WINMARK CORP
EX-10.2
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<TYPE>EX-10.2
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<FILENAME>a04-12638_1ex10d2.htm
<DESCRIPTION>EX-10.2
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
10.2</font></b></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">SERIES A-1 PREFERRED STOCK PURCHASE AGREEMENT</font></u></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS SERIES
A-1 PREFERRED STOCK PURCHASE AGREEMENT (this &#147;<u>Agreement</u>&#148;) is made and
entered into as of September 22, 2004, by and among Commercial Credit Group
Inc., a Delaware corporation (the &#147;<u>Company</u>&#148;), and each of those
entities, severally and not jointly, whose names are set forth on the Schedule
of Investors attached hereto as <u>Schedule A</u> (which entities are
hereinafter collectively referred to as the &#147;<u>Investors</u>&#148; and each
individually as an &#147;<u>Investor</u>&#148;).</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">R E C I T A L S</font></u></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the
Company has authorized the offer and sale of up to an aggregate of Sixty
Thousand (60,000) shares (collectively, the &#147;<u>Shares</u>&#148;) of its Series A-1
Preferred Stock, par value $.00001 per share (the &#147;<u>Series A-1 Preferred
Stock</u>&#148;) for a total purchase price of Six Million Dollars ($6,000,000);</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the
Investors desire to purchase the Shares on the terms and conditions set forth
herein; and</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the
Company desires to issue and sell the Shares to the Investors on the terms and
conditions set forth herein.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW,
THEREFORE, in consideration of the foregoing recitals and the mutual promises,
representations, warranties and covenants hereinafter set forth and for other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160; <u>Agreement to Sell and Purchase the Shares</u>.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.1&#160; <u>Authorization of Shares</u>.&#160; The Company has authorized (a) the sale,
issuance and delivery of the Shares to the Investors and (b) the issuance and
delivery of the shares of the Company&#146;s Common Stock, par value $.00001 per
share (&#147;<u>Common Stock</u>&#148;), issuable upon conversion of the Shares
(collectively, the &#147;<u>Conversion Shares</u>&#148;).&#160;
The Shares and the Conversion Shares shall have the rights, preferences,
privileges and restrictions set forth in the Amended and Restated Certificate
of Incorporation of the Company, in the form attached hereto as <u>Exhibit A</u>
(the &#147;<u>Restated Charter</u>&#148;), which Restated Charter shall be filed with the
Secretary of State of the State of Delaware prior to the Initial Closing (as
defined in Section 2.1).</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .8in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.2&#160; <u>Sale and Purchase</u>.</font></p>

<p style="margin:0in 0in .0001pt .8in;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160; <u>Initial Closing</u>.&#160; Subject to the terms and conditions of this
Agreement, at the Initial Closing, the Company will sell, issue and deliver to
each Investor, severally and not jointly, and each Investor will purchase from
the Company, severally and not jointly, the number of Shares set forth opposite
such Investor&#146;s name on <u>Schedule A</u> under the heading &#147;<u>Initial Closing
Shares</u>&#148; (the &#147;<u>Initial Closing Shares</u>&#148;) at a purchase price of
$100.00 per Share.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; <u>Subsequent Closings</u>.&#160; Subject to the terms and conditions of this
Agreement, at one or more Subsequent Closings (as defined in Section 2.2), the
Company will sell, issue and deliver to each Investor, severally and not
jointly, and each Investor will purchase from the Company, severally and not
jointly, up to the number of Shares set forth opposite each Investor&#146;s name on <u>Schedule
A</u> under the heading &#147;<u>Subsequent Closing Shares</u>&#148; (the &#147;<u>Subsequent
Closing Shares</u>&#148;) at a purchase price of $100.00 per Share.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.3&#160; <u>Use of Proceeds</u>.&#160; The Company will use the proceeds from the
sale of the Series A-1 Preferred Stock to the Investors and the proceeds from
the sale of shares of its Series A-2 Preferred Stock (the &#147;<u>Series A-2
Preferred Stock</u>&#148;) to Daniel J. McDonough, Kevin T. McGinn, W.J. Mattocks
and Richard W. Radom (collectively, the &#147;<u>Founders</u>&#148;) pursuant to that
certain Series A-2 Stock Purchase Agreement to be entered into among the
Company and the Founders prior to or concurrently with the Initial Closing (the
&#147;<u>Founders Purchase Agreement</u>&#148;) for (a) expenses related to the Initial
Closing and the completion of the Senior Debt Facility (as hereinafter
defined), as more fully set forth on <u>Schedule 1.3(a)</u>; (b) start-up
expenses in an amount not to exceed One Hundred and Fifteen Thousand Dollars
($115,000) as detailed in the Company&#146;s business plan attached hereto as <u>Schedule
1.3(b)</u> (the &#147;<u>Business Plan</u>&#148;); (c) reasonable and customary expenses
related to the Subsequent Closings; (d) working capital and loan and leasing
activities in accordance with the Business Plan; or (e) as otherwise may be
approved by the Board of Directors of the Company (the &#147;<u>Board</u>&#148;); <u>provided</u>,
<u>however</u>, notwithstanding the foregoing, in no event shall any such
proceeds be used to reduce indebtedness or make payments to any affiliate or
stockholder of the Company other than in ordinary arm&#146;s length transactions
that have been approved by the Board.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160; <u>Initial Closing, Delivery and Payment</u>.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.1&#160; <u>Initial Closing</u>.&#160; The initial closing of the sale and purchase
of the Shares under this Agreement (the &#147;<u>Initial Closing</u>&#148;) shall take
place as soon as possible after the execution and delivery hereof at a time and
place that is mutually convenient to the Company and the Investors (the date of
the Initial Closing is sometimes hereinafter referred to as the &#147;<u>Closing
Date</u>&#148;).&#160; In lieu of convening in
person for the purpose of conducting the Initial Closing, the Company and the
Investors may mutually agree to effect the execution and delivery of this
Agreement, the Related Agreements (as defined in Section 3.1) and any other
documents required to complete the Initial Closing by means of an exchange of facsimile
signatures with original copies to follow by overnight courier service.&#160;&#160; Notwithstanding anything contained herein to
the contrary, the purchase price for the Initial Closing Shares allocated to
Envest II LLC (&#147;<u>Envest</u>&#148;) may be paid at any time within thirty (30) days
after the date hereof (assuming that the Initial Closing occurs prior to such
date); <u>provided</u>, <u>however</u>, the Company shall not deliver to Envest
certificates for such Initial Closing Shares until such purchase price has been
paid.&#160; Envest recognizes and acknowledges
that the other Investors and the Company are relying on the aforesaid covenant
and agreement by Envest in connection with their decision to complete the
Initial Closing hereunder.&#160; As security
for the duties and obligations of Envest to acquire its Initial Closing Shares
in accordance with the provisions of this Section 2.1, Envest shall,
concurrently with the Initial Closing, deposit the sum of Two Hundred Thousand
Dollars ($200,000) (the &#147;<u>Envest Escrow</u>&#148;) into escrow with the Company,
which Envest Escrow shall (i) be applied on account of the purchase price due
from Envest in respect of the Initial Closing Shares acquired by Envest
pursuant hereto and (ii) be forfeited to the Company in the event that Envest
fails to acquire the</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Initial Closing Shares in accordance with the
provisions of this Section 2.1 and such failure is not attributable to any
breach by the Company of its duties and obligations hereunder, all of which shall
be set forth in a letter agreement by and between Envest and the Company that
is reasonably satisfactory to the parties thereto.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.2&#160; <u>Subsequent Closings</u>.&#160; At any time within twenty-four (24) months
after the Initial Closing, upon a determination of the need for additional
funding by the Board of Directors of the Company, the Company may give no less
than twenty (20) days&#146; notice to the Investors (a &#147;<u>Funding Notice</u>&#148;) of
the time and place of one or more closings at which the Company shall sell, and
the Investors shall purchase, on terms and conditions contained in this
Agreement, the Subsequent Closing Shares.&#160;
The Funding Notice shall set forth: (i) the number of Subsequent Closing
Shares to be purchased by each Investor and the aggregate purchase price
payable by each Investor (it being understood that each Investor shall be
required to purchase its pro-rata share of such Subsequent Closing Shares);
(ii) the wire transfer instructions for the Company to which the purchase price
for the Subsequent Closing Shares shall be delivered by the Investors; (iii) a
certificate from an authorized officer of the Company to the effect that the
conditions precedent set forth in Section 5.3 hereof have been satisfied, other
than the conditions set forth in Section 5.3(f) (which shall be satisfied
concurrently with or as soon as possible after the purchase price has been paid
in respect of the Subsequent Closing Shares); and (iv) the manner in which the
proceeds of the sale of the Subsequent Closing Shares being purchased will be
used by the Company (which shall be in accordance with Section 1.3
hereof).&#160; The dates of the purchase and
sale of the Subsequent Closing Shares are collectively referred to in this
Agreement as the &#147;<u>Subsequent Closing Dates</u>&#148; and the closing or closings
as the &#147;<u>Subsequent Closings</u>.&#148;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.3&#160; <u>Delivery and Payment</u>.&#160; At the Initial Closing and each of the
Subsequent Closings, subject to the terms and conditions of this Agreement, the
Company will deliver to each Investor a certificate representing the number of
Shares to be purchased by such Investor at the Initial Closing or Subsequent
Closing, as appropriate, against payment of the purchase price therefor by wire
transfer of immediately available funds to an account designated in writing by
the Company not less than two (2) business days prior to the Initial Closing or
Subsequent Closing, as appropriate.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160; <u>Representations and Warranties</u>.&#160; The Company represents and warrants to each
Investor as of the date hereof and as of the Closing Date and each of the
Subsequent Closing Dates that the statements contained in this Section 3 are
true and correct, except as set forth in the Schedule of Exceptions attached to
this Agreement (it being agreed that the Company may amend the Schedule of
Exceptions as of the Closing Date and each of the Subsequent Closing Dates to
reflect matters arising between the date hereof or the Subsequent Closing Date,
as appropriate, and each of the Subsequent Closing Dates).&#160; The Schedule of Exceptions shall be arranged
in numbered paragraphs and each exception shall be deemed to qualify the
specific numbered section of this Agreement which is referenced in the
applicable exception.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .8in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.1&#160; <u>Organization, Good Standing and
Qualification</u>.</font></p>

<p style="margin:0in 0in .0001pt .8in;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160; The Company is a corporation duly organized,
validly existing and in good standing under the Laws (as defined in Section
3.15) of the State of Delaware.&#160; The
Company has all requisite corporate power and authority to own and operate its
properties and assets, to</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">execute and deliver this Agreement, the
Investor Rights Agreement in the form attached hereto as <u>Exhibit B</u> (the &#147;<u>Investor
Rights Agreement</u>&#148;) and the Stockholders&#146; Agreement in the form attached
hereto as <u>Exhibit C</u> (the &#147;<u>Stockholders&#146; Agreement</u>,&#148; and together
with the Investor Rights Agreement, the &#147;<u>Related Agreements</u>&#148;), to issue
and sell the Shares and the Conversion Shares, to carry out the provisions of
this Agreement and the Related Agreements and to carry on its business as
currently conducted and as proposed to be conducted.&#160; The Company is duly qualified and in good
standing in the State of North Carolina and in all jurisdictions in which the
nature of its activities and of its properties (both owned and leased) makes
such qualification necessary, except for those jurisdictions in which failure
to do so would not have a Material Adverse Effect on the Company.&#160; For purposes of this Agreement, the phrase &#147;<u>Material
Adverse Effect</u>&#148; shall mean any material adverse change in or effect (financial
or other) on the Company&#146;s business, results of operations, assets,
liabilities, prospects or financial condition.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; The Company will not, as of the Initial
Closing or any Subsequent Closing, be in violation or default of any term of
its Restated Charter or Bylaws.&#160; The
execution, delivery, and performance of this Agreement and the Related
Agreements by the Company, and the sale, issuance and delivery of the Shares
pursuant hereto and of the issuance and delivery of the Conversion Shares
pursuant to the Restated Charter, will not, with or without the passage of time
or giving of notice, result in any such violation, or be in conflict with or
constitute a default under its Restated Charter or Bylaws.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160; The minute books of the Company provided to counsel
for the Investors and made available for inspection and copying by each
Investor contain a complete summary of all meetings of directors and
stockholders since the time of incorporation and reflect all transactions
referred to in such minutes accurately in all material respects.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.2&#160; <u>Subsidiaries</u>.&#160; The Company does not own or control any
equity security or other interest of any other corporation, limited partnership
or other business entity.&#160; The Company is
not a participant in any joint venture, partnership or similar arrangement.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .8in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.3&#160; <u>Capitalization</u>.</font></p>

<p style="margin:0in 0in .0001pt .8in;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160; The authorized capital stock of the Company
as of the Initial Closing consist of (i) one million&#160; (1,000,000) shares of Common Stock, one
hundred thirty-four thousand fifty (134,050) shares of which are issued and
outstanding, and (ii) Seventy-One Thousand Four Hundred and Ninety-Four
(71,494) shares of Preferred Stock, of which Sixty Thousand (60,000) will be
designated Series A-1 Preferred Stock and Eleven Thousand Four Hundred and
Ninety-Four (11,494) will be designated as Series A-2 Preferred Stock.
Immediately prior to the Initial Closing, there will be no shares of Series A-1
Preferred Stock or shares of Series A-2 Preferred Stock issued and
outstanding.&#160; <u>Schedule 3.3(a)</u> sets
forth the issued and outstanding shares of Common Stock and Preferred Stock
immediately following the Initial Closing, including all Common Stock issued
and outstanding on as-converted, fully-diluted basis, assuming the purchase and
sale of all of the Initial Closing Shares hereunder and the purchase and sale
of the Series A-2 Preferred Stock under the Founders&#146; Purchase Agreement. Such
capitalization table identifies by name and number of securities owned, each
stockholder and other holder of the Company&#146;s outstanding securities and
convertible securities.</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

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<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; Under the Company&#146;s Equity Compensation Plan
(the &#147;<u>Plan</u>&#148;), which Plan shall be established after the Initial Closing
pursuant to the provisions of Section 5.4(b) hereof, Forty-Four Thousand Six
Hundred and Eighty-Four (44,684) shares of Common Stock are available for
issuance as of the Closing Date, of which no shares of Common Stock are issued
as restricted stock or are subject to options granted and outstanding as of the
Closing Date.&#160; No employee, officer,
director or consultant has options or any other securities that provide for
accelerated vesting upon a &#147;<u>Change of Control Transaction</u>&#148; (as defined
in the Restated Charter) or termination of employment or service or any other
event, except for those vesting or similar provisions contained in those
certain Buy-Sell Agreements (collectively, the &#147;<u>Buy-Sell Agreement</u>&#148;) to
be entered into on or before the Initial Closing by and between the Company and
each of the Founders.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160; Other than the shares reserved for issuance
under the Plan, and except as may be issued pursuant to this Agreement, the
Related Agreements and under the Founders&#146; Purchase Agreement, there are no
outstanding options, warrants, rights (including conversion or preemptive
rights, rights of first refusal and phantom stock rights), proxy, voting,
transfer restriction or stockholder agreements, or agreements of any kind for
the purchase or acquisition from the Company of any of its securities.&#160; No person or entity has any right to acquire
any securities of the Company or any option or warrant to acquire any
securities of the Company based on any broker, finder or investment banking
type relationship with or with respect to the Company.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160; Except as required pursuant to the Investor
Rights Agreement, the Company is not under any obligation, and has not granted
any rights, to &#147;<u>register</u>&#148; (as defined in the Investor Rights Agreement)
any of the Company&#146;s presently outstanding securities or any of its securities
that may hereafter be issued.&#160; Except as
contemplated in the Stockholders&#146; Agreement or the Buy-Sell Agreement, no
stockholder of the Company has entered into any agreement with respect to the
voting or transfer of equity securities of the Company.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160; All issued and outstanding shares of the
Company&#146;s Common Stock (i) have been duly authorized and validly issued and are
fully paid and nonassessable and (ii) were issued in accordance with all
applicable securities Laws, including, without limitation, the registration
requirements of the Securities Act of 1933, as amended (the &#147;<u>Securities Act</u>&#148;),
and applicable state securities Laws (such state securities Laws, together with
the Securities Act, the &#147;<u>Acts</u>&#148;) or pursuant to an exemption from such
registration requirements.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160; The rights, preferences and privileges of the
Shares will be as stated in the Restated Charter.&#160; The Conversion Shares, with respect to issued
and outstanding Shares, have been duly and validly reserved for issuance. When
issued in compliance with the provisions of this Agreement and the Restated
Charter, the Shares and the Conversion Shares will be (i) validly issued, fully
paid and nonassessable (ii) issued in compliance with applicable federal and
state securities Laws and (iii) except as set forth in the Related Agreements,
will be free of any mortgage, pledge, lien, conditional sale agreement,
security agreement, encumbrance or other charge (collectively, &#147;<u>Liens</u>&#148;);
<u>provided</u>, <u>however</u>, that the Shares and the Conversion Shares may
be subject to restrictions on transfer under state and/or federal securities
Laws.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.4&#160; <u>Authorization; Binding Obligations</u>.&#160; All corporate action on the part of the
Company, its officers, directors and stockholders necessary for the
authorization of this Agreement and the Related Agreements, the performance of
all obligations of the Company hereunder and thereunder at the Initial Closing
and Subsequent Closings and the authorization, sale, issuance and delivery of
the Shares pursuant hereto and the issuance and delivery of the Conversion
Shares pursuant to the Restated Charter has been taken.&#160; This Agreement has been, and the Related
Agreements will be, when executed and delivered at the Initial Closing, duly
executed and delivered by the Company and constitute or, in the case of the
Related Agreement, will constitute, valid and binding obligations of the
Company enforceable in accordance with their respective terms, except (a) as
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other Laws of general application affecting enforcement of creditors&#146; rights,
(b) as limited by general principles of equity that restrict the availability
of equitable remedies, and (c) to the extent that the enforceability of the
indemnification provisions in the Investor Rights Agreement may be limited by
applicable Laws.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .8in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.5&#160; <u>Financial Statements</u>.</font></p>

<p style="margin:0in 0in .0001pt .8in;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160; The Company has delivered to the Investors
financial projections and pro forma financial statements describe on <u>Schedule
3.5</u> (collectively, the &#147;<u>Projections</u>&#148;).&#160; The Projections were prepared in good faith
and are based on the Company&#146;s experience in the industry and on assumptions of
fact and opinion as to future events which the Company, on the date of issuance
of the Projections and on the date hereof, made in good faith and believes to
be reasonable; <u>provided</u>, <u>however</u>, the representation and warranty
made in this Section 3.5(a) shall not constitute a guarantee or warranty that
the Company will achieve any of the financial results projected in the
Projections.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; All financial statements required to be
delivered to the Investors under the Related Agreements prior to the Initial
Closing or any Subsequent Closing (collectively, the &#147;<u>Financial Statements</u>&#148;),
shall be complete and correct in all material respects and have been prepared
in accordance with U.S. generally accepted accounting principles (&#147;<u>GAAP</u>&#148;)
applied on a consistent basis throughout the periods indicated (with the
exception of footnotes that may be required by GAAP).&#160; The Financial Statements shall fairly
present, in all material respects, the financial condition and operating
results of the Company as of the dates, and for the periods, indicated therein,
subject to normal year-end audit adjustments, none of which will be material in
amount.&#160; All other information required
to be delivered to the Investors prior to any Subsequent Closing under the
Related Agreements shall be complete and accurate in all material respects.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.6&#160; <u>Liabilities</u>.&#160; Except as (a) disclosed on, or reflected or
reserved against in, the Financial Statements; (b) current liabilities incurred
in the ordinary course of the Company&#146;s business since the date of the most
recent Financial Statements or (c) performance obligations under agreements to
which the Company is a party incurred in the ordinary course of the Company&#146;s
business and not required under GAAP to be reflected in the financial
statements of the Company which, in the cases of paragraphs (a) and (b),
individually and in the aggregate will not have a Material Adverse Effect, the
Company does not have and is not subject to any liability or obligation of any
nature, whether accrued, absolute, contingent, or otherwise, asserted or
unasserted, known or unknown (including, without limitation, liabilities as
guarantor or</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">otherwise with respect to obligations of
others, or liabilities for taxes due or then accrued or to become due).</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .8in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.7&#160; <u>Agreements</u>.</font></p>

<p style="margin:0in 0in .0001pt .8in;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160; <u>Schedule 3.7(a)</u> sets forth a list of
agreements, understandings, arrangements or other commitments, written or oral,
to which the Company is a party or by which it is bound, (i) that are
terminable without the consent of the Company and that, if terminated, would
have a Material Adverse Effect on the Company, or (ii) that involve or may
involve (A) obligations (contingent or otherwise) of the Company, or payments
to the Company, in each case in excess of $5,000, or (B) the license of any
Intellectual Property (as defined below) by the Company to any third party or
by a third party to the Company (other than off the shelf shrink wrap
licenses), (C) provisions restricting or affecting the development, manufacture
or distribution of the Company&#146;s products or services, (D) indemnification by
the Company with respect to infringement of proprietary rights or (E) any other
agreement, understanding or instrument to which the Company is a party or by
which it is bound that is material to the Company (the items described in (i)
and (ii) above, collectively, the &#147;<u>Material Contracts</u>&#148;).&#160; The Material Contracts are in full force and
effect and are valid, binding and enforceable in accordance with their
terms.&#160; The Company has furnished to the
Investors complete and correct copies of all such Material Contracts.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; The Company is not and has never been a party
to, as a contractor or subcontractor, and is not making and has never made, any
bid or proposal with respect to, any government contract.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160; Neither the Company nor, to the best of the
Company&#146;s knowledge, any other party is in material violation or default under
any Material Contract and no event has occurred which with notice, lapse of
time or both would constitute a violation default thereunder. The execution,
delivery, and performance of this Agreement and the Related Agreements by the
Company, and the sale, issuance and delivery of the Shares pursuant hereto and
of the issuance and delivery of the Conversion Shares pursuant to the Restated
Charter, will not, with or without the passage of time or giving of notice,
result in any such violation, or be in conflict with or constitute a default
under any Material Contract.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160; <u>Schedule 3.7(d)</u> sets forth a list of
all agreements, understandings, arrangements or other commitments, written or
oral, made by any Founder which (i) are for the benefit of the Company, (ii)
obligate the Company in any way or (iii) otherwise affect the business of the
Company (collectively, the &#147;<u>Founder Agreements</u>&#148;).&#160; The Founders have assigned all Founder Agreements
(and their right, title and interest thereunder) to the Company. All such
assignments of the Founder Agreements are enforceable, binding and in full
effect.&#160; The Founder Agreements are
binding and enforceable by the Company according to their respective terms.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.8&#160; <u>Obligations to Related Parties</u>.&#160; Except as set forth in (i) the Buy-Sell
Agreement, (ii) the four (4) separate Employment Agreements to be entered into
on or before the Initial Closing between the Company and each of the Founders
(collectively, the &#147;<u>Founders&#146; Employment Agreements</u>&#148;), and (iii) the
Related Agreements, the Company has no obligations to</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">executive officers, directors,
stockholders or employees of the Company other than for standard employee
benefits made generally available to all employees.&#160; Except as set forth on <u>Schedule 3.8</u>,
none of the executive officers, directors or stockholders of the Company, or
any members of their immediate families, are indebted to the Company or, to the
best of the Company&#146;s knowledge, have any direct or indirect ownership interest
in any firm or corporation with which the Company is affiliated or with which
the Company has a business relationship, or any firm or corporation which
competes with the Company, other than passive investments in publicly traded
companies (representing less than one percent of such company) which may
compete with the Company.&#160; No executive
officer or director or member of their immediate families or, to the best of
the Company&#146;s knowledge, any stockholder, is, directly or indirectly,
interested in any Material Contract with the Company.&#160; The Company is not a guarantor or indemnitor
of any indebtedness of any other person, firm or corporation.&#160; For purposes of this Agreement, the phrases &#147;<u>knowledge
of the Company</u>&#148; or &#147;<u>to the best of the Company&#146;s knowledge</u>&#148; or words
of similar import, mean the knowledge of any director, officer, or Founder of
the Company, including facts of which directors, officers, and/or Founders, in
the reasonably prudent exercise of their duties, should be aware.</font></p>

<p style="margin:0in 0in .0001pt 22.65pt;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.9&#160; <u>Changes</u>.&#160; Since the later of the date on the
Projections<b><font style="font-weight:bold;"> </font></b>or the date of any
audited Financial Statements delivered to the Investors, there has not been:</font></p>

<p style="margin:0in 0in .0001pt 22.65pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160; Any event that has had or could reasonably be
expected to have a Material Adverse Effect on the Company;</font></p>

<p style="margin:0in 0in .0001pt 22.65pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; Any resignation or termination of any
executive officer, key employee or group of employees of the Company, except as
approved by the Board;</font></p>

<p style="margin:0in 0in .0001pt 22.65pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160; Any damage, destruction or loss, whether or
not covered by insurance, with respect to the properties and assets of the
Company;</font></p>

<p style="margin:0in 0in .0001pt 22.65pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160; Any waiver or compromise by the Company of a
valuable right or of a material debt owed to it in excess of $25,000, except as
approved by the Board;</font></p>

<p style="margin:0in 0in .0001pt 22.65pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160; Any loans made by the Company to any
stockholder, employee, executive officer or director of the Company, other than
advances made in the ordinary course of business;</font></p>

<p style="margin:0in 0in .0001pt 22.65pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160; Any material change in any compensation
arrangement or agreement with any employee, executive officer, director or
stockholder, except as approved by the Board;</font></p>

<p style="margin:0in 0in .0001pt 22.65pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160; Any declaration or payment of any dividend or
other distribution of the assets of the Company;</font></p>

<p style="margin:0in 0in .0001pt 22.65pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160; Any labor organization activity related to
the Company;</font></p>

<p style="margin:0in 0in .0001pt 104.0pt;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160; Any debt for borrowed money incurred, assumed
or guaranteed by the Company, except (i) those for immaterial amounts and for
current liabilities incurred in the ordinary course of business, (ii) under the
Senior Debt Facility, or (iii) amounts approved by the Board;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<p style="margin:0in 0in .0001pt 253.55pt;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160; Any sale, mortgage, pledge, transfer, lease
or other assignment of any Intellectual Property (as defined in Section
3.11(i)) owned by the Company, other than licenses of the Company&#146;s software
and products on a non-exclusive basis in the ordinary course of business;</font></p>

<p style="margin:0in 0in .0001pt 20.75pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160; Any material change in any Material Contract,
except as approved by the Board;</font></p>

<p style="margin:0in 0in .0001pt 20.75pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)&#160; Any sale, mortgage, pledge, transfer, lease
or other assignment of any of its tangible assets outside of the ordinary
course of business, except as approved by the Board;</font></p>

<p style="margin:0in 0in .0001pt 20.75pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)&#160; Any capital expenditure in excess of $25,000,
except as approved by the Board; or</font></p>

<p style="margin:0in 0in .0001pt 20.75pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)&#160; Any arrangement or commitment by the Company
to do any of the acts described in subsection (a) through (m) above, except as
approved by the Board.</font></p>

<p style="margin:0in 0in .0001pt 20.75pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.10&#160; <u>Real and Personal Property</u>.</font></p>

<p style="margin:0in 0in .0001pt 78.35pt;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160; <u>Real Property</u>.&#160; The Company does not own any real
property.&#160; All of the real property
leased by the Company (the &#147;<u>Leased Real Property</u>&#148;) is identified in <u>Schedule
3.10(a)</u>.&#160; The schedule of Leased Real
Property set forth in <u>Schedule 3.10(a)</u> is a complete, accurate, and
correct list of the Company&#146;s Leased Real Property.&#160; Each of the leases for the Leased Real
Property set forth in <u>Schedule 3.10(a)</u> is in full force and effect and
has not been modified, amended, or altered, in writing or otherwise.&#160; Neither the Company nor, to the best of the
Company&#146;s knowledge, any other party thereto is in default under any of said
leases, nor has any event occurred which, with the giving of notice or the
passage of time, or both, would give rise to a default.</font></p>

<p style="margin:0in 0in .0001pt 20.75pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; <u>Personal Property</u>.&#160; The Company has good title (or valid
leasehold estates in the case of leased property and assets) to all of its
personal property and assets and all such personal property and assets are in
good working condition.&#160; None of such
personal property or assets is subject to any Lien, except as set forth on <u>Schedule
3.10(b)</u> (the &#147;<u>Permitted Liens</u>&#148;).&#160;
The Financial Statement reflect all personal property and assets of the
Company (other than assets disposed of in the ordinary course of business since
the date of the Financial Statements), and such properties and assets are
sufficient for the Company to conduct the business of the Company as currently
conducted and as proposed to be conducted.</font></p>

<p style="margin:0in 0in .0001pt 20.75pt;text-autospace:none;text-indent:105.6pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.11&#160; <u>Intellectual Property</u>.</font></p>

<p style="margin:0in 0in .0001pt 78.35pt;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160; The Company owns, or is licensed or otherwise
possesses enforceable rights to use, all Intellectual Property (as defined
below) used in or necessary for the conduct of its business as currently
conducted and as proposed to be conducted.&#160;
There are no claims or demands pending by any other person pertaining to
any of such Intellectual Property nor, to the best of the Company&#146;s knowledge,
is there a claim or demand threatened, and no proceedings have been instituted
or, to the best of the Company&#146;s knowledge, threatened which challenge the
rights of the Company with respect to such Intellectual Property.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; With respect to Intellectual Property that is
owned by the Company, all such Intellectual Property is owned free and clear of
Liens, other than Permitted Liens. All patents, patent applications,
trademarks, trademark applications, trademark registrations, service marks, service
work applications, service mark registrations, and registered copyrights which
are owned by the Company are listed in <u>Schedule 3.11(b)</u>.&#160; All such patents, patent applications,
trademarks, trademark registrations, trademark applications, and registered
copyrights have been duly registered in, filed in or issued by the United
States Patent and Trademark Office, the United States Register of Copyrights,
or the corresponding offices of other jurisdictions as identified on <u>Schedule
3.11(b)</u>, and have been properly maintained and renewed in accordance with
all applicable provisions of Law and administrative regulations of the United
States and each such jurisdiction.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160; All licenses or other agreements under which
the Company is granted rights in Intellectual Property of any third person are
listed in <u>Schedule 3.11(c)</u>.&#160; All
such licenses or other agreements are in full force and effect, there is no
default by the Company or, to the best of the Company&#146;s knowledge, by any other
party thereto, and all of the rights of the Company thereunder are freely
transferable without restriction or royalty of any kind (including, without
limitation, to any successor-in-interest as a result of a merger,
consolidation, asset sale or similar transaction resulting in a change of
control).&#160; The licensors under said
licenses and other agreements have and, at the time of the grant of such
licenses or agreements, had all requisite power and authority to grant the
rights purported to be conferred thereby.&#160;
The execution, delivery, and performance of this Agreement and the
Related Agreements by the Company, and the sale, issuance and delivery of the
Shares pursuant hereto and of the issuance and delivery of the Conversion
Shares pursuant to the Restated Charter, will not, with or without the passage
of time or giving of notice, impair or otherwise affect the rights of the
Company under any such license or agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160; All licenses or other agreements under which
the Company has granted rights to others in its Intellectual Property are
listed in <u>Schedule 3.11(d)</u>.&#160; All
such licenses or other agreements are in full force and effect, there is no
default by the Company or, to the best of the Company&#146;s knowledge, by any other
party thereto, and all of the rights of the Company thereunder are freely
transferable without restriction or royalty of any kind (including, without
limitation, to any successor-in-interest as a result of a merger,
consolidation, asset sale or similar transaction resulting in a change of
control). The execution, delivery, and performance of this Agreement and the
Related Agreements by the Company, and the sale, issuance and delivery of the
Shares pursuant hereto and of the issuance and delivery of the Conversion
Shares pursuant to the Restated Charter, will not, with or without the passage
of time or giving of notice, impair or otherwise affect the rights of the
Company under any such license or agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160; The Company has taken all commercially
reasonable measures required to establish and preserve its ownership of all
Intellectual Property developed by, or on behalf of, the Company.&#160; The Company has required all current and
former employees and all consultants and independent contractors having access
to, or who were involved in the development of, any of the Intellectual
Property owned or developed by the Company, to execute enforceable agreements
that provide valid written assignment of all inventions and developments
conceived or created by them in the course of their employment or services, and
all such persons are in compliance with such agreements.&#160; The Company has no knowledge of any
infringement by</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">others of any of its Intellectual
Property.&#160; The Company does not believe
it is or will be necessary to use any inventions of any of its employees (or
persons it intends to hire) made prior to their employment by the Company.&#160; All current and former employees and all
consultants and independent contractors hired by the Company having access to
confidential or proprietary information of the Company have agreed to maintain
the confidentiality of all confidential and proprietary information of the
Company and of any information of third parties received by the Company under
an obligation of confidentiality.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160; To the best of the Company&#146;s knowledge, the
Company has not infringed, does not infringe and, by conducting its business as
currently conducted or as proposed to be conducted, will not infringe, in any
material respect, or unlawfully or wrongfully use the Intellectual Property of
any third person.&#160; No proceeding charging
the Company with infringement of any Intellectual Property of any third person
has been filed or, to the best of the Company&#146;s knowledge, is threatened to be
filed, except as set forth on <u>Schedule 3.11(f)</u>.&#160; There exists no unexpired patent or, to the
best of the Company&#146;s knowledge, patent application which includes claims that
would be infringed by or otherwise adversely affect the products, activities,
or business of the Company as currently conducted or as proposed to be
conducted.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160; The Company is not making unauthorized use of
any confidential information or trade secrets of any person, including without
limitation, any former employer of any past or present employee of the Company.&#160; Except as set forth on <u>Schedule&nbsp;3.11(g)</u>,
neither the Company nor any employee of the Company is obligated under any duty
or agreement (including any license, confidentiality agreement, covenant or
commitment of any nature), or subject to any judgment, decree or order of any
court or administrative agency, that would interfere in any manner with the use
of their best efforts to promote the interests of the Company or that would
conflict with the Company&#146;s business as now conducted or proposed to be
conducted.&#160; To the best of the Company&#146;s
knowledge, no employee or consultant is in violation of any proprietary
information or assignment of inventions agreement, or in any such similar
agreement, with any former employer or contractor, and the carrying on of the Company&#146;s
business and the conduct of the Company&#146;s business as proposed will not
conflict with or result in a breach of the terms, conditions or provisions of,
or constitute a default under, such agreements.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160; <u>Schedule 3.11(h)</u> sets forth a list of
all licenses or other agreements under which any Founder is granted rights in
Intellectual Property which (i) are for the benefit of the Company, (ii)
obligate the Company in any way or (iii) otherwise affect the business of the
Company (collectively, the &#147;<u>Founder Intellectual Property Agreements</u>&#148;).&#160; The Founders have assigned all Founder
Intellectual Property Agreements (and all right, title and interest thereunder)
to the Company.&#160; All such assignments of
the Founder Intellectual Property Agreements are enforceable, binding and in
full effect.&#160; The Founder Intellectual
Property Agreements are binding and enforceable by the Company according to
their respective terms.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160; As used in this Agreement, the term &#147;<u>Intellectual
Property</u>&#148; means (i) inventions (whether or not patentable), trade secrets,
technical data, databases, customer lists, designs, tools, methods, processes,
technology, ideas, know how and other confidential or proprietary information
and materials; (ii) trade marks and service marks (whether or not registered),
applications for trade marks and service marks, trade names, logos, trade dress
and</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">other proprietary indicia and all goodwill
associated therewith; (iii) documentation, advertising copy, marketing
materials, specifications, mask works, drawings, graphics, databases,
recordings and other works of authorship, whether or not protected by
copyright; (iv) source code, object code, data and operating files, user
manuals, documentation, flow charts, algorithms, compilers, development tools,
maintenance records and other materials related to computer programs; (v)
internet web-sites and domain names; and (vi) all forms of legal rights and
protections that may be obtained for, or may pertain to, the Intellectual
Property set forth in clauses (i) through (v) in any country of the world,
including, without limitation, all letters patent, patent applications,
provisional patents, design patents, PCT filings and other rights to inventions
or designs, all registered and unregistered copyrights in both published and
unpublished works, trade secret rights, mask works, moral rights or other
literary property or authors rights, rights regarding trademarks and other
proprietary indicia, and all applications, registrations, issuances, divisions,
continuations, renewals, reissuances and extensions of the foregoing.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.12&#160; <u>Litigation</u>.&#160; Except as set forth on <u>Schedule 3.12</u>,
(a) there is no litigation, arbitration, mediation or proceeding or
investigation pending or, to the best of the Company&#146;s knowledge, threatened
against the Company or affecting any of its properties or assets or against any
officer, director, or Founder of the Company in his or her capacity as an
officer, director or employee of the Company, or which may call into question
the validity or hinder the enforceability of this Agreement or any Related
Agreement or the transactions contemplated hereby and thereby, (b) to the best
of the Company&#146;s knowledge, there has not occurred any event nor does there
exist any condition on the basis of which any such litigation, arbitration,
mediation proceeding or investigation might be properly instituted or
commenced, (c) the Company is not a party or subject to the provisions of any
order, writ, injunction, judgment or decree of any court or government agency
or instrumentality and (d) there is no action or suit by the Company pending
or, to the best of the Company&#146;s knowledge, threatened against others.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.13&#160; <u>Tax Returns and Payments</u>.&#160; The Company has filed on a timely basis all
tax returns and reports as and when required by Law. Such tax returns and
reports correctly and completely reflect the Company&#146;s liability for taxes and
all other information required to be reported thereon.&#160; The Company has paid all taxes and other
assessments due to be paid before the Initial Closing. The Company has
adequately provided for, in its books of account and related records, liability
for all unpaid taxes, being current taxes not yet due and payable. The Company
has not been advised that any of its returns, federal, state or other, has been
or is being audited, or of any deficiency in assessment in its federal, state
or other taxes.&#160; All taxes and other
assessments and levies which the Company is required to withhold or collect
have been withheld and collected and have been paid over to the proper
governmental authorities when required.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.14&#160; <u>Employees and Consultants</u>.</font></p>

<p style="margin:0in 0in .0001pt .8in;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160; Except as approved by the Board after the
Initial Closing, the Company does not maintain or contribute to any employee
benefit plan, pension plan, stock option, bonus or incentive plan, severance
pay policy or agreement, deferred compensation agreement, or any similar plan
or agreement (an &#147;<u>Employee Benefit Plan</u>&#148;).&#160; No other corporation, trade, or business
exists which would be treated together with the Company as a single &#147;employer&#148;
under the provisions of Section 414(b), (c), (m) or (o) of the Internal Revenue
Code of 1986, as amended (the &#147;<u>Code</u>&#148;).&#160;
Each Employee Benefit Plan has been and is currently administered in</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">compliance with its constituent documents and
all reporting, disclosure and other requirements of the Employee Retirement
Income Security Act of 1974, as amended (&#147;<u>ERISA</u>&#148;), and the Code and any
other Law applicable to such Employee Benefit Plan. There are no unfunded
obligations of the Company under any retirement, pension, profit-sharing,
deferred compensation plan or similar program, and any employee contributions
withheld from payroll have been timely and fully contributed to the appropriate
Employee Benefit Plan as required under applicable Law. The Company is not
required to make any payments or contributions to any Employee Benefit Plan
pursuant to any collective bargaining agreement or any applicable labor
relations Law.&#160; The Company has never
maintained or contributed to any Employee Benefit Plan providing or promising
any health or other nonpension benefits to terminated employees (other than continuation
coverage, at the maximum applicable premium permitted to be charged by the
Company, required under Section 4980B of the Code, or Section 601 of the
ERISA).</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; <u>Schedule 3.14(b)</u> sets forth a list of
(i) all salaried employees of the Company, together with each such employee&#146;s
position, date of employment, salary, and any other compensation payable to
such employee (including, without limitation, compensation payable pursuant to
bonus, deferred compensation or commission arrangements), and (ii) each
contract, commitment, arrangement, or understanding, whether oral or written,
relating to the employment of, or the performance of services by, any employee,
consultant, or independent contractor.&#160;
The Company is not delinquent in payments to any of its employees or
consultants for any wages, salaries, commissions, bonuses or other direct
compensation for any services performed for it to the date hereof or amounts
required to be reimbursed to such employees or consultants.&#160; The Company is in compliance, in all material
respects, with all applicable Laws, agreements, orders, and consent decrees
respecting labor, employment, immigration, fair employment practices, terms and
conditions of employment, and wages and hours.&#160;
The Company has no collective bargaining agreements with any of its
employees.&#160; There is no labor union
organizing activity pending or, to the best of the Company&#146;s knowledge,
threatened with respect to the Company.&#160;
There are no charges of employment discrimination or unfair labor
practices or any strikes, slowdowns, stoppages of work, or any other concerted
interference with normal operations, pending or, to the best of the Company&#146;s
knowledge, threatened against or involving the Company.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160; To the best of the Company&#146;s knowledge, no
employee of the Company, nor any consultant with whom the Company has
contracted, is in violation of any term of any employment contract, proprietary
information agreement or any other agreement relating to the right of any such
individual to be employed by, or to contract with, the Company because of the
nature of the business conducted by the Company; and to the best of the Company&#146;s
knowledge after due inquiry, the continued employment by the Company of its
present employees, and the performance of the Company&#146;s contracts with its
independent contractors, will not result in any such violation.&#160; Except as set forth on <u>Schedule 3.14(c)</u>,
the Company has not received notice alleging that any such violation has
occurred.&#160; Except as set forth on <u>Schedule
3.14(c)</u>, no employee of the Company has been granted the right to continued
employment by the Company or to any material compensation following termination
of employment with the Company.&#160; To the
best of the Company&#146;s knowledge, no executive officer, Key Employee or group of
employees intends to terminate his, her or their employment with the Company,
nor does the Company have a present intention to terminate the employment of
any executive officer, Key Employee or group of employees.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.15&#160; <u>Compliance with Laws; Authorizations</u>.</font></p>

<p style="margin:0in 0in .0001pt .8in;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160; The Company has complied in all material
respects with each, and is not in violation of, any law, statute, regulation,
rule, ordinance or order (&#147;<u>Laws</u>&#148;), including environmental Laws, to
which the Company or its business, operations, employees, assets or properties
are or have been subject.&#160; No event has
occurred or circumstances exist that (with or without the passage of time or
the giving of notice) may result in a material violation of, conflict with or
failure on the part of the Company to comply with, any Law.&#160; The Company has not received notice regarding
any violation of, conflict with, or failure to comply with, any Law. The
execution, delivery, and performance of this Agreement and the Related
Agreements by the Company, and the sale, issuance and delivery of the Shares
pursuant hereto and of the issuance and delivery of the Conversion Shares
pursuant to the Restated Charter, will not, with or without the passage of time
or giving of notice, result in any such violation, or be in conflict with or
constitute a default under any Law.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; The Company owns, holds, possesses or
lawfully uses in the operation of its business all franchises, licenses,
permits and registrations (&#147;<u>Authorizations</u>&#148;) which are required or
otherwise necessary for it to conduct its business as currently conducted or as
proposed to be conducted or for the ownership and use of the assets owned or
used by the Company in the conduct of its business, free and clear of all
Liens, other than Permitted Liens.&#160; Such
Authorizations are valid and in full force and effect and none of such
Authorizations will be terminated or impaired or become terminable as a result
of the transactions contemplated by this Agreement or the Related
Agreements.&#160; All Authorizations are
listed in <u>Schedule 3.15(b)</u>.&#160; No
event has occurred or circumstances exist that, with or without the passage of
time or the giving of notice, may result in a violation of, conflict with,
failure on the part of the Company to comply with the terms of, or the
revocation, withdrawal, termination, cancellation, suspension or modification
of any Authorization.&#160; The Company has
not received notice regarding any violation of, conflict with, failure to
comply with the terms of, or any revocation, withdrawal, termination,
cancellation, suspension or modification of, any Authorization.&#160; The Company is not in default and has not
received notice of any claim of default, with respect to any Authorization.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.16&#160; <u>Offering Valid</u>.&#160; Assuming the accuracy of the representations
and warranties of the Investors contained in Section 4.2 hereof, the offer,
sale, issuance and delivery of the Shares and the Conversion Shares will be
exempt from the registration requirements of the Securities Act, and will have
been registered or qualified (or are exempt from registration and
qualification) under the registration, permit or qualification requirements of
all applicable state securities Laws.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.17&#160; <u>Insurance</u>.&#160; The Company has insurance policies with
respect to its business and properties, on both a per occurrence and an
aggregate basis, as are customarily carried by persons engaged in the same or
similar businesses as the Company.&#160; There
is no default by the Company, or to the best of the Company&#146;s knowledge, by any
insurance carrier of such policies, or event which could give rise to a default
under any such policy.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.18&#160; <u>Real Property Holding Company</u>.&#160; The Company is not a United States real
property holding company within the meaning of Section 897(c)(2) of the Code.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.19&#160; <u>Qualified Small Business Stock</u>.&#160; The Series A-1 Preferred Stock sold hereunder
constitutes &#147;<u>qualified small business stock</u>&#148; as defined in Section
1202(c) of the Code. The Company shall use diligent efforts to comply with the
reporting requirements of Section 1202(d)(1)(C) of the Code and any related
regulations promulgated thereby.&#160; In
addition, within a reasonable time (which shall not exceed thirty (30) days
after any Investor delivers to the Company a written request therefor), the
Company shall deliver to such Investor a written statement informing the
Investor whether, to the best of the Company&#146;s knowledge, such Investor&#146;s
interest in the Company constitutes &#147;<u>qualified small business stock</u>&#148; as
defined in Section 1202(c) of the Code.&#160;
The Company&#146;s obligation to furnish a written statement pursuant to this
Section 3.19 shall continue notwithstanding the fact that a class of the
Company&#146;s securities may be traded on an established securities market.&#160; As of the Closing Date, the Company is a &#147;<u>qualified
small business</u>&#148; within the meaning of Section 1202(d) of the Code, meets
the &#147;<u>active business requirement</u>&#148; of Section 1202(e) of the Code and has
made no &#147;<u>significant redemptions</u>&#148; within the meaning of Section 1202(c)(3)(B)
of the Code.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.20&#160; <u>Investment Company Act</u>.&#160; The Company is not an &#147;<u>investment company</u>&#148;
within the meaning of the Investment Company Act of 1940, as amended nor is the
Company directly or indirectly controlled by or acting on behalf of any person
which is an &#147;<u>investment company</u>.&#148;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.21&#160; <u>Disclosure</u>.&#160; The representations and warranties made or
contained in this Agreement and the schedules and exhibits hereto, and the
certificates executed or delivered in connection herewith, when taken together,
do not and shall not contain any untrue statement of a material fact and do not
and shall not omit to state a material fact required to be stated therein or
necessary in order to make such representations and warranties not misleading
in light of the circumstances in which they were made or delivered.&#160; There have been no events or transactions, or
facts or information which have not been disclosed herein or in a schedule
hereto which have or could reasonably be expected to have a Material Adverse
Effect.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4. &#160;<u>Representations and Warranties of Investors</u>.&#160; Each Investor, severally as to itself and not
jointly, hereby represents and warrants to the Company as of the date hereof
and as of the Closing Date and each Subsequent Closing Date that the statements
contained in this Section 4 are true and correct as follows.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.1&#160; <u>Requisite Power and Authority</u>.&#160; Such Investor has all necessary power and
authority to execute and deliver this Agreement and the Related Agreements and
to carry out their provisions.&#160; All
action on such Investor&#146;s part required for the execution and delivery of this
Agreement and the Related Agreements has been taken.&#160; Upon their execution and delivery, this
Agreement and the Related Agreements will be duly executed and delivered by
such Investor and constitute valid and binding obligations of such Investor,
enforceable in accordance with their respective terms, except (a) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other Laws of
general application affecting enforcement of creditors&#146; rights, (b) as limited
by general principles of equity that restrict the availability of equitable
remedies and (c) to the extent that the enforceability of the indemnification
provisions of the Investor Rights Agreement may be limited by applicable Laws.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.2&#160; <u>Investment Representations</u>.&#160; Such Investor is an &#147;<u>accredited investor</u>&#148;
as such term is defined in Rule 501 of Regulation D promulgated under the
Securities Act. Such Investor is purchasing the Shares and Conversion Shares
for its own account, for investment purposes only and has no current
arrangements or understandings for the resale or distribution to others and
will only resell such Shares and Conversion Shares any part thereof pursuant to
a registration or an available exemption under applicable Law.&#160; Such Investor acknowledges that the offer and
sale of the Shares and Conversion Shares have not been registered under the
Securities Act or the securities Laws of any state or other jurisdiction, and
that the Shares and Conversion Shares are being offered and sold pursuant to an
exemption from registration contained in the Securities Act, and cannot be
disposed of unless they are subsequently registered under the Securities Act and
any applicable state Laws or an exemption from such registration is
available.&#160; Such Investor understands and
agrees that the Shares and the Conversion Shares will bear a legend
substantially similar to the legend set forth below in addition to any other
legend that may be required by applicable Law, the Restated Charter, the
Bylaws, and the Related Agreements, as the same may be amended from time to
time, or by any agreement between the Company and such Investor:</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 74.9pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THE SECURITIES
REPRESENTED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED EXCEPT (A) PURSUANT TO
AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND
APPLICABLE STATE SECURITIES LAWS, OR (B) IN A TRANSACTION WHICH IS EXEMPT FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE
SECURITIES LAWS.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.3&#160; <u>No Conflicts</u>.&#160; The execution, delivery and performance by
such Investor of this Agreement and each Related Agreement and the transactions
contemplated thereby does not and will not (a) conflict with, violate or result
in any default under the organizational documents of the Investor,&#160; (b) with or without the giving of notice or
the lapse of time, or both, result in any violation or breach of, or constitute
a default under, or result in any right to accelerate or result in the creation
of any Liens pursuant to, or right of termination under, any material contract
to which such Investor is a party or by which such Investor or any of its
property is bound, or (c) conflict with or violate any requirement of Law to
which such Investor is subject, which could reasonably be expected to have a
material adverse effect upon such Investor&#146;s ability to perform its duties and
obligations under this Agreement and the Related Agreements.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.4&#160; <u>Consents</u>.&#160; The execution, delivery and performance by
such Investor of this Agreement and the Related Agreements and the consummation
of the transactions contemplated thereby do not and will not require the
consent or approval of, or notice to, or other action of any Governmental
Authority or other third party, which consent or approval, as appropriate, has
not been obtained.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.5&#160; <u>Litigation</u>.&#160; There is no litigation, arbitration,
mediation or proceeding or investigation pending or, to the knowledge of each
Investor, threatened against such Investor or affecting any of its properties or
assets or against any officer, director, or employee of such Investor in his or
her capacity as an officer, director or employee of the Investor, that could
reasonably be expected to have a material adverse effect upon such Investor&#146;s
ability to perform its duties and obligations under this Agreement and the
Related Agreements or which may call into question the validity or hinder the
enforceability of this Agreement or any Related Agreement or the transactions
contemplated hereby and thereby; nor has there occurred any event nor does
there exist any condition on the basis of which any such litigation,
arbitration, mediation proceeding or investigation might be properly instituted
or commenced. Such Investor is not a party or subject to the provisions of any
order, writ, injunction, judgment or decree of any court or government agency
or instrumentality could reasonably be expected to have a material adverse
effect upon such Investor&#146;s ability to perform its duties and obligations under
this Agreement and the Related Agreements. There is no action or suit by such
Investor pending or, to such Investor&#146;s knowledge, threatened against others
could reasonably be expected to have a material adverse effect upon such
Investor&#146;s ability to perform its duties and obligations under this Agreement
and the Related Agreements.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.6&#160; <u>Broker&#146;s, Finder&#146;s or Similar Fees</u>.&#160; There are no brokerage commissions, finder&#146;s
fees or similar fees or commissions payable in connection with the transactions
contemplated hereby, or by any other Related Agreements to which such Investor
is a party, based on any agreement, arrangement or understanding with such
Investor or any action taken by such Investor.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.7&#160; <u>Residence</u>.&#160; If such Investor is an individual, then the
Investor resides in the state or province identified in the address of such
Investor on the signature pages hereof; if such Investor is a partnership,
corporation, limited liability company or other entity, then the office or
offices of such Investor in which its principal place of business is located is
the address or addresses of such Investor set forth on the signature pages
hereof.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160; <u>Conditions to Closings; Post-Closing
Covenants</u>.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.1&#160; <u>Conditions to Obligations of the Investors
for Initial Closing</u>.&#160; Each Investor&#146;s
obligation to purchase the Initial Shares at the Initial Closing is subject to
the satisfaction or waiver, on or prior to the Closing Date, of the following
conditions:</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160; <u>Representations and Warranties</u>.&#160; The representations and warranties made by
the Company in Section 3 hereof shall be true and correct as of the Closing
Date as if they had been made on and as of the Closing Date.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; <u>Performance of Obligations</u>.&#160; The Company shall have performed all
obligations required herein to be performed by it on or prior to the Initial
Closing.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160; <u>Compliance Certificate</u>.&#160; The Company shall have delivered to the
Investors a Compliance Certificate, executed by the President of the Company,
dated as of the Closing Date, to the effect that the conditions specified in subsections
(a) and (b) of this Section 5.1 have been satisfied.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160; <u>No Material Adverse Change</u>.&#160; There shall have been no event that has had,
or could be reasonably expected to have, a Material Adverse Effect on the
Company.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160; <u>Regulatory Approvals</u>.&#160; All authorizations, approvals and permits, if
any, of any governmental authority or regulatory body of the United States or
of any state that are required to be obtained on or prior to the Initial
Closing in connection with the issuance of and sale of the Shares pursuant to
this Agreement shall have been duly obtained and shall be effective as of the
Initial Closing.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160; <u>Secretary&#146;s Certificate; Corporate
Documents</u>.&#160; The Investors shall have
received from the Secretary of the Company a certificate having attached
thereto: (i) the Restated Charter as in effect at the time of the Initial
Closing (and evidence of the filing thereof with the Secretary of State of the
State of Delaware), (ii) the Company&#146;s Bylaws as in effect at the time of the
Initial Closing, (iii) resolutions approved by the Board of Directors
authorizing the transactions contemplated hereby, (iv) resolutions approved by
the Company&#146;s stockholders authorizing the filing of the Restated Charter, and
(v) good standing certificates with respect to the Company from the applicable
authority(ies) in Delaware and any other jurisdiction in which the Company is
qualified to do business, dated a recent date before the Initial Closing.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160; <u>Investor Rights Agreement</u>.&#160; The Investor Rights Agreement shall have been
executed and delivered by the Company and the other parties thereto.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160; <u>Stockholders&#146; Agreement</u>.&#160; The Stockholders&#146; Agreement shall have been
executed and delivered by the Company and the Founders.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160; <u>Buy-Sell Agreements</u>.&#160; A Buy-Sell Agreement shall have been executed
and delivered by the Company and each Founder and shall be in the form of <u>Exhibit
D-1</u> through <u>Exhibit D-4</u> attached hereto, as appropriate.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160; <u>Board of Directors</u>.&#160; Upon the Initial Closing, the authorized size
of the Board shall be four (4), and the Board shall consist of Daniel J.
McDonough, David Apple, Kevin Wilson, and John Morgan<b><font style="font-weight:bold;">, </font></b>with a fifth member to be appointed thereto after the
Initial Closing in accordance with the Stockholders&#146; Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160; <u>Legal Opinion</u>.&#160; The Investors shall have received from legal
counsel to the Company an opinion addressed to them, which is reasonably
satisfactory, in form and substance, to the Investors.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)&#160; <u>Founders&#146; Employment Agreements</u>.&#160; The Founders&#146; Employment Agreements shall
have been executed and delivered by the Company and the Founders and shall be
satisfactory, in form and substance, to the Investors.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)&#160; <u>Senior Debt Facility</u>.&#160; The Company and Wells Fargo Foothill,
Inc.&#160; (in its capacity as arranger and
administrative agent, &#147;<u>Wells Fargo</u>&#148;; the lender or lenders with respect
to which Wells Fargo serves as administrative agent, the &#147;<u>Senior Lender</u>&#148;)
shall have executed and delivered to one another loan documents (collectively, the
&#147;<u>Senior Loan Documents</u>&#148;) satisfactory to the Investors pertaining to a
revolving credit facility being made available by the Senior Lender to the
Company in the maximum amount of Twenty Million Dollars</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">($20,000,000) (the &#147;<u>Senior Debt Facility</u>&#148;)
pursuant to the provisions of the Senior Loan Documents.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)&#160; <u>Purchase of Series A-2 Preferred Stock</u>.&#160; The Founders shall have purchased the Series
A-2 Preferred Stock as provided in the Founders Purchase Agreement and the
Founders Purchase Agreement shall be reasonably satisfactory, in form and
substance, to the Investors.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)&#160; <u>Key Man Life Insurance</u>.&#160; The Company shall have obtained and delivered
to the Investors a copy of a key man life insurance policy on the life of
Daniel J. McDonough in the amount of $3,000,000 with the proceeds payable to
the Company.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)&#160; <u>McDonough Indemnity</u>.&#160; The McDonough Indemnity shall be reasonably
satisfactory, in form and substance, to the Investors.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(q)&#160; <u>Initial Closing</u>.&#160; The Initial Closing shall have occurred by
October 15, 2004.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.2&#160; <u>Conditions to Obligations of the Company
for the Initial Closing and Subsequent Closings</u>.&#160; The Company&#146;s obligation to issue and sell
the Shares at the Initial Closing and the Subsequent Closings, as applicable,
is subject to the satisfaction or waiver, on or prior to the Closing Date and
each of the Subsequent Closing Dates, as applicable, of the following
conditions:</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160; <u>Representations and Warranties</u>.&#160; The representations and warranties made by
the Investors in Section 4 hereof shall be true and correct as of the Closing
Date and each of the Subsequent Closing Dates, as applicable, with the same
force and effect as if they had been made on and as of the Closing Date and
each of the Subsequent Closing Dates, as applicable.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; <u>Performance of Obligations</u>.&#160; Such Investors shall have performed all
obligations required herein to be performed by such Investors on or prior to
the Initial Closing and the Subsequent Closings, as applicable.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160; <u>Regulatory Approvals</u>.&#160; All authorizations, approvals and permits, if
any, of any governmental authority or regulatory body of the United States or
of any state that are required to be obtained on or prior to the Initial
Closing and the Subsequent Closings, as applicable, in connection with the
issuance of and sale of the Shares being acquired pursuant to this Agreement
shall have been duly obtained and shall be effective as of the Initial Closing
and the Subsequent Closings, as applicable.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160; <u>Stockholders&#146; Agreement</u>.&#160; The Stockholders&#146; Agreement shall have been
executed and delivered by the Investors.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160; <u>McDonough Indemnity</u>.&#160; The Company shall have executed and delivered
to and in favor of Daniel J. McDonough (&#147;<u>McDonough</u>&#148;) an agreement (the &#147;<u>McDonough
Indemnity</u>&#148;) under which it shall indemnify, defend and hold McDonough
harmless from all loss, expenses, damages, and claims arising under any
validity (or similar) agreement executed and</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">delivered by McDonough in favor of the Senior
Lender, with such exceptions thereto and exclusions therefrom as may be
mutually satisfactory to McDonough and the Company.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.3&#160; <u>Conditions to Obligations of the Investors
for Subsequent Closings</u>.&#160; Each
Investor&#146;s obligation to purchase Subsequent Closing Shares at the Subsequent
Closing applicable thereto is subject to the satisfaction or waiver, on or
prior to the applicable Subsequent Closing Date, of the following conditions:</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160; <u>Funding Notice</u>.&#160; The Company shall have executed and delivered
a Funding Notice to the Investors, together with the officer&#146;s certificate
required thereby, which officer&#146;s certificate shall include reasonably
satisfactory evidence that a Funding Event (as defined below) has occurred.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; <u>Funding Event</u>.&#160; Either: (i) the proceeds from the sale of the
Subsequent Closing Shares shall be required by the Company to (A) satisfy a
leverage ratio or similar financial covenant imposed by the Senior Lender under
the Senior Loan Documents or (B) cure or prevent a payment or other default
under the Senior Loan Documents, <u>provided</u>  <u>that</u> the Senior Lender
has agreed to continue to provide the Company with credit availability under
the Senior Debt Facility and (if applicable) waive the default under the Senior
Loan Documents in the case of a Funding Event described in this clause (i); or
(ii) the Board shall have determined that it requires the capital resulting
from the sale of the Subsequent Closing Shares (in either case, a &#147;<u>Funding
Event</u>&#148;).</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160; <u>Legal Investment</u>.&#160; The sale and issuance of the Subsequent
Closing Shares to be purchased at the Subsequent Closing shall be legally
permitted by all laws and regulations to which Investors and the Company are
subject.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160; <u>Performance of Obligations</u>.&#160; The Company shall have performed, in all
material respects, all obligations required herein to be performed by the
Company on or prior to the Subsequent Closing.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160; <u>Consents, Permits and Waivers</u>.&#160; The Company shall have obtained any and all
consent, permits and waivers necessary or appropriate for consummation of the
transactions contemplated by the Subsequent Closing (except for such as may be
properly obtained following the Subsequent Closing).</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160; <u>Delivery of Certificates</u>.&#160; The Investors shall have received from the
Company certificates evidencing the Subsequent Closing Shares to be issued and
sold to the Investors as of the Subsequent Closing and registered in the name
of each Investor, against delivery to the Company by each Investor of a wire
transfer in the amount of the purchase price for the Subsequent Closing Shares
purchased by each such Investor at the Subsequent Closing.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 81.35pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160; <u>Initial Closing</u>.&#160; The Initial Closing shall have occurred.</font></p>

<p style="margin:0in 0in .0001pt 81.35pt;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.4&#160; <u>Certain Post-Closing Covenants</u>.&#160; The Company covenants and agrees as to take
the following actions after the Initial Closing:</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160; <u>Confidentiality and Related Agreements</u>.&#160; The Company shall require all future
employees and consultants having access to, or who are, were or will be
involved in the development of, any of the Intellectual Property owned or
developed (or to be developed) by the Company, to execute agreements under
which such employees and consultants (i) agree to maintain the confidentiality
of all confidential and proprietary information of the Company and (ii) provide
assignments of all inventions and developments conceived or created by them in
the course of their employment or services, which form of agreement shall be
approved by the Board.&#160; The agreements
required to be executed pursuant to this Section 5.4(a) shall be executed
concurrently with the employment or engagement, as appropriate, of the employee
or consultant by the Company.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; <u>Adoption of Plan</u>.&#160; The Company shall formulate and adopt the Plan
as soon as practicable after the Initial Closing with the approval of the
Board.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160; <u>Miscellaneous</u>.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.1&#160; <u>Governing Law</u>.&#160; This Agreement shall be governed, construed
and interpreted in accordance with the Laws of the State of Delaware, without
giving effect to principles of conflicts of Law or choice of Law that would
cause the substantive Laws of any other jurisdiction to apply.&#160; The Company irrevocably submits and consents
to the jurisdiction of any Delaware state court or federal court sitting in Delaware
over any action or proceeding arising out of or relating to the Agreement or
the other Related Agreements, and the Company hereby irrevocably agrees that
all claims in respect of any such action or proceeding may be heard and
determined in such courts.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .8in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.2&#160; <u>Survival; Indemnification of Investors</u>.</font></p>

<p style="margin:0in 0in .0001pt .8in;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160; The representations, warranties, covenants
and agreements made in this Agreement, the Schedule of Exceptions, any Related
Agreement or any other agreement, certificate, document or instrument furnished
pursuant hereto shall survive any investigation made by any Investor and the
closing of the transactions contemplated hereby and shall in no way be affected
by any investigation of the subject matter thereof made by or on behalf of the
Investors or the Company, as appropriate.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; The Company hereby agrees to hold harmless
and indemnify the Investors, the Investors&#146; direct and indirect subsidiaries,
affiliated entities and corporations, and each of their partners, executive
officers, directors, employees, stockholders, agents and representatives
(collectively, referred to as the &#147;<u>Investor Indemnitees</u>&#148;) against any
and all damages, liabilities, losses, costs and expenses (including reasonable
attorneys&#146; fees and expenses), whether or not arising out of third-party
claims, based upon, or arising out of, or relating to, (i) any inaccuracy in,
or any breach by the Company of, any representation or warranty contained in
this Agreement, the Schedule of Exceptions, any Related Agreement or any other
agreement, certificate, document or instrument furnished pursuant hereto, or
(ii) any breach of any covenant or agreement by the Company contained in this
Agreement, the Schedule of Exceptions, any Related Agreement or any other
agreement, certificate, document or instrument furnished pursuant hereto
(collectively, the &#147;<u>Indemnifiable Claims</u>&#148;) ; <u>provided</u>  <u>that</u>
the Company shall not be liable under this Section 6.2&#160; to an Investor Indemnitee for: (i) any amount
paid in settlement</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of claims without the Company&#146;s prior written
consent (which consent shall not be unreasonably withheld); (ii) to the extent
that it is judicially determined that such Indemnifiable Claims resulted from
the willful misconduct or gross negligence of such Investor Indemnitee; or
(iii) to the extent that it is determined that such Indemnifiable Claims
resulted from the material breach by such Investor Indemnitee of any
representation, warranty, covenant or other agreement of such Investor
Indemnitee contained in this Agreement or any Related Agreement or any other
contract to which it is a party; <u>provided</u>, that if an Investor
Indemnitee is reimbursed hereunder for any expenses, such reimbursement of
expenses shall be refunded to the extent it is judicially determined that the
Indemnifiable Claim in question resulted from (i) the willful misconduct or
gross negligence of such Investor Indemnitee or (ii) the material breach by
such Investor Indemnitee of any representation, warranty, covenant or other agreement
of such Investor Indemnitee contained in this Agreement or the Related
Agreements.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160; The Company shall reimburse, promptly
following request therefor, all reasonable expenses incurred by an Investor
Indemnitee in connection with any Indemnifiable Claim, including, without
limitation, any threatened, pending or completed action, suit, arbitration,
investigation or other proceeding arising out of, or relating to, any
Indemnifiable Claim.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160; Each Investor Indemnitee under this Section
6.2 will, promptly after the receipt of notice of the commencement of any
action, investigation, claim or other proceeding against such Investor
Indemnitee in respect of which indemnity may be sought from the Company under
this Section 6.2, notify the Company in writing of the commencement thereof.
The failure by any Investor Indemnitee to so notify the Company of any such
action shall not relieve the Company from any liability which it may have to
such Investor Indemnitee unless, and only to the extent that, such omission
results in the Company&#146;s forfeiture of substantive rights or defenses or the
Company is otherwise irrevocably prejudiced in defending such proceeding. In
case any such action, claim or other proceeding shall be brought against any
Investor Indemnitee and it shall notify the Company of the commencement
thereof, the Company shall be entitled to assume the defense thereof at its own
expense, with counsel reasonably satisfactory to the Investor Indemnitee; <u>provided</u>
<u>that</u> any Investor Indemnitee may, at its own expense, retain separate
counsel to participate in such defense.&#160;
The Company agrees that it will not, without the prior written consent
of the holders holding at least a majority of the issued and outstanding Shares,
settle, compromise or consent to the entry of any judgment in any pending or
threatened claim, action or proceeding relating to the matters contemplated
hereby (if any Investor Indemnitee is a party thereto or has been actually
threatened to be made a party thereto) unless such settlement, compromise or
consent includes an unconditional release of the Investors and each other
Investor Indemnitee from all liability arising or that may arise out of such
claim, action or proceeding.&#160; The Company
shall not be liable for any settlement of any claim, action or proceeding
effected against an Investor Indemnitee without the prior written consent of
the Company.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:81.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160; The rights to indemnification set forth in
this Section 6.2 are in addition to, and not in limitation of, all rights and
remedies to which the Investors may be entitled. All remedies, either under
this Agreement, the Related Agreements, the Restated Charter, by Law, or
otherwise afforded to any party, shall be cumulative and not alternative.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.3&#160; <u>Amendment and Waiver</u>.&#160; Any provision of this Agreement may be
amended and the observance thereof may be waived (either generally or in a
particular instance and either retroactively or prospectively), only by the
written consent of (a) the Company, and (b) Investors owning not less than 66
2/3% of the shares of Common Stock issued or issuable upon conversion of the
Series A-1 Preferred Stock owned (or subscribed for) by all Investors (the &#147;<u>Required
Investors</u>&#148;). Any amendment or waiver effected in accordance with this
Section 6.3 shall be binding upon the Company and each Investor, and their
respective successors and assigns. For purposes of this Section 6.3, any
reference to &#147;<u>66 2/3% of the shares of Common Stock issued or issuable upon
conversion of Series A-1 Preferred Stock</u>&#148; shall exclude all shares of
Common Stock issuable upon payment of Accruing Dividends, assuming for purposes
of this calculation that all Accruing Dividends are paid in cash in lieu of the
issuance of Common Stock.&#160; The term &#147;<u>Accruing
Dividends</u>&#148; shall have the meanings given to such term in the Restated
Charter, as the same may be amended and/or restated from time to time.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.4&#160; <u>Entire Agreement</u>.&#160; This Agreement, the exhibits and schedules
hereto, and the Related Agreements delivered pursuant hereto constitute the
entire agreement among the parties relative to the specific subject matter
hereof and thereof.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.5&#160; <u>Notices</u>.&#160; All notices required or permitted hereunder
shall be in writing and shall be deemed effectively given: (a) upon personal
delivery to the party to be notified; (b) when sent by confirmed telex,
facsimile or electronic mail if sent during normal business hours of the
recipient, if not, then on the next business day; (c) five (5) days after
having been sent by registered or certified mail, return receipt requested,
postage prepaid; or (d) the next business day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with written
verification of receipt.&#160; All
communications shall be sent to the Company at the address or facsimile number
set forth on its signature page hereto and to each Investor at the address or
facsimile number set forth on Schedule A hereto or at such other address as the
Company or each Investor may designate by ten (10) days&#146; advance written notice
to the other parties hereto.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.6&#160; <u>Severability</u>.&#160; In the event one or more of the provisions of
this Agreement should, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality, or unenforceability
shall not affect any other provisions of this Agreement, and this Agreement
shall be construed as if such invalid, illegal or unenforceable provision had
never been contained herein.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.7&#160; <u>Expenses</u>.&#160; Each party shall pay all costs and expenses
that it incurs with respect to the negotiation, execution, delivery and
performance of the Agreement; <u>provided</u>, <u>however</u>, that, if the
Initial Closing occurs, the Company shall, at the Initial Closing, reimburse to
the Investors, an amount not to exceed Seventy-Five Thousand Dollars ($75,000),
for fees and expenses incurred in connection with this transaction.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.8&#160; <u>Broker&#146;s Fees</u>.&#160; The Company shall be solely responsible for
the payment of all broker fees to Anderson LeNeave &amp; Co. and Kropschot
Financial Services.&#160; Each party
represents and warrants that other than Anderson LeNeave &amp; Co. and
Kropschot Financial Services, no agent, broker, investment banker, person or
firm acting on behalf of or under the authority of such party is or will be
entitled to any broker&#146;s or finder&#146;s fee or any other commission directly or
indirectly in connection with the transactions contemplated herein.&#160; The</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Company agrees to indemnify each Investor
against any fee or commission payable by such Investor for which the Company is
responsible, and each Investor agrees to indemnify the Company against any fee
or commission payable by the Company for which such Investor is responsible.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.9&#160; <u>Exculpation Among Investors</u>.&#160; Each Investor acknowledges that it is not
relying upon any person, firm, or corporation, other than the Company and its
executive officers and directors, in making its investment or decision to
invest in the Company.&#160; Each Investor
agrees that no Investor nor the respective controlling persons, executive
officers, directors, partners, agents, or employees of any Investor shall be
liable to any other Investor for any action heretofore or hereafter taken or
omitted to be taken by any of them in connection with the Shares and Conversion
Shares.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.10&#160; <u>Counterparts</u>.&#160; This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.11&#160; <u>Successors and Assigns</u>.&#160; The provisions hereof shall inure to the
benefit of, and be binding upon, the successors and assigns of the parties
hereto.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.12&#160; <u>Titles and Subtitles</u>.&#160; The titles of the sections and subsections of
this Agreement are for convenience of reference only and are not to be
considered in construing this Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.8in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[SERIES A-1 PREFERRED STOCK PURCHASE AGREEMENT]</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the date set forth in the first paragraph hereof.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:36.62%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">COMMERCIAL CREDIT GROUP INC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:36.62%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:36.62%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.34%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="33%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:33.28%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Daniel J. McDonough</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:6.22%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="30%" valign="top" style="padding:0in 0in 0in 0in;width:30.4%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Daniel J. McDonough</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:6.22%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="30%" valign="top" style="padding:0in 0in 0in 0in;width:30.4%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President and Chief Executive Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:36.62%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:36.62%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address:</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:36.62%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">212 South Tryon Street</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:36.62%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Suite 1400</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:36.62%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Charlotte, NC 28281</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:36.62%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention: Mr. Daniel J. McDonough</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:36.62%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone:</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:36.62%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile:</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:36.62%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="474" style="border:none;"></td>
  <td width="25" style="border:none;"></td>
  <td width="22" style="border:none;"></td>
  <td width="227" style="border:none;"></td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:36.62%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WINMARK CORPORATION</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:36.62%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:36.62%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.34%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="33%" colspan="4" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:33.28%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ John Morgan</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:6.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="29%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:29.96%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">John Morgan</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:6.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="29%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:29.96%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Authorized Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:36.62%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:36.62%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address:</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:36.62%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4200 Dahlberg Drive, Suite 100</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:36.62%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Minneapolis, MN 55422-4837</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:8.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:</font></p>
  </td>
  <td width="28%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:28.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. John Morgan</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:9.62%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone:</font></p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(763) 520-8404</font></p>
  </td>
 </tr>
 <tr>
  <td width="63%" valign="top" style="padding:0in 0in 0in 0in;width:63.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:9.62%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile:</font></p>
  </td>
  <td width="27%" valign="top" style="padding:0in 0in 0in 0in;width:27.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(763) 520-8410</font></p>
  </td>
 </tr>
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  <td width="474" style="border:none;"></td>
  <td width="25" style="border:none;"></td>
  <td width="25" style="border:none;"></td>
  <td width="13" style="border:none;"></td>
  <td width="9" style="border:none;"></td>
  <td width="202" style="border:none;"></td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">26</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

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</font></div>

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<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">List of Exhibits</font></u></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="94%" style="border-collapse:collapse;width:94.3%;">
 <tr>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.64%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit A</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.22%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.14%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amended and Restated Certificate of
  Incorporation</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.64%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.22%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.14%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.64%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit B</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.22%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.14%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Investor Rights Agreement</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.64%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.22%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.14%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.64%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit C</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.22%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.14%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Stockholders&#146; Agreement</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.64%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.22%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.14%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.64%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit D</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.22%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.14%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Buy-Sell Agreements</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">27</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

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</font></div>

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