BNCCORP INC
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>3
<FILENAME>exhibit10_1.htm
<TEXT>
<html>



<body>

<p ALIGN="RIGHT"><b>EXHIBIT 10.1</b></p>

<font SIZE="4">
<p ALIGN="RIGHT">&nbsp;</p>
<p ALIGN="RIGHT">Final dated March 22, 2002</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
<hr>
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="CENTER">&nbsp;</p>
</font>
<p ALIGN="CENTER">STOCK PURCHASE AGREEMENT&nbsp;</p>
<p ALIGN="CENTER">among</p>
<p ALIGN="CENTER">&nbsp;BNCCORP, INC.,</p>
<p ALIGN="CENTER">&nbsp;BNC INSURANCE, INC.</p>
<p ALIGN="CENTER">&nbsp;and</p>
<p ALIGN="CENTER">&nbsp;RICHARD W. MILNE, JR.,</p>
<p ALIGN="CENTER">&nbsp;TERRENCE M. SCALI,</p>
<p ALIGN="CENTER">&nbsp;The Richard W. Milne, Jr. and Robin Jayne Milne</p>
<p ALIGN="CENTER">Revocable Living Trust,</p>
<p ALIGN="CENTER">The Terrence M. Scali and Marcella A. Scali Family Trust,</p>
<p ALIGN="center">&nbsp;G. Steven Hay,</p>
<p ALIGN="CENTER">&nbsp;Nancy Kozloski-Rausch,</p>
<p ALIGN="CENTER">&nbsp;Ronald Cadaret,</p>
<p ALIGN="CENTER">&nbsp;Anthony J. Scali,</p>
<p ALIGN="CENTER">&nbsp;and</p>
<p ALIGN="CENTER">&nbsp;The Hammontree/Turnacliff Revocable Trust</p>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="CENTER">Dated as of March 22, 2002</p>
<p ALIGN="CENTER">&nbsp;</p>
<hr>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
<b>
<p ALIGN="CENTER">TABLE OF CONTENTS</p>
</b>
<div align="center">
  <center>
  <table border="0" width="95%" cellspacing="0" cellpadding="0">
    <tr>
      <td width="95%" colspan="2">
<p><font SIZE="3">
ARTICLE I&nbsp;&nbsp;&nbsp;DEFINITIONS&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
      <td width="61" align="right"><font size="3">1</font></td>
    </tr>
    <tr>
      <td width="689" colspan="2"><font size="3">&nbsp;&nbsp;</font></td>
      <td width="61" align="right"></td>
    </tr>
    <tr>
      <td width="689" colspan="2">
<p><font SIZE="3">
ARTICLE II&nbsp;&nbsp;&nbsp;SALE AND PURCHASE OF SHARES;
CLOSING&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="61" align="right"><font size="3">1</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 2.1&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Sale of Shares&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">1</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 2.2&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Purchase Price&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">2</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 2.3&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Earnout&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="61" align="right"><font size="3">2</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 2.4&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Closing</font></p>
      </td>
      <td width="61" align="right"><font size="3">6</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 2.5&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Payments </font></p>
      </td>
      <td width="61" align="right"><font size="3">8</font></td>
    </tr>
    <tr>
      <td width="689" colspan="2"><font size="3">&nbsp;&nbsp;</font></td>
      <td width="61" align="right"></td>
    </tr>
    <tr>
      <td width="689" colspan="2">
<p>
<font SIZE="3">
ARTICLE III&nbsp;&nbsp;&nbsp;REPRESENTATIONS AND WARRANTIES OF THE SELLERS</font></p>
      </td>
      <td width="61" align="right"><font size="3">8</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.1&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Ownership </font></p>
      </td>
      <td width="61" align="right"><font size="3">8</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.2&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Authority </font></p>
      </td>
      <td width="61" align="right"><font size="3">9</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.3&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Noncontravention </font></p>
      </td>
      <td width="61" align="right"><font size="3">9</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.4&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Legal Proceedings&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">9</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.5&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Investment Representation&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="61" align="right"><font size="3">10</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.6&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Organization; Qualification; Subsidiaries</font></p>
      </td>
      <td width="61" align="right"><font size="3">10</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.7&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Capitalization&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="61" align="right"><font size="3">10</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.8&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
No Conflict&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="61" align="right"><font size="3">11</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.9&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Consent&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">11</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.10&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Charter Documents&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">11</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.11&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Financial Statements&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">12</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.12&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Absence of Certain Changes&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">12</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.13&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Accounts Receivable&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">13</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.14&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Clients&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">13</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.15&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Properties; Equipment&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">13</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.16&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Governmental Permits&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">13</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.17&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Compliance with Laws&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">13</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.18&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Material Contracts&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">13</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.19&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Litigation&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">14</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.20&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Environmental Matters&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">14</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.21&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Employee Plans&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="61" align="right"><font size="3">14</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.22&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Taxes&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">14</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.23&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Certain Payments&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="61" align="right"><font size="3">16</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.24&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Transactions with Certain Persons&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">16</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.25&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Intellectual Property&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">16</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.26&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Insurance&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">16</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.27&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Books and Records&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">16</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.28&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Labor Matters&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="61" align="right"><font size="3">17</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.29&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Documents and Written Materials; Disclosure&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">17</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.30&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Director and Officer Indemnification&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">17</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 3.31&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Brokers' Fees&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">17</font></td>
    </tr>
    <tr>
      <td width="689" colspan="2"><font size="3">&nbsp;&nbsp;</font></td>
      <td width="61" align="right"></td>
    </tr>
    <tr>
      <td width="689" colspan="2">
<p>
<font SIZE="3">
ARTICLE IV&nbsp;&nbsp;&nbsp;REPRESENTATIONS AND WARRANTIES OF
BNC&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="61" align="right"><font size="3">18</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 4.1&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Organization&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">18</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 4.2&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Authority; Enforceability&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">18</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 4.3&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Consents and Approvals; Conflicts&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">18</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 4.4&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Capitalization&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="61" align="right"><font size="3">19</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 4.5&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Financial Reports&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">19</font></td>
    </tr>
    <tr>
      <td width="689" colspan="2"><font size="3">&nbsp;&nbsp;</font></td>
      <td width="61" align="right"></td>
    </tr>
    <tr>
      <td width="689" colspan="2">
<p>
<font SIZE="3">
ARTICLE V&nbsp;&nbsp; PRE-CLOSING COVENANTS&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="61" align="right"><font size="3">20</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 5.1&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Legal Requirements&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">20</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 5.2&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Access to Properties and Records&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">20</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 5.3&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Conduct of Business&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">20</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 5.4&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Public Statements&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">21</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 5.5&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
No Solicitation&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">21</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 5.6&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Update Information&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">22</font></td>
    </tr>
    <tr>
      <td width="689" colspan="2"><font size="3">&nbsp;&nbsp;</font></td>
      <td width="61" align="right"></td>
    </tr>
    <tr>
      <td width="689" colspan="2">
<p>
<font SIZE="3">
ARTICLE VI&nbsp;&nbsp;&nbsp;TERMINATION&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="61" align="right"><font size="3">22</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 6.1&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Termination&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">22</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 6.2&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Effect of Termination&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">22</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 6.3&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Extension; Waiver&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">22</font></td>
    </tr>
    <tr>
      <td width="689" colspan="2"><font size="3">&nbsp;&nbsp;</font></td>
      <td width="61" align="right"></td>
    </tr>
    <tr>
      <td width="689" colspan="2">
<p>
<font SIZE="3">
ARTICLE VII&nbsp;&nbsp;&nbsp;INDEMNIFICATION; REMEDIES&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="61" align="right"><font size="3">23</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 7.1&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Survival; Right to Indemnification Not Affected by
Knowledge&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">23</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 7.2&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Indemnity Obligations and Payment of Damages by Sellers&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">23</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 7.3&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Indemnity Obligation and Payment of Damages by BNC&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">24</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 7.4&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Time Limitations&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="61" align="right"><font size="3">24</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 7.5&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Limitations on Indemnity Amount&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="61" align="right"><font size="3">25</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 7.6&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Nature of Indemnity Obligation; Exclusive Remedy&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="61" align="right"><font size="3">26</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 7.7&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Procedure for Indemnification &#150; Third Party Claims&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="61" align="right"><font size="3">26</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 7.8&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Disputed Indemnity Obligations, Arbitration&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">27</font></td>
    </tr>
    <tr>
      <td width="689" colspan="2"><font size="3">&nbsp;&nbsp;</font></td>
      <td width="61" align="right"></td>
    </tr>
    <tr>
      <td width="689" colspan="2">
<p>
<font SIZE="3">
ARTICLE VIII&nbsp;&nbsp; MISCELLANEOUS&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="61" align="right"><font size="3">28</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 8.1&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Section 338 Elections&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">28</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 8.2&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Final S Corporation Tax Return&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">28</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 8.3&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Expenses&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">29</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 8.4&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Notices&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">29</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 8.5&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Amendment&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">30</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 8.6&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Headings; Gender&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">30</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 8.7&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Entire Agreement; No Third Party Beneficiaries&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">31</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 8.8&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Governing Law/Exclusive Forum and Venue&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">31</font></td>
    </tr>
    <tr>
      <td width="121"><p>
<font SIZE="3">
Section 8.9&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="568"><p>
<font SIZE="3">
Arbitration&nbsp;&nbsp;&nbsp;</font></p>
      </td>
      <td width="61" align="right"><font size="3">31</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 8.10&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Assignment&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">33</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 8.11&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Severability&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">33</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 8.12&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Counterparts&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">33</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 8.13&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Mutual Drafting&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">33</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 8.14&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Facsimile Signatures&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">34</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 8.15&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Mountain View&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">34</font></td>
    </tr>
    <tr>
      <td width="121">
<p>
<font SIZE="3">
Section 8.16&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="568">
<p>
<font SIZE="3">
Personal Guarantees&nbsp;&nbsp;&nbsp; </font></p>
      </td>
      <td width="61" align="right"><font size="3">34</font></td>
    </tr>
    <tr>
      <td width="121"><font size="3">&nbsp;&nbsp;</font></td>
      <td width="568"></td>
      <td width="61" align="right"></td>
    </tr>
    <tr>
      <td width="689" colspan="2">EXHIBITS:</td>
      <td width="61" align="right"></td>
    </tr>
    <tr>
      <td width="689" colspan="2">A &#150; Definitions</td>
      <td width="61" align="right"></td>
    </tr>
    <tr>
      <td width="689" colspan="2">B &#150; Ownership and Allocation of Payments Among Sellers</td>
      <td width="61" align="right"></td>
    </tr>
    <tr>
      <td width="689" colspan="2">C &#150; Form of Employment Agreement &#150; Principal Shareholders</td>
      <td width="61" align="right"></td>
    </tr>
    <tr>
      <td width="689" colspan="2">D &#150; Form of Employment Agreement &#150; Equity Account Holders</td>
      <td width="61" align="right"></td>
    </tr>
    <tr>
      <td width="689" colspan="2">E &#150; Form of Employment Agreement &#150; Key Employees</td>
      <td width="61" align="right"></td>
    </tr>
    <tr>
      <td width="689" colspan="2">F &#150; Form of Lease</td>
      <td width="61" align="right"></td>
    </tr>
    <tr>
      <td width="689" colspan="2">G &#150; Ancillary Agreements</td>
      <td width="61" align="right"></td>
    </tr>
    <tr>
      <td width="689" colspan="2">H &#150; Disclosure Schedule</td>
      <td width="61" align="right"></td>
    </tr>
  </table>
  </center>
</div>
<p>&nbsp;</p>
<p>&nbsp;</p>
<b>
<p ALIGN="CENTER">STOCK PURCHASE AGREEMENT</p>
<p ALIGN="CENTER">&nbsp;</p>
</b>
<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This Stock Purchase Agreement (this &quot;Agreement&quot;),
dated as of March 22, 2002 (the &quot;Effective Date&quot;), is by and among
BNCCORP, Inc., a Delaware corporation (&quot;BNC&quot;), BNC Insurance, Inc., a
North Dakota corporation (the &quot;Agency&quot;), and Richard W. Milne, Jr.,
Terrence M. Scali, the Richard W. Milne, Jr. and Robin Jayne Milne Revocable
Living Trust, and the Terrence M. Scali and Marcella A. Scali Family Trust
(collectively, the &quot;Principal Shareholders&quot; and each a
&quot;Seller&quot;), G. Steven Hay, Nancy Kozloski-Rausch, Ronald Cadaret,
Anthony J. Scali, and the Hammontree/Turnacliff Revocable Trust (collectively,
the &quot;Other Shareholders,&quot; each a &quot;Seller&quot; and collectively
with the Principal Shareholders, the &quot;Sellers&quot;).</p>
<p ALIGN="CENTER">W I T N E S S E T H:</p>
<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WHEREAS, upon consummation of the Consolidation (as defined
below), Sellers will own all of the issued and outstanding shares of common
stock, $1.00 par value per share (the &quot;Shares&quot;), of Milne &amp;
Company Insurance, Inc., d/b/a Milne Scali &amp; Company, an Arizona corporation
(&quot;Milne Scali&quot;);</p>
<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WHEREAS, Sellers thereafter desire to sell to the Agency, and
BNC thereafter desires to cause the Agency to purchase from the Sellers, all of
the Shares for the purchase price to be paid in accordance with Section 2.2
below and subject to the terms and conditions set forth in this Agreement; and</p>
<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WHEREAS, as a condition precedent to the consummation of the
transactions contemplated by this Agreement, the Sellers have agreed to cause
Milne Scali to acquire, by statutory mergers pursuant to which Milne Scali is
the surviving corporation (the &quot;Consolidation&quot;), all of the
outstanding shares of capital stock or membership interests, as applicable, of
each of ASTR, Inc., an Arizona corporation, Harris-Shcolnik &amp; Associates,
Inc., an Arizona corporation, Milne Scali of Northern Arizona, L.L.C., an
Arizona limited liability company, and Milne Scali &#150; East Valley, L.L.C., an
Arizona limited liability company (each, including Milne Scali, a
&quot;Company,&quot; and, collectively, the &quot;Companies&quot;).</p>
<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
NOW, THEREFORE, in consideration of the mutual promises,
covenants and agreements set forth herein and in reliance upon the undertakings,
representations, warranties and indemnities contained herein, BNC, the Agency
and each of the Sellers agree as follows:</p>
<p align="center">ARTICLE I<br>
    <a NAME="_Toc4557416">DEFINITIONS</a>
  <p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  As used in this Agreement, capitalized terms shall have the
  meanings assigned to such terms in Exhibit &quot;A.&quot;</p>
<p align="center">ARTICLE II
  <b>
  <br>
  </b><a NAME="_Toc4557417">SALE AND PURCHASE OF SHARES; CLOSING</a>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
2.1&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557418"><u>Sale of Shares</u></a>.&nbsp; Upon the terms and subject to the conditions set forth
    in this Agreement, at the Closing, each Seller hereby agrees to sell to the
    Agency, and the Agency hereby agrees to purchase from each Seller, all of
    the Shares owned by each Seller, free and clear of all Liens, restrictions
    and claims of every kind.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
2.2&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557419"><u>Purchase Price</u></a>. Upon the terms and subject to the conditions set forth
    in this Agreement, in consideration of the sale of the Shares, BNC agrees to
    pay, or cause the Agency to pay, to the Sellers an aggregate purchase price
    consisting of:
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp; fifteen million five hundred thousand dollars ($15,500,000) in cash by
        wire transfer of immediately payable funds (the &quot;Cash
        Consideration&quot;), payable at the Closing;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp; the number of shares of the common stock, $0.01 par value per share,
        of BNC determined by dividing $2,500,000 by the average closing sales
        price of such common stock on the Nasdaq National Market over the thirty
        (30) trading days immediately preceding the Closing Date (the &quot;BNC
        Shares&quot;) payable at the Closing; and
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp; the amounts payable pursuant to Sections 2.3 and 8.1.&nbsp;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
2.3&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557420"><u>Earnout.</u></a>
<p>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (a)&nbsp;&nbsp;&nbsp; BNC shall cause the Agency to pay to Sellers in accordance with
        Section 2.5 additional consideration up to a maximum aggregate amount of
        $8,500,000 (the &quot;Earnout&quot;), based on the EBITDA, if any,
        generated by Milne Scali in the future as follows:
<blockquote>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (i)&nbsp;&nbsp;&nbsp; For each consecutive twelve (12) month segment of the sixty (60)
          month period commencing on the last day of the month in which the
          Closing occurs (each such twelve-month segment, an &quot;Earnout
          Period&quot;) that Milne Scali generates EBITDA of more than
          $2,500,000, then BNC shall cause the Agency to pay the Sellers a fixed
          minimum Earnout amount (the &quot;Base Earnout&quot;) of $1,700,000
          plus an Earnout premium (the &quot;Earnout Premium&quot;) equal to 50%
          of the amount by which EBITDA for such Earnout Period exceeds
          $2,500,000; provided, however, (A) that the sum of the Base Earnout
          and Earnout Premium for each Earnout Period shall not exceed an
          aggregate of $3,400,000, and (B) the amount of the Earnout Premium for
          the particular Earnout Period shall be credited against and reduce the
          remaining balance of the Earnout that may be earned in future Earnout
          Periods, in inverse order of payment. For example, if EBITDA for each
          of the five Earnout Periods is $4,000,000, then the sum of the Base
          Earnout and Earnout Premium payable for each of the first three
          Earnout Periods would be $2,450,000, the Base Earnout payable for the
          fourth Earnout Period would be $1,150,000 (with no Earnout Premium
          payable for the fourth Earnout Period), and the remaining balance of
          the Earnout that may be earned in the fifth Earnout Period would be
          $0.00, such that no Earnout payments would be payable with respect to
          the fifth Earnout Period.&nbsp;
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (ii)&nbsp;&nbsp;&nbsp; For each Earnout Period that Milne Scali generates annual EBITDA
          less than or equal to $2,500,000 but more than $2,000,000, BNC shall
          cause the Agency to pay to Sellers a Base Earnout of $1,360,000 for
          that Earnout Period;&nbsp;</p>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (iii)&nbsp;&nbsp;&nbsp; For each Earnout Period that Milne Scali generates annual EBITDA
          less than or equal to $2,000,000, then neither BNC nor the Agency
          shall pay any Base Earnout or Earnout Premium to the Sellers for that
          Earnout Period;</p>
</blockquote>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp; Within 20 days after the end of each Earnout Period, BNC shall deliver
        to the Sellers' Representatives a notice (the &quot;Earnout
        Notice&quot;) specifying (i) the EBITDA for such Earnout Period, (ii)
        the Base Earnout and Earnout Premium then due, if any, and (iii) the
        remaining balance of the Earnout that may be earned in future periods,
        if any, showing in reasonable detail the computation thereof, and a
        certification by BNC's chief financial officer that such computation
        was based on Milne Scali's books and records and performed in a manner
        consistent with GAAP.&nbsp;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp; The amounts, if any, payable to the Sellers for each Earnout Period
        pursuant to this Section 2.3 shall be paid by the Agency within 30 days
        following the end of the Earnout Period, subject to Section 2.3(e) below
        if the Sellers' Representatives notify BNC of their objection to the
        Earnout Notice for the Earnout Period.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;&nbsp; During the preparation of each Earnout Notice and the period of any
        review contemplated by this Section 2.3, BNC shall cause Milne Scali to
        (i) provide the Sellers' Representatives, upon reasonable notice, full
        access during normal business hours to the books, records, work papers,
        facilities and employees of Milne Scali to review the preparation of the
        Earnout Notice and (ii) cooperate with the Sellers' Representatives,
        including the provision on a timely basis of all information reasonably
        requested by the Sellers' Representatives and necessary or useful in
        reviewing and validating the contents of the Earnout Notice.
      After receipt of an Earnout Notice, the Sellers' Representatives
        shall have 10 days to review the Earnout Notice, together with all the
        work papers used in preparation thereof. Unless the Sellers'
        Representatives deliver a written notice to BNC on or before the 10<sup>th</sup>
        day after receipt by the Sellers' Representatives of the Earnout
        Notice specifying, in reasonable detail, all disputed items and the
        basis therefor (an &quot;Objection&quot;), the Sellers shall be deemed
        to have accepted and agreed to the Earnout Notice. If the Sellers'
        Representatives notify BNC of an Objection to an Earnout Notice, (i) the
        undisputed portion of the Base Earnout and Earnout Premium, as
        applicable, shall be paid within thirty (30) days following the end of
        the Earnout Period, and (ii) the Sellers' Representatives and BNC
        shall, within 10 days following such Objection, attempt to resolve the
        Objection. Any resolution as to any disputed items shall be final,
        binding and conclusive for BNC, the Agency and all Sellers, and any sums
        payable as a result of the resolution shall be paid by the Agency within
        ten (10) days of the resolution. At the end of such 10-day resolution
        period, any items remaining in dispute, including without limitation,
        exclusions of or additions to revenue and any allocations of expenses
        contemplated by the definition of EBITDA shall be submitted to a firm of
        nationally recognized, independent accountants with an office in
        Maricopa County, Arizona (the &quot;Neutral Auditors&quot;) selected by
        BNC and the Sellers' Representatives within ten (10) days after the
        expiration of the 10-day resolution period. If BNC and the Sellers'
        Representatives are unable to agree on the Neutral Auditors, then BNC
        and the Sellers' Representatives shall each have the right to request
        the American Arbitration Association to appoint the Neutral Auditors,
        who shall not have had a material business relationship with any of the
        Sellers, the Sellers' Representatives, BNC, the Agency or any of their
        respective Affiliates within the past two years. BNC and each of the
        Sellers agree to execute, if requested by the Neutral Auditors, a
        reasonable engagement letter. All fees and expenses relating to the
        work, if any, to be performed by the Neutral Auditors shall be borne 50%
        by BNC and 50% by the Sellers. The Neutral Auditors shall act as an
        arbitrator to determine only those items still in dispute between BNC
        and the Sellers' Representatives. The Neutral Auditors'
        determination shall be made within 30 days of their selection, shall be
        set forth in a written statement delivered to Sellers and BNC, and shall
        be final, binding and conclusive on BNC, the Agency, the Sellers'
        Representatives and each of the Sellers. The amount payable shall then
        be paid by the Agency within 10 days following the final determination
        of the Neutral Auditors.</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(f)&nbsp;&nbsp;&nbsp; If (A) any Person or group (as defined in Section 13(d) of the
        Securities Exchange Act of 1934) acquires 51% or more of the outstanding
        common stock of BNC, (B) any Person or group (as defined in Section
        13(d) of the Securities Exchange Act of 1934) other than BNC (or its
        direct or indirect subsidiaries as of immediately after the Closing)
        acquires 51% or more of the outstanding common stock of Milne Scali, the
        Agency or BNC National Bank (C) a majority of the Board of Directors of
        BNC, the Agency or BNC National Bank shall consist of Persons who were
        not either directors on the date hereof or nominated for election with
        the affirmative vote of a majority of the directors then in office, or
        (D) Milne Scali terminates its employment relationship with either
        Richard W. Milne, Jr. or Terrence M. Scali under the employment
        agreements to be executed and delivered pursuant to Section 2.4(b)(iii),
        unless such termination is ratified prior to the effective date of such
        termination by the unanimous vote of the Board of Directors of BNC
        (without taking into account the vote of either Principal Shareholder if
        either or both of them are members of the Board of Directors of BNC)
        (each, a &quot;Change in Control&quot;), as long as any amounts may be
        payable pursuant to this Section 2.3, the Sellers' Representatives
        may, at any time within six (6) months from the date the Change in
        Control occurs, at their option, either:</p>
      <ol TYPE="i">
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (i)&nbsp;&nbsp;&nbsp; elect for the Sellers to continue to receive payments as determined
          pursuant to Section 2.3(a) through (e);&nbsp;
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (ii)&nbsp;&nbsp;&nbsp; or
        elect for the Sellers to accelerate payment of the remaining balance
          of the Earnout that may be earned in future periods, by calculating
          the average EBITDA for the period from the Closing through the date of
          the Change in Control (annualized on a pro forma basis) and applying
          such average to the remaining Earnout Periods. For example, if the
          EBITDA for the first Earnout Period is $2,500,001, the Sellers are
          paid $1,700,000 for the first Earnout Period and EBITDA for the first
          six months of the second Earnout Period is $1,250,001, a Change of
          Control occurs at the end of the sixth month of the second Earnout
          Period, and the Sellers' Representatives elect to exercise the
          acceleration payment of the Earnout, then the amount payable pursuant
          to this Section 2.3(f)(ii) (before being discounted as provided below)
          would equal $6,800,000. The determination of the Earnout payment
          payable under this Section 2.3(f)(ii) shall be made as if at the end
          of an Earnout Period, following the same procedures set forth above in
          Sections 2.3(a) through (e) except that any remaining balance of the
          Earnout payable on an accelerated basis pursuant to this Section
          2.3(f)(ii) shall be subject to a discount rate of five percent (5%)
          per annum for the period of time between the date on which the
          accelerated Earnout payment is made pursuant to this Section
          2.3(f)(ii) and the date each remaining Earnout payment would have
          otherwise been made pursuant to Section 2.3(c) (assuming Sellers have
          made no Objection) such that, by way of illustration, the amount
          payable pursuant to this Section 6.3(f)(ii) in the example above after
          being discounted would equal $6,028,116 (i.e., [$1,700,000 / (1.05)<sup>1</sup>]+[$1,700,000
          / (1.05)<sup>2</sup>] + [$1,700,000 / (1.05)<sup>3</sup>] +
          [$1,700,000 / (1.05)<sup>4</sup>]).</p>
      </ol>
      <p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      The Sellers' Representatives' election pursuant to
      this Section 2.3(f) shall be in writing and shall be delivered to BNC in
      accordance with the provisions of Section 8.4. If the Sellers'
      Representatives elect to accelerate payment of any remaining balance of
      the Earnout pursuant to this Section 2.3(f), the Agency shall pay such
      amount to the Sellers within thirty (30) days of the date of delivery of
      the notice of election. Any Dispute regarding the remaining balance of the
      of the Earnout that may be earned shall be resolved pursuant to the
      procedures set forth in Section 2.3(e).</p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(g)&nbsp;&nbsp;&nbsp; BNC covenants and agrees for the benefit of Sellers that during the
        period from the Closing until the end of the last Earnout Period, it
        will: (i) cause separate books of account and financial statements of
        Milne Scali to be maintained for purposes of determining whether Milne
        Scali has achieved the EBITDA targets set forth in Section 2.3(a); (ii)
        ensure that Milne Scali has sufficient working capital to operate its
        business in the ordinary course; (iii) not permit the sale of all or
        substantially all of Milne Scali's assets to any Person that is not an
        Affiliate of BNC; and (iv) not cause Milne Scali to take any actions
        that are inconsistent with the manner in which Milne Scali conducted its
        operations and activities immediately prior to the Closing, including,
        without limitation, causing Milne Scali to cease or suspend its business
        operations or to acquire another Person (whether by merger,
        consolidation, purchase of capital stock, asset purchase or otherwise);
        provided however, that if BNC shall propose to cause Milne Scali to make
        an acquisition, combine with other operating divisions of BNC or make
        any other significant change to the business of Milne Scali as conducted
        on the Closing, in connection therewith the EBITDA targets set forth in
        Section 2.3(a) shall be modified to such amounts as may be mutually
        agreed to by BNC and the Sellers' Representatives to appropriately
        reflect such action.&nbsp;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(h)&nbsp;&nbsp;&nbsp; BNC shall cause Richard W. Milne, Jr. and Terrence M. Scali to be
        elected to the board of directors of BNC National Bank for so long as (i)
        any Earnout payments may be earned by the Sellers pursuant to this
        Section 2.3 and (ii) Milne Scali has not terminated its employment
        relationship with either Richard W. Milne, Jr. or Terrence M. Scali for
        &quot;Cause,&quot; as defined in the employment agreements to be
        executed and delivered by them pursuant to Section 2.4(b)(iii).&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(i)&nbsp;&nbsp;&nbsp; The Sellers shall be entitled to receive the amounts, if any, payable
        to the Sellers pursuant to this Section 2.3 notwithstanding the
        termination of the employment relationship of any of the Sellers with
        Milne Scali during the Earnout Period.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
2.4&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557421"><u>Closing</u>.</a>

&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp; The closing of the purchase and sale of the Shares (the
        &quot;Closing&quot;) shall take place after the satisfaction or waiver
        of the conditions set forth in Sections 2.4(c), (d) and (e) at such time
        and place as BNC and Sellers may agree (the &quot;Closing Date&quot;),
        but in no event later than April 15, 2002.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp; At the Closing:</p>
      <ol TYPE="i">
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (i)&nbsp;&nbsp;&nbsp; BNC shall cause the Agency to pay and deliver to Sellers the Cash
          Consideration and the BNC Shares;&nbsp;
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (ii)&nbsp;&nbsp;&nbsp; Sellers shall deliver to BNC certificates representing the Shares
          either duly endorsed to the Agency or accompanied by duly executed and
          completed transfers in favor of the Agency, which shall transfer to
          the Agency good and marketable title to the Shares free and clear of
          all Liens, restrictions, and claims of every kind;&nbsp;</p>
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (iii)&nbsp;&nbsp;&nbsp; Milne Scali and each of Richard W. Milne, Jr. and Terrence M. Scali
          shall execute and deliver employment agreements in the form of Exhibit
          &quot;C&quot; attached hereto;&nbsp;</p>
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (iv)&nbsp;&nbsp;&nbsp; Milne Scali and each of Robert L. Grant, G. Steven Hay and Anthony
          J. Scali shall execute and deliver the employment agreements in the
          form of Exhibit &quot;D&quot; attached hereto.&nbsp;</p>
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (v)&nbsp;&nbsp;&nbsp; Milne Scali and each of the account executives, insurance brokers
          and other employees of Milne Scali reasonably designated by BNC or the
          Principal Shareholders as key employees of Milne Scali shall execute
          and deliver employment agreements in the form of Exhibit &quot;E&quot;
          attached hereto;&nbsp;</p>
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (vi)&nbsp;&nbsp;&nbsp; Milne Scali Properties, L.L.C. and Milne Scali shall execute and
          deliver the lease agreement in the form of Exhibit &quot;F&quot;
          attached hereto (the &quot;Lease&quot;);&nbsp;</p>
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (vii)&nbsp;&nbsp;&nbsp; Sellers shall execute and deliver a certificate, dated as of the
          Closing Date, certifying that (A) all of the conditions set forth in
          this Section 2.4 applicable to the Sellers are satisfied on and as of
          the Closing Date and (B) the Sellers' representations and warranties
          contained in this Agreement are true and correct in all material
          respects as of the Closing Date;&nbsp;</p>
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (viii)&nbsp;&nbsp;&nbsp; BNC shall execute and deliver a certificate of an appropriate
          officer of BNC, dated as of the Closing Date, certifying that (A) all
          of the conditions set forth in this Section 2.4 applicable to BNC and
          the Agency are satisfied on and as of the Closing Date and (B) the
          representations and warranties of BNC and the Agency contained in this
          Agreement are true and correct in all material respects as of the
          Closing Date;&nbsp;</p>
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (ix)&nbsp;&nbsp;&nbsp; BNC and the Agency shall each execute and deliver a certificate of
          the Secretary or Assistant Secretary as to the incumbency and
          signatures of the officers of BNC and the Agency, respectively,
          executing this Agreement and any other certificate or document
          executed and delivered pursuant hereto;&nbsp;</p>
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (x)&nbsp;&nbsp;&nbsp; Each of BNC and the Sellers shall deliver an opinion of counsel in
          form and substance reasonably satisfactory to Sellers and BNC,
          respectively; and&nbsp;</p>
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (xi)&nbsp;&nbsp;&nbsp; Each of the Sellers shall take such other actions as are reasonably
          requested by BNC or required to consummate the transactions
          contemplated by this Agreement.</p>
      </ol>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp; The respective obligations of each party to consummate the
        transactions contemplated by this Agreement shall be subject to the
        satisfaction or, where permissible, waiver by such party of the
        following conditions at or prior to the Closing Date:
      <ol TYPE="i">
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (i)&nbsp;&nbsp;&nbsp; No Applicable Law shall have been enacted, entered, promulgated or
          enforced by any court of competent jurisdiction or other Governmental
          Entity which prohibits or restricts the consummation of the
          transactions contemplated by this Agreement.
        No Proceeding by a Governmental Entity before any court or other
          Governmental Entity shall have been commenced and be pending which
          seeks to prohibit or restrict the consummation of the transactions
          contemplated by this Agreement.
      </ol>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;&nbsp; The obligations of BNC and the Agency to consummate the transactions
        contemplated by this Agreement are subject to the satisfaction of the
        following conditions unless waived by BNC:
      <ol TYPE="i">
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (i)&nbsp;&nbsp;&nbsp; The representations and warranties of Sellers set forth in this
          Agreement shall be true and correct in all material respects as of the
          date of this Agreement and as of the Closing Date as though made on
          and as of the Closing Date, except as otherwise contemplated by this
          Agreement, and Sellers shall have performed in all material respects
          all obligations required to be performed by them under this Agreement
          at or prior to the Closing Date.&nbsp;
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (ii)&nbsp;&nbsp;&nbsp; The Companies shall have consummated the Consolidation on the terms
          set forth in the ancillary agreements in the form attached hereto as
          Exhibit &quot;G&quot; (the &quot;Ancillary Agreements&quot;).&nbsp;</p>
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (iii)&nbsp;&nbsp;&nbsp; The Internal Financial Statements shall have been audited by the
          Companies' independent public accountants, Semple &amp; Cooper, LLP,
          and, except as set forth on Schedule 2.4(d)(iii), there shall have
          been no audit adjustments in the Audited Financial Statements at and
          for the year ended December 31, 2001 reducing the amounts of either
          net income or total assets or increasing the amount of total
          liabilities as reflected on the Internal Financial Statements.&nbsp;</p>
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (iv)&nbsp;&nbsp;&nbsp; The equity accounts of each of Robert L. Grant, G. Steven Hay and
          Anthony J. Scali shall be restructured pursuant to the terms of each
          of their respective employment agreements with Milne Scali to be
          delivered pursuant to Section 2.4(b)(iv), such that each of them shall
          receive, for services previously rendered, fully earned, vested
          monthly bonus payments during each of the 60 full months immediately
          following the Closing Date in the amounts of $4,500, $8,333.33 and
          $4,166.67, respectively.</p>
      </ol>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(e)&nbsp;&nbsp;&nbsp; The obligations of Sellers to consummate the transactions contemplated
        by this Agreement are subject to the satisfaction of the following
        conditions, unless waived by Sellers: the representations and warranties
        of BNC and the Agency set forth in this Agreement shall be true and
        correct in all material respects as of the date of this Agreement and as
        of the Closing Date as though made on and as of the Closing Date, except
        as otherwise contemplated by this Agreement, and BNC and the Agency
        shall have performed in all material respects all obligations required
        to be performed by them under this Agreement at or prior to the Closing
        Date.&nbsp;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
2.5&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557422"><u>Payments</u></a>. The payment of the Cash Consideration, the distribution
  of the BNC Shares and all Base Earnout, Earnout Premium and/or accelerated
  Earnout payments made by BNC and/or the Agency pursuant to Article II shall be
  allocated among and paid directly to the Sellers in accordance with the
  allocation percentages and the instructions set forth on Exhibit
  &quot;B.&quot; Each of the Sellers (i) acknowledges and agrees to the
  allocation percentages set forth on Exhibit &quot;B,&quot; (ii) stipulates
  that all payments of the Cash Consideration, the Earnout, and the distribution
  of BNC Shares made pursuant to Sections 2.2 and 2.3, and the Tax payment
  contemplated by Section 8.1, shall be made in accordance with the allocation
  percentages set forth on Exhibit &quot;B,&quot; (iii) acknowledges and agrees
  that the allocation percentages set forth on Exhibit &quot;B&quot; are the
  sole responsibility of the Sellers, (iv) agrees that BNC shall have no
  obligation or other responsibility with respect to such allocation
  percentages, and (v) shall indemnify and hold harmless BNC and the Agency for
  any liability associated with any such allocation of payments among the
  Sellers.</p>
<p align="center">ARTICLE III
  <b>
  <br>
  </b><a NAME="_Toc4557423">REPRESENTATIONS AND WARRANTIES OF THE SELLERS</a>
  <p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Each of the representations and warranties set forth herein
  shall be separate and independent and, except as expressly provided herein,
  shall not be limited by reference to any other representation or warranty or
  anything else in this Agreement. Each Seller (a) severally represents to BNC
  and the Agency with respect to the matters set forth in Sections 3.1 through
  3.5 as to himself or herself and as to the Shares owned by him or her; and (b)
  with respect to the matters set forth in Sections 3.6 through 3.31, (i) each
  Other Shareholder represents and warrants to BNC and the Agency on a several
  basis with respect to the Company in which he or she had an interest prior to
  the consummation of the Consolidation, and (ii) each of the Principal
  Shareholders represents and warrants to BNC and the Agency on a joint and
  several basis with respect to the Companies with the other respective Sellers
  as follows:</p>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.1&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557424"><u>Ownership</u></a>. At the Closing, the Seller will be the sole record and
    beneficial owner of the Shares represented by the certificates representing
    the number of Shares shown opposite his or her name on Exhibit &quot;B&quot;
    attached hereto. At the Closing, the Seller will have good and marketable
    title to such Shares and the absolute right to deliver the Shares in
    accordance with this Agreement, free and clear of all Liens, restrictions
    and claims of any kind. The transfer of the Shares to the Agency in
    accordance with the terms of this Agreement will transfer good and
    marketable title to the Shares owned by the Seller to the Agency, free and
    clear of all Liens, restrictions and claims of any kind. Except for the
    Ancillary Agreements and the employment agreements of certain key employees
    being restructured in connection with this Agreement, there is no existing
    subscription, debt security, option, warrant, call, right, commitment or
    other agreement or right (whether preemptive or contractual) to which the
    Seller is a party requiring, and there are no convertible securities of
    Milne Scali owned or held, directly or indirectly, by the Seller which upon
    conversion require, directly or indirectly, the issuance of any additional
    shares of the capital stock of Milne Scali or other securities convertible
    into or exercisable or exchangeable for capital stock of Milne Scali or any
    other equity securities of Milne Scali, and there are no obligations or
    claims (contingent or otherwise) of the Seller to purchase or otherwise
    acquire any capital stock of Milne Scali. No Person (other than BNC and the
    Agency) otherwise has any agreement option or claim or any right or
    privilege (either preemptive or contractual) capable of becoming an
    agreement or option for the purchase from the Seller of any of the Shares
    being transferred by the Seller to the Agency pursuant to this Agreement.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.2&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557425"><u>Authority</u></a>. The Seller has the full legal right, power and
    authority to execute, deliver and perform this Agreement and to consummate
    the transactions contemplated hereby. This Agreement has been duly executed
    and delivered by the Seller and constitutes, and each other agreement,
    instrument or document executed or to be executed by the Seller in
    connection with the transactions contemplated hereby has been, or when
    executed will be, duly executed and delivered by the Seller and constitutes,
    or when executed and delivered will constitute, a valid and legally binding
    obligation of the Seller, enforceable against the Seller in accordance with
    its respective terms, except as limited by either (a) bankruptcy,
    insolvency, reorganization, moratorium or other similar laws affecting
    creditors' rights generally or (b) general principals of equity.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.3&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557426"><u>Noncontravention</u></a>. The execution, delivery and performance by the Seller
    of this Agreement and the consummation by the Seller of the transactions
    contemplated hereby does not and will not (a) result in the creation or
    imposition of any Lien upon the Shares held by the Seller or (b) violate any
    Applicable Law binding upon the Seller. Except as disclosed on Schedule 3.3,
    no consent, approval, authorization, license, order or permit of or
    declaration, filing or registration with, or notification to, any
    Governmental Entity is required to be made or obtained by the Seller in
    connection with the execution, delivery and performance of this Agreement
    and the consummation of the transactions contemplated hereby.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.4&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557427"><u>Legal Proceedings</u></a>. There are no Proceedings pending or, to the Seller's
    knowledge, threatened (a) seeking to restrain, prohibit or obtain damages or
    other relief in connection with this Agreement or the transactions
    contemplated hereby or (b) asserting that any Person, other than the Seller,
    is the holder or the beneficial owner of, or has the right to acquire or to
    obtain beneficial ownership of, or any other voting, equity or ownership
    interest in, the Shares owned by the Seller.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.5&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557428"><u>Investment Representation.</u></a>

&nbsp;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp; Seller is acquiring the BNC Shares for investment for his own account
        and not with a view to, or for sale or other disposition in connection
        with, any distribution of all or any part thereof. In receiving BNC
        Shares, Seller is not offering or selling, and will not offer and sell,
        for BNC in connection with any distribution of such BNC Shares, and
        Seller does not have any contract, undertaking, agreement or arrangement
        with any Person for the distribution of BNC Shares and will not
        participate in any undertaking or in any underwriting of such an
        undertaking except in compliance with Applicable Law.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp; Seller acknowledges that an investment in BNC involves a substantial
        degree of risk and that no assurance can be given that the value of the
        BNC shares will not decrease or fluctuate over time.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp; Seller has such knowledge and experience in financial and business
        matters that he or she is capable of evaluating the merits and risks of
        an investment in BNC.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;&nbsp; Seller has been afforded access to information about BNC and BNC's
        financial position, results of operations, business, property and
        management sufficient to enable him or her to evaluate an investment in
        the BNC Shares, and has had the opportunity to ask questions of and has
        received satisfactory answers from BNC concerning the foregoing matters.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(e)&nbsp;&nbsp;&nbsp; Seller (i) has adequate means of providing for Seller's current
        needs and possible future contingencies, and has no need, and
        anticipates no need, for liquidity with respect to this investment in
        the BNC Shares, and (ii) is able to bear the economic risks of this
        investment in the BNC Shares and is able to hold the BNC Shares until
        such time as the BNC Shares may be resold in compliance with the
        Securities Act of 1933, as amended.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.6&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557429"><u>Organization; Qualification; Subsidiaries</u>.</a>

&nbsp;

      <u>
      </u></p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp; <a NAME="A_Toc536367669">Milne Scali is a corporation duly
      organized, validly existing and in good standing under the laws of the
      State of Arizona and has all requisite power and authority to own its
      property and to carry on its business as it is now being conducted. No
      actions or proceedings to dissolve Milne Scali are pending or are
      threatened. Milne Scali is duly qualified or licensed to do business and
      is in good standing in the State of Arizona.</a>&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp; Except as disclosed on Schedule 3.6(b), Milne Scali does not own, and
        will not own after the consummation of the Consolidation, directly or
        indirectly, any shares of capital stock or any other ownership interest
        in any other Person.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.7&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557430"><u>Capitalization</u>.</a>

&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp; The authorized equity securities of Milne Scali consist of 100,000
        shares of common stock, $1.00 par value per share, of which 58,013.55
        will be issued and outstanding at the Closing and constitute the Shares.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp; At the Closing, all of the Shares will be owned of record and
        beneficially by each of the Sellers in the amounts set forth on Exhibit
        &quot;B.&quot; At the Closing, all of the Shares will have been duly
        authorized and will be validly issued, fully paid and non-assessable and
        issued in accordance with Applicable Law.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp; Except as set forth on Exhibit &quot;B,&quot; there are no existing
        subscription, debt security, option, warrant, calls, right, commitment
        or other agreement or right (whether statutory or contractual) to which
        Milne Scali is a party requiring, and there are no convertible
        securities of Milne Scali outstanding, which upon conversion would
        require, directly or indirectly, the issuance of any additional capital
        stock of Milne Scali or other securities convertible into or exercisable
        or exchangeable for capital stock of Milne Scali or any other equity
        security of Milne Scali, and there are no obligations or claims
        (contingent or otherwise) of Milne Scali or any other Person to
        repurchase, redeem or otherwise acquire any capital stock of Milne Scali
        or make investments in, or provide any guarantee with respect to the
        obligations of, any other Person. There are no bonds, debentures, notes,
        lines of credit, letters of credit or other indebtedness issued and
        outstanding having the right to vote on any matters in which any of the
        shareholders of Milne Scali may vote.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.8&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557431"><u>No Conflict</u></a>. Except as disclosed on Schedule 3.8, neither the
    execution and the delivery of this Agreement by the Sellers, nor the
    consummation of the transactions contemplated hereby do or will (a) violate,
    conflict with, or result in a breach of any provisions of, (b) constitute a
    default (or an event which, with notice or lapse of time or both, would
    constitute a default) under, (c) result in the termination of or accelerate
    the performance required by, (d) result in the creation of any Lien upon any
    of the Shares or any properties or assets of any of the Companies under, any
    of the terms, conditions or provisions of any of the Companies' Charter
    Documents or any note, bond, mortgage, indenture, deed of trust, lease,
    license, loan agreement or other instrument or obligation to or by which any
    of the Companies or any of their assets are bound, or (e) violate any
    Applicable Law (excluding any Applicable Laws relating to the non-banking
    activities of national banks and bank holding companies) binding upon any of
    the Companies or any of their assets.</p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.9&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557432"><u>Consent</u></a>. Except as disclosed on Schedule 3.9, no consent,
    approval, order or authorization of, or declaration, filing or registration
    with, any Governmental Entity or other Person is required to be obtained or
    made by the Sellers or the Companies in connection with the execution,
    delivery or performance by the Sellers of this Agreement or the consummation
    of the transactions contemplated hereby.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.10&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557433"><u>Charter Documents</u></a>. None of the Companies is in violation of any provision
    of its Charter Documents. The minutes of meetings of the board of directors
    and managers (and consents in lieu thereof) of the Companies and the stock
    and membership interest records of the Companies accurately reflect the
    ownership of the Companies and all formal actions taken by the respective
    board of directors, managers, committees, shareholders and members thereof.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.11&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557434"><u>Financial Statements</u></a>. The Internal Financial Statements and the Audited
    Financial Statements have been prepared consistent with prior periods from
    the books and records of the Companies, are complete, correct and in
    accordance with the books of account and records of the Companies and fairly
    present the financial condition and results of operations of the entity or
    entities to which they relate on the dates, and for the periods indicated
    thereon, as applicable. Except as disclosed on Schedule 3.11, none of the
    Companies have any liabilities, commitments, debts or obligations of any
    nature (whether accrued, absolute, liquidated or unliquidated, actual or
    contingent, unasserted or otherwise), except (a) liabilities disclosed,
    reflected or reserved against in the Audited Financial Statements or (b)
    current liabilities and obligations incurred since December 31, 2001 in the
    ordinary course of business.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.12&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557435"><u>Absence of Certain Changes</u></a>. Except as disclosed on Schedule 3.11 or on Schedule
    3.12, none of the Companies has, since December 31, 2001:
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp; incurred any obligation or liability, absolute or contingent, except
        trade or business obligations incurred in the ordinary course of
        business or sales, income, franchise or ad valorem taxes accruing or
        becoming payable in the ordinary course of business;&nbsp;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp; entered into any agreement or transaction not in the ordinary course
        of business;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp; declared or paid any dividend or other distribution with respect to
        any of their capital stock or purchased any of their capital stock,
        except as required by the terms of Ancillary Agreements;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;&nbsp; subjected any of their assets to any Lien;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(e)&nbsp;&nbsp;&nbsp; increased the rate of compensation (including bonuses, contingent
        severance payments, retirement, profit sharing, benefits or any other
        payments) payable or to become payable to any of their officers or
        directors;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(f)&nbsp;&nbsp;&nbsp; entered in to, terminated or received notice of the termination of any
        Material Contract, commitment or transaction or waived any right of
        material value to them;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(g)&nbsp;&nbsp;&nbsp; defaulted under any note, loan, mortgage, guarantee or other
        instrument of indebtedness or any Material Contract;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(h)&nbsp;&nbsp;&nbsp; transferred any asset, right or interest to, or entered into any
        transaction with, the Sellers or any of their Affiliates;
      amended its Charter Documents;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(i)&nbsp;&nbsp;&nbsp; or
      made any agreement or commitment to do any of the foregoing.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.13&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557436"><u>Accounts Receivable</u></a>. All of the accounts receivable of each of the Companies
    have arisen only from <i>bona fide </i>transactions in the ordinary course
    of business and represent valid obligations owing to such Company. Except as
    disclosed on Schedule 3.13, all such accounts receivable are collectible
    without any counterclaims, set-offs or other defenses, and without provision
    for any allowance for uncollectible accounts in excess of any reserves
    provided for in the Financial Statements.</p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.14&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557437"><u>Clients</u></a>. Since June 30, 2001, except as disclosed on Schedule
    3.14, no Material Client has canceled or otherwise terminated, or threatened
    or given notice of its intention to cancel or otherwise terminate, its
    relationship with any of the Companies, or decreased, or threatened or given
    notice of its intention to decrease, the level of transactions involving,
    and the level of services provided to it by, any of the Companies. To the
    knowledge of the Sellers, no Material Client intends to cancel, terminate or
    otherwise substantially reduce its utilization of the services provided by
    the Companies, either as a result of the transactions contemplated by this
    Agreement or otherwise.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.15&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557438"><u>Properties; Equipment</u></a>. None of the Companies has never owned any real
    property. Each of the Companies is in possession of, has good title to, or a
    valid leasehold interest in, all of its properties and assets, tangible and
    intangible, free and clear of all Liens.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.16&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557439"><u>Governmental Permits</u></a>. Each of the Companies has obtained all Governmental
    Permits that are required for the conduct of its business as presently
    conducted and is in Substantial Compliance with all of its Governmental
    Permits.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.17&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557440"><u>Compliance with Laws</u></a>. Each of the Companies has been and is in Substantial
    Compliance with all Applicable Laws with respect to the conduct of its
    business and the ownership and operation of its assets. None of the
    Companies has received any notices or warnings of violation of any
    Applicable Law with respect to either the conduct of its business or the
    ownership or operation of its assets, nor are there any facts known to any
    of the Sellers that could reasonably be expected to give rise to any such
    notice or warning.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.18&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557441"><u>Material Contracts</u></a>. Each Material Contract is valid, binding and
    enforceable against each Company and each Seller that is a party thereto,
    except to the extent that enforcement may be limited by bankruptcy,
    reorganization, insolvency and other similar laws and court decisions
    relating to or affecting the enforcement of creditors' rights generally
    and by equitable principles. Each of the Companies and, to the Sellers'
    knowledge, each other party to every Material Contract, is in Substantial
    Compliance in all material respects with the provisions of such Material
    Contract.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.19&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557442"><u>Litigation</u></a>. Except as disclosed on Schedule 3.19, there are no
    Proceedings pending, or to the Sellers' knowledge, threatened against or
    affecting any of the Companies, and there have been no events and there are
    no facts or circumstances that could reasonably be expected to result in any
    Proceedings against or affecting any of the Companies.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.20&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557443"><u>Environmental Matters</u></a>. Sellers and the Companies have Substantially Complied,
    and are Substantially Complying with, all Environmental Laws affecting the
    Companies and, to the Sellers' knowledge, there are no past, pending or,
    to the Sellers' knowledge, threatened Environmental Claims against the
    Companies or the Sellers with respect to any of the Companies.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.21&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557444"><u>Employee Plans</u>.</a>

&nbsp;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp; The Companies have made all contributions to, and have no contingent
        liability with respect to any of, its Employee Plans and Benefit
        Arrangements. Each Employee Plan and Benefit Arrangement has been
        maintained in Substantial Compliance with its terms and with the
        requirements prescribed by any and all statutes, orders, rules and
        regulations that are applicable to such Benefit Arrangement.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp; None of the Companies has ever maintained an &quot;employee benefit
        plan&quot; (as defined in Section 3(3) of ERISA) that is or was (i) a
        plan subject to Title IV of ERISA or (ii) a &quot;multi-employer
        plan&quot; (as defined in Section 3(37) of ERISA).&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp; Except as disclosed on Schedule 3.21(c), full payment has been made of
        all amounts that the Companies have been required to have paid as
        contributions to any Employee Plan or Benefit Arrangement under
        applicable law or under the terms of any such plan or any arrangement.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;&nbsp; None of the Employee Plans and Benefit Arrangements maintained or
        administered by any of the Companies is presently under audit or
        examination (nor has notice been received of a potential audit or
        examination) by any Governmental Entity, and no matters are pending with
        respect to any Employee Plan under any voluntary compliance resolution
        or similar program administered by any Governmental Entity.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.22&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557445"><u>Taxes</u></a>. Except as otherwise contemplated by Section 8.1 or as
    disclosed on Schedule 3.22:</p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp; All Returns required to be filed on or prior to the date hereof by or
        on behalf of the Companies have been duly filed on a timely basis and in
        correct form. Such Returns (including all attached statements and
        schedules) are true, complete and correct. In particular, and without in
        any manner limiting the foregoing, none of the foregoing Returns
        contains any position that is or would be subject to the penalties under
        any Applicable Law. An extension of time within which to file any Return
        that has not been filed has not been requested or granted. The Companies
        have paid in full all Taxes shown to be payable on the Returns or on
        subsequent assessments with respect thereto. There are no other Taxes
        that are payable by any of the Companies or for which any of the
        Companies is liable with respect to items or periods covered by the
        Returns (whether or not shown on or reportable on such Returns) or with
        respect to any taxable period (or portions thereof) ending on or prior
        to the Closing.&nbsp;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp; Each of the Companies has withheld and paid over all Taxes required to
        have been withheld and paid over (including any estimated taxes) with
        respect to periods (or portions thereof) ending on or prior to the date
        hereof. Each of the Companies has Substantially Complied with all
        information reporting and backup withholding requirements, including
        maintenance of required records with respect thereto in connection with
        amounts paid or owing to any employee, creditor independent contractor
        or other third party.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp; There are no Liens on any of the assets of the Companies with respect
        to Taxes, other than Liens for current Taxes not yet due and payable.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;&nbsp; None of the Companies has made, agreed to make, or been required to
        make, any adjustment under Code Section 481(a) by reason of change in
        accounting method or otherwise.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(e)&nbsp;&nbsp;&nbsp; No Return of any of the Companies has ever been audited by a
        governmental or taxing authority, nor is any such audit in process,
        pending or threatened (formally or informally).&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(f)&nbsp;&nbsp;&nbsp; No Tax deficiencies exist or have been asserted (either formally or
        informally) or are expected to be asserted by a Governmental Entity with
        respect to Taxes that are payable by any of the Companies. None of the
        Companies has received any formal or informal notice from a Governmental
        Entity that it has not filed a Return or paid Taxes required to be filed
        or paid.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(g)&nbsp;&nbsp;&nbsp; None of the Companies is a party to any pending action or proceeding
        for assessment or collection of Taxes, nor has any such action or
        proceeding been asserted or threatened (either formally or informally)
        against any of the Companies or any of their respective assets.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(h)&nbsp;&nbsp;&nbsp; No waiver or extension of any statute of limitations has been
        requested or is in effect with respect to any Taxes or Returns of any of
        the Companies.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(i)&nbsp;&nbsp;&nbsp; No consent under Code Section 341(f) or any similar provision of state
        or local law has been filed with respect to the any of the Companies.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(j)&nbsp;&nbsp;&nbsp; None of the Companies will be a party to any joint venture,
        partnership or other arrangement or contract that is or could be treated
        as a partnership for federal income tax purposes after the consummation
        of the Consolidation.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(k)&nbsp;&nbsp;&nbsp; No item of income or gain reported by any of the Companies for
        financial accounting purposes in any period that ends on or prior to the
        Closing is required to be included in taxable income for a taxable
        period that ends after the Closing.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.23&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557446"><u>Certain Payments</u></a>. Except as set forth on Schedule 3.23, none of the
    Companies, nor any director, officer, agent, or employee of any of the
    Companies, or any other Person associated with or acting for or on behalf of
    any of the Companies, has (a) directly or indirectly, made any contribution,
    gift, bribe, rebate, payoff, influence payment, kickback or other payment to
    any Person, whether in money, property or services, except in Substantial
    Compliance with all Applicable Laws and Material Contracts (i) to obtain
    favorable treatment in securing business, (ii) to pay for favorable
    treatment for business secured, or (iii) to obtain special concessions or
    for special concessions already obtained, for in respect of any of the
    Companies or any Affiliate; or (b) established or maintained any fund or
    asset that has not been recorded in the books and records of such Company.</p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.24&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557447"><u>Transactions with Certain Persons</u></a>. Except for employment relationships in the ordinary
    course of business and the lease agreement to be executed and delivered at
    the Closing pursuant to Section 2.4(b)(v), after giving effect to the
    Consolidation and the transactions contemplated by this Agreement, no
    director, officer, employee or shareholder of Milne Scali, nor any of such
    Person's Affiliates, will be a party to any transaction with Milne Scali,
    including without limitation, any contract, agreement or other arrangement
    providing for the furnishing of services by, or the rental of real or
    personal property from, any such Person or from any of his Affiliates.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.25&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557448"><u>Intellectual Property</u></a>. Each of the Companies either owns or has valid licenses
    to use all Intellectual Property used in and material to its business as
    presently conducted, subject to limitations contained in the agreements
    governing the use of the same, which limitations are customary for companies
    engaged in businesses similar to that of the Companies. Each of the
    Companies is in Substantial Compliance with all such licenses and agreements
    and there are no pending or, to the Sellers' knowledge, threatened
    Proceedings challenging or questioning the validity or effectiveness of any
    license or agreement relating to such Intellectual Property or the right of
    any Company to use, copy, modify or distribute the same. The consummation of
    the transactions contemplated by this Agreement will not result in the
    termination, modification or cancellation of the interests of any of the
    Companies in such Intellectual Property.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.26&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557449"><u>Insurance</u></a>. Except as disclosed on Schedule 3.26, all premiums due
    under all insurance policies and binders held by the Companies or the
    Sellers that relate to the business of the Companies have been paid or
    accrued for on the Financial Statements, all such policies and binders are
    in full force and effect, no notice of cancellation or nonrenewal of any
    such policy or binder has been received by any of the Companies and no
    notice of disallowance of any claim under any insurance policy or binder,
    whether or not currently in effect, has been received by any of the
    Companies. None of the Companies has any liability for, or exposure to, any
    premium expense for expired policies and there are no current claims by any
    of the Companies under any such policies or binders as to which coverage has
    been questioned, denied or disputed by the underwriters of such policies,
    nor are there any insured losses for which claims have not been made.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.27&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557450"><u>Books and Records</u></a>. All of the books and records of the Companies,
    including all personnel files, employee data and other materials relating to
    employees, are substantially complete and correct and have been maintained
    in Substantial Compliance with all Applicable Laws. Such books and records
    accurately and fairly reflect, in reasonable detail, all assets, liabilities
    and material transactions of each of the Companies.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.28&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557451"><u>Labor Matters.</u></a>

&nbsp;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp; Except as set forth on Schedule 3.28, or in the Employment Agreements
        to be executed and delivered at the Closing pursuant to Section
        2.4(b)(iii), none of the Companies is a party to any written or oral
        employment, commission, bonus or other compensation or consulting
        agreement that it may not terminate without any payment or penalty, at
        will, with or without cause, except to the extent that employment at
        will may be limited by Applicable Law.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp; (i) Each of the Companies is in Substantial Compliance with all
        Applicable Laws relating to employment and employment practices, wages,
        hours, and terms and conditions of employment, (ii) there is no unfair
        labor practice charge or complaint against any of the Companies pending
        before any Governmental Entity, (iii) there is no labor strike,
        slowdown, work stoppage or lockout actually pending or threatened
        against or affecting any of the Companies, (iv) there is no
        representation claim or petition pending before any Governmental Entity,
        (v) there are no charges with respect to or relating to any of the
        Companies pending before any Governmental Entity responsible for the
        prevention of unlawful employment practices and (vi) none of the
        Companies has had formal notice from any Governmental Entity responsible
        for the enforcement of labor or employment laws of an intention to
        conduct an investigation of such Company and no such investigation is in
        progress.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.29&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557452"><u>Documents and
      Written Materials; Disclosure</u></a>. Originals or true and complete copies of all documents
    or other written materials furnished by Sellers or Milne Scali evidencing
    the matters expressly represented or warranted by Sellers in this Article
    III or listed on or attached as part of a Disclosure Schedule have been
    furnished or made available to BNC in the form in which each of such
    documents is in effect, and will not be modified in any material respect
    without BNC's prior written consent. No representation or warranty of
    Sellers expressed in this Agreement or on a Disclosure Schedule contains any
    untrue statement of material fact or omits to state a material fact
    necessary to make the statements herein or therein, in light of the
    circumstances in which they were made, not misleading.</p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.30&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557453"><u>Director and Officer Indemnification</u></a>. The directors and officers of each of the Companies are
    not entitled to indemnification by such Company, except to the extent that
    indemnification rights are provided for generally by Applicable Law or in
    its Charter Documents. As of the date of this Agreement, (i) there are no
    pending or, to the Sellers' knowledge, threatened claims for
    indemnification by any director or officer of any of the Companies, (ii) no
    actions or formal or informal claims have been served upon the Companies or
    their directors and officers that request indemnification by any director or
    officer of any of the Companies, and (iii) none of the Sellers has knowledge
    of any facts or events that could reasonably be anticipated to result in an
    indemnification claim.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.31&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557454"><u>Brokers' Fees</u></a>. Neither the Sellers nor any of the Companies has incurred
  any obligation or liability, contingent or otherwise, for brokerage or finder's
  fees or investment banking fees or other similar payments in connection with
  this Agreement for which the any of the Companies is responsible.
<p align="center">ARTICLE IV
  <b>
  <br>
  </b><a NAME="_Toc4557455">REPRESENTATIONS AND WARRANTIES OF BNC</a>
  <p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Each of the representations and warranties set forth herein
  shall be separate and independent and, except as expressly provided herein,
  shall not be limited by reference to any other representation or warranty or
  anything else in this Agreement. BNC and the Agency represent and warrant to
  the Sellers as follows:</p>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
4.1&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557456"><u>Organization</u></a>. BNC is a corporation duly organized, validly existing
    and in good standing under the laws of the State of Delaware. The Agency is
    a corporation duly organized, validly existing and in good standing under
    the laws of the State of North Dakota. Each of BNC and the Agency has all
    requisite corporate power and authority to own its respective properties and
    carry on its respective business as now being conducted.<a NAME="A_Toc461354726"></a>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
4.2&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557457"><u>Authority; Enforceability</u></a>. Each of BNC and the Agency has the requisite corporate
    power and authority to execute and deliver this Agreement and to carry out
    its obligations hereunder. The execution, delivery and performance of this
    Agreement and the consummation of the transactions contemplated hereby have
    been duly authorized by all necessary corporate action on the part of each
    of BNC, and the Agency and no other corporate proceedings on the part of
    either BNC or the Agency are necessary to authorize this Agreement or to
    consummate the transactions so contemplated. This Agreement has been duly
    executed and delivered by BNC and the Agency and constitutes a valid and
    binding obligation of each of BNC and the Agency, enforceable against them
    in accordance with its terms, except as limited by either (a) bankruptcy,
    insolvency, reorganization, moratorium or other similar laws affecting
    creditors' rights generally or (b) general principals of equity. <a NAME="A_Toc257509"></a>
<p><font COLOR="#ff0000">
    </font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section 4.3&nbsp;&nbsp;&nbsp; <u><a NAME="_Toc4557458">Consents and Approvals; Conflicts</a></u>. No permit, authorization, consent or approval of, any
    Governmental Entity is necessary for the execution by either BNC or the
    Agency of this Agreement, or at the Closing will be necessary for the
    consummation by either BNC or the Agency of the transactions contemplated
    hereby. Neither the execution and delivery of this Agreement by either BNC
    or the Agency, nor the consummation of the transactions contemplated hereby,
    will violate any of the provisions of the Charter Documents of either BNC or
    the Agency; conflict with or result in a breach of, or give rise to a right
    of termination of, or accelerate the performance required by, any terms of
    any court order, consent decree, note, bond, mortgage, indenture, deed of
    trust, or any license or agreement binding on either BNC or the Agency or to
    which BNC or the Agency is subject or a party, or constitute a default
    thereunder; or result in the creation of any Lien upon any of the assets of
    either BNC or the Agency, except for any such conflict, breach, termination,
    acceleration, default or Lien that would not have a material adverse effect
    on (a) the business, assets or financial condition of either BNC or the
    Agency or (b) either BNC's or the Agency's ability to consummate any of
    the transactions contemplated hereby.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
4.4&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557459"><u>Capitalization.</u></a>

&nbsp;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp; The authorized capital stock of BNC consists of 10,000,000 shares of
        common stock, $0.01 par value per share, of which 2,442,050 shares are
        issued and outstanding and 42,880 are held in its treasury, and
        2,000,000 shares of preferred stock, $0.01 par value per share, none of
        which is issued and outstanding. All such issued and outstanding shares
        have been duly authorized and are validly issued, fully paid and
        non-assessable.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp; The BNC Shares to be issued hereby, when issued in accordance with the
        terms of this Agreement, will be validly issued, fully paid and
        non-assessable, free and clear of all Liens, restrictions and claims of
        any kind.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp; BNC will provide, upon the request of any Seller and at no cost to
        Sellers, a legal opinion permitting the removal of any Rule 144 legend
        affixed to the BNC Shares upon the expiration of such restrictions as
        are applicable under the Securities Act.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
4.5&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557460"><u>Financial Reports</u></a>. BNC has made available to Sellers BNC's Annual Report
  on Form 10-K for the fiscal year ended December 31, 2000 and its Quarterly
  Reports on Form 10-Q for the fiscal quarters ended March 31, 2001, June 30,
  2001 and September 30, 2001 in the form filed with the Securities and Exchange
  Commission (collectively, the &quot;BNC Financial Reports&quot;) pursuant to
  the Securities Exchange Act of 1934, as amended (the &quot;Exchange
  Act&quot;), and such BNC Financial Reports complied in all material respects
  with the requirements of the Exchange Act and the rules and regulations
  promulgated thereunder as of their respective dates. Each of the balance
  sheets in or incorporated by reference in the BNC Financial Reports (including
  any related notes and schedules thereto) fairly present the financial position
  of BNC as of its date and each of the statements of income and changes in
  stockholders' equity and cash flows or equivalent statements in the BNC
  Financial Reports (including any related notes and schedules thereto) fairly
  presents the results of operations, changes in stockholders' equity and
  changes in cash flows, as the case may be, of the entity or entities to which
  it relates for the periods set forth therein, in each case in accordance with
  GAAP, except in each case as may be noted therein, subject to normal and
  recurring year-end audit adjustments in the case of unaudited statements.</p>
<p align="center">ARTICLE V
  <b>
  <br>
  </b><a NAME="_Toc4557461">PRE-CLOSING COVENANTS</a>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
5.1&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557462"><u>Legal Requirements</u></a>. Subject to the conditions set forth in Article V and to
    the other terms and provisions of this Agreement, each of the parties to
    this Agreement agrees to take, or cause to be taken, all reasonable actions
    necessary to comply promptly with all legal requirements applicable to it
    with respect to the transactions contemplated by this Agreement and will
    promptly cooperate with and furnish information to each other in connection
    with any such requirements imposed upon any of them. Each of BNC, the Agency
    and Sellers will take all reasonable actions necessary to obtain, and will
    cooperate with each other in obtaining, any consent, authorization, order or
    approval of, or any exemption by, any Governmental Entity or other public or
    private party, required to be obtained or made to consummate the
    transactions contemplated by this Agreement.</p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
5.2&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557463"><u>Access to Properties and Records</u></a>. Until the Closing Date, Sellers shall cause each of the
    Companies to allow BNC and its authorized representatives full access,
    during normal business hours and on reasonable notice, to all of the
    Companies' properties, offices, vehicles, equipment, inventory and other
    assets, documents, files, books and records, in order to allow BNC a full
    opportunity to make such investigation and inspection as it desires of the
    Companies' respective business and assets. Sellers shall further cause the
    Companies to use their best efforts to cause the employees, counsel and
    regular independent certified public accountants of the Companies to be
    available upon reasonable notice to answer questions of BNC's
    representatives concerning the business and affairs of the Companies, and
    shall further use their best efforts to cause them to make available all
    relevant books and records in connection with such inspection and
    examination, including without limitation work papers for all audits and
    reviews of financial statements of the Companies.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
5.3&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557464"><u>Conduct of Business</u></a>. From and after the date of this Agreement and until the
    Closing Date, the Principal Shareholders shall cause the Companies to
    conduct their business in the ordinary course and consistently with past
    practices, and except (i) as expressly required or permitted by this
    Agreement, or (ii) as necessary to effectuate the Consolidation on the terms
    contained in the Ancillary Agreements, the Principal Shareholders shall not
    cause any of the Companies to do any of the following without the prior
    written consent of BNC:
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp; incur any obligation or liability, absolute or contingent, except
        trade or business obligations incurred in the ordinary course of
        business or sales, income, franchise or ad valorem taxes accruing or
        becoming payable in the ordinary course of business;&nbsp;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp; enter into any agreement or transaction not in the ordinary course of
        business;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp; declare or pay any dividend or other distribution with respect to any
        of its capital stock or purchase any of its capital stock; provided,
        however, that the Principal Shareholders may cause the Companies, with
        the prior written consent of BNC, to make such other distributions to
        the Sellers that are necessary to enable Sellers to satisfy the federal
        and state income tax liabilities of the Companies for the Final Period;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;&nbsp; subject any of its assets to any Lien;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(e)&nbsp;&nbsp;&nbsp; increase the rate of compensation (including bonuses, contingent
        severance payments, retirement, profit sharing, benefit or any other
        payments) payable or to become payable to any of its officers or
        directors;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(f)&nbsp;&nbsp;&nbsp; terminate or take any action that would cause the termination of any
        Material Contract, commitment or transaction or waive any right of
        material value to it;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(g)&nbsp;&nbsp;&nbsp; default under any note, loan, mortgage, guarantee or other instrument
        of indebtedness or any Material Contract;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(h)&nbsp;&nbsp;&nbsp; transfer any asset, right or interest to, or enter into any
        transaction with, the Sellers or any of their Affiliates;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(i)&nbsp;&nbsp;&nbsp; amend its Charter Documents;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(j)&nbsp;&nbsp;&nbsp; or
      enter into any agreement or commitment to do any of the foregoing.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
5.4&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557465"><u>Public Statements</u></a>. Prior to the Closing Date, none of the parties to this
    Agreement shall, and each party shall use its best efforts so that none of
    its advisors, officers, directors or employees shall, except with the prior
    written consent of the other party, publicize, announce or describe to any
    third person, except their respective advisors and employees, the execution
    or terms of this Agreement, the parties hereto or the transactions
    contemplated hereby, except as required by law or as required pursuant to
    this Agreement to obtain the consent of such third person; provided, in any
    case, that BNC, in consultation with Sellers, may make such disclosures and
    announcements as may be necessary or advisable under applicable securities
    laws.</p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
5.5&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557466"><u>No Solicitation</u></a>. Sellers will not, prior to the Closing Date or the
    termination of this Agreement pursuant to Section 6.1, (nor will they permit
    any of their affiliates or any of the Companies' officers, directors or
    agents to) directly or indirectly solicit or participate or engage in or
    initiate any negotiations or discussions, or enter into or authorize any
    agreement or agreements in principle, or announce any intention to do any of
    the foregoing, with respect to any offer or proposal to acquire all or any
    significant part of any of the Companies' business and properties or any
    Shares whether by merger, purchase of assets, purchase of stock or
    otherwise. Sellers will notify BNC promptly upon receipt of any inquiry,
    offer or other communication from any third party regarding any such
    activities.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
5.6&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557467"><u>Update Information</u></a>. Each party hereto will promptly disclose to the other any
  information contained in its representations and warranties that because of an
  event occurring after the date hereof is incomplete or no longer correct;
  provided, however, that none of such disclosures will be deemed to modify,
  amend, or supplement the representations and warranties of such party, unless
  the other party consents to such modification, amendment, or supplement in
  writing.
<p align="center">ARTICLE VI
  <b>
  <br>
  </b><a NAME="_Toc4557468">TERMINATION</a>
<p align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section 6.1&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557469"><u>Termination</u></a>. This Agreement may be terminated and may be abandoned
    at any time prior to the Closing Date:</p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp; by mutual consent of BNC and the Sellers' Representatives;&nbsp;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp; by BNC or the Sellers' Representatives, as the case may be, if (a)
        there shall have been a material breach of any representation, warranty,
        covenant or agreement on the part of either the Sellers or on the part
        of BNC or the Agency, as the case may be, which breach shall not have
        been cured prior to the earlier of (i) 10 days following notice of such
        breach and (ii) April 15, 2002; or (b) the date after which any
        permanent injunction or other order of a court or other competent
        Governmental Entity preventing the transactions contemplated by this
        Agreement shall have become final and non-appealable;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp; or
      by BNC or the Sellers' Representatives if the transactions
        contemplated by this Agreement shall not have been consummated on or
        before April 15, 2002; provided, that the right to terminate this
        Agreement under this Section 6.1(c) shall not be available to any party
        whose breach of its representations and warranties in this Agreement or
        whose failure to perform any of its covenants and agreements under this
        Agreement has resulted in the failure of the transactions contemplated
        by this Agreement to occur on or before such date.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
6.2&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557470"><u>Effect of Termination</u></a>. In the event of a termination of this Agreement as
    provided in Section 6.1, this Agreement shall forthwith become void and
    there shall be no liability or obligation under any provisions hereof on the
    part of BNC, the Agency, the Companies or Sellers, except (a) pursuant to
    the covenants and agreements contained in Section 5.4 and this Section 6.2,
    and (b) to the extent that such termination results from the willful
    material breach by a party hereto of any of its representations, warranties,
    covenants or agreements set forth in this Agreement, in which case the
    non-breaching party shall have a right to recover any Damages caused thereby
    through Arbitration as set forth in Section 8.9.</p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
6.3&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557471"><u>Extension; Waiver</u></a>. At any time prior to the Closing Date, the parties hereto
  may, in their respective sole discretion: (a) extend the time for the
  performance of any of the obligations or other acts of the other parties
  hereto; (b) waive any inaccuracies in the representations and warranties
  contained herein or in any document delivered pursuant thereto; and (c) waive
  compliance with any of the agreements or conditions contained herein. Any
  agreement on the part of a party hereto to any such extension or waiver shall
  be valid only if set forth in a written instrument signed by or on behalf of
  such party.
<p align="center">ARTICLE VII<b>
  <br>
  </b><a NAME="_Toc4557472">INDEMNIFICATION; REMEDIES</a>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
7.1&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557473"><u>Survival; Right to Indemnification Not Affected
      by Knowledge</u></a>. Subject to the provisions of this Article VII, all
    representations, warranties, covenants, and obligations in this Agreement,
    the Disclosure Schedules, and any other Closing certificate, agreement or
    opinion delivered pursuant to this Agreement will survive the Closing. The
    right to indemnification for Damages based on such representations,
    warranties, covenants, and obligations will not be affected by any
    investigation conducted by a party with respect to, or the knowledge of any
    fact or matter acquired (or capable of being acquired) by a party at any
    time, whether before or after the execution and delivery of this Agreement
    or the Closing Date, with respect to the accuracy or inaccuracy of, or
    compliance with, any such representation, warranty, covenant, or obligation.
    The waiver of any condition based on the accuracy of any representation or
    warranty, or on the performance of or compliance with any covenant or
    obligation, will not affect the right to indemnification, payment of
    Damages, or other remedy based on such representations, warranties,
    covenants, and obligations.</p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.2&nbsp;&nbsp;&nbsp;
<a NAME="_Toc4557474"><u>Indemnity Obligations and Payment of Damages by
      Sellers</u></a>. Subject to the other provisions of this Article VII,
    Sellers will indemnify and hold harmless BNC and the Agency, including any
    successor thereof through merger or consolidation (collectively, the
    &quot;BNC Indemnified Persons&quot;) for, and will pay to the BNC
    Indemnified Persons the amount of any Damages incurred as a result of:
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp; the inaccuracy of any representation or warranty made by Sellers in
        this Agreement, the Disclosure Schedule or any other Closing
        certificate, agreement or opinion delivered by Sellers pursuant to this
        Agreement;&nbsp;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp; the inaccuracy of any representation or warranty made by Sellers in
        this Agreement as if such representation or warranty were made on and as
        of the Closing Date;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp; any breach by Sellers of any covenant or obligation of Sellers in this
        Agreement;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;&nbsp; any liability for Taxes applicable to Sellers or the Companies that
        are unpaid or unaccrued with respect to all periods prior to the Closing
        (excluding any amounts payable by BNC pursuant to Section 8.1);&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(e)&nbsp;&nbsp;&nbsp; and
      any claim by any Person for brokerage or finder's fees or
        commissions or similar payments based upon any agreement or
        understanding alleged to have been made by any such Person with any of
        the Sellers or the Companies (or any Person acting on their behalf) in
        connection with any of the transactions contemplated by this Agreement.</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
7.3&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557475"><u>Indemnity Obligation and Payment of Damages by
      BNC</u></a>. Subject to the other provisions of this Article VII,
    BNC and the Agency will indemnify and hold harmless Sellers and their
    spouses and marital communities, as applicable, and their successors by will
    or the laws of descent and distribution (collectively, the &quot;Sellers'
    Indemnified Persons&quot;) for, and will pay to Sellers' Indemnified
    Persons the amount of any Damages incurred as a result of:</p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp; the inaccuracy of representation or warranty made by BNC or the Agency
        in this Agreement or in any Closing certificate, agreement or opinion
        delivered by BNC or the Agency pursuant to this Agreement;&nbsp;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp; the inaccuracy of any representation or warranty made by BNC or the
        Agency in this Agreement as if such representation or warranty were made
        on and as of the Closing Date;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp; any breach by BNC or the Agency of any covenant or obligation of BNC
        or the Agency in this Agreement;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;&nbsp; any liability for Taxes applicable to Sellers' as the result of the
        Section 338 Election described in Section 8.1;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(e)&nbsp;&nbsp;&nbsp; and
      any claim by any Person for brokerage or finder's fees or
        commissions or similar payments based upon any agreement or
        understanding alleged to have been made by such Person with BNC or the
        Agency (or any Person acting on their behalf) in connection with any of
        the transactions contemplated by this Agreement.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
7.4&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557476"><u>Time Limitations.</u></a>

&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp; The obligation of the Sellers to indemnify the BNC Indemnified Persons
        pursuant to Section 7.2 shall survive the consummation of the
        transactions contemplated by this Agreement, and the Sellers shall only
        be required to indemnify the BNC Indemnified Persons, as follows:</p>
      <ol TYPE="i">
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (i)&nbsp;&nbsp;&nbsp; with respect to the representations and warranties in Sections 3.1,
          3.2, 3.7, 3.22 and matters covered by Section 7.2(d), until the
          greater of five (5) years from the Closing Date or expiration of the
          applicable statute of limitations period;&nbsp;
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (ii)&nbsp;&nbsp;&nbsp; and
        with respect to all other representations and warranties of the
          Sellers and any other matters covered by Section 7.2, until two (2)
          years after the Closing Date.</p>
      </ol>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp; The obligation of BNC and the Agency to indemnify the Sellers'
        Indemnified Persons pursuant to Section 7.3 shall survive the
        consummation of the transactions contemplated by this Agreement, and the
        Sellers shall only be required to indemnify the BNC Indemnified Persons
        as follows:
      <ol TYPE="i">
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (i)&nbsp;&nbsp;&nbsp; with respect to the representations and warranties in Section 4.2,
          and matters covered by Section 7.3(d), until the greater of five (5)
          years after the Closing Date or expiration of the applicable statute
          of limitations period;&nbsp;
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (ii)&nbsp;&nbsp;&nbsp; with respect to all other representations and warranties of BNC and
          the Agency and any other matters covered by Section 7.2, until two (2)
          years after the Closing Date.</p>
      </ol>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp; The obligations of the parties for indemnification under this Article
        VII shall terminate after the expiration of the periods indicated in
        subsections (a) and (b) of Section 7.4, except with respect to any
        Damages which have been the subject of written notice (a &quot;Claim
        Notice&quot;) to the party against whom such claim for Damages is
        asserted prior to the expiration of such period specifying the factual
        basis of the claim giving rise to such Damages in reasonable detail to
        the extent then known by the party providing such notice, which notice
        will preserve such claim until it is liquidated or otherwise finally
        resolved pursuant to the procedures set forth in Sections 7.7 and 7.8 of
        this Agreement.&nbsp;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
7.5&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557477"><u>Limitations on Indemnity Amount</u>.</a>

&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp; Neither Sellers' Indemnified Persons nor the BNC Indemnified Persons
        will have any claim for indemnification with respect to the matters
        described in Sections 7.2 or 7.3, respectively, unless and until such
        indemnified person has incurred Damages exceeding $75,000 (the
        &quot;Basket&quot;), and then only for the amount by which such Damages
        exceed the Basket. For purposes of this Section 7.5(a), Damages
        resulting from an occurrence of any one of the matters described in
        Sections 7.2 or 7.3 will not be counted towards the Basket unless the
        Damages resulting from such occurrence exceed $5,000 in the aggregate.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp; In no event shall either the Sellers, on the one hand, or BNC and the
        Agency, on the other hand, be required to make payments for
        indemnification pursuant to Sections 7.2 or 7.3, respectively, that
        exceed $6,500,000 in the aggregate; provided further, however, that in
        no event shall any Other Shareholder be required to make payments for
        indemnification pursuant to Section 7.2 of more than fifty percent (50%)
        of the amount actually received by such Other Shareholder pursuant to
        Article II.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp; Notwithstanding anything contained in this Article VII to the
        contrary, the limitations contained in Sections 7.5(a) and 7.5(b) shall
        not apply to (i) the matters covered by Sections 7.2(d) and 7.3(d), (ii)
        any breach or inaccuracy contained in the representations and warranties
        in Sections 3.1 through 3.5, (iii) any payments required to be made by
        BNC pursuant to Section 8.1 and (iv) any intentional breach by any party
        of any covenant or obligation contained in this Agreement.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
7.6&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557478"><u>Nature of Indemnity Obligation; Exclusive
      Remedy</u>.</a>

&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp; The Sellers, on the one hand, and BNC and the Agency, on the other
        hand, shall not have any obligation to indemnify the BNC Indemnified
        Persons and the Sellers' Indemnified Persons, respectively, except as
        expressly set forth in this Article VII.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp; The obligations of (i) the Other Shareholders to indemnify the BNC
        Indemnified Persons shall be several, and (ii) the Principal
        Shareholders to indemnify the BNC Indemnified Persons shall be joint and
        several with the Other Shareholders, with the intent of the parties
        being that the Principal Shareholders shall each be liable under this
        Article VII to the BNC Indemnified Persons for any Damages that may be
        payable pursuant to Section 7.2, and each Other Shareholder shall only
        be liable for his or her proportionate share of such Damages based on
        the amounts received by him or her based on his or her allocation
        percentage reflected on Exhibit &quot;B&quot; attached hereto.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp; The obligations of BNC and the Agency to indemnify the Sellers'
        Indemnified Persons shall be joint and several, with the intent of the
        parties being that each of BNC and the Agency shall be liable under this
        Article VII to the Sellers' Indemnified Persons for any Damages that
        may be payable pursuant to Section 7.3.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;&nbsp; The right to receive indemnification for Damages pursuant to the
        provisions of this Article VII shall be the exclusive remedy for the
        determination of any claim, controversy or Dispute whatsoever based upon
        or arising out of this Agreement or the transactions contemplated
        hereby, or any agreement given in connection herewith, as determined
        exclusively through Arbitration in accordance with Section 8.9;
        provided, however, that (i) the foregoing shall not apply to the Lease
        or any of the employment agreements to be executed and delivered
        pursuant to Sections 2.4(b)(iii), 2.4(b)(iv) and 2.4(b)(v), and (ii) any
        Objection pursuant to Section 2.3 shall be resolved in accordance with
        the procedures set forth in Section 2.3(e).</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
7.7&nbsp;&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557479"><u>Procedure for Indemnification &#150; Third Party
      Claims</u>.</a></p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp; Within
      ten (10) business days after receipt by an indemnified party under Section
      7.2 or 7.3 of notice of the commencement of any proceeding against it by a
      third Party (a &quot;Third Party Claim&quot;), such indemnified party
      will, if a claim is to be made against an indemnifying party under such
      Section, give a Claim Notice to the indemnifying party of the commencement
      of such claim, but the failure to give such Claim Notice to the
      indemnifying party will not relieve the indemnifying party of any
      liability that it may have to any indemnified party, except to the extent
      that the indemnifying party demonstrates that the defense of such action
      is prejudiced by the indemnifying party's failure to give such Claim
      Notice.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp; If any Third Party Claim is brought against an indemnified party and
        it gives a Claim Notice with respect to such claim, the indemnifying
        party will, unless the claim involves Taxes, be entitled to participate
        in such Proceeding and, to the extent that it wishes (unless (i) the
        indemnifying party is also a party to such Proceeding and the
        indemnified party determines in good faith that joint representation
        would be inappropriate, or (ii) the indemnifying party fails to provide
        reasonable assurance to the indemnified party of its financial capacity
        to defend such Proceeding and provide indemnification with respect to
        such Proceeding), to assume the defense of such Proceeding with counsel
        satisfactory to the indemnified party and, after notice from the
        indemnifying party to the indemnified party of its election to assume
        the defense of such Proceeding, the indemnifying party will not, as long
        as it diligently conducts such defense, be liable to the indemnified
        party under this Section 7 for any fees of other counsel or any other
        expenses with respect to the defense of such Proceeding, in each case
        subsequently incurred by the indemnified party in connection with the
        defense of such Proceeding, other than reasonable costs of
        investigation. If the indemnifying party assumes the defense of a
        Proceeding, (i) it will be conclusively established for purposes of this
        Agreement that the claims made in that Proceeding are within the scope
        of and subject to indemnification under the terms of this Agreement,
        (ii)&nbsp;no compromise or settlement of such claims may be effected by
        the indemnifying party without the indemnified party's consent unless
        (A)&nbsp;there is no finding or admission of any violation of any
        Applicable Law or any violation of the rights of any Person and no
        effect on any other claims that may be made against the indemnified
        party, and (B)&nbsp;the sole relief provided is monetary damages that
        are paid in full by the indemnifying party; and (iii)&nbsp;the
        indemnified party will have no liability with respect to any compromise
        or settlement of such claims effected without its consent.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp; Notwithstanding the foregoing, if an indemnified party determines in
        good faith that there is a reasonable probability that a Proceeding may
        adversely affect it or its Affiliates other than as a result of monetary
        damages for which it would be entitled to indemnification under this
        Agreement, the indemnified party may, by notice to the indemnifying
        party, assume the exclusive right to defend, compromise, or settle such
        Proceeding, but the indemnifying party will not be bound by any
        determination of a Proceeding so defended or any compromise or
        settlement effected without its consent (which may not be unreasonably
        withheld).&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
7.8&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557480"><u>Disputed Indemnity Obligations, Arbitration</u></a>. If a party disagrees with a Claim Notice, it shall notify
  the claiming party in writing within ten (10) business days after the date
  upon which the Claim Notice was served specifying in detail the points of
  disagreement over the Claim Notice, and requesting a meeting to resolve the
  disagreement. A resolution conference shall take place within thirty (30) days
  of request. If any such disagreement over a Claim Notice has not been resolved
  by informal resolution within thirty (30) days after the date of service of a
  Claim Notice, the disagreement shall be deemed a &quot;Dispute&quot; which
  shall be submitted to Arbitration, in accordance with Section 8.9. The
  Arbitration shall occur as soon as practicable, but in no event later than one
  hundred twenty (120) days from the date of service of the Claim Notice unless
  additional time is reasonably required in order to develop information
  reasonably necessary to adjudicate the matter. The determinations at the
  Arbitration by the arbitrator or arbitrators shall be final, conclusive and
  binding with respect to the Dispute over the Claim Notice, and a party's
  indemnity obligations concerning the subject indemnification claim as finally
  determined at the Arbitration shall be final, conclusive, binding and non-appealable,
  and the judgment of a court of competent jurisdiction may be entered thereon.
  If a Claim Notice pertains to a Third Party Claim, during the pendency of the
  Arbitration, each of the parties shall cooperate with each other to insure
  that the Third Party Claim is properly handled, that no default is entered
  thereon, and that none of the parties' rights in respect of the Third Party
  Claim are prejudiced.</p>
<p align="center">ARTICLE VIII<br>
    <a NAME="_Toc4557481">MISCELLANEOUS</a>

&nbsp;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
8.1&nbsp;&nbsp;&nbsp; <u>Section
      338 Elections</u>. If requested by BNC, BNC and Sellers shall join in an
    election to have the provisions of Section 338(h)(10) of the Code and
    similar provisions of state law (&quot;Section 338 Elections&quot;) apply to
    the purchase by the Agency of the Shares. BNC shall be responsible for, and
    control, the preparation and filing of such election. The allocation of
    purchase price among the assets of Milne Scali shall be made in accordance
    with Code Section 338 and any comparable provisions of state, or local law,
    as appropriate. Sellers shall accept BNC's determination of such purchase
    price allocations and shall report, act, file in all respects and for all
    purposes consistent with such determination of BNC. Sellers shall execute
    and deliver to BNC such documents or forms (including Section 338 Forms, as
    defined below) as BNC shall request or as are required by applicable law for
    an effective Section 338 Election. &quot;Section 338 Forms&quot; shall mean
    all returns, documents, statements, and other forms that are required to be
    submitted to any federal, state, county or other local taxing authority in
    connection with a Section 338 Election, including, without limitation, any
    &quot;statement of Section 338 Election&quot; and IRS Form 8023 (together
    with any schedules or attachments thereto) that are required pursuant to
    treasury regulations. If BNC and Sellers make a Section 338 Election, BNC
    shall pay to Sellers within thirty (30) days of filing the Section 338
    Elections, an amount equal to 133.3% of the excess of (a) the aggregate
    amount of federal and state income taxes imposed upon Sellers on account of
    the transactions contemplated by this Agreement, over (b) the aggregate
    amount of federal and state income taxes that would have been imposed upon
    Sellers on account of the transactions contemplated by this Agreement if a
    Section 338 Election had not been made.</p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
8.2&nbsp;&nbsp;&nbsp; <u>Final
      S Corporation Tax Return.</u>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp; Following the Closing, Sellers shall prepare and timely file the
        Companies' federal income and state income tax Returns for the taxable
        period that ends as a result of the transaction described herein (the
        &quot;Final Period&quot;); provided, however, that</p>
      <ol TYPE="i">
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (i)&nbsp;&nbsp;&nbsp; BNC shall control the preparation of the portion of the Returns that
          relate to any gain resulting from the Section 338 Elections; and&nbsp;
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (ii)&nbsp;&nbsp;&nbsp; Sellers shall provide BNC final copies of all such returns, and such
          returns shall be reasonably acceptable to BNC, prior to the filing of
          such returns by Sellers. Sellers shall be responsible for and timely
          pay all federal and state income taxes of the Companies for the Final
          Period.</p>
      </ol>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp; Following the Closing, neither BNC nor its Affiliates shall, with
        respect to any period ending prior to the Closing Date: (i) file any
        amended Return with respect to the Companies; (ii) carry back any loss
        or tax attribute of the Companies, or (iii) take or advocate any
        position with respect to any Taxes of the Companies for any period that
        could reasonably be expected to adversely affect the Sellers, with
        respect to any period ending prior to the Closing Date unless, in each
        case, the Principal Shareholders shall have consented in writing to such
        action. BNC shall promptly notify the Sellers upon receipt by BNC or any
        of its Affiliates of written notice of any inquiries, claims,
        assessments, audits or similar events with respect to Taxes relating to
        a taxable period ending prior to or ending on the Closing Date for which
        Sellers may be liable under this Agreement (any such inquiry, claim,
        assessment, audit or similar event, a &quot;Tax Matter&quot;). The
        Sellers' Representatives, or their duly appointed representative,
        shall have the authority to represent the interests of the Companies
        and/or the Sellers with respect to any Tax Matter before the Internal
        Revenue Service, any other Governmental Entity and shall have the sole
        right to control the defense, compromise or other resolution of any Tax
        Matter, including responding to inquiries, filing Returns and
        contesting, defending against and resulting in any assessment for
        additional income or taxes or notice of tax deficiency or other
        adjustment of Taxes of, or relating to, a Tax Matter; provided, however,
        that the Sellers' Representatives, on behalf of the Companies, shall
        not enter into any settlement on behalf of the Companies or otherwise
        compromise any Tax Matter that affects or may affect the tax liability
        of BNC, the Agency or their Affiliates for any period ending after the
        Closing Date without the prior written consent of BNC. The Sellers or
        their representative shall keep BNC fully and timely informed with
        respect to commencement, status and nature of any Tax Matter.&nbsp;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp; The Sellers and BNC (and its Affiliates) agree to cooperate with and
        to provide each other with all information for periods prior to or after
        the Closing Date that is relevant in preparing Returns pertaining to the
        Companies. The Sellers, on the one hand, and BNC (and its Affiliates),
        on the other hand, agree to furnish or cause to be furnished to each
        other upon request, as promptly as practicable, such information
        (including access to books or records and Returns (or portions thereof)
        pertinent to the Companies, and shall preserve all such information,
        records and documents in accordance with generally applicable record
        retention policies.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
8.3&nbsp;&nbsp;&nbsp; <u>Expenses</u>. Each of BNC and the Sellers (and not any of the
    Companies) shall pay all of its own expenses incurred in connection with the
    authorization, preparation, execution and performance of this Agreement
    including, but not limited to, the fees and expenses of its legal and
    financial advisors (excluding legal expenses and accounting fees of the
    Companies incurred in effectuating the Consolidation, which shall be paid by
    Milne Scali at the Closing).</p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
8.4&nbsp;&nbsp;&nbsp; <u>Notices</u>. All notices hereunder must be in writing and shall be
    deemed to have been given upon receipt of delivery by (a) personal delivery
    to the designated individual, (b) certified or registered mail, postage
    prepaid, return receipt requested, (c) a nationally recognized overnight
    courier service (against a receipt therefor) or (d) facsimile transmission
    with confirmation of receipt. All such notices must be addressed as follows
    or such other address as to which any party hereto may have notified the
    other in writing:
    <p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    If to BNC or the Agency, to:&nbsp;</p>
    <p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    BNCCORP, Inc.<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    322 East Main<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Bismarck, North Dakota 58501<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Attention: Gregory K. Cleveland<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Facsimile Transmission No.: (701) 250-3028</p>
    <p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    With copy to:</p>
<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
William B. Masters, Esq.<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Jones, Walker, Waechter, Poitevent, Carr&#232;re &amp;
    Den&#232;gre, L.L.P.<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
201 St. Charles Avenue<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
New Orleans, Louisiana 70170-5100<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Telephone No. : (504) 582-8278<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Facsimile Transmission No.: (504) 589-8278</p>
    <p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    If to the Sellers, to:</p>
<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
c/o Richard W. Milne and Terrence M. Scali<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1750 E. Glendale Ave.<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Phoenix, AZ 85306<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Facsimile Transmission No.: (602) 395-4275</p>
    <p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    With copy to:&nbsp;</p>
    <p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Kevin T. Ahern, Esq.<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Broening Oberg Woods Wilson &amp; Cass, P.C.<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    1122 East Jefferson<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Phoenix, Arizona 85034<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Telephone No.: (602) 271-7787<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Facsimile Transmission No.: (602) 258-7785</p>
    <p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Section 8.5&nbsp;&nbsp;&nbsp; <u>Amendment</u>. This Agreement may only be amended by a written
    instrument signed by all of the parties hereto; provided however that any
    modification of the EBITDA target set forth in Section 2.3(a) pursuant to
    Section 2.3(g) may be agreed to by BNC and the Sellers' Representatives on
    behalf of the Sellers.</p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
8.6&nbsp;&nbsp;&nbsp; <u>Headings;
      Gender</u>. When a reference is made in this Agreement to a
    section, exhibit or schedule, such reference shall be to a section, exhibit
    or schedule of this Agreement unless otherwise indicated. The table of
    contents and headings contained in this Agreement are for reference purposes
    only and shall not affect in any way the meaning or interpretation of this
    Agreement. All personal pronouns used in this Agreement shall include the
    other genders, whether used in the masculine, feminine or neuter gender, and
    the singular shall include the plural and vice versa, whenever and as often
    as may be appropriate.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
8.7&nbsp;&nbsp;&nbsp; <u>Entire
      Agreement; No Third Party Beneficiaries</u>. This Agreement (including the documents, exhibits and
    instruments referred to herein) (a) constitutes the entire agreement and
    supersedes all prior agreements, and understandings and communications, both
    written and oral, among the parties with respect to the subject matter
    hereof, and (b) is not intended to confer upon any person other than the
    parties hereto any rights or remedies hereunder.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
8.8&nbsp;&nbsp;&nbsp; <u>Governing
      Law/Exclusive Forum and Venue</u>. This Agreement and any Arbitration hereunder shall be
    governed by and construed in accordance with the substantive laws of the
    State of Arizona, without regard to any applicable principles of conflicts
    of law, and Maricopa County, Arizona shall be the exclusive forum and venue
    for any Arbitration.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
8.9&nbsp;&nbsp;&nbsp; <u>Arbitration.</u>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp; Any claim, controversy or dispute whatsoever (a &quot;Dispute&quot;)
        based upon or arising out of any aspect of this Agreement, the
        Consolidation, or any document or any other agreement executed in
        connection herewith or contemplated hereby, including the employment
        agreements of the Principal Shareholders and the Other Shareholders,
        regardless of the title or nature of the Dispute, whether in contract or
        tort, at law or in equity, based upon or arising out of this Agreement,
        the existence and amount of an Indemnity Obligation, the accuracy of any
        representation or warranty, the breach of any covenant or condition, or
        based upon the rescission, reformation, interpretation, breach,
        termination, enforcement, or validity of this Agreement or any other
        agreement executed in connection herewith, excluding only the matters
        set forth below, and the resolution of an Objection to an Earnout Notice
        as contemplated by Section 2.3(e), shall be exclusively and finally
        resolved through mandatory and binding arbitration
        (&quot;Arbitration&quot;) in accordance with the terms hereof, provided
        any party to this Agreement may bring an action in the Maricopa County
        Superior Court to compel Arbitration of any Dispute. Any party who fails
        or refuses to submit any Dispute to binding Arbitration following a
        written demand by another party or parties shall bear all costs and
        expenses, including reasonable attorney's fees, incurred by the
        opposing party or parties in compelling Arbitration of such Dispute. The
        following provisions apply to Arbitration:&nbsp;</p>
<p>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (b)&nbsp;&nbsp;&nbsp; The Arbitration shall be conducted in accordance with the Commercial
        Arbitration Rules of the American Arbitration Association in effect on
        the date of this Agreement, as modified by the following:</p>
      <ol TYPE="i">
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (i)&nbsp;&nbsp;&nbsp; The Arbitration shall be heard by three (3) independent and
          impartial arbitrators (the &quot;Arbitration Panel&quot;) chosen in
          the following manner: each of BNC and the Sellers' Representatives
          shall nominate one such arbitrator with the third to be chosen by the
          first two nominees.&nbsp;
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (ii)&nbsp;&nbsp;&nbsp; The Arbitration proceedings shall be conducted in Phoenix, Arizona.&nbsp;</p>
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (iii)&nbsp;&nbsp;&nbsp; Discovery shall be limited to the production of documents and taking
          of depositions, which shall be conducted in accordance with the
          arbitration rules and procedures of the American Arbitration
          Association. All discovery shall be completed within sixty (60) days
          following the filing of the answer or other pleading required in
          response to the initiating arbitration complaint. Discovery disputes
          shall be resolved and disposed of by the Arbitration Panel.&nbsp;</p>
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (iv)&nbsp;&nbsp;&nbsp; Each party shall have up to ten (10) hours to present evidence and
          argument in a hearing before the Arbitration Panel, provided that the
          Arbitration Panel may establish such longer times for presentations as
          they deem appropriate.&nbsp;</p>
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (v)&nbsp;&nbsp;&nbsp; The limitation periods specified in this Agreement shall control in
          any Arbitration proceeding, and bar any indemnification claim which is
          not brought during the specified limitation periods.&nbsp;</p>
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (vi)&nbsp;&nbsp;&nbsp; The Arbitration Panel shall determine the merits of the Dispute in
          accordance with the substantive laws of the State of Arizona, without
          regard to Arizona conflicts of law principles.&nbsp;</p>
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (vii)&nbsp;&nbsp;&nbsp; The Arbitration Award shall be rendered by the Arbitration Panel
          within fifteen (15) business days after conclusion of the hearing of
          the matter, shall be in writing and shall specify the factual and
          legal basis for the award. Judgment thereon may be entered in any
          court having jurisdiction thereof.&nbsp;</p>
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (viii)&nbsp;&nbsp;&nbsp; Each party shall each pay one half of the cost and expenses of
          Arbitration, subject to the Arbitration Panel's power to award the
          prevailing party in the Arbitration its reasonable attorney's fees
          and costs incurred if the Arbitration Panel determines that the other
          party has acted in bad faith.&nbsp;</p>
        <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (ix)&nbsp;&nbsp;&nbsp; The parties expressly waive all rights whatsoever to file an appeal
          against or otherwise to challenge any Arbitration award.</p>
      </ol>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp; No provision of, or the exercise of any rights under, this Agreement
        shall limit the right of any party to file a civil action in the
        Maricopa County Superior Court to apply for a temporary restraining
        order and/or a preliminary injunction to enforce compliance with this
        Section 8.9, provided (i) the merits of the Dispute itself shall be
        submitted to Arbitration, (ii) all findings and determinations on the
        merits of the Dispute shall be made by the Arbitration Panel, and (iii)
        the filing of any such civil action shall not be deemed an election of
        remedies. The right to file a civil action can be exercised at any time
        necessary to enforce this Section 8.9 except to the extent such civil
        action is contrary to a final award or decision in any Arbitration. The
        institution of a civil action for a temporary restraining order or
        preliminary injunction to enforce compliance with this Section 8.9 shall
        not (i) constitute a waiver of the right and obligation of any party,
        including, without limitation, the plaintiff in the action, to submit
        any Dispute to Arbitration, (ii) render inapplicable the compulsory
        Arbitration provisions of this Agreement, or (iii) constitute a breach
        hereof.&nbsp;
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;&nbsp; Any attorney-client privilege and other protection against disclosure
        of confidential information, including without limitation any protection
        afforded the work product of any attorney, that could otherwise be
        claimed by any party shall be available to and may be claimed by any
        such party in any Arbitration proceeding. No party waives any
        attorney-client privilege or any other protection against disclosure of
        confidential information by reason of anything contained in or done
        pursuant to or in connection with this Agreement. Each party agrees to
        keep all Disputes and Arbitration proceedings strictly confidential,
        except for disclosures of information to the parties' legal counsel or
        auditors or those required by applicable law.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(e)&nbsp;&nbsp;&nbsp; Except for (i) the right to bring a civil action in the Maricopa
        County Superior Court for the limited purposes authorized by this
        Section 8.9, (ii) the right to enforce an Arbitration Award as a civil
        judgment, subject to the provisions of Article VII, or (iii) any other
        remedy expressly created and/or reserved to the parties hereunder, all
        other remedies at law or in equity are expressly waived and this
        Arbitration Section constitutes the entire agreement of the parties with
        respect to Dispute resolution, superceding all prior discussions,
        arrangements, negotiations and other communications on Dispute
        resolution. This Arbitration provision shall survive any termination,
        amendment, renewal, extension or expiration of this Agreement or any
        agreement executed in connection herewith or contemplated hereby unless
        the parties otherwise expressly agree in writing. The obligation to
        arbitrate any Dispute shall be binding upon the authorized successors
        and assigns of each of the parties.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
8.10&nbsp;&nbsp;&nbsp; <u>Assignment</u>. Neither this Agreement nor any of the rights, interests
    or obligations hereunder shall be assigned or delegated by any of the
    parties hereto (whether by operation of law or otherwise) without the prior
    written consent of the other parties.</p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
8.11&nbsp;&nbsp;&nbsp; <u>Severability</u>. If any term or other provision of this Agreement is
    invalid, illegal or incapable of being enforced by reason of any rule of law
    or public policy, all other conditions and provisions of this Agreement
    shall nevertheless remain in full force and effect so long as the economic
    or legal substance of the transactions contemplated hereby is not affected
    in any adverse manner to either party. Upon such determination that any term
    or other provision is invalid, illegal or incapable of being enforced, the
    parties hereto shall negotiate in good faith to modify this Agreement so as
    to effect the original intent of the parties as closely as possible in an
    acceptable manner to the end that the transactions contemplated hereby are
    fulfilled to the extent possible, and in any case such term or provision
    shall be deemed amended to the extent necessary to make it no longer
    invalid, illegal or unenforceable.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
8.12&nbsp;&nbsp;&nbsp; <u>Counterparts</u>. This Agreement may be executed in multiple
    counterparts, each of which shall be deemed an original and all of which
    taken together shall constitute one and the same document.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
8.13&nbsp;&nbsp;&nbsp; <u>Mutual
      Drafting</u>. This Agreement is the mutual product of the parties
    hereto and each provision hereof has been subject to the mutual
    consultation, negotiation and agreement of each of the parties, and shall
    not be construed for or against any party hereto.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
8.14&nbsp;&nbsp;&nbsp; <u>Facsimile
      Signatures</u>. In order to expedite the action contemplated herein,
    telecopied signatures may be used in place of original signatures of this
    Agreement. BNC, the Agency and the Sellers intend to be bound by the
    signatures on the telecopied document, are aware that the other party will
    rely on the telecopied signatures, and hereby waive any defenses to the
    enforcement of the terms of this Agreement based on the form of signature.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
8.15&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557496"><u>Mountain View</u></a>. The Principal Shareholders shall cause Milne Scali
    Properties, L.L.C. to agree to sell to Milne Scali two (2) shares in
    Mountain View Indemnity, Ltd., for the sum of $92,000.00 payable in cash,
    upon approval of the sale by the board of directors of Mountain View
    Indemnity, Ltd., which approval shall be obtained as soon as practicable
    after the Closing, provided that if such approval cannot be obtained within
    a reasonable period of time after the Closing, then the Principal
    Shareholders shall cause Milne Scali Properties, L.L.C. to sell said shares
    back to Mountain View Indemnity, Ltd., so that the Principal Shareholders
    shall have divested themselves of any indirect interest in such shares.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
8.16&nbsp;&nbsp;&nbsp; <a NAME="_Toc4557497"><u>Personal Guarantees</u></a>. Following the Closing, BNC shall cause Milne Scali to
contact persons with whom Milne Scali has contracts, licenses or agreements that
the Principal Shareholders have personally guaranteed, or otherwise agreed to
act as surety, indemnitor or co-primary obligor, to have the Principal
Shareholders released from any such guaranteed obligation and BNC shall, and
shall cause Milne Scali to, indemnify the Principal Shareholders against any
Damages arising from Milne Scali's failure to perform the guaranteed
obligations.
<u>
</u>
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be signed themselves or by their respective duly authorized
officers as of the date first written above.</p>
<div align="right">
  <table border="0" width="50%">
    <tr>
      <td width="100%">BNCCORP, INC., a Delaware corporation</td>
    </tr>
    <tr>
      <td width="100%">&nbsp;&nbsp;&nbsp;</td>
    </tr>
    <tr>
      <td width="100%">By:&nbsp; /S/ GREGORY K. CLEVELAND
        <hr align="right" width="95%">
      </td>
    </tr>
    <tr>
      <td width="100%">
<p ALIGN="center">Gregory K. Cleveland<br>
President</p>
      </td>
    </tr>
    <tr>
      <td width="100%">&nbsp;&nbsp;&nbsp;</td>
    </tr>
    <tr>
      <td width="100%">BNC INSURANCE, INC., a North Dakota corporation</td>
    </tr>
    <tr>
      <td width="100%">By:&nbsp; /S/ GREGORY K. CLEVELAND
        <hr align="right" width="95%">
      </td>
    </tr>
    <tr>
      <td width="100%">Its:&nbsp; Secretary
        <hr align="right" width="95%">
      </td>
    </tr>
    <tr>
      <td width="100%"></td>
    </tr>
  </table>
</div>
<p ALIGN="JUSTIFY"></p>
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="CENTER">&nbsp;</p>
<b>
<p ALIGN="CENTER">EXECUTION AND ACKNOLWLEDGMENT PAGE<br>
TO<br>
STOCK PURCHASE AGREEMENT</p>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="CENTER"></b></p>
<div align="right">
  <table border="0" width="50%" cellspacing="0">
    <tr>
      <td width="100%">
        <p align="center">/S/ RICHARD W. MILNE, JR.</td>
    </tr>
<u>
<tr>
  <td width="100%">
    <hr align="right">
  </td>
</tr>
</u>
    <tr>
      <td width="100%">
        <p align="center">Richard W. Milne, Jr.</td>
    </tr>
    <tr>
      <td width="100%">&nbsp;&nbsp;&nbsp;</td>
    </tr>
    <tr>
      <td width="100%">
<p ALIGN="JUSTIFY">The Richard W. Milne, Jr. and Robin Jayne Milne<br>
Revocable Living Trust</p>
      </td>
    </tr>
    <tr>
      <td width="100%">&nbsp;&nbsp;</td>
    </tr>
    <tr>
      <td width="100%">By:&nbsp; /S/ RICHARD W. MILNE, JR.
        <hr align="right" width="95%">
      </td>
    </tr>
    <tr>
      <td width="100%">
<p ALIGN="center">Richard W. Milne, Jr., Co-Trustee</p>
      </td>
    </tr>
    <tr>
      <td width="100%">&nbsp;&nbsp;</td>
    </tr>
    <tr>
      <td width="100%">By:&nbsp; /S/ ROBIN JAYNE MILNE
        <hr align="right" width="95%">
      </td>
    </tr>
    <tr>
      <td width="100%">
        <p align="center">Robin Jayne Milne, Co-Trustee</td>
    </tr>
  </table>
</div>
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="CENTER">&nbsp;</p>
<b>
<p ALIGN="CENTER">EXECUTION AND ACKNOWLEDGMENT PAGE<br>
TO<br>
STOCK PURCHASE AGREEMENT</p>
<p ALIGN="CENTER">&nbsp;</p>
<p ALIGN="CENTER">&nbsp;</p>
</b>
<div align="right">
  <table border="0" width="50%" cellspacing="0">
    <tr>
      <td width="100%">
        <p align="center">/S/ TERRENCE M. SCALI</td>
    </tr>
<u>
<tr>
  <td width="100%">
    <hr align="right">
  </td>
</tr>
</u>
    <tr>
      <td width="100%">
        <p align="center">Terrence M. Scali</td>
    </tr>
    <tr>
      <td width="100%">&nbsp;&nbsp;&nbsp;</td>
    </tr>
    <tr>
      <td width="100%">
<p ALIGN="JUSTIFY">The Terrence M. Scali and Marcella A. Scali<br>
Family Trust</p>
      </td>
    </tr>
    <tr>
      <td width="100%">&nbsp;&nbsp;</td>
    </tr>
    <tr>
      <td width="100%">By:&nbsp; /S/ TERRENCE M. SCALI
        <hr align="right" width="95%">
      </td>
    </tr>
    <tr>
      <td width="100%">
<p ALIGN="center">Terrence M. Scali, Co-Trustee</p>
      </td>
    </tr>
    <tr>
      <td width="100%">&nbsp;&nbsp;</td>
    </tr>
    <tr>
      <td width="100%">By:&nbsp; /S/ MARCELLA M. SCALI
        <hr align="right" width="95%">
      </td>
    </tr>
    <tr>
      <td width="100%">
        <p align="center">Marcella M. Scali, Co-Trustee</td>
    </tr>
  </table>
</div>
<u>
</u>
<p ALIGN="JUSTIFY">&nbsp;</p>
<b>
<p ALIGN="CENTER">EXECUTION AND ACKNOWLEDGMENT PAGE<br>
TO<br>
STOCK PURCHASE AGREEMENT</p>
<p ALIGN="CENTER">&nbsp;</p>
</b>
<p ALIGN="JUSTIFY">&nbsp;</p>
<div align="right">
  <table border="0" width="50%" cellspacing="0">
    <tr>
      <td width="100%">
        <p align="center">/S/ G. STEVEN HAY</td>
    </tr>
<u>
<tr>
  <td width="100%">
    <hr align="right">
  </td>
</tr>
</u>
    <tr>
      <td width="100%">
        <p align="center">G. Steven Hay</td>
    </tr>
  </table>
</div>
<u>
</u>
<p ALIGN="JUSTIFY">&nbsp;</p>
<p ALIGN="CENTER">&nbsp;</p>
<b>
<p ALIGN="CENTER">EXECUTION AND ACKNOWLEDGMENT PAGE<br>
TO<br>
STOCK PURCHASE AGREEMENT</p>
</b>
<p ALIGN="JUSTIFY">&nbsp;</p>
<div align="right">
  <table border="0" width="50%" cellspacing="0">
    <tr>
      <td width="100%">
        <p align="center">/S/ NANCY KOZLOSKI-RAUSCH</td>
    </tr>
<u>
<tr>
  <td width="100%">
    <hr align="right">
  </td>
</tr>
</u>
    <tr>
      <td width="100%">
        <p align="center">Nancy Kozloski-Rausch</td>
    </tr>
  </table>
</div>
<u>
<p ALIGN="JUSTIFY">&nbsp;</p>
</u>
<p ALIGN="JUSTIFY"></p>
<p ALIGN="CENTER">&nbsp;</p>
<b>
<p ALIGN="CENTER">EXECUTION AND ACKNOWLEDGMENT PAGE<br>
TO<br>
STOCK PURCHASE AGREEMENT</p>
</b>
<p ALIGN="JUSTIFY">&nbsp;</p>
<div align="right">
  <table border="0" width="50%" cellspacing="0">
    <tr>
      <td width="100%">The Hammontree/Turnacliff Revocable Trust</td>
    </tr>
    <tr>
      <td width="100%">&nbsp;&nbsp;</td>
    </tr>
    <tr>
      <td width="100%">By:&nbsp; /S/ SUSAN M. TURNACLIFF
        <hr align="right" width="95%">
      </td>
    </tr>
    <tr>
      <td width="100%">
        <p align="center">Susan M. Turnacliff, Trustee</td>
    </tr>
  </table>
</div>
<blockquote>
  <blockquote>
    <blockquote>
      <blockquote>
        <blockquote>
          <blockquote>
            <blockquote>
              <blockquote>
                <blockquote>
                  <blockquote>
                  <p ALIGN="JUSTIFY">&nbsp;</p>
                </blockquote>
              </blockquote>
            </blockquote>
          </blockquote>
        </blockquote>
      </blockquote>
    </blockquote>
  </blockquote>
</blockquote>
</blockquote>
<b>
<p ALIGN="CENTER">Exhibit &quot;A&quot;</p>
</b>
<p ALIGN="JUSTIFY">&nbsp;</p>
<i>
<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Affiliate&quot;</i> means a person that directly, or
indirectly through one or more intermediaries, controls, is controlled by, or is
under common control with, another person.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Agency&quot;</i> is defined in the recitals of this
Agreement.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Applicable Law&quot;</i> means any statute, law, rule
or regulation or any judgement, order, writ, injunction or decree of any
Governmental Entity to which a specified Person or its property is subject.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Arbitration&quot;</i> is defined in Section 8.9.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Arbitration Panel&quot;</i> is defined in Section 8.9.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Audited Financial Statements&quot;</i> means, as the
context may require, the audited financial statements of each of the Companies
for the years ended and at December 31, 1999, 2000 and 2001.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Base Earnout&quot;</i> is defined in Section 2.3(a)(i).</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Basket&quot;</i> is defined in Section 7.5(a).</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Benefit Arrangement&quot;</i> means any employment,
severance or similar contract, or any other contract, plan, policy or
arrangement (whether or not written) providing for compensation, bonus,
profit-sharing, stock option or other stock related rights or other forms of
incentive or deferred compensation, vacation benefits, insurance coverage
(including any self-insured arrangement), health or medical benefits, disability
benefits, severance benefits and post-employment or retirement benefits
(including compensation, pension, health, medical or life insurance benefits),
other than the Employee Plans, that &nbsp;is maintained, administered or
contributed to by the employer and&nbsp;covers any employee or former employee
of the employer.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;BNC&quot;</i> is defined in the recitals of this
Agreement.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;BNC Financial Reports&quot;</i> is defined in Section
4.5.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;BNC Indemnified Persons&quot;</i> is defined in Section
7.2.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;BNC Shares&quot;</i> is defined in Section 2.2(b).</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Cash Consideration&quot;</i> is defined in Section
2.2(a).</p>
<i>
<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Charter Documents&quot; </i>means, as each is
applicable to any Person, the articles of incorporation, certificate of
incorporation, by-laws, and any other similar organizational documents for such
Person.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Claim Notice&quot;</i> is defined in Section 7.4(c).</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Closing&quot; </i>is defined in Section 2.4(a).</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Closing Date&quot;</i> is defined in Section 2.4(a).</p>
<i>
<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Code&quot;</i> means the Internal Revenue Code of 1986,
as amended.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Company&quot;</i> is defined in the recitals of this
Agreement.</p>
<i>
<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Consolidation&quot;</i> is defined in the recitals of
this Agreement.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Damages&quot;</i> means costs, expenses, damages and
losses actually incurred, including, but not limited to, reasonable attorney's
fees and taxable costs.</p>
<i>
<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Disclosure Schedule&quot;</i> means the disclosure
schedules and other documents attached hereto as Exhibit &quot;H&quot; prepared
by Sellers, in accordance with the applicable provisions of this Agreement.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Dispute&quot;</i> is defined in Section 7.7.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Earnout Balance&quot;</i> is defined in Section
2.3(a)(iv).</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Earnout Notice&quot;</i> is defined in Section 2.3(b).</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Earnout Period&quot;</i> is defined in Section 2.3(a)(i).</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Earnout Premium&quot;</i> is defined in Section 2.3(a)(i).</p>
<font SIZE="4">
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</i></font>&quot;<i>EBITDA</i>&quot; means the combined net income (or
loss) before interest, income taxes, depreciation and goodwill amortization of
Milne Scali during any period, all as determined in accordance with GAAP;
provided, however, that for the purposes of this Agreement, in determining
EBITDA there shall be (a) excluded any extraordinary, unusual or non-recurring
items of income or loss during such period other than those resulting in the
ordinary course of business consistent with past practices and (b) excluded any
deductions for corporate overhead allocations from BNC or any of its Affiliates,
including, without limitation (i) any employment related costs associated with
personnel required by BNC to be employed by Milne Scali that Milne Scali would
not otherwise have employed, (ii) any expenses directly or indirectly incurred
in connection with the acquisition of the Shares by the Agency, and (iii) any
other direct or indirect charges or expenses not related to the operation of
Milne Scali.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Employee Plan&quot;</i> means any plan or arrangement
as defined in Section 3(3) of ERISA that (a) is subject to any provision of
ERISA, (b) is maintained, administered or contributed to by the employer and (c)
covers any employee or former employee of the employer.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</i>&quot;<i>Environmental Claims&quot; </i>means any and all
administrative, regulatory, or judicial actions, proceedings, executory decrees,
judgments, penalties, fees, demands, orders, or directives, relating in any way
to any Environmental Law or any permit, license or authorization required or
issued under any such Environmental Law, or arising from the presence or release
or threatened release (or alleged presence or release or threatened release)
into the environment of any hazardous materials including, without limitation,
any and all claims by any governmental or regulatory authority or by any third
party for enforcement, cleanup, removal, response, remedial or other actions or
damages, punitive or exemplary damages, contribution, indemnification, cost
recovery, compensation or declaratory or injunctive relief pursuant to any
Environmental Law or any alleged injury or threat of injury to health, safety or
the environment.<font SIZE="4"></p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</i></font>&quot;<i>Environmental Laws</i>&quot; means all foreign,
federal, state and local laws, statutes, ordinances, regulations, criteria,
guidelines, rules of common or civil law in effect at the Closing, each case any
judicial or administrative interpretation thereof, including any judicial or
administrative order, consent decree or judgment relating to the regulation and
protection of human health, safety, the environment, and natural resources,
including, without limitation, laws and regulations relating to emissions,
discharges, disposal, releases or threatened releases of hazardous materials or
otherwise relating to the manufacture, processing, distribution, use treatment,
storage, disposal, transport or handling of hazardous materials.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;ERISA&quot;</i> means the Employee Retirement Income
Security Act of 1974, as amended, and the rules and regulations promulgated
thereunder.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Exchange Act&quot;</i> is defined in Section 4.5.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Final Period&quot; </i>is defined in Section 8.2(a).</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;GAAP</i>&quot; means generally accepted accounting
principles, applied on a consistent basis, set forth in Opinions of the
Accounting Principles Board of the American Institute of Certified Public
Accountants and/or in statements of the Financial Accounting Standards Board
and/or their successors which are applicable in the circumstances as of the date
in question.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Governmental Entity&quot;</i> means any court or
tribunal in any jurisdiction or any public, governmental or regulatory body,
agency, department, commission, board, bureau or other authority or
instrumentality.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</i>&quot;<i>Governmental Permit</i>&quot; means all licenses,
permits, consents, waivers, approvals and other authorizations from a
Governmental Entity that are necessary to entitle Milne Scali to carry on and
conduct its business as presently conducted.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Intellectual Property&quot;</i> means (a) inventions
(whether patentable or unpatentable), improvements thereto, patents and patent
applications, together with all provisionals, reissuances, continuations,
continuations-in-part, divisionals and reexaminations thereof, (b) trademarks,
service marks, trade dress and trade names, together with all goodwill
associated therewith, and applications, registrations and renewals in connection
therewith, (c) works of authorship and copyrights therein, (d) trade secrets and
confidential information, (e) computer software and databases and (f) copies and
tangible embodiments of any of the foregoing.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Internal Financial Statements&quot;</i> means, as the
context may require, the unaudited internal financial statements of each of the
Companies at and for the year ended and at December 31, 2001.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Lease&quot; </i>is defined in Section 2.4(b)(vi).</p>
<i>
<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Liens&quot;</i> means pledges, liens, defects, leases,
licenses, equities, conditional sales contracts, charges, claims, encumbrances,
security interests, easements, restrictions, mortgages or deeds of trust, of any
kind or nature whatsoever.</p>
<i>
<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Material Client&quot;</i> means the top twenty-five
customers of the Companies determined by ranking all customers of the Companies
in descending order based on the aggregate amount paid by each customer to the
Companies for services rendered during the eighteen-month period ended December
31, 2001.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Material Contract&quot;</i> means any contracts,
orders, leases, licenses, or agreements or other commitments, whether written or
oral, and specifically includes any contracts or other agreements between any of
the Companies and/or the Sellers on the one hand and any insurance company on
the other authorizing any of the Companies and/or the Sellers to place such
insurance company's policies.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Milne Scali&quot;</i> is defined in the recitals of
this Agreement.</p>
<i>
<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Multi-employer Plan&quot;</i> means a plan or
arrangement as defined in Section 4001(a)(3) and 3(37) of ERISA.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Neutral Auditors&quot;</i> is defined in Section
2.3(e).</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Objection&quot;</i> is defined in Section 2.3(e).</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Other Shareholders&quot;</i> is defined in the recitals
of this Agreement.</p>
<i>
<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Person&quot;</i> means an individual, firm,
corporation, general or limited partnership, limited liability company, limited
liability partnership, joint venture, trust, governmental authority or body,
association, unincorporated organization or other entity.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Principal Shareholders&quot;</i> is defined in the
recitals of this Agreement.</p>
<i>
<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Proceedings&quot;</i> means any suit, action,
proceeding, dispute or claim before or investigation by any Governmental Entity.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Returns&quot;</i> means all returns, reports,
estimates, declarations, statements and any other documents of any nature
relating to, or required to be filed in connection with, any Taxes, including
information returns or reports with respect to backup withholding and other
payments to third parties.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Section 338 Election&quot;</i> is defined in Section
8.1.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Section 338 Forms&quot;</i> is defined in Section 8.1.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Securities Act&quot;</i> is defined in Section 3.5(b).</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Sellers&quot;</i> means the Principal Shareholders and
the Other Shareholders.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Sellers' Indemnified Persons&quot;</i> is defined in
Section 7.3.</p>
<i>
<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Sellers' Representatives&quot;</i> means each of
Richard W. Milne, Jr. and Terrence M. Scali, serving in their capacity as agent
and attorney-in-fact for the Sellers pursuant to the terms of Section 2.3, and
by their execution and delivery of this Agreement, each of Richard W. Milne, Jr.
and Terrence M. Scali hereby accept the appointment as such agent and
attorney-in-fact on behalf of the Sellers. If either Richard W. Milne, Jr. or
Terrence M. Scali dies, becomes disabled or is otherwise unable to serve as one
of the Sellers' Representatives, then the other Sellers' Representative
shall be entitled to designate a successor by written notice to BNC, who shall
assume all of the obligations of the deceased or disabled Sellers'
Representative under this Agreement.</p>
<b>
<p ALIGN="JUSTIFY">&nbsp;</b><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Shares&quot;</i> is defined in the recitals of this
Agreement.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Substantial Compliance&quot;</i> or <i>&quot;Substantially
Complied&quot;</i> means the level of compliance necessary for the Company to
continue to conduct its business and own and operate its assets in the ordinary
course and consistent with past practice without taking remedial measures,
incurring fines or penalties or being required to make similar payments.</p>
<i>
<p ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Taxes&quot;</i> means any income, corporation, gross
receipts, profits, gains, capital stock, capital duty, franchise, withholding,
social security, unemployment, disability, property, wealth, welfare, stamp,
excise, occupation, sales, use, value added, alternative minimum, estimated or
other similar tax (including any fee, assessment or other charge in the nature
of or in lieu of any tax) imposed by any Governmental Entity (whether foreign,
national, local, municipal or otherwise) or political subdivision thereof, and
any interest, penalties, additions to tax or additional amounts in respect of
the foregoing, and including any transferee or secondary liability in respect of
any tax (whether imposed by law, contractual agreement or otherwise) and any
liability in respect of any tax as a result of being a member of any affiliated,
consolidated, combined, unitary or similar group.</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Tax Matter&quot;</i> is defined in Section 8.2(b).</p>
<p ALIGN="JUSTIFY">&nbsp;<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&quot;Third Party Claim&quot;</i> is defined in Section 7.7.</p>
<p ALIGN="JUSTIFY">&nbsp;</p>
<b>
<p ALIGN="CENTER">Exhibit &quot;B&quot;</p>
</b>
<p>&nbsp;</p>
<table BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="631" height="1020">
  <tr>
    <td WIDTH="39%" VALIGN="bottom"><b><u>
      <p ALIGN="CENTER">Seller / Address for Payments</u><sup><font FACE="Times New Roman Bold,Times New Roman">1</font></sup></b></td>
    <td WIDTH="5%" VALIGN="bottom">&nbsp;</td>
    <td WIDTH="23%" VALIGN="bottom"><b><u>
      <p ALIGN="CENTER">Shares</u></b></td>
    <td WIDTH="10%" VALIGN="bottom">&nbsp;</td>
    <td WIDTH="23%" VALIGN="bottom"><b>
      <p ALIGN="CENTER">Allocation<u><br>
      Percentage</u></b></p>
    </td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP">
      <p>Richard W. Milne, Jr. and Robin<br>
      Jayne Milne Revocable Trust<br>
      5909 E. Solcito Lane<br>
      Paradise Valley, AZ 85253</p>
    </td>
    <td WIDTH="5%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="RIGHT">&nbsp;</p>
      <p ALIGN="RIGHT">26,067.69</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="RIGHT">&nbsp;</p>
      <p ALIGN="RIGHT">44.93%</td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP">
      <p>Terrence M. Scali and Marcella A.<br>
      Scali Family Trust<br>
      4914 E. Horseshoe Road<br>
      Paradise Vally, AZ 85253</p>
    </td>
    <td WIDTH="5%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="RIGHT">&nbsp;</p>
      <p ALIGN="RIGHT">26,067.69</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="RIGHT">&nbsp;</p>
      <p ALIGN="RIGHT">44.93%</td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP">
      <p>G. Steven Hay<br>
      8531 N. 10<sup>th</sup> Ave.<br>
      Phoenix, AZ 85021</p>
    </td>
    <td WIDTH="5%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="RIGHT">3,566.18</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="RIGHT">6.15%</td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP">
      <p>Nancy Kozloski-Rausch<br>
      4153 N. 49<sup>th</sup> St.<br>
      Phoenix, AZ 85281</p>
    </td>
    <td WIDTH="5%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="RIGHT">255.67</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="RIGHT">0.44%</td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP">
      <p>Hammontree / Turnacliff Revocable<br>
      &nbsp;&nbsp; Trust<br>
      312 E. Brook Hollow Drive<br>
      Phoenix, AZ 85281</p>
    </td>
    <td WIDTH="5%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="RIGHT">&nbsp;</p>
      <p ALIGN="RIGHT">655.56</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="RIGHT">&nbsp;</p>
      <p ALIGN="RIGHT">1.13%</td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP">
      <p>Anthony J. Scali<br>
      17250 N. 40<sup>th</sup> Place<br>
      Phoenix, AZ 85281</p>
    </td>
    <td WIDTH="5%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="RIGHT">561.58</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="RIGHT">0.97%</td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP">
      <p>Ronald Cadaret<br>
      7618 N. 13<sup>th</sup> St.<br>
      Phoenix, AZ 85020</p>
    </td>
    <td WIDTH="5%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="RIGHT">839.19</td>
    <td WIDTH="10%" VALIGN="TOP">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP">
      <p ALIGN="RIGHT">1.44%</td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP" height="21">
      <hr align="right" width="95%">
    </td>
    <td WIDTH="10%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP" height="21">
      <hr align="right" width="95%">
    </td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP" height="21">
      <p>&nbsp;&nbsp;&nbsp;&nbsp; Total:</td>
    <td WIDTH="5%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT">58,013.56</td>
    <td WIDTH="10%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT">100.00%</td>
  </tr>
  <tr>
    <td WIDTH="39%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="5%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="10%" VALIGN="TOP" height="21">&nbsp;</td>
    <td WIDTH="23%" VALIGN="TOP" height="21">&nbsp;</td>
  </tr>
</table>
<sup>
<p>1</sup> <font SIZE="2">All payments hereunder shall be deposited in the
United States overnight registered mail, return receipt requested, postage
prepaid and addressed to each Seller at such Seller's address set forth above,
or at such other address as such Seller shall designate to BNC in writing
hereafter; alternatively, payments shall be sent to any Seller via wire transfer
if such Seller designates to BNC in writing a request to receive payments via
wire transfer and provides to BNC account wiring instructions.</p>
</font>

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