Page

ARTICLE I

DEFINITIONS

1

1.1

Definitions

1

ARTICLE II

PURCHASE AND SALE

6

2.1

Purchase and Sale

6

2.2

Purchase Price

6

2.3

Closing

7

2.4

Additional Consideration

7

2.5

Purchase Price Adjustment

7

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND SELLERS

7

3.1

Organization and Qualification

8

3.2

Corporate Power

8

3.3

Authorization; Binding Obligations

8

3.4

Conflict; Existing Defaults

8

3.5

Consents and Approvals

9

3.6

Capitalization

9

3.7

Subsidiaries

9

3.8

Financial Statements; Undisclosed Liabilities

9

3.9

Contracts

10

3.10

Accounts Receivable

12

3.11

Employees; Labor Relations

12

3.12

Welfare Plans

12

3.13

Taxes

13

3.14

Litigation

14

3.15

Transactions with Related Parties

14

3.16

Licenses and Permits

14

3.17

Personal Property

14

3.18

Real Property

14

3.19

Environmental Matters

15

3.20

Intellectual Property

16

3.21

Powers of Attorney

16

3.22

Insurance

16

3.23

Business Relationships

17

3.24

Inventories

17

3.25

Depository and Other Accounts

17

3.26

Books and Records

17

3.27

Brokers; Certain Expenses

18

3.28

Compliance with Laws

18

3.29

Interim Changes

18

Page

3.30

No Omissions or Misstatements

19

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF SELLERS

19

4.1

Ownership of Capital Stock

19

4.2

Legal Capacity

19

4.3

Authorization; Binding Obligation

19

4.4

Conflict

19

4.5

Consents and Approvals

20

4.6

Litigation

20

4.7

Brokers? Fees

20

4.8

Securities Representations

20

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF BUYER

20

5.1

Organization

20

5.2

Corporate Power

21

5.3

Authorization; Binding Obligations

21

5.4

Conflict; Existing Defaults

21

5.5

Consents and Approvals

21

5.6

Capitalization

21

5.7

SEC Reports

22

5.8

Brokers; Certain Expenses

22

5.9

Compliance with Laws

22

ARTICLE VI

COVENANTS OF THE PARTIES

22

6.1

Conduct of Company Business

22

6.2

Access to Information

23

6.3

Efforts to Consummate Transaction

24

6.4

No Solicitation

24

6.5

Tax Matters

25

6.6

Noncompete

27

6.7

Certain Taxes

28

6.8

Buyer Board of Directors

28

6.9

Contribution of Working Capital

28

6.10

Reservation of Buyer Common Stock

28

6.11

Notification of Certain Matters

28

6.12

Supplementation and Amendment of Schedules

28

6.13

Audited Financial Statements

28

6.14

Legal Opinion

29

Page

ARTICLE VII

CLOSING CONDITIONS

29

7.1

Obligation of Buyer to Close

29

7.2

Obligation of Sellers to Close

30