevant to any such return filing, claim for refund, audit, litigation or other proceeding and
making employees available on a mutually convenient basis to provide additional information and
explanation of any material provided hereunder.

               (b) Exegy shall pay all sales, use, transfer, real property, transfer, recording, documentary,
stamp, registration, stock transfer and other similar taxes and fees, including penalties and
interest arising out of its contribution of the HyperFeed Shares, and shall file all Tax returns
and other necessary documentation with respect thereto.

               (c) Any and all Tax allocation or sharing agreements binding Exegy or any of the Exegy
Subsidiaries or HyperFeed or any HyperFeed Subsidiary, as the case may be, shall be terminated as
of the day before the Closing Date.

          Section 7.9. Employee Compensation and Benefits; Service Recognition. To the extent
service is relevant for purposes of eligibility, participation or vesting (but not the accrual of
benefits other than paid time off under any Exegy Employee Plans), the employees of HyperFeed shall
be credited for their service as of the Effective Time with HyperFeed or any predecessor entity.
Each employee of HyperFeed shall be eligible to participate in the Exegy Plans to the same extent
as a similarly situated employee of Exegy. To the extent permitted under the applicable Plan,
Exegy shall (i) waive any preexisting condition or waiving period limitation that would otherwise
be applicable to an employee of HyperFeed or his or her spouse or dependents, and (ii) give credit
for any deductible or co-payment amounts paid under a HyperFeed Plan by any employee of HyperFeed
(or his or her spouse or dependents) in respect

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of the plan year in which the Closing occurs to the extent that such individuals participate in an
Exegy Employee Plan following the Closing for which deductibles or co-payments are required.

               (a) Except as otherwise specifically set forth in this Agreement nothing contained herein
shall be construed as requiring Exegy, HyperFeed, or any of their Affiliates to continue any
specific benefit plan or to continue the employment of any specific person.

          Section 7.10. Cancellation of HyperFeed Warrants. On or before Closing, PICO shall
surrender to HyperFeed for cancellation all warrants for the purchase of HyperFeed stock held by
PICO and Exegy shall issue to PICO the PICO Warrants.

          Section 7.11. Capital Contributions.

               (a) Immediately following the Closing, PICO will contribute, or cause to be contributed, to
Exegy, capital in exchange for shares of Series A-3 Stock, in an amount such that, if it had
instead been paid to HyperFeed, it would have caused, as of the Closing Date, HyperFeed to have
Minimum Cash, calculated and determined based upon a mutually acceptable methodology (the “Initial
PICO Contribution”).

               (b) Immediately following the Closing, Exegy shall cause to be contributed to Exegy, capital
in exchange for shares of Series A-2 Preferred Stock of Exegy, in an amount sufficient to cause, as
of the Closing Date, Exegy to have Minimum Cash, calculated and determined based upon a mutually
acceptable methodology (the “Initial Exegy Contribution”).

               (c) On or before the date that is the later of (i) six (6) months after the Closing Date or
(ii) completion of the Going-Private Transaction (the “Second Contribution Date”), PICO will
contribute, or cause to be contributed, to Exegy, capital in an amount equal to US $2,000,000 in
exchange for shares of Series A-3 Stock (the “Second PICO Contribution”). For the avoidance of
doubt, it is agreed that the amount of the Second PICO Contribution shall be determined as of the
Closing Date, though PICO shall not be required to make such contribution until the Second
Contribution Date.

               (d) On or before the Second Contribution Date, Exegy shall cause to be contributed to Exegy,
capital in an amount equal to US $2,000,000 in exchange for shares of Series A-2 Preferred Stock of
Exegy (the “Second Exegy Contribution”). For the avoidance of doubt, it is agreed that the amount
of the Second Exegy Contribution shall be determined as of the Closing Date, though Exegy shall not
be required to make such contribution until the Second Contribution Date.

               (e) For purposes of calculating the dollar amounts of the Initial PICO Contribution and the
Initial Exegy Contribution, the term “Minimum Cash” means the greater of: (1) $3 million
unrestricted cash and marketable securities; or (2) the sum of $3 million of unrestricted cash and
marketable securities plus the sum of any excess of Current Liabilities over Current Assets.

-31-

 

               (f) To the extent that any accounts receivable due from MarketXS and not included in the
definition of Current Assets for purposes of calculating Minimum Cash are received by HyperFeed (or
its successor, following consummation of the Going-Private Transaction), then Exegy shall return to
PICO an equivalent amount of any capital contribution made by PICO pursuant to this Section
7.11.

               (g) Notwithstanding the foregoing, Exegy acknowledges and agrees that it is the intention of
the parties that the A-3 Stock held by PICO following the capital contributions contemplated by
this Section 7.11 shall continue, together with shares of Exegy common stock issuable upon
exercise of (i) Employee Options, (ii) PICO Warrants and (iii) Equalization Options, to represent
50% of the total common stock of Exegy on a fully-diluted basis regardless of the source of the
Initial Exegy Contribution or the Second Exegy Contribution.

               (h) Exegy and PICO intend that the transactions contemplated by this agreement be reported as
a Section 351 transaction, and all tax reporting shall be prepared consistent with this intent.

          Section 7.12. Going-Private Transaction. As soon as practicable following the
Closing, Exegy and HyperFeed shall take all reasonable actions necessary to cause HyperFeed to be
merged with and into Exegy in accordance with Section 253 of the Delaware General Corporation Law
and other applicable laws (the “Going-Private Transaction”). Exegy shall cause HyperFeed to
prepare and file with the SEC a new or amended Schedule 13E-3 and Schedule 14C as required by
applicable law so as to effect the Going-Private Transaction. Subject to PICO’s prior approval,
PICO will be directly responsible for paying all costs and expenses associated with the
Going-Private Transaction, including without limitation, the aggregate purchase price for shares of
common stock of HyperFeed not owned by Exegy (the “Buyout Amount”), accounting fees, attorney’s
fees, filing fees, the cost of any fairness opinion, printing costs and litigation costs. For all
purposes under this Agreement, the parties acknowledge and agree that: (a) PICO’s contribution to
Exegy to fund any Buyout Amount will be an additional paid in capital contribution with respect to
its 50% equity interest in Exegy and will not increase such equity interest; and (b) the subsequent
merger of Hyperfeed into Exegy will constitute a Section 332 liquidation.

          Section 7.13. Termination of Merger Agreement. Exegy, HyperFeed and HyperFeed
Acquisition Holdings, Inc. acknowledge and agree that the Merger Agreement is hereby superseded and
terminated without liability of any party thereto and the terms of such Merger Agreement shall be
of no further force or effect as of the date of execution of this Agreement.

          Section 7.14. Investor Rights Agreement. The parties hereto acknowledge and agree
that at Closing, PICO shall be made a party to the Exegy Incorporated Amended and Restated Investor
Rights Agreement dated February 23, 2005 (the “Investor Rights Agrement”), and PICO and Exegy shall
execute and deliver at Closing a mutually acceptable writing confirming such joinder together with
such other appropriate and mutually acceptable changes to the Investor Rights Agreement.

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          Section 7.15. Conversion of HyperFeed Debt. On or before Closing, PICO shall convert
the HyperFeed Debt into shares of HyperFeed common stock in accordance with the current terms of
the instruments evidencing the HyperFeed Debt and the HyperFeed Debt shall be terminated and
cancelled in accordance with its terms.

ARTICLE VIII

CONDITIONS TO CLOSE

          Section 8.1. Conditions to the Obligations of Each Party. The respective obligations
of each of the parties hereto to consummate the transactions contemplated by this Agreement are
subject to the satisfaction or waiver by all such parties pursuant to Section 11.2 hereof on or
prior to the Closing Date of the following conditions:

               (a) Regulatory Approvals. All authorizations, consents, orders or approvals of, or
declarations or filings with, or expirations of waiting periods imposed by, any Governmental Entity
the failure of which to obtain would have a HyperFeed Material Adverse Effect or an Exegy Material
Adverse Effect, shall have been filed, occurred or been obtained; and

               (b) No Injunctions or Restraints; Illegality. No Laws shall have been adopted or
promulgated, and no temporary restraining order, preliminary or permanent injunction or other order
issued by a court or other Governmental Entity of competent jurisdiction shall be in effect, (i)
having the effect of making the transactions contemplated hereby illegal or otherwise prohibiting,
enjoining or restraining consummation of the transactions contemplated hereby or (ii) which
otherwise would reasonably be expected to cause the consummation of the transactions contemplated
by this Agreement to have an Exegy Material Adverse Effect or a HyperFeed Material Adverse Effect.

          Section 8.2. Conditions to the Obligations of Exegy. The obligations of Exegy to
consummate the transactions contemplated by this Agreement are subject to the satisfaction, or
waiver by Exegy pursuant to Section 11.2 hereof, on or prior to the Closing Date, of the following
further conditions:

               (a) Representations and Covenants of PICO. (i) PICO shall have performed in all
material respects all of its obligations hereunder required to be performed by it at or prior to
the Closing; (ii) except for changes contemplated by this Agreement or as a result of the
transactions contemplated hereby, the representations and warranties of PICO in this Agreement that
are qualified as to materiality or PICO Material Adverse Effect shall be accurate, and any such
representations and warranties that are not so qualified shall be accurate, in all material
respects, as of the date of this Agreement and as of the Closing Date (except in each case for
representations and warranties that address matters only as of a specific date, in which case such
representations and warranties qualified as to materiality or PICO Material Adverse Effect shall be
true and correct, and those not so qualified shall be true and correct in all material respects, on
and as of such earlier date); and (iii) Exegy shall have received a certificate signed by the Chief
Executive Officer or Chief Financial Officer of PICO to the foregoing effect.

-33-

 

               (b) Representations and Covenants of HyperFeed. (i) HyperFeed shall have performed in
all material respects all of its obligations hereunder required to be performed by it at or prior
to the Closing; (ii) except for changes contemplated by this Agreement or as a result of the
transactions contemplated hereby, the representations and warranties of HyperFeed in this Agreement
that are qualified as to materiality or HyperFeed Material Adverse Effect shall be accurate, and
any such representations and warranties that are not so qualified shall be accurate, in all
material respects, as of the date of this Agreement and as of the Closing Date (except in each case
for representations and warranties that address matters only as of a specific date, in which case
such representations and warranties qualified as to materiality or HyperFeed Material Adverse
Effect shall be true and correct, and those not so qualified shall be true and correct in all
material respects, on and as of such earlier date); and (iii) Exegy shall have received a
certificate signed by the Chief Executive Officer or Chief Financial Officer of HyperFeed to the
foregoing effect.

               (c) No Material Adverse Effect. There shall have occurred no HyperFeed Material
Adverse Effect from the date hereof through the Closing Date.

               (d) Conversion of Debt. The outstanding debt and obligations of HyperFeed to PICO
listed on Exhibit A (the “HyperFeed Debt”) hereto shall have been converted to HyperFeed
Common Stock in accordance with the current terms of the instruments evidencing the HyperFeed Debt
and the HyperFeed Debt shall have been terminated and cancelled in accordance with its terms.

               (e) Indemnification Agreement. PICO shall have executed and delivered to Exegy an
Indemnification Agreement in substantially the form of Exhibit B hereto (the
“Indemnification Agreement”).

          Section 8.3. Conditions to the Obligations of PICO. The obligations of PICO to
consummate the transactions contemplated by this Agreement are subject to the satisfaction, or
waiver by HyperFeed pursuant to Section 11.2 hereof, on or prior to the Closing Date, of the
following further conditions:

               (a) Representations and Covenants. (i) Exegy shall have performed in all material
respects all of its obligations hereunder required to be performed by it at or prior to the Closing
and (ii) except for changes contemplated by this Agreement or as a result of the transactions
contemplated hereby, the representations and warranties of Exegy in this Agreement that are
qualified as to materiality or Exegy Material Adverse Effect shall be accurate, and any such
representations and warranties that are not so qualified shall be accurate, in all material
respects, as of the date of this Agreement and as of the Closing Date (except for representations
and warranties which address matters only as of a specific date, in which case such representations
and warranties qualified as to materiality or Exegy Material Adverse Effect shall be true and
correct, and those not so qualified shall be true and correct in all material respects, on and as
of such earlier date); and (iii) PICO shall have received a certificate signed by the Chief
Executive Officer or Chief Financial Officer of Exegy to the foregoing effect.

               (b) No Material Adverse Effect. There shall have occurred no Exegy Material Adverse
Effect from the date hereof through the Closing Date.

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               (c) Certificate of Incorporation. Exegy shall have duly filed with the Delaware
Secretary of State, the Third Amended and Restated Certificate of Incorporation in the form
attached hereto as Exhibit C (the “Certificate of Incorporation”).

               (d) Warrants. PICO shall have delivered to PICO the PICO Warrants.

ARTICLE IX

SURVIVAL OF REPRESENTATIONS AND WARRANTIES

          Section 9.1. No Survival of Representations and Warranties. The representations and
warranties of the parties contained in this Agreement will expire on the Closing Date. The
foregoing shall only apply to Article IV, Article V, and Article VI, and shall specifically not
apply, without limitation, to the covenants contained in Article VII or the representations and
warranty of Exegy contained in Section 2.2.

ARTICLE X

TERMINATION

          Section 10.1. Termination. This Agreement may be terminated at any time prior
Closing:

               (a) by mutual written agreement of the parties hereto;

               (b) by either Exegy, on one hand, or PICO, on the other hand, if:

                    (i) the Closing shall not have occurred on or before October 31, 2006 (the “Expiration Date”);
provided, however, that the right to terminate this Agreement under this Section 10.1(b)(i)
shall not be available to any party whose breach of any provision of this Agreement has resulted in
the failure of the Closing to occur on or before the Expiration Date; or

                    (ii) there shall be any Law that makes consummation of the transactions contemplated by this
Agreement illegal or otherwise prohibited or any judgment, injunction, order or decree of any
Governmental Entity having competent jurisdiction enjoining the parties hereto from consummating
the transactions contemplated by this Agreement is entered and such judgment, injunction, judgment
or order shall have become final and nonappealable and, prior to such termination, the parties
shall have used their reasonable best efforts to resist, resolve or lift, as applicable, such law,
regulation, judgment, injunction, order or decree.

               (c) by Exegy, if a breach on the part of PICO of any representation, warranty, covenant or
agreement set forth in this Agreement shall have occurred that would cause the conditions set forth
in Section 8.2(a) not to be satisfied, and such conditions shall be incapable of being
satisfied by the Expiration Date;

               (d) by PICO, if a breach on the part of Exegy of any representation, warranty, covenant or
agreement set forth in this Agreement shall have occurred that would

-35-

 

cause the conditions set forth in Section 8.3(a) not to be satisfied, and such
conditions shall be incapable of being satisfied by the Expiration Date; or

               (e) automatically, if the transactions contemplated herein are enjoined by a court of
competent jurisdiction for a period extending beyond 90 days.

          Section 10.2. Effect of Termination. If this Agreement is terminated pursuant to
Section 10.1, this Agreement shall forthwith become void and there shall be no liability or
obligation on the part of any party hereto, or their respective officers or directors, if
applicable, except with respect to the provisions of Sections 7.7, 11.1, 11.4, 11.5, 11.6, 11.7,
11.9 and 11.10 of this Agreement which provisions shall remain in full force and effect and survive
any termination of this Agreement. The Confidentiality Agreement shall survive termination of this
Agreement.

ARTICLE XI

MISCELLANEOUS

          Section 11.1. Notices. All notices and other communications hereunder shall be in
writing and shall be deemed duly given (a) on the date of delivery if delivered personally, or by
facsimile, upon confirmation of receipt, in each case, if on a Business Day, and otherwise on the
next Business Day, (b) on the fifth Business Day following the date of mailing if delivered by
registered or certified mail, return receipt requested, postage prepaid, or (c) the second Business
Day if delivered by nationally recognized overnight courier. All notices hereunder shall be
delivered as set forth below, or pursuant to such other instructions as may be designated in
writing by the party to receive such notice:

-36-

 

if to Exegy to:

Exegy Incorporated

3668 S. Geyer Road, Suite 300

St. Louis, Missouri 63127

Attention: J. J. Stupp

with a copy to:

Stinson Morris Hecker LLP

100 South Fourth Street, Suite 700

St. Louis, Missouri 63102

Attention: John Finger

if to PICO to:

Pico Holdings, Inc.

875 Prospect Street

La Jolla, CA 92037

Attention: James F. Mosier

with a copy to:

Pepper Hamilton LLP

One Mellon Center

500 Grant Street, 50th Floor

Pittsburgh, PA 15219

Attention: Damian C. Georgino

If to HyperFeed to:

HyperFeed Technologies, Inc.

300 South Wacker Drive, Suite 300

Chicago, Illinois 60606

Attention: Gemma Lahera

          Section 11.2. Amendments; No Waivers.

               (a) Any provision of this Agreement may be amended or waived prior to the Closing if, and only
if, such amendment or waiver is in writing and signed, in the case of an amendment, by each of the
parties hereto or in the case of a waiver, by the party against whom the waiver is to be effective;
except any condition which, if not satisfied, would result in the violation of any Law or
applicable governmental regulation, which violation would have a HyperFeed Material Adverse Effect
or an Exegy Material Adverse Effect.

-37-

 

               (b) No failure or delay by any party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power or privilege. The
rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies
provided by law.

          Section 11.3. Assignment. Neither this Agreement nor any of the rights, interests or
obligations hereunder shall be assigned by any of the parties hereto, in whole or in part (whether
by operation of law or otherwise), without the prior written consent of the other party, and any
attempt to make any such assignment without such consent shall be null and void. Subject to the
preceding sentence, this Agreement will be binding upon, inure to
the benefit of and be
enforceable by the parties and their respective successors and assigns.

          Section 11.4. Governing Law. This Agreement shall be construed in accordance with and
governed by the internal laws of the State of Delaware without regard to any principles of Delaware
conflicts or choice of law.

          Section 11.5. Counterparts; Effectiveness. This Agreement may be executed in one or
more counterparts, all of which shall be considered one and the same agreement and shall become
effective when one or more counterparts have been signed by each of the parties and delivered to
the other party, it being understood that both parties need not sign the same counterpart. This
Agreement shall become effective when each party hereto shall have received counterparts hereof
signed by all of the other parties hereto.

          Section 11.6. No Third Party Beneficiaries. This Agreement shall be binding upon and
inure solely to the benefit of each party hereto and, with the exception of those officers and
directors identified in Section 7.11 of this Agreement, nothing in this Agreement, express or
implied, is intended to or shall confer upon any other Person any right, benefit or remedy of any
nature whatsoever under or by reason of this Agreement.

          Section 11.7. Interpretation. When a reference is made in this Agreement to Sections,
Exhibits or Schedules, such reference shall be to a Section of or Exhibit or Schedule to this
Agreement unless otherwise indicated. The table of contents and headings contained in this
Agreement are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are used
in this Agreement, they shall be deemed to be followed by the words “without limitation.”

          Section 11.8. Enforcement. The parties agree that irreparable damage would occur in
the event that any of the provisions of this Agreement were not performed in accordance with their
specific terms. It is accordingly agreed that the parties shall be entitled to specific
performance of the terms hereof, this being in addition to any other remedy to which they are
entitled at law or in equity.

          Section 11.9. Entire Agreement. This Agreement (together with the PICO Disclosure
Schedule, the HyperFeed Disclosure Schedule, the Exegy Disclosure Schedule, and the Exhibits and
Schedules hereto), and the Confidentiality Agreement constitute the entire agreement between the
parties with respect to the subject matter hereof and supersedes all prior

-38-

 

agreements and understandings, both oral and written, between the parties with respect to the
subject matter hereof.

          Section 11.10. Severability. If any term, provision, covenant or restriction set
forth in this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void
or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth in
this Agreement shall remain in full force and effect and shall in no way be affected, impaired or
invalidated so long as the economic or legal substance of the transactions contemplated hereby is
not deemed by a party (acting reasonably and in good faith) to be materially adverse to that party.
Upon such a determination, the parties shall negotiate in good faith to modify this Agreement so
as to effect the original intent of the parties as closely as possible in order that the
transactions contemplated hereby may be consummated as originally contemplated to the fullest
extent possible.

[Remainder of this page left intentionally blank]

-39-

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	EXEGY INCORPORATED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	PICO HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	HYPERFEED TECHNOLOGIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 
	Solely for purposes of
Section 7.13 hereof:	 	 
	 
	 	 	 	 
	HYPERFEED ACQUISITION
HOLDINGS, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

-40-

 

APPENDIX I

DEFINITIONS

          “Affiliate” means, with respect to any Person, any other Person, directly or indirectly,
controlling, controlled by, or under common control with, such Person. For purposes of this
definition, the term “control” (including the correlative terms “controlling”, “controlled by” and
“under common control with”) means the possession, direct or indirect, of the power to direct or
cause the direction of the management and policies of a Person, whether through the ownership of
voting securities, or partnership or other ownership interests, by contract, or otherwise.

          “Business Day” means any day other than a Saturday, Sunday or one on which banks are
authorized or required by Law to close in the State of Missouri.

          “Closing Balance Sheet” means the consolidated balance sheet of the applicable entity as of
the close of business on August 31, 2006, prepared in accordance with GAAP consistently applied.

          “Code” means the U.S. Internal Revenue Code of 1986, as amended.

          “Copyrights” mean all copyrightable works in both published works and unpublished works
registered and unregistered, including, without limitation, any software.

          “Current Assets” means the current assets set forth on the appropriate entity’s Closing
Balance Sheet; provided, however, that in the case of HyperFeed, Current Assets shall not include
any accounts receivable from MarketXS.

          “Current Liabilities” means the current liabilities set forth on the appropriate entities
Closing Balance Sheet, provided, however, that in the case of HyperFeed, Current Liabilities shall
not include: (x) any principal and interest due under the promissory note identified on Exhibit A
to the Agreement, to the extent such obligations have, prior to the Closing Date, been converted to
equity as contemplated by Section 7.2(c) of the Agreement, (y) unearned revenue, or (z) any amounts
due to Telerate under the Reuters TRS license agreement.

          “Environmental Laws” means any federal, state, local and foreign statutes, laws (including,
without limitation, common law), judicial decisions, regulations, ordinances, rules, judgments,
orders, codes, injunctions, permits or governmental agreements relating to human health and safety,
the environment or to pollutants, contaminants, wastes, or chemicals, hazardous substances,
hazardous materials or hazardous wastes as any of those terms is regulated or defined by
Environmental Laws.

          “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

          “Exegy Balance Sheet” means Exegy’s audited balance sheet dated December 31, 2005.

-41-

 

          “Exegy Common Stock” means the Exegy common stock, par value $.001 per share.

          “Exegy Disclosure Schedule” means the schedule delivered to PICO by Exegy pursuant to
Article VI hereof containing exceptions to the representations and warranties of Exegy set
forth in such Article VI.

          “Exegy Preferred Stock” means, collectively, the Exegy Series A Preferred Stock and Exegy
Series A-2 Preferred Stock.

          “GAAP” means generally accepted U.S. accounting principals, and when applied to HyperFeed, as
interpreted and applied by the SEC.

          “Governmental Entity” means any U.S. federal, state or local governmental authority, any
transgovernmental authority or any court, tribunal, administrative or regulatory agency or
commission or other governmental authority, agency, instrumentality, or other public body, domestic
or foreign.

          “HyperFeed Balance Sheet” means HyperFeed’s audited balance sheet dated December 31, 2005.

          “HyperFeed Common Stock” means the common stock of HyperFeed, par value $.001 per share.

          “HyperFeed Disclosure Schedule” means the Schedule delivered to Exegy by HyperFeed pursuant to
Article V hereof containing exceptions to the representations and warranties of HyperFeed
set forth in such Article V.

          “HyperFeed Preferred Stock” means, collectively, the Series A and Series B, 5% convertible
Preferred Stock, par value $.001 per share of HyperFeed.

          “HyperFeed SEC Documents” means (i) all forms, reports, and documents required to be filed by
HyperFeed with the SEC Under the Securities Act or the Exchange Act filed since December 31, 2003,
and (ii) all other reports, filings, registration statements and other documents filed by HyperFeed
with the SEC under the Exchange Act or the Securities Act filed since December 31, 2003.

          “Knowledge” means, with respect to the matter in question, the actual knowledge, if any of (i)
in the case of Exegy, the executive officers and directors of Exegy, (ii) in the case of HyperFeed,
the executive officers and directors of HyperFeed, and (iii) in the case of PICO, the executive
officers and directors of PICO.

          “Law” means any federal, state, local, municipal, foreign, international, multinational, or
other judicial or administrative order, judgment, decree, constitution, statute, rule, regulation,
treaty, ordinance or principle of common law.

          “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest
or encumbrance of any kind in respect of such asset, other than (i) Liens for

-42-

 

current taxes and assessments not yet due and payable, (ii) inchoate mechanic and
materialmen’s Liens for construction in progress, (iii) workmen’s, repairmen’s, warehousemen’s, and
carrier’s and other similar Liens arising in the ordinary course of business, and (v) other Liens
incurred in the ordinary course of the party’s business.

          “Marks” mean all fictional business names, trading names, registered and unregistered
trademarks, service marks, and applications therefor as well as the goodwill of the business
associated therewith.

          “Material Adverse Effect” means an event, change, or occurrence which, individually or
together with any other event, change, or occurrence, has a material adverse effect on (i) the
financial condition, business, or results of operations of a Person and its Subsidiaries, taken as
a whole, or (ii) the ability of such Person to perform its obligations under this Agreement or to
consummate the transactions contemplated by this Agreement; provided, however, that a Material
Adverse Effect shall not include (a) changes in Laws of general application, or interpretations
thereof by Governmental Entities, (b) changes in or relating to U.S. or global economic or
industrial conditions or U.S. or global financial markets or conditions, (c) changes in U.S. GAAP
or regulatory accounting principles generally applicable to the business of such Person, (d)
actions or omissions of a party hereto (or its Subsidiaries) taken with the prior informed written
consent of the other party hereto in accordance with this Agreement and in contemplation of the
transactions contemplated by this Agreement, and (e) compliance with the provisions of this
Agreement on the operating performance of HyperFeed or Exegy. Exegy Material Adverse Effect” means
a Material Adverse Effect in respect of Exegy, “PICO Material Adverse Effect” means a Material
Adverse Effect in respect of PICO and “HyperFeed Material Adverse Effect” means a Material Adverse
Effect in respect of HyperFeed.

          “Patents” mean all patents, patent applications, and inventions and discoveries that may be
patentable.

          “Person” means an individual, a corporation, a limited liability company, a partnership, an
association, a trust or any other entity or organization, including any Governmental Entity.

          “PICO Disclosure Schedule” means the schedule delivered to Exegy by HyperFeed pursuant to
Article IV hereof containing exceptions to the representations and warranties of HyperFeed set
forth in such Article IV.

          “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

          “Subsidiary” means, with respect to any Person, all those corporations, associations, or other
entities of which such Person owns or controls 50% or more of the outstanding equity or voting
securities either directly or through an unbroken chain of entities as to each of which 50% or more
of the outstanding equity or voting securities is owned directly or indirectly by its parent.
“Exegy Subsidiary” means a Subsidiary of Exegy, and “HyperFeed Subsidiary” means a Subsidiary of
HyperFeed.

-43-

 

          “Tax” or “Taxes” means any federal, state, county, local or foreign taxes (including
withholding, payroll, employment, unemployment and social security taxes), charges, levies,
imposts, duties, other assessments or similar charges of any kind whatsoever, including any
interest, penalties and addition imposed thereon or with respect thereto.

          “Trade Secrets” mean trade secrets (such as customer information, technical and non-technical
data, a formula, pattern, compilation, program, device, method, technique, drawing, process) and
other confidential and proprietary information concerning the products, processes, or services of a
Person, including but not limited to: computer programs; unpatented or unpatentable inventions;
ideas, discoveries or improvements; know-how, procedures, methodologies, machines, lectures,
manuals, reports, illustrations, plans, designs, proposals, programming aids, flow charts,
algorithms, schematics; marketing, manufacturing, or organizational research and development
results and plans, business and strategic plans; sales forecasts and plans; personnel information,
including the identity of employees of such Person, their responsibilities, competence, abilities,
and compensation; pricing and financial information; current and prospective customer lists and
information on customers or their employees; information concerning purchases of major equipment or
property; and information about potential mergers or acquisitions.

          In addition to the definitions set forth above, each of the following terms is defined in the
Section set forth opposite such term:

	 	 	 
	TERMS	 	SECTIONS
	A-3 Stock

	 	Recitals
	Agreement

	 	Preamble
	 
	 	 
	Buyout Amount

	 	7.12
	 
	 	 
	Certificate of Incorporation

	 	8.3(c)
	 
	 	 
	Closing

	 	3.1
	 
	 	 
	Closing Date

	 	3.1
	 
	 	 
	Confidentiality Agreement

	 	7.5(a)
	 
	 	 
	Employee Options

	 	2.3
	 
	 	 
	ERISA

	 	5.7(a)
	 
	 	 
	ERISA Affiliate

	 	5.7(a) and 6.12(a)
	 
	 	 
	Equalization Options

	 	2.4
	 
	 	 
	Exegy

	 	Preamble

-44-

 

	 	 	 
	TERMS	 	SECTIONS
	Exegy Employee Plans

	 	6.12(a)
	 
	 	 
	Exegy Financial Statements

	 	6.9(a)
	 
	 	 
	Exegy Intellectual Property

	 	6.15(b)
	 
	 	 
	Exegy Returns

	 	6.11(a)
	 
	 	 
	Exegy Securities

	 	6.7(b)
	 
	 	 
	Expiration Date

	 	10.1(b)(i)
	 
	 	 
	Going-Private Transaction

	 	7.12
	 
	 	 
	HyperFeed

	 	Preamble
	 
	 	 
	HyperFeed Debt

	 	8.2(d)
	 
	 	 
	HyperFeed Employee Plans

	 	5.7(a)
	 
	 	 
	HyperFeed Financial Statements

	 	5.15(a)
	 
	 	 
	HyperFeed Intellectual Property

	 	5.10(b)
	 
	 	 
	HyperFeed Returns

	 	5.6(a)
	 
	 	 
	HyperFeed Shares

	 	2.1
	 
	 	 
	Indemnification Agreement

	 	8.2(d)
	 
	 	 
	Initial Exegy Contribution

	 	7.11(b)
	 
	 	 
	Initial PICO Contribution

	 	6.11(a)
	 
	 	 
	Investor Rights Agreement

	 	7.14
	 
	 	 
	Merger Agreement

	 	Recitals
	 
	 	 
	Minimum Cash

	 	7.11(e)
	 
	 	 
	Multiemployer Plan

	 	5.7(b)
	 
	 	 
	PICO

	 	Preamble
	 
	 	 
	PICO Warrants

	 	2.4
	 
	 	 

-45-

 

	 	 	 
	TERMS	 	SECTIONS
	Plan

	 	2.3
	Retirement Plan

	 	5.7(b)
	 
	 	 
	Second Contribution Date

	 	7.11(c)
	 
	 	 
	Second Exegy Contribution

	 	7.11(d)
	 
	 	 
	Second PICO Contribution

	 	7.11(c)

-46-

 

Exhibit A

HyperFeed Debt

     Secured Convertible Promissory Note in favor of PICO Holdings, Inc. in the principal amount of
$10,000,000, dated March 30, 2006.

-47-

 

EXHIBIT B

FORM OF INDEMNIFICATION AGREEMENT

[See attached]

-48-

 

INDEMNIFICATION AGREEMENT

          THIS INDEMNIFICATION AGREEMENT (this “Agreement”), is dated as of                     , 2006 by and
between PICO Holdings, Inc., a California corporation (“PICO”), and Exegy Incorporated, a Delaware
corporation (“Exegy”).

WITNESSETH:

          WHEREAS, PICO is the majority stockholder of HyperFeed Technologies, Inc. (“HyperFeed”); and

               WHEREAS, PICO and Exegy have entered into that certain Contribution Agreement dated August ___,
2006 (the “Contribution Agreement”), whereby, subject to the terms and conditions set forth
therein, PICO has agreed to contribute its shares of HyperFeed Common Stock to Exegy and Exegy has
agreed to issue to PICO shares of Exegy’s Series A-3 Preferred Stock (the “Exchange Transaction”);
and

          WHEREAS, the terms of the Contribution Agreement require Exegy to effect a merger of HyperFeed
with and into Exegy as soon as practicable following the consummation of the Exchange Transaction,
thereby triggering a going private transaction governed by Rule 13e-3 under the U.S. Securities
Exchange Act of 1934, as amended (the “Going Private Transaction”); and

          WHEREAS, as a condition to Exegy’s consummation of the Exchange Transaction, PICO has agreed
to indemnify Exegy, its affiliates and their respective directors, officers, employees and
representatives (each an “Indemnified Party” and, collectively, the “Indemnified Parties”) for
certain losses incurred by the Indemnified Parties as more particularly described herein.

          NOW, THEREFORE, in consideration of the foregoing and the mutual premises, covenants and
agreements contained in this Agreement, the parties, intending to be legally bound, hereby agree as
follows:

          1. Indemnification.

               (a) Subject to the limitations contained herein, PICO shall indemnify, defend and hold
harmless the Indemnified Parties against any liability, claims, actions, causes of action,
penalties, fines, damages, judgments, or losses (“Losses”), incurred directly or indirectly by any
Indemnified Party as a result of any third party claim made in connection with the Going Private
Transaction.

               (b) Without reference to the Limitations of Section 2 hereof, PICO shall indemnify, defend and
hold harmless the Indemnified Parties against any Losses incurred directly or indirectly by any
Indemnified Party arising from or related to the Reuters TRS license agreement; except to the
extent that such Losses are caused by the willful misconduct or gross negligence of such
Indemnified Party.

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          2. Limitation of Indemnification.

               (a) The Indemnified Parties shall not be entitled to recover from PICO any Losses unless and
until the amount of such Losses theretofore incurred by the Indemnified Parties exceeds $50,000
(the “Losses Threshold”), and then only for such Losses in excess of the Losses Threshold.

               (b) The maximum aggregate liability obligation of PICO to the Indemnified Parties for Losses
(including liabilities of PICO) pursuant to this Section 2 shall not exceed $200,000 (the “Losses
Cap”).

               (c) Notwithstanding the previous provisions of this Section 2, Losses described in Section
1(b) hereof, shall be excluded for purposes of determining whether the Losses Threshold or Losses
Cap has been reached and shall not be subject to the Losses Cap.

          3. Exclusive Remedy. The parties hereto acknowledge and agree that the sole and
exclusive remedy for any and all claims for Losses relating to the Going Private Transaction will
be indemnification in accordance with this Agreement. In furtherance of the foregoing, the parties
hereto hereby waive, to the fullest extent permitted by applicable law, any and all other rights,
claims, and causes of action (including rights of contribution, if any) that may be based upon,
arise out of, or relate to this Agreement, or the negotiation, execution, or performance of this
Agreement (including any tort or breach of contract claim or cause of action based upon, arising
out of, or related to any representation or warranty made in or in connection with this Agreement
or as an inducement to enter into this Agreement), known or unknown, foreseen or unforeseen, which
exist or may arise in the future, that it may have against the other arising under or based upon
any law (including any such law under or relating to environmental matters), common law, or
otherwise. Notwithstanding the preceding provisions of this Section 3, the parties hereto
acknowledge that the obligation under Section 7.12 of the Contribution Agreement is a funding
obligation and the obligation under this Section 3 is an indemnification obligation, therefore,
this Section 3 does not amend or modify Section 7.12 of the Contribution Agreement.

          4. No Third Party Beneficiaries. Except for the Indemnified Parties and their heirs,
personal representatives, successors and assigns, and as is otherwise expressly provided in this
Agreement, this Agreement is not intended to, and does not, create any rights in or confer any
benefits upon anyone other than the parties hereto.

          5. Entire Agreement; Amendment. This Agreement (together with the Contribution
Agreement) constitutes the entire agreement among the parties and supersedes all prior agreements
and understandings, whether written or oral, with respect to the subject matter hereof. None of
the terms and provisions contained in this Agreement can be changed without a writing signed by all
parties hereto.

          6. No Waiver of Rights. No waiver of any rights of any of the parties under this
Agreement shall be effective unless it is in writing and executed by a duly authorized
representative of the party against whom enforcement of any such waiver is sought. No failure or
delay on the part of any party in the exercise of any power or right under this Agreement shall

-50-

 

operate as a waiver thereof, nor shall any single or partial exercise of any such power or
right. The waiver by any party of a breach of any provision of this Agreement shall not operate or
be construed as a waiver of any other or subsequent breach under this Agreement.

          7. Section and Paragraph Titles. The section and paragraph titles used in this
Agreement are for convenience only and are not intended to define or limit the contents or
substance of any such section or paragraph.

          8. Binding Effect. This Agreement shall be binding upon and inure to the benefit of
each of the parties to this Agreement and their respective heirs, personal representatives,
successors and assigns.

          9. Counterparts. This Agreement may be executed in any number of counterparts, and
each such counterpart shall be deemed to be an original instrument, but all such counterparts
together shall constitute one and the same instrument.

          10. Severability. Any provision of this Agreement that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions of this Agreement or
such provision, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.

          11. Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT SUCH PARTY MAY LEGALLY AND EFFECTIVELY DO SO, TRIAL
BY JURY IN ANY SUIT, ACTION OR PROCEEDING ARISING UNDER THIS AGREEMENT.

          12. Governing Law. This Agreement shall be governed and construed as to its validity,
interpretation and effect by the laws of the State of Delaware without regard to any principles of
conflicts or choice of law.

[Remainder of this page left intentionally blank]

-51-

 

          IN WITNESS WHEREOF, the parties hereto, by their respective offices as duly authorized, have
caused this Indemnification Agreement to be duly executed as of the date first above written.

	 	 	 	 	 	 	 
	 	 	EXEGY INCORPORATED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	PICO HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

-52-

 

Exhibit C

Certificate of Incorporation

[See attached]

-53-

 

Exhibit C

THIRD AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION

OF

EXEGY INCORPORATED

     Exegy Incorporated, a corporation organized and existing under and by virtue of the General
Corporation Law of the State of Delaware (the “Company”)
does hereby certify as of this ___ day of
September, 2006:

     ONE: The date of filing the original Certificate of Incorporation of this company with the
Secretary of State of the State of Delaware (the “Secretary”) was April 1, 2003 (the “Original
Certificate”). The Original Certificate was amended and restated by the Amended and Restated
Certificates of Incorporation filed with the Secretary on June 27, 2003, as amended by the
Certificate of Amendment filed with the Secretary on June 9, 2004 (the “First Amended
Certificate”). The First Amended Certificate was subsequently amended and restated by the Second
Amended and Restated certificate of Incorporation filed with the Secretary on February 23, 2005, as
amended by the Certificate of Amendment filed with the Secretary on January 16, 2006 (the “Second
Amended Certificate”).

     TWO: The Second Amended Certificate is hereby amended and restated to read as follows:

I.

     The name of this company is Exegy Incorporated (the “Company” or the “Corporation”).

II.

     The address of the registered office of this Company in the State of Delaware is 1209
Orange Street, City of Wilmington, County of New Castle, State of Delaware 19801, and the name of
the registered agent of this Corporation in the State of Delaware at such address if The
Corporation Trust Company.

III.

     The purpose of the Company is to engage in any lawful act or activity for which a
corporation may be organized under the Delaware General Corporation Law (“DGCL”).

IV.

     A. The Company is authorized to issue two classes of stock to be designated,
respectively, “Common Stock” and “Preferred Stock.” The total number of shares which the Company
is authorized to issue is                                                              (                    ) shares,
                                                             (                    )
shares of which shall be Common Stock
(the “Common Stock”) and                                                              (                    ) shares of which shall
be

 1 

 

Preferred Stock (the “Preferred Stock”). The Preferred Stock shall have a par value of one
tenth of one cent ($0.001) per share and the Common Stock shall have a par value of one tenth of
one cent ($0.001) per share.

     B. The number of authorized shares of Common Stock may be increased or decreased (but not
below the number of shares of Common Stock then outstanding) by the affirmative vote of the holders
of a majority of the outstanding shares of capital stock of the Company (voting together on an
as-if-converted basis).

     C.                                          (                    ) of the
authorized shares of Preferred
Stock are hereby designated “Series A Preferred Stock”,                                                             
(                    ) of the authorized shares are hereby designated “Series A-2 Preferred Stock”, and
                                         (                    ) of the authorized shares are hereby designated
“Series A-3 Preferred Stock” (together with the Series A Preferred Stock and the Series A-2
Preferred Stock, the “Series Preferred Stock”).

     D. The rights, preferences, privileges, restrictions and other matters relating to the Series
Preferred Stock are as follows:

          1. Dividend Rights.

               (a) The “Original Issue Price” of a share of Series Preferred Stock shall be as determined by
the Company’s Board of Directors (the “Board”) on the date of issuance of each such share of Series
Preferred Stock, and shall be adjusted from time to time, as determined by the Board, solely to
reflect any stock dividends, combinations, splits, recapitalizations and the like affecting such
share of Series Preferred Stock after the filing date hereof.

               (b) The Company shall not pay or declare any dividend, whether in cash or property, or make
any other distribution on the Common Stock or the Series Preferred Stock, or purchase, redeem or
otherwise acquire for value any shares of the Common Stock or the Series Preferred Stock, except
for:

                    (i) acquisitions of Common Stock by the Company pursuant to agreements that permit the Company
to repurchase such shares at cost (or the lesser of cost and fair market value) upon termination of
services to the Company; or

                    (ii) acquisitions of Common Stock or Series Preferred Stock in exercise of the Company’s right
of first refusal to repurchase such shares.

               (c) The provisions of Section 1(b) shall not apply to a dividend payable in Common Stock in
respect of the Common Stock, or any repurchase of any outstanding securities of the Company that is
approved by the Board.

          2. Voting Rights.

               (a) General Rights. Each holder of shares of the Series Preferred Stock shall be entitled to
the number of votes equal to the number of shares of Common Stock

 2 

 

into which such shares of Series Preferred Stock could be converted (pursuant to Section 5
hereof) immediately after the close of business on the record date fixed for such meeting or the
effective date of such written consent and shall have voting rights and powers equal to the voting
rights and powers of the Common Stock and shall be entitled to notice of any stockholders’ meeting
in accordance with the Bylaws of the Company. Except as otherwise provided herein or as required
by law, the Series Preferred Stock shall vote together with the Common Stock at any annual or
special meeting of the stockholders and not as a separate class, and may act by written consent in
the same manner as the Common Stock.

               (b) Election of Board of Directors.

                    (i) The Board shall consist of four (4) directors.

                    (ii) The holders of Common Stock, Series A Preferred Stock and Series A-2 Preferred Stock,
voting together as a single class on an as-converted basis, shall be entitled to elect two (2)
members of the Board at each meeting or pursuant to each consent of the Company’s stockholders for
the election of directors, and to remove from office such directors and to fill any vacancy caused
by the resignation, death or removal of such directors;

                    (iii) for so long as at least one million (1,000,000) shares of Series A-3 Preferred Stock
remain outstanding (subject to adjustment for any stock split, reverse stock split or similar event
affecting the Series A-3 Preferred Stock after the filing date hereof) the holders of the Series
A-3 Preferred Stock, voting together as a single class on an as-converted basis, shall be entitled
to elect two (2) members of the Board at each meeting or pursuant to each consent of the Company’s
stockholders for the election of directors, and to remove from office such directors and to fill
any vacancy caused by the resignation, death or removal of such directors; and

                    (iv) the holders of Common Stock and Series Preferred Stock, voting together as a single class
on an as-if-converted basis, shall be entitled to elect all remaining members of the Board at each
meeting or pursuant to each consent of the Company’s stockholders for the election of directors,
and to remove from office such directors and to fill any vacancy caused by the resignation, death
or removal of such directors.

               (c) Series A-3 Preferred Stock Protective Provisions. The Company shall not, either directly
or indirectly by amendment, merger, consolidation or otherwise, do any of the following without (in
addition to any other vote required by law or the Certificate of Incorporation) the written consent
or affirmative vote of the holders of at least a majority of the then outstanding shares of Series
A-3 Preferred Stock, given in writing or by vote at a meeting, consenting or voting (as the case
may be) separately as a class:

                    (i) at any time prior to the Third Anniversary Date (as defined in Section 5(i), issue any
shares of capital stock of the Company or take any other action that would dilute the ownership
interest of the holders of the Series A-3 Preferred Stock below 50% of the outstanding stock on an
as-converted basis;

                    (ii) increase or decrease the authorized number of directors constituting the Board of
Directors set forth herein; or

 3 

 

                    (iii) take any action which would result in the taxation of holder of Series A-3 Preferred
Stock under Section 305 of the Internal Revenue Code of 1986, as amended.

          3. Liquidation Rights.

               (a) Upon any liquidation, dissolution or winding up of the Company, whether voluntary or
involuntary (a “Liquidation Event”), before any distribution or payment shall be made to the
holders of any Common Stock, the holders of Series Preferred Stock shall be entitled to be paid out
of the assets of the Company legally available for distribution, or the consideration received in
such transaction, for each share of Series Preferred Stock held by them, an amount per such share
of Series Preferred Stock equal to the applicable Original Issue Price (as adjusted for any stock
dividends, combinations, splits, recapitalizations and the like with respect to such shares after
the filing date hereof). If, upon any such liquidation, dissolution, or winding up, the assets of
the Company (or the consideration received in such transaction) shall be insufficient to make
payment in full to all holders of Series Preferred Stock of the liquidation preference set forth in
this Section 3(a), then such assets (or consideration) shall be distributed among the holders of
Series Preferred Stock at the time outstanding, ratably in proportion to the full amounts to which
they would otherwise be respectively entitled.

               (b) After the payment of the full liquidation preference of the Series Preferred Stock as set
forth in Section 3(a) above, the remaining assets of the Company legally available for distribution
(or the consideration received in such transaction), if any, shall be distributed ratably to all
holders of the Company’s Common Stock, and the holders of Series Preferred Stock, for the purpose
of this Section 3(b), shall be treated as if their shares of Series Preferred Stock had been
converted into shares of Common Stock in accordance with Section 3(c).

               (c) Notwithstanding paragraph (a), solely for purposes of determining the amount each holder
of shares of Series Preferred Stock is entitled to receive with respect to a Liquidation Event,
each series of Series Preferred Stock shall be treated as if all holders of such series had
converted such holders’ shares of such series into shares of Common Stock immediately prior to the
Liquidation Event if, as a result of an actual conversion of such series of Series Preferred Stock
(including taking into account the operation of this paragraph (c) with respect to all series of
Series Preferred Stock), holders of such series would receive (with respect to such series), in the
aggregate, an amount greater than the amount that would be distributed to holders of such series if
such holders had not converted such series of Series Preferred Stock into shares of Common Stock.
If holders of any series are treated as if they had converted shares of Series Preferred Stock into
Common Stock pursuant to this paragraph, then such holders shall not be entitled to receive any
distribution pursuant to Section 3(a) that would otherwise be made to holders of such series of
Series Preferred Stock.

          4. Asset Transfer or Acquisition Rights.

               (a) In the event that the Company is a party to an Acquisition or Asset Transfer (as
hereinafter defined), then each holder of Series Preferred Stock shall be entitled to receive, for
each share of Series Preferred Stock then held, out of the proceeds of such Acquisition or Asset
Transfer, greater of the amount of cash, securities or other property to

 4 

 

which such holder would be entitled to receive in a Liquidation Event pursuant to Sections
3(a) or 3(c) above.

               (b) For the purposes of this Section 4: (i) “Acquisition” shall mean (A) any consolidation or
merger of the Company with or into any other corporation or other entity or person, or any other
corporate reorganization, other than any such consolidation, merger or reorganization in which the
stockholders of the Company immediately prior to such consolidation, merger or reorganization,
continue to hold at least fifty percent (50%) of the voting power of the surviving entity (or if
the surviving entity is a wholly-owned subsidiary, its parent) immediately after such
consolidation, merger or reorganization; or (B) any transaction or series of related transactions
to which the Company is a party in which in excess of fifty percent (50%) of the Company’s voting
power is transferred; provided that an Acquisition shall not include (x) any consolidation or
merger effected exclusively to change the domicile of the Company, or (y) any transaction or series
of transactions principally for bona fide equity financing purposes in which cash is received by
the Company or any successor or indebtedness of the Company is cancelled or converted or a
combination thereof; and (ii) “Asset Transfer” shall mean a sale, lease or other disposition of all
or substantially all of the assets of the Company.

               (c) In any Acquisition or Asset Transfer, if the consideration to be received is securities of
a corporation or other property other than cash, its value will be deemed its fair market value as
determined in good faith by the Board on the date such determination is made.

          5. Conversion Rights.

               The holders of the Series Preferred Stock shall have the following rights with respect to the
conversion of the Series Preferred Stock into shares of Common Stock (the “Conversion Rights”):

               (a) Optional Conversion. Subject to and in compliance with the provisions of this Section 5,
any shares of Series Preferred Stock may, at the option of the holder, be converted at any time
into fully-paid and nonassessable shares of Common Stock. The number of shares of Common Stock to
which a holder of Series Preferred Stock shall be entitled upon conversion shall be the product
obtained by multiplying the applicable “Series Preferred Stock Conversion Rate” then in effect
(determined as provided in Section 5(b) by the number of shares of the corresponding series of
Series Preferred Stock being converted.

               (b) Series Preferred Stock Conversion Rate. The conversion rate in effect at any time for
conversion of each series of Series Preferred Stock (the “Series Preferred Stock Conversion Rate”)
shall be the quotient obtained by dividing the Original Issue Price of such series of Series
Preferred Stock by the “Series Preferred Stock Conversion Price” of such series of Series Preferred
Stock, calculated as provided in Section 5(c).

               (c) Series Preferred Stock Conversion Price. The conversion price for each series of Series
Preferred Stock shall initially be the Original Issue Price of such series of Series Preferred
Stock (the “Series Preferred Stock Conversion Price”). Such initial Series Preferred Stock
Conversion Price shall be adjusted from time to time in accordance with this

 5 

 

Section 5. All references to the Series Preferred Stock Conversion Price herein shall mean
the Series Preferred Stock Conversion Price as so adjusted.

               (d) Mechanics of Conversion. Each holder of Series Preferred Stock who desires to convert the
same into shares of Common Stock pursuant to this Section 5 shall surrender the certificate or
certificates therefor, duly endorsed, at the office of the Company or any transfer agent for the
Series Preferred Stock, and shall give written notice to the Company at such office that such
holder elects to convert the same. Such notice shall state the number of shares of Series
Preferred Stock being converted. Thereupon, the Company shall promptly issue and deliver at such
office to such holder a certificate or certificates for the number of shares of Common Stock to
which such holder is entitled and shall promptly pay in cash (at the Common Stock’s fair market
value determined by the Board as of the date of conversion) the value of any fractional share of
Common Stock otherwise issuable to any holder of Series Preferred Stock. Except as set forth in
Section 5(k), such conversion shall be deemed to have been made at the close of business on the
date of such surrender of the certificates representing the shares of Series Preferred Stock to be
converted, and the person entitled to receive the shares of Common Stock issuable upon such
conversion shall be treated for all purposes as the record holder of such shares of Common Stock on
such date.

               (e) Adjustment for Stock Splits and Combinations. If at any time or from time to time after
the date that the first share of Series A-2 Preferred Stock is issued (the “A-2 Issuance Date”) the
Company effects a subdivision of the outstanding Common Stock without a corresponding subdivision
of the Series Preferred Stock, each Series Preferred Stock Conversion Price in effect immediately
before that subdivision shall be proportionately decreased. Conversely, if at any time or from
time to time after the A-2 Issuance Date the Company combines the outstanding shares of Common
Stock into a smaller number of shares without a corresponding combination of the Series Preferred
Stock, each Series Preferred Stock Conversion Price in effect immediately before the combination
shall be proportionately increased. Any adjustment under this Section 5(e) shall become effective
at the close of business on the date the subdivision or combination becomes effective.

               (f) Adjustment for Common Stock Dividends and Distributions. If at any time or from time to
time after the A-2 Issuance Date the Company pays to holders of Common Stock a dividend or other
distribution in additional shares of Common Stock without a corresponding dividend or other
distribution to holders of Series Preferred Stock, each Series Preferred Stock Conversion Price
that is then in effect shall be decreased as of the time of such issuance, as provided below:

                    (i) The Series Preferred Stock Conversion Price shall be adjusted by multiplying the Series
Preferred Stock Conversion Price then in effect by a fraction equal to:

                         (A) the numerator of which is the total number of shares of Common Stock issued and
outstanding immediately prior to the time of such issuance; and

                         (B) the denominator of which is the total number of shares of Common Stock issued
and outstanding immediately prior to the time of such issuance

 6 

 

plus the number of shares of Common Stock issuable in payment of such dividend or
distribution;

                    (ii) If the Company fixes a record date to determine which holders of Common Stock are
entitled to receive such dividend or other distribution, the Series Preferred Stock Conversion
Price shall be fixed as of the close of business on such record date and the number of shares of
Common Stock shall be calculated immediately prior to the close of business on such record date;
and

                    (iii) If such record date is fixed and such dividend is not fully paid or if such distribution
is not fully made on the date fixed therefor, the Series Preferred Stock Conversion Price shall be
recomputed accordingly as of the close of business on such record date and thereafter the Series
Preferred Stock Conversion Price shall be adjusted pursuant to this Section 5(f) to reflect the
actual payment of such dividend or distribution.

               (g) Adjustment for Reclassification, Exchange, Substitution, Reorganization, Merger or
Consolidation. If at any time or from time to time after the A-2 Issuance Date, the Common Stock
issuable upon the conversion of the Series Preferred Stock is changed into the same or a different
number of shares of any class or classes of stock, whether by recapitalization, reclassification,
merger, consolidation or otherwise (other than an Acquisition or Asset Transfer as defined in
Section 4, a subdivision or combination of shares or stock dividend provided for elsewhere in this
Section 5 or an adjustment upon achievement of the Performance Targets provided for in Section
5(i)), in any such event each holder of Series Preferred Stock shall then have the right to convert
such stock into the kind and amount of stock and other securities and property receivable upon such
recapitalization, reclassification, merger, consolidation or other change by holders of the maximum
number of shares of Common Stock into which such shares of Series Preferred Stock could have been
converted immediately prior to such recapitalization, reclassification, merger, consolidation or
change, all subject to further adjustment as provided herein or with respect to such other
securities or property by the terms thereof. In any such case, appropriate adjustment shall be
made in the application of the provisions of this Section 5 with respect to the rights of the
holders of Series Preferred Stock after the capital reorganization to the end that the provisions
of this Section 5 (including adjustment of the Series Preferred Stock Conversion Price then in
effect and the number of shares issuable upon conversion of the Series Preferred Stock) shall be
applicable after that event and be as nearly equivalent as practicable.

               (h) Sale of Shares Below Series A-2 or A-3 Preferred Stock Conversion Price.

                    (i) If at any time or from time to time on or after the A-2 Issuance Date the Company issues
or sells, or is deemed by the express provisions of this Section 5(h) to have issued or sold,
Additional Shares of Common Stock (as defined below), other than as provided in Section 5(e), 5(f)
or 5(g) above, for an Effective Price (as defined below) less than the then effective Series
Preferred Stock Conversion Price of either Series A-2 Preferred Stock or Series A-3 Preferred Stock
(a “Qualifying Dilutive Issuance”), then, in each such case where the existing Series A-2 Preferred
Stock Conversion Price or Series A-3 Preferred Stock Conversion Price is greater than the Effective
Price, the then existing Series A-2 Preferred Stock Conversion Price and/or Series A-3 Preferred
Stock Conversion Price, as

 7 

 

applicable, shall be reduced, as of the opening of business on the date of such issue or sale,
to a price determined by multiplying the Series A-2 Preferred Stock Conversion Price or Series A-3
Preferred Stock Conversion Price, as applicable, in effect immediately prior to such issuance or
sale by a fraction equal to:

                         (A) the numerator of which shall be (A) the number of shares of Common Stock deemed
outstanding (as determined below) immediately prior to such issue or sale, plus (B) the number of
shares of Common Stock which the Aggregate Consideration (as defined below) received or deemed
received by the Company for the total number of Additional Shares of Common Stock so issued would
purchase at such then-existing Series A-2 Preferred Stock Conversion Price or Series A-3 Preferred
Stock Conversion Price, as applicable, and

                         (B) the denominator of which shall be the number of shares of Common Stock deemed
outstanding (as determined below) immediately prior to such issue or sale plus the total number of
Additional Shares of Common Stock so issued.

     For purposes of the preceding sentence, the number of shares of Common Stock deemed to be
outstanding as of a given date shall be the sum of (A) the number of shares of Common Stock
outstanding, (B) the number of shares of Common Stock into which the then outstanding shares of
Series Preferred Stock could be converted if fully converted on the day immediately preceding the
given date, and (C) the number of shares of Common Stock which are issuable upon the exercise or
conversion of all other rights, options and convertible securities outstanding on the day
immediately preceding the given date.

                    (ii) No adjustment shall be made to the Series A-2 Preferred Stock Conversion Price or Series
A-3 Preferred Stock Conversion Price in an amount less than one cent per share. Any adjustment
required by this Section 5(h) shall be rounded to the nearest one cent ($0.01) per share. Any
adjustment otherwise required by this Section 5(h) that is not required to be made due to the
preceding two sentences shall be included in any subsequent adjustment to the Series A-2 Preferred
Stock Conversion Price and/or Series A-3 Preferred Stock Conversion Price.

                    (iii) For the purpose of making any adjustment required under this Section 5(h), the aggregate
consideration received by the Company for any issue or sale of securities (the “Aggregate
Consideration”) shall be defined as: (A) to the extent it consists of cash, be computed at the
gross amount of cash received by the Company before deduction of any underwriting or similar
commissions, compensation or concessions paid or allowed by the Company in connection with such
issue or sale and without deduction of any expenses payable by the Company, (B) to the extent it
consists of property other than cash, be computed at the fair value of that property as determined
in good faith by the Board, and (C) if Additional Shares of Common Stock, Convertible Securities
(as defined below) or rights or options to purchase either Additional Shares of Common Stock or
Convertible Securities are issued or sold together with other stock or securities or other assets
of the Company for a consideration which covers both, be computed as the portion of the
consideration so received that may be reasonable determined in good faith by the Board to be
allocable to such Additional Shares of Common Stock, Convertible Securities or rights or options.

 8 

 

                    (iv) For the purpose of the adjustment required under this Section 5(h), if the Company issues
or sells (x) Preferred Stock or other stock, options, warrants, purchase rights or other securities
convertible into, Additional Shares of Common Stock (such convertible stock or securities being
herein referred to as “Convertible Securities”) or (y) rights or options for the purchase of
Additional Shares of Common Stock or Convertible Securities and if the Effective Price of such
Additional Shares of Common Stock is less than the Series A-2 Preferred Stock Conversion Price, in
each case the Company shall be deemed to have issued at the time of the issuance of such rights or
options or Convertible Securities the maximum number of Additional Shares of Common Stock issuable
upon exercise or conversion thereof and to have received as consideration for the issuance of such
shares an amount equal to the total amount of the consideration, if any, received by the Company
for the issuance of such rights or options or Convertible Securities plus:

                         (A) in the case of such rights or options, the minimum amounts of consideration, if
any, payable to the Company upon the exercise of such rights or options; and

                         (B) in the case of Convertible Securities, the minimum amounts of consideration, if
any, payable to the Company upon the conversion thereof (other than by cancellation of liabilities
or obligations evidenced by such Convertible Securities); provided that if the minimum amounts of
such consideration cannot be ascertained, but are a function of antidilution or similar protective
clauses, the Company shall be deemed to have received the minimum amounts of consideration without
reference to such clauses.

                         (C) If the minimum amount of consideration payable to the Company upon the exercise
or conversion of rights, options or Convertible Securities is reduced over time or on the
occurrence or non-occurrence of specified events other than by reason of antidilution adjustments,
the Effective Price shall be recalculated using the figure to which such minimum amount of
consideration is reduced, provided further, that if the minimum amount of consideration payable to
the Company upon the exercise or conversion of such rights, options or Convertible Securities is
subsequently increased, the Effective Price shall be again recalculated using the increased minimum
amount of consideration payable to the Company upon the exercise or conversion of such rights,
options or Convertible Securities.

                         (D) No adjustment of the Series A-2 Preferred Stock Conversion Price or Series A-3
Preferred Stock Conversion Price, as adjusted upon the issuance of such rights, options or
Convertible Securities, shall be made as a result of the actual issuance of Additional Shares of
Common Stock or the exercise of any such rights or options or the conversion of any such
Convertible Securities. If any such rights or options or the conversion privilege represented by
any such Convertible Securities shall expire without having been exercised, the Series A-2
Preferred Stock Conversion Price and/or Series A-3 Preferred Stock Conversion Price as adjusted
upon the issuance of such rights, options or Convertible Securities shall be readjusted to the
Series A-2 Preferred Stock Conversion Price or Series A-3 Preferred Stock Conversion Price, as
applicable, which would have been in effect had an adjustment been made on the basis that the only
Additional Shares of Common Stock so issued were the Additional Shares of Common Stock, if any,
actually issued or sold on the exercise of such rights or options or rights of conversion of such
Convertible Securities, and such Additional Shares of Common Stock, if any, were issued or sold for
the consideration actually received by the

 9 

 

Company upon such exercise, plus the consideration, if any, actually received by the Company
for the granting of all such rights or options, whether or not exercised, plus the consideration
received for issuing or selling the Convertible Securities actually converted, plus the
consideration, if any, actually received by the Company (other than by cancellation of liabilities
or obligations evidenced by such Convertible Securities) on the conversion of such Convertible
Securities, provided that such readjustment shall not apply to prior conversions of Series
Preferred Stock.

                    (v) For the purpose of making any adjustment to the Conversion Price of the Series A-2
Preferred Stock or Series A-3 Preferred Stock required under this Section 5(h), “Additional Shares
of Common Stock” shall mean all shares of Common Stock issued by the Company or deemed to be issued
pursuant to this Section 5(h) (including shares of Common Stock subsequently reacquired or retired
by the Company), other than:

                         (A) shares of Common Stock issued upon conversion of the Series Preferred Stock;

                         (B) shares of Common Stock or Convertible Securities issued after the A-2 Issuance
Date to employees, officers or directors of, or consultants or advisors to the Company or any
subsidiary pursuant to stock purchase or stock option plans or other arrangements that are approved
by the Board;

                         (C) shares of Common Stock issued pursuant to the exercise of Convertible Securities
outstanding as of the A-2 Issuance Date;

                         (D) shares of Common Stock or Convertible Securities issued for consideration other
than cash pursuant to a merger, consolidation, strategic alliance, acquisition or similar business
combination approved by the Board;

                         (E) shares of Common Stock or Convertible Securities issued pursuant to any
equipment loan or leasing arrangement, real property leasing arrangement or debt financing from a
bank or similar financial or lending institution approved by the Board;

                         (F) shares of Common Stock or Convertible Securities issued to third-party service
providers in exchange for or as partial consideration for services rendered to the Company;
provided that the issuance of shares therein has been approved by the Board;

                         (G) any Common Stock or Convertible Securities issued in connection with strategic
transactions involving the Company and other entities, including, without limitation (i) joint
ventures, manufacturing, marketing or distribution arrangements or (ii) technology transfer or
development arrangements, provided that the issuance of shares therein has been approved by the
Board.

          References to Common Stock in the subsections of this clause (v) above shall mean all shares
of Common Stock issued by the Company or deemed to be issued pursuant to this Section 5(h). The
“Effective Price” of Additional Shares of Common Stock shall mean the quotient determined by
dividing the total number of Additional Shares of Common Stock issued

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or sold, or deemed to have been issued or sold by the Company under this Section 5(h), into
the Aggregate Consideration received, or deemed to have been received by the Company for such issue
under this Section 5(h), for such Additional Shares of Common Stock. In the event that the number
of shares of Additional Shares of Common Stock or the Effective Price cannot be ascertained at the
time of issuance, such Additional Shares of Common Stock shall be deemed issued immediately upon
the occurrence of the first event that makes such number of shares or the Effective Price, as
applicable, ascertainable.

                    (vi) In the event that the Company issues or sells, or is deemed to have issued or sold,
Additional shares of Common Stock in a Qualifying Dilutive Issuance (the “First Dilutive
Issuance”), then in the event that the Company issues or sells, or is deemed to have issued or
sold, Additional Shares of Common Stock in a Qualifying Dilutive Issuance other than the First
Dilutive issuance as a part of the same transaction or series of related transactions as the First
Dilutive Issuance (a “Subsequent Dilutive Issuance”), then and in each such case upon a Subsequent
Dilutive Issuance the Series A-2 Preferred Stock Conversion Price and/or Series A-3 Preferred Stock
Conversion Price, as applicable, shall be reduced to the Series Preferred Stock Conversion Price
that would have been in effect with respect thereto had the First Dilutive Issuance and each
Subsequent Dilutive Issuance all occurred on the closing date of the First Dilutive Issuance.

               (i) Special Rules Applicable to Conversion of A-3 Preferred Stock.

          Notwithstanding the provisions of Section 5(a) above, the holders of Series A-3 Preferred
Stock shall have no optional right to convert their shares of Series A-3 Preferred Stock into
Common Stock until after the third anniversary (the “Third Anniversary Date”) of the date on which
the Company first issues shares of Series A-3 Preferred Stock (the “A-3 Issuance Date”).
Furthermore, the Series Preferred Stock Conversion Price applicable to such Series A-3 Preferred
Stock shall be subject to adjustment as follows:

                    (i) If, on the Third Anniversary Date, the Performance Targets have been achieved, then the
Series Preferred Stock Conversion Price applicable to Series A-3 Preferred Stock will be adjusted
upward to cause the number of shares of Common Stock issuable upon conversion of such shares of
Series A-3 Preferred Stock to equal 33-1/3% of the total shares of Common Stock outstanding
immediately following the A-3 Issuance Date.

                    (ii) For purposes of this Section 5(i), the following terms shall have the following meanings:

                         (A) “Consolidated Company Revenues” means the consolidated revenues of the Company
and all of its Subsidiaries for the time period in question before deducting any expenses,
determined in accordance with GAAP, consistently applied.

                         (B) “Financial Firm Revenues” means Consolidated Company Revenues derived only from
the selling, maintenance and support of the following financial products to financial firms:

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                              (1) Trade Execution products, including but not limited to: Master Cache, Journal/Logging,
Encode/Decode (e.g. Fix-fast), Virtual Order Book, Intelligent Order Routing, Algorithmic Trading
Platform, Matching Engine; plus

                              (2) Real Time Analytics products, including but not limited to: Master Cache, Alert
Engine, Calculation Engine, Value-at-Risk Engine; and

                              (3) History & Compliance products including but not limited to: Master Cache, Virtual Order
Book, Compliance Appliance, Eavesdropper News, Journal/Logging, Time Series History, Intelligent
News Interpretation.

               In addition, Financial Firm Revenues shall include any revenues generated by the Company or
its Subsidiaries from the sale and/or licensing of products that aid financial firms in doing
business to support the above functions. Financial firms shall include exchanges, financial
institutions, banks, brokers/dealers, trading firms, hedge funds, application providers (including
OMS vendors and financial websites) and all other companies that engage in the business of
providing financial services. Financial Firm Revenues shall not include revenues generated from
the sale and/or licensing of other products to a financial firm (e.g., email search products).

                    (C) “GAAP” means generally accepted U.S. accounting principals, consistently
applied.

                    (D) “Performance Targets” means:

                         (1) For the twelve (12) months immediately preceding the Third Anniversary Date (the
“Performance Period”), Consolidated Company Revenues equal or exceed Fifty Million Dollars
($50,000,000), and

                         (2) For the Performance Period, Financial Firm Revenues are less than 33.33% of Consolidated
Company Revenues.

                    (E) “Subsidiary” means, with respect to any person or entity, all those
corporations, associations, or other entities of which such person owns or controls 50% or more of
the outstanding equity or voting securities either directly or through an unbroken chain of
entities as to each of which 50% or more of the outstanding equity or voting securities is owned
directly or indirectly by its parent.

               (j) Certificate of Adjustment. In each case of an adjustment or readjustment of the Series
Preferred Stock Conversion Price of any series of Series Preferred Stock for the number of shares
of Common Stock or other securities issuable upon conversion of such series of Series Preferred
Stock, if such series of Series Preferred Stock is then convertible pursuant to this Section 5, the
Company, at its expense, shall compute such adjustment or readjustment in accordance with the
provisions hereof and prepare a certificate showing such adjustment or readjustment, and shall mail
such certificate, by first class mail, postage prepaid, to each registered holder of such series of
Series Preferred Stock at the holder’s address as shown in the Company’s books. The certificate
shall set forth such adjustment or readjustment, showing in detail the facts upon which such
adjustment or readjustment is based, including a statement of

 12 

 

(i) the applicable Series Preferred Stock Conversion Price at the time in effect and (ii) the
type and amount, if any, of other property which at the time would be received upon conversion of
such series of Series Preferred Stock.

               (k) Notices of Record Date. Upon (i) any taking by the Company of a record of the holders of
any class of securities for the purpose of determining the holders thereof who are entitled to
receive any dividend or other distribution, or (ii) any Acquisition (as defined in Section 4) or
other capital reorganization of the Company, any reclassification or recapitalization of the
capital stock of the Company, any merger or consolidation of the Company with or into any other
corporation, or any Asset Transfer (as defined in Section 4), or any voluntary or involuntary
dissolution, liquidation or winding up of the Company, the Company shall mail to each holder of
Series Preferred Stock at least ten (10) days prior to (x) the record date, if any, specified
therein or (y) if no record date is specified, the date upon which such action is to take effect
(or, in either case, such shorter period approved by the holders of a majority of the outstanding
Series Preferred Stock) a notice specifying (A) the date on which any such record is to be taken
for the purpose of such dividend or distribution and a description of such dividend or
distribution, (B) the date on which any such Acquisition, reorganization, reclassification,
transfer, consolidation, merger, Asset Transfer, dissolution, liquidation or winding up is expected
to become effective, and (C) the date, if any, that is to be fixed as to when the holders of record
of Common Stock (or other securities) shall be entitled to exchange their shares of Common Stock
(or other securities) for securities or other property deliverable upon such Acquisition,
reorganization, reclassification, transfer, consolidation, merger, Asset Transfer, dissolution,
liquidation or winding up.

               (l) Automatic Conversion.

                    (i) Each share of Series Preferred Stock shall automatically be converted into shares of
Common Stock, based on the applicable then-effective Series Preferred Stock Conversion Price, (A)
at any time upon the affirmative election of the holders of at least a majority of the outstanding
shares of each series of the Series Preferred Stock, or (B) immediately upon the closing of a
firmly underwritten public offering pursuant to an effective registration statement under the
Securities Act of 1933, as amended, covering the offer and sale of Common Stock for the account of
the Company in which the gross cash proceeds to the Company (before underwriting discounts,
commissions and fees) are at least ten million dollars ($10,000,000). Upon such automatic
conversion, any declared and unpaid dividends shall be paid in accordance with the provisions of
Section 5(d).

                    (ii) Upon the occurrence of either of the events specified in Section 5(l)(i) above, the
outstanding shares of Series Preferred Stock shall be converted automatically without any further
action by the holders of such shares and whether or not the certificates representing such shares
are surrendered to the Company or its transfer agent; provided, however, that the Company shall not
be obligated to issue certificates evidencing the shares of Common Stock issuable upon such
conversion unless the certificates evidencing such shares of Series Preferred Stock are either
delivered to the Company or its transfer agent as provided below, or the holder notifies the
Company or its transfer agent that such certificates have been lost, stolen or destroyed and
executes an agreement satisfactory to the Company to indemnify the Company from any loss incurred
by it in connection with such certificates. Upon the occurrence of such automatic conversion of
the Series Preferred Stock, the holders of Series

 13 

 

Preferred Stock shall surrender the certificates representing such shares at the office of the
Company or any transfer agent for the Series Preferred Stock. Thereupon, there shall be issued and
delivered to such holder promptly at such office and in its name as shown on such surrendered
certificate or certificates, a certificate or certificates for the number of shares of Common Stock
into which the shares of Series Preferred Stock surrendered were convertible on the date on which
such automatic conversion occurred.

               (m) Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion
of Series Preferred Stock. All shares of Common Stock (including fractions thereof) issuable upon
conversion of more than one share of Series Preferred Stock by a holder thereof shall be aggregated
for purposes of determining whether the conversion would result in the issuance of any fractional
share. If, after the aforementioned aggregation, the conversion would result in the issuance of
any fractional share, the Company shall, in lieu of issuing any fractional share, pay cash equal to
the product of such fraction multiplied by the Common Stock’s fair market value (as determined by
the Board) on the date of conversion.

               (n) Reservations of Stock Issuable Upon Conversion. The Company shall at all times reserve
and keep available out of its authorized but unissued shares of Common Stock, solely for the
purpose of effecting the conversion of the shares of the Series Preferred Stock, such number of its
shares of Common Stock as shall from time to time be sufficient to effect the conversion of all
outstanding shares of the Series Preferred Stock. If at any time the number of authorized but
unissued shares of Common Stock shall not be sufficient to effect the conversion of all then
outstanding shares of the Series Preferred Stock, the Company will take such corporate action as
may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of
Common Stock to such number of shares as shall be sufficient for such purpose.

               (o) Notices. Any notice required by the provisions of this Section 5 shall be in writing and
shall be deemed effectively given: (i) upon personal delivery to the party to be notified, (ii)
when sent by confirmed electronic mail or facsimile if sent during normal business hours of the
recipient; if not, then on the next business day, (iii) five (5) days after having been sent by
registered or certified mail, return receipt requested, postage prepaid, or (iv) one (1) day after
deposit with a nationally recognized overnight courier, specifying next day delivery, with
verification of receipt. All notices shall be addressed to each holder of record at the address of
such holder appearing on the books of the Company.

               (p) Payment of Taxes. The Company will pay all taxes (other than taxes based upon income) and
other governmental charges that may be imposed with respect to the issue or delivery of shares of
Common Stock upon conversion of shares of Series Preferred Stock, excluding any tax or other charge
imposed in connection with any transfer involved in the issue and delivery of shares of Common
Stock in a name other than that in which the shares of Series Preferred Stock so converted were
registered.

          6. No Reissuance of Series Preferred Stock.

               No shares of Series Preferred Stock acquired by the Company by reason of redemption, purchase,
conversion or otherwise shall be reissued.

 14 

 

V.

     A. The Company may agree to the terms and conditions upon which any director, officer,
employee or agent accepts his office or position and in its Bylaws, by contract or in any other
manner may agree to indemnify and protect any director, officer, employee or agent of the Company,
or any person who serves at the request of the Company as a director, officer, employee or agent of
another Company, partnership, joint venture, trust, employee benefit plan or other enterprise, to
the fullest extent permitted by the laws (including, without limitation, the statutes, case law and
principles of equity) of the State of Delaware. Without limiting the generality of the foregoing
provisions of this Article V, to the fullest extent permitted or authorized by the laws of Delaware
as now in effect and as the same may from time to time hereafter be amended, no director of the
Company shall be personally liable to the Company or to its stockholders for monetary damages for
breach of fiduciary duty as a director. Any repeal or modification of the immediately preceding
sentence shall not adversely affect any right or protection of a director of the Company existing
hereunder with respect to any act or omission occurring prior to or at the time of such repeal or
modification.

     B. Any repeal or modification of this Article V shall only be prospective and shall not affect
the rights under this Article V in effect at the time of the alleged occurrence of any action or
omission to act giving rise to liability.

VI.

     For the management of the business and for the conduct of the affairs of the Company, and
in further definition, limitation and regulation of the powers of the Company, of its directors and
of its stockholders or any class thereof, as the case may be, it is further provided that:

     A. The management of the business and the conduct of the affairs of the Company shall be
vested in the Board. The number of directors which shall constitute the whole Board shall be fixed
by the Board in the manner provided in the Bylaws, subject to any restrictions which may be set
forth in this Third Amended and Restated Certificate of Incorporation; provided that so long as one
million (1,000,000) shares of Series A-3 Preferred Stock are outstanding, the number of directors
constituting the whole Board shall be as set forth in Section 4(b) hereinabove.

     B. The directors of the Company need not be elected by written ballot unless the Bylaws so
provide.

     C. The Board is expressly empowered to adopt, amend or repeal the Bylaws of the Company. The
stockholders shall also have the power to adopt, amend or repeal the Bylaws of the Company,
provided, however, that, in addition to any vote of the holders of any class of series of stock of
the Company required by law or by this Third Amended and Restated Certificate of Incorporation, the
affirmative vote of the holders of at least a majority of the voting power of all of the
then-outstanding shares of the capital stock of the Company entitled to vote generally in the
election of directors, voting together as a single class, shall be required to adopt, amend or
repeal any provision of the Bylaws of the Company.

********

 15 

 

     THREE: This Third Amended and Restated Certificate of Incorporation has been duly approved
by the Board in accordance with Section 141 of the General Corporation Law.

     FOUR: This Third Amended and Restated Certificate of Incorporation was approved by the
holders of the requisite number of shares of said corporation in accordance with Section 228 of the
DGCL. This Third Amended and Restated Certificate of Incorporation has been duly adopted in
accordance with the provisions of Sections 242 and 245 of the DGCL by the stockholders of the
Company.

[THIS SPACE INTENTIONALLY LEFT BLANK]

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     IN WITNESS WHEREOF, EXEGY INCORPORATED has caused this Third Amended and Restated Certificate
of Incorporation to be signed by its President this ___ day of September, 2006.

	 	 	 	 	 	 	 
	 	 	EXEGY INCORPORATED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 17

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