Preview | Agreement and Plan of Merger |

KPS SPECIAL SITUATIONS FUND, L.P.
(solely in its capacity as the
Stockholder Representative)

TABLE OF CONTENTS

		Page

ARTICLE I	THE MERGER	1
Section 1.1	The Merger	1
Section 1.2	Closing	1
Section 1.3	Effective Time	2
Section 1.4	Effects	2
Section 1.5	Certificate of Incorporation and By-laws	2
Section 1.6	Directors	2
Section 1.7	Officers	2

ARTICLE II	EFFECT ON THE CAPITAL STOCK OF THE CONSTITUENT CORPORATIONS; EXCHANGE OF CERTIFICATES	3
Section 2.1	Initial Merger Consideration	3
Section 2.2	Effect on Capital Stock of Newco	5
Section 2.3	Effect on Company Securities	6
Section 2.4	Appraisal Rights	7
Section 2.5	Exchange of Stock Certificates	8
Section 2.6	Determinations	10
Section 2.7	Adjustment	11
Section 2.8	Stockholder Representative	15

ARTICLE III	REPRESENTATIONS AND WARRANTIES OF THE COMPANY	16
Section 3.1	Organization, Standing and Power	16
Section 3.2	Company Subsidiaries; Equity Interests; Minute Books	17
Section 3.3	Capital Structure	17
Section 3.4	Authority; Execution and Delivery; Enforceability	19
Section 3.5	No Conflicts; Consents	19
Section 3.6	Financial Statements; Absence of Undisclosed Liabilities, etc	20
Section 3.7	Absence of Certain Changes or Events	21
Section 3.8	Taxes	21
Section 3.9	Employee Benefits Matters	24
Section 3.10	Litigation	27
Section 3.11	Compliance with Applicable Laws	27
Section 3.12	Environmental Matters	28
Section 3.13	Contracts	28
Section 3.14	Title to Properties	31
Section 3.15	Intellectual Property	32
Section 3.16	Labor Matters	33
Section 3.17	Brokers	34
Section 3.18	Insurance	34
Section 3.19	Related Party Transactions	35
Section 3.20	Personal Property	35

ARTICLE IV	REPRESENTATIONS AND WARRANTIES OF PARENT AND NEWCO	35
Section 4.1	Organization, Standing and Power	35
Section 4.2	Newco	35
Section 4.3	Authority; Execution and Delivery; Enforceability	36
Section 4.4	No Conflicts; Consents	36
Section 4.5	No Litigation	37
Section 4.6	Brokers	37
Section 4.7	Sufficient Funds	37
Section 4.8	Parent?s and Newco?s Reliance	37

ARTICLE V	COVENANTS; ADDITIONAL AGREEMENTS	38
Section 5.1	Conduct of Business	38
Section 5.2	Access to Information	41
Section 5.3	Fees and Expenses	42
Section 5.4	Filings with Governmental Entities	42
Section 5.5	Public Announcement	43
Section 5.6	Confidentiality Agreement	43
Section 5.7	Escrow Agreements	43
Section 5.8	Further Assurances	44
Section 5.9	Intellectual Property Recordings	44
Section 5.10	Financial Statements	45
Section 5.11	Notices.	45
Section 5.12	Officer and Director Indemnification and Insurance	46
Section 5.13	Letters of Credit	46
Section 5.14	Non-Solicit	46

ARTICLE VI	CONDITIONS PRECEDENT	47
Section 6.1	Conditions to Each Party?s Obligation to Effect the Transactions	47
Section 6.2	Conditions to Obligations of Parent and Newco	47
Section 6.3	Conditions to Obligations of the Company	49

ARTICLE VII	TERMINATION, AMENDMENT AND WAIVER	50
Section 7.1	Termination	50
Section 7.2	Effect of Termination	52

ARTICLE VIII	INDEMNIFICATION	52
Section 8.1	Survival of Representations and Warranties	52
Section 8.2	Indemnification.	52
Section 8.3	Third Party Proceedings	54
Section 8.4	Limitations on Indemnity	57
Section 8.5	Indemnity Escrow	60
Section 8.6	Tax Indemnification; Tax Matters	61