Page

1.

DEFINITIONS

1

2.

SALE AND TRANSFER OF SHARES; CLOSING

1

2.1

SHARES

1

2.2

PURCHASE PRICE

1

2.3

CLOSING

8

2.4

CLOSING OBLIGATIONS

8

3.

REPRESENTATIONS AND WARRANTIES OF SELLERS

10

3.1

ORGANIZATION AND GOOD STANDING

10

3.2

AUTHORITY; NO CONFLICT

10

3.3

CAPITALIZATION

12

3.4

FINANCIAL STATEMENTS

12

3.5

BOOKS AND RECORDS; CONTROLS

12

3.6

TITLE TO PROPERTIES; ENCUMBRANCES

13

3.7

CONDITION AND SUFFICIENCY OF ASSETS

13

3.8

ACCOUNTS RECEIVABLE

13

3.9

CUSTOMERS; SUPPLIERS

14

3.10

NO UNDISCLOSED LIABILITIES

14

3.11

TAXES

15

3.12

NO MATERIAL ADVERSE CHANGE

17

3.13

EMPLOYEE BENEFIT PLAN

17

3.14

COMPLIANCE WITH LEGAL REQUIREMENTS; GOVERNMENTAL AUTHORIZATIONS

20

3.15

LEGAL PROCEEDINGS; ORDERS

22

3.16

ABSENCE OF CERTAIN CHANGES AND EVENTS

23

3.17

CONTRACTS; NO DEFAULTS

24

3.18

INSURANCE

27

3.19

ENVIRONMENTAL MATTERS

29

3.20

EMPLOYEES

31

3.21

LABOR RELATIONS; COMPLIANCE

32

3.22

INTELLECTUAL PROPERTY

33

3.23

CERTAIN PAYMENTS

34

3.24

INVENTORY

34

3.25

PRODUCT LIABILITY; WARRANTIES

35

3.26

DISCLOSURE

36

3.27

RELATIONSHIPS WITH RELATED PERSONS

36

3.28

BROKERS OR FINDERS

37

3.29

PURCHASE FOR OWN ACCOUNT; INVESTMENT

37

3.30

FINANCIAL MATTERS

37

3.31

ACCESS TO DATA

37

3.32

NO GENERAL SOLICITATION

37

3.33

ACCREDITED INVESTOR

38

3.34

LEGEND

38

4.

REPRESENTATIONS AND WARRANTIES OF BUYER

39

4.1

ORGANIZATION AND GOOD STANDING

39

4.2

AUTHORITY; NO CONFLICT

39

4.3

INVESTMENT INTENT

40

4.4

CERTAIN PROCEEDINGS

40

4.5

BROKERS OR FINDERS

40

4.6

SEC DOCUMENTS; FINANCIAL STATEMENTS

40

5.

ACTIONS PRIOR TO THE CLOSING DATE

41

5.1

ACCESS AND INVESTIGATION

41

5.2

OPERATION OF THE BUSINESS OF THE COMPANY

41

5.3

NEGATIVE COVENANTS

41

5.4

REQUIRED APPROVALS

42

5.5

NOTIFICATION

42

5.6

PAYMENT OF INDEBTEDNESS BY RELATED PERSONS

43

5.7

NO NEGOTIATION

43

5.8

COMMERCIALLY REASONABLE EFFORTS

43

5.9

TEMPS

43

6.

ADDITIONAL AGREEMENTS

44

6.1

CONFIDENTIALITY

44

6.2

RIGHT OF FIRST REFUSAL ON SALES OF BUYER SHARES

45

6.3

SECTION 338(H)(10) ELECTION

46

6.4

CERTAIN TAX MATTERS

49

6.5

COLLECTION OF CERTAIN ACCOUNTS RECEIVABLE

51

6.6

SUBORDINATION AGREEMENT

51

7.

CONDITIONS PRECEDENT TO BUYERS OBLIGATION TO CLOSE

52

7.1

ACCURACY OF REPRESENTATIONS

52

7.2

SELLERS PERFORMANCE

52

7.3

CLOSING CERTIFICATE

52

7.4

CONSENTS

52

7.5