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<SEC-DOCUMENT>0001297077-07-000022.txt : 20070524
<SEC-HEADER>0001297077-07-000022.hdr.sgml : 20070524
<ACCEPTANCE-DATETIME>20070524170618
ACCESSION NUMBER:		0001297077-07-000022
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20070522
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Unregistered Sales of Equity Securities
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070524
DATE AS OF CHANGE:		20070524

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHAMPIONS BIOTECHNOLOGY, INC.
		CENTRAL INDEX KEY:			0000771856
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-EATING & DRINKING PLACES [5810]
		IRS NUMBER:				521401755
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-17263
		FILM NUMBER:		07877633

	BUSINESS ADDRESS:	
		STREET 1:		2200 WILSON BLVD
		STREET 2:		SUITE 102-316
		CITY:			ARLINGTON
		STATE:			VA
		ZIP:			22201
		BUSINESS PHONE:		703-526-0400

	MAIL ADDRESS:	
		STREET 1:		2200 WILSON BLVD.
		STREET 2:		SUITE 102-316
		CITY:			ARLINGTON
		STATE:			VA
		ZIP:			22201

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CHAMPIONS SPORTS INC
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	INTERNATIONAL GROUP INC
		DATE OF NAME CHANGE:	19860319
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>cbi_8k-biomerk.htm
<DESCRIPTION>8K
<TEXT>
<html>
<head><meta content="text/html; charset=iso-8859-1">
<title>UNITED STATES</title>
</head>

<body >
<ul>
</ul>

<p>
<p align="center">
<b>UNITED STATES</b><br><b>SECURITIES AND EXCHANGE
COMMISSION</b><br><b>Washington, D.C. 20549</b><p align="center">
<b>FORM 8-K</b><p align="center">
<b>CURRENT REPORT</b><br><b>Pursuant to Section 13 OR 15(d) of The Securities
Exchange Act of 1934</b><p align="center">
<font size="2">Date of Report (Date of earliest event
reported)</font><br><font size="2">May 18, 2007</font><p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC</b>.<br><font size="2">(Exact name of registrant
as specified in its charter)</font></p align="center">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="173.333290" colspan="1" rowspan="1" >
<p align="center">
<font size="2">Delaware</font></p align="center">
</td>
<td width="149.333296" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0-17263</font></p align="center">
</td>
<td width="167.999958" colspan="1" rowspan="1" >
<p align="center">
<font size="2">52-1401755</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="173.333290" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(State of other jurisdiction</font></p align="center">
</td>
<td width="149.333296" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(Commission</font></p align="center">
</td>
<td width="167.999958" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(IRS Employer</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="173.333290" colspan="1" rowspan="1" >
<p align="center">
<font size="2">of incorporation)</font></p align="center">
</td>
<td width="149.333296" colspan="1" rowspan="1" >
<p align="center">
<font size="2">File Number)</font></p align="center">
</td>
<td width="167.999958" colspan="1" rowspan="1" >
<p align="center">
<font size="2">Identification No.)</font></p align="center">
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="238.666607" colspan="1" rowspan="1" >
<p align="center">
<font size="2">2200 Wilson Blvd.</font></p align="center">
</td>
<td width="107.999973" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="238.666607" colspan="1" rowspan="1" >
<p align="center">
<font size="2">Suite 102-316</font></p align="center">
</td>
<td width="107.999973" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="238.666607" colspan="1" rowspan="1" >
<p align="center">
<font size="2">Arlington, VA</font></p align="center">
</td>
<td width="107.999973" colspan="1" rowspan="1" >
&nbsp;22201	</td>
</tr>
<tr valign="top">
<td width="238.666607" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(Address of principal executive
offices)</font></p align="center">
</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(Zip Code)</font></p align="center">
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2">Registrant&#8217;s telephone number, including area code: (703)
526-0400</font><p align="center">
<font size="2">(Former name or former address, if changed since last
report.)</font></p>
&nbsp;	<p>
<font size="2">Check the appropriate box below if the Form 8-K filing is
intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions (see General Instruction A.2. below):</font><p>
<font size="2">[&nbsp;&nbsp;] Written communications pursuant to Rule 425 under
the Securities Act (17 CFR 230.425)</font><br><font size="2">[&nbsp;&nbsp;]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)</font><br><font size="2">[&nbsp;&nbsp;] Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))</font><br><font size="2">[&nbsp;&nbsp;] Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b></b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<font size="2"><b>Item 1.01. Entry into a Material Definitive
Agreement</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May 18, 2007, the
Registrant entered into an Agreement and Plan of Merger under which Biomerk,
Inc. merged with the Registrant&#8217;s wholly-owned subsidiary in a reverse
triangular merger and became a wholly-owned subsidiary of the Registrant.
Biomerk, Inc. is a private company that is focused on generating a novel
preclinical platform of human cancer tumor immune-deficient mice xenografts
(Biomerk Tumorgrafts&#8482;). Biomerk, Inc. has several patent applications
relating to xenograft models used for identifying potentially active
chemotherapeutic agents. The Registrant issued 4,000,000 shares of its common
stock to acquire Biomerk, Inc.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The preceding summary
is qualified in its entirety by reference to the Agreement and Plan of Merger
which is filed as Exhibit 10.1 to this Current Report on Form 8-K and
incorporated herein by reference.</font><p>
<font size="2"><b>Item 3.02. Unregistered Sales of Equity
Securities</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May 18, 2007, the
Registrant issued an aggregate of 4,000,000 restricted shares of common stock to
two accredited individuals to acquire Biomerk, Inc. pursuant to an Agreement and
Plan of Merger dated May 18, 2007, referenced above.  The Registrant issued the
shares in reliance upon the exemption from registration provided by Section 4(2)
of the Securities Act based upon, among other things, the size and manner of the
offering.</font><p>
<font size="2"><b>Item 8.01. Other Events</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May 21, 2007, the
Registrant issued a press release, a copy of which is attached to this Current
Report on Form 8-K as Exhibit 99.1, in connection with the transaction described
in the disclosure made under Item 1.01 of this Current Report on Form 8-K.
</font><p>
<!--<a name="OLE_LINK1"></a>--><!--<a name="_Toc147111982"></a>--><font size="2"><b>Item 9.01.
Financial Statements and Exhibits</b></font></p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="647.999838" colspan="2" rowspan="1" >
<p>
<font size="2">(c) Exhibits</font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="647.999838" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">10.1</font></p>
</td>
<td width="611.999847" colspan="1" rowspan="1" >
<p>
<font size="2">Agreement and Plan of Merger dated May 18, 2007 between Champions
Biotechnology, Inc. and Biomerk, Inc.</font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">99.1</font></p>
</td>
<td width="611.999847" colspan="1" rowspan="1" >
<p>
<font size="2">Press release, dated May 21, 2007</font></p>
</td>
</tr>
<tr valign="top">
<td width="671.999832" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<div align="center" color="#000080" style="position:relative; left: -5"><b>-2-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<font size="2"><b>SIGNATURES</b></font><p>
<font size="2">Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.</font></p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="359.999910" colspan="1" rowspan="1" >
<p>
<font size="2">Date: May 24, 2007</font></p>
</td>
<td width="277.333264" colspan="2" rowspan="1" >
<p>
<font size="2">CHAMPIONS SPORTS, INC.</font></p>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="359.999910" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p>
<font size="2">By:</font></p>
</td>
<td width="253.333270" colspan="1" rowspan="1" >
<p>
<font size="2"><u>/s/&nbsp;&nbsp;James Martell</u></font></p>
</td>
</tr>
<tr valign="top">
<td width="359.999910" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="253.333270" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;James Martell</font></p>
</td>
</tr>
<tr valign="top">
<td width="359.999910" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="253.333270" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President and Chief Executive
Officer</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-3-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
</p>
&nbsp;	<p>
</p>


</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>2
<FILENAME>mergerplan.htm
<DESCRIPTION>MERGER PLAN EX 10.1
<TEXT>
<html>
<head><meta content="text/html; charset=iso-8859-1">
<title>Execution Copy</title>
</head>

<body >
<ul>
</ul>

<p align="right">
<font size="2">Exhibit 10.1</font><p align="right">
<font size="2"><b><i>Execution Copy</i></b></font><p align="center">
<font size="2"><b>AGREEMENT AND PLAN OF MERGER</b></font><p align="center">
<font size="2"><b>BY AND AMONG</b></font><p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC.</b></font><p align="center">
<font size="2"><b>BIOMERK ACQUISITION CORP.</b></font><p align="center">
<font size="2"><b>AND</b></font><p align="center">
<font size="2"><b>BIOMERK, INC.</b></font><p align="center">
<font size="2"><b>May 18, 2007</b></font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b></b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p align="center">
<p align="center">
TABLE OF CONTENTS</p>
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="625.333177" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<!--<a name="mpTableOfContents"></a>--><font size="2">Article 1  Certain
Definitions</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">1</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="625.333177" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="625.333177" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Article II  The Transaction</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">4</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2.1&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">The Merger</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">4</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">2.2&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Consideration; Conversion of the Company Stock.</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">4</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2.3&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">The Closing</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">5</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">2.4&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Actions at the Closing.</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">5</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2.5&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Effect on Capital Stock.</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">5</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">2.6&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Certificate Legends</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">6</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2.7&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Certificate of Incorporation</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">6</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">2.8&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Bylaws</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">6</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2.9&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Directors and Officers</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">7</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">2.1&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Closing of Transfer Books</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">7</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2.11&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Tax and Accounting Consequences</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">7</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">2.12&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Additional Action</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">7</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2.13&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Taking of Necessary Action; Further Action</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">7</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">2.14&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Dissenters&#8217; Rights</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">7</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="558.666527" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="625.333177" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Article III  Representations and Warranties of the
Company</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">8</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3.1&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Organization, Qualification and Corporate Power</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">8</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">3.2&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Capitalization</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">8</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3.3&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Authorization of Transaction</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">9</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">3.4&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Noncontravention</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">9</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3.5&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Subsidiaries</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">10</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">3.6&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">[Removed and Reserved]</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">10</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3.7&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Absence of Certain Changes</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">10</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">3.8&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Undisclosed Liabilities</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">10</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3.9&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Tax Matters</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">10</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">3.1&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Assets</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">10</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3.11&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Owned Real Property</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">10</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">3.12&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Real Property Leases</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">11</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3.13&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Intellectual Property</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">11</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">3.14&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Contracts</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">12</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3.15&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Insurance</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">14</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">3.16&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Litigation.</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">14</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3.17&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Legal Compliance; Restrictions on Business Activities</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">14</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">3.18&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Employees.</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">15</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3.19&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Employee Benefits.</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">15</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">3.2&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Permits</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">17</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3.21&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Brokers&#8217; Fees</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">17</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">3.22&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Books and Records</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">17</font></p align="right">
</td>
</tr>
</table></div>
<div align="center" color="#000080" style="position:relative; left: -5"><b>-i-&nbsp;</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p align="center">
</p align="right">
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">3.23&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Banking Relationships and Investments</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">17</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3.24&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Environmental Protection</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">18</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">3.25&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Dissenting Shares</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">18</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3.26&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Company Action</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">18</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">3.27&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Access to Information</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">18</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3.28&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Disclosure</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">18</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="625.333177" colspan="2" rowspan="1" >
<p>
<font size="2">Article IV  Representations and Warranties of  The Parent and the
Merger Sub</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">18</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">4.1&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Organization</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">19</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">4.2&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Capitalization</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">19</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">4.3&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Authorization of Transaction</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">19</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">4.4&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Noncontravention</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">20</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">4.5&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Subsidiaries</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">20</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">4.6&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Reports and Financial Statements</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">20</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">4.7&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Absence of Certain Changes</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">21</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">4.8&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Merger Shares</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">21</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">4.9&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Business of the Merger Sub</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">21</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">4.1&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Qualification as a Reorganization</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">21</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">4.11&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Absence of Plans</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">22</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">4.12&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Disclosure</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">22</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="625.333177" colspan="2" rowspan="1" >
<p>
<font size="2">Article V  Covenants</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">22</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">5.1&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Best Efforts</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">22</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">5.2&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Securities Laws.</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">22</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">5.3&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Reorganization</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">23</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">5.4&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Reasonable Commercial Efforts and Further Assurances</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">23</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">5.5&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">No Solicitation</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">23</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">5.6&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Indemnification</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">24</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">5.7&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Audited Financial Statements</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">24</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="558.666527" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="625.333177" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Article VI  Conditions to Consummation of Merger</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">24</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">6.1&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Conditions to Each Party&#8217;s Obligations</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">24</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">6.2&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Conditions to Obligations of the Parent and the Merger
Sub</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">25</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">6.3&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Conditions to Obligations of the Company</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">26</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">6.4&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Certain Waivers</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">27</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="558.666527" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="625.333177" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Article VII  Termination; Indemnification</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">27</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">7.1&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Termination of Agreement</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">27</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">7.2&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Effect of Termination.</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">27</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">7.3&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Amendment</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">28</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">7.4&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Extension, Waiver</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">28</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">7.5&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Survival of Representations, Warranties and Covenants.</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">28</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">7.6&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Indemnification of the Parent</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">28</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">7.7&nbsp;&nbsp;</font></p align="right">
</td>
<td width="558.666527" colspan="1" rowspan="1" >
<p>
<font size="2">Indemnification of the Company</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">29</font></p align="right">
</td>
</tr>
</table></div>
<div align="center" color="#000080" style="position:relative; left: -5"><b>-ii-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p align="center">
</p align="right">
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">7.8</font></p align="right">
</td>
<td width="558.666527" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">General Notice and Procedural Requirements for Indemnity
Claims</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">29</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">7.9</font></p align="right">
</td>
<td width="558.666527" colspan="2" rowspan="1" >
<p>
<font size="2">Notice and Procedural Requirements for Third Party
Claims</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">30</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">7.1</font></p align="right">
</td>
<td width="558.666527" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Notice and Procedural Requirements for Direct Claims</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">31</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="558.666527" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="625.333177" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Article VIII  Miscellaneous</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">31</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">8.1</font></p align="right">
</td>
<td width="558.666527" colspan="2" rowspan="1" >
<p>
<font size="2">No Third Party Beneficiaries</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">31</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">8.2</font></p align="right">
</td>
<td width="558.666527" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Entire Agreement</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">31</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">8.3</font></p align="right">
</td>
<td width="558.666527" colspan="2" rowspan="1" >
<p>
<font size="2">Succession and Assignment</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">31</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">8.4</font></p align="right">
</td>
<td width="558.666527" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Public Announcement</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">32</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">8.5</font></p align="right">
</td>
<td width="558.666527" colspan="2" rowspan="1" >
<p>
<font size="2">Confidentiality</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">32</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">8.6</font></p align="right">
</td>
<td width="558.666527" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Counterparts, Facsimile Signatures</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">32</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">8.7</font></p align="right">
</td>
<td width="558.666527" colspan="2" rowspan="1" >
<p>
<font size="2">Headings</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">32</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">8.8</font></p align="right">
</td>
<td width="558.666527" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Notices</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">32</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">8.9</font></p align="right">
</td>
<td width="558.666527" colspan="2" rowspan="1" >
<p>
<font size="2">Governing Law</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">33</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">8.1</font></p align="right">
</td>
<td width="558.666527" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Severability</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">34</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">8.11</font></p align="right">
</td>
<td width="558.666527" colspan="2" rowspan="1" >
<p>
<font size="2">Expenses; Attorney&#8217;s Fees</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">34</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">8.12</font></p align="right">
</td>
<td width="558.666527" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Disclosure Letters</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">34</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">8.13</font></p align="right">
</td>
<td width="558.666527" colspan="2" rowspan="1" >
<p>
<font size="2">Construction</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="right">
<font size="2">35</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">8.14</font></p align="right">
</td>
<td width="558.666527" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Incorporation of Exhibits and Schedules</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">35</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="66.666650" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="558.666527" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="97.333309" colspan="2" rowspan="1" >
<p>
<font size="2"><b>List of Exhibits</b></font></p>
</td>
<td width="527.999868" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="625.333177" colspan="3" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
A- Form of Investment Representation Letter</font></p>
</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-iii-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<font size="2"><b>AGREEMENT AND PLAN OF MERGER</b></font><p>
<font size="2"><b>THIS AGREEMENT AND PLAN OF MERGER</b> (this
"<b><i>Agreement</i></b>") entered into as of May 18, 2007, by and among
CHAMPIONS BIOTECHNOLOGY, INC., a Delaware corporation ("<b><i>Champions
Biotechnology</i></b>" or the "<b><i>Parent</i></b>"), BIOMERK ACQUISITION
CORP., a Maryland corporation and a wholly-owned subsidiary of Parent (the
"<b><i>Merger Sub</i></b>"), and BIOMERK, INC., a Maryland corporation
("<b><i>Biomerk</i></b>" or the "<b><i>Company</i></b>").  The Parent, the
Merger Sub and the Company each, individually, a "<b><i>Party</i></b>" or,
collectively, the "<b><i>Parties</i></b>."</font><p align="center">
<font size="2"><b><u>RECITALS</u></b></font><p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,</b> this
Agreement contemplates a merger of the Merger Sub with and into the Company (the
"<b><i>Merger</i></b>") in a transaction that is intended to qualify, for
federal income tax purposes, as a reverse triangular merger under Section
368(a)(2)(E) of the Code (as defined below), in which the stockholders of the
Company will receive capital stock of the Parent in exchange for their shares of
capital stock of the Company.</font><p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE,</b>
in consideration of the foregoing and the representations, warranties,
agreements and covenants herein contained, and for good and other valuable
consideration, the receipt and legal sufficiency of which are hereby
acknowledged, the Parties hereto hereby agree as
follows:</font><p align="center">
<font size="2"><b>ARTICLE I</b></font><p align="center">
<font size="2"><b>CERTAIN DEFINITIONS</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following terms
undefined in the text of this Agreement shall have the following
meanings:</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>Business
Day</i></b>" shall mean any day, other than a Saturday, Sunday or a day on which
banks located in Washington, D.C. shall be authorized or required by law to
close.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>Closing
Documents</i></b>" shall mean documents, certificates or other instruments
delivered or to be delivered by or on behalf of the Company at the Closing
pursuant to Article VI, the Schedules and Exhibits of this Agreement.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>Code</i></b>"
shall mean United States Internal Revenue Code of 1986, as amended.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>Company
Stock</i></b>" shall mean all of the issued and outstanding shares of capital
stock of the Company, consisting of 10,000 shares of common stock, $0.01 par
value per share.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>Dissenting
Shares</i></b>" shall have the meaning set forth in Section 2.14 of this
Agreement.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>Employee Benefit
Plan</i></b>" shall mean any "employee pension benefit plan" (as defined in
Section 3(2) of the Employee Retirement Income Security Act of 1974, as
amended), any "employee welfare benefit plan" (as defined in Section 3(1) of
ERISA), and any other written or oral plan, agreement or arrangement involving
direct or indirect compensation, including, without limitation, insurance
coverage, severance benefits, disability benefits, deferred compensation,
bonuses, options, or other forms of incentive compensation or post-retirement
compensation.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-1-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>ERISA
Affiliate</i></b>" shall mean any entity which is a member of (i) a controlled
group of corporations (as defined in Section 414(b) of the Code), (ii) a group
of trades or businesses under common control (as defined in Section 414(c) of
the Code), or (iii) an affiliated service group (as defined under Section 414(m)
of the Code or the regulations under Section 414(o) of the Code), any of which
includes the Company.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>Exchange
Act</i></b>" shall mean the Securities Exchange Act of 1934, as
amended.</font><p>
<font size="2"><b><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"GAAP"</i></b>
shall mean Generally Accepted Accounting Principles.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>Governmental
Entity</i></b>" shall mean any court, arbitration tribunal, administrative
agency or commission or other governmental or regulatory authority or
agency.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>including</i></b>",
"<b><i>include</i></b>" and "<b><i>includes</i></b>" shall be construed as if
followed by the phrase "without limitation".</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>Intellectual
Property</i></b>" shall mean all intellectual property that the Company owns or
licenses and controls, and uses in the conduct of its business, as it is
currently conducted, including, but not limited to, (i) all United States and
foreign patents (both issued and applied for) listed on the Company Disclosure
Letter, (ii) all trademarks, trade names, service marks, copyrights, and all
applications for such trademarks, trade names, service marks and copyrights, and
all patent rights in each case listed on the Company Disclosure Letter, and
(iii) all trade secrets, schematics, technology, know-how, computer software
programs or applications and tangible or intangible proprietary information or
material, and all third-party issued United States and foreign patents, patent
rights and patent applications (excluding packaged commercially available
licensed software programs sold to the public).</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>knowledge</i></b>"
shall mean, (a) when made with reference to the Company, the actual knowledge of
the executive officers of the Company, and (b) when made with reference to the
Parent, the actual knowledge of the executive officers of the Parent.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>Material Adverse
Effect</i></b>" when used in connection with an entity means any change, event,
circumstance or effect whether or not such change, event, circumstance or effect
is caused by or arises in connection with a breach of a representation,
warranty, covenant or agreement of such entity in this Agreement that is or is
reasonably likely to be materially adverse to the business, assets (including
intangible assets), capitalization, financial condition, operations or results
of operations, or prospects of such entity taken as a whole with its
subsidiaries, except to the extent that any such change, event, circumstance or
effect results from (i)&nbsp;changes in general economic conditions,
(ii)&nbsp;changes affecting the industry generally in which such entity operates
(provided that such changes do not affect such entity in a substantially
disproportionate manner), or (iii)&nbsp;changes in the trading prices for such
entity&#8217;s capital stock.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-2-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>Merger
Shares</i></b>" shall mean the Parent Stock issued to the Company&#8217;s
stockholders in consideration for the conversion of the Company Stock as a
result of the Merger.  The maximum number of Merger Shares issuable in
connection with the Merger is 4,000,000 shares of the Parent Stock.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>Merger Sub
Common Stock</i></b>" shall mean the common stock, par value $0.001 per share,
of the Merger Sub.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>Parent
Stock</i></b>" shall mean common stock, par value $0.001 per share, of the
Parent.  It is understood and agreed that the Merger Shares issued in connection
with the transactions contemplated by this Agreement shall be shares of common
stock of the Parent that have not been registered under the Securities
Act.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>Permits</i></b>"
shall mean all permits, licenses, registrations, certificates, orders or
approvals received from any Governmental Entity (including, without limitation,
those issued or required under applicable export laws or regulations).</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>Person</i></b>"
or "<b><i>person</i></b>" shall mean any individual, partnership, joint venture,
corporation, limited liability company, limited liability partnership, trust or
incorporated organization.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>Securities
Act</i></b>" shall mean the Securities Act of 1933, as amended.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>Security
Interest</i></b>" shall mean any mortgage, pledge, security interest,
encumbrance, charge, or other lien (whether arising by contract or by operation
of law), other than (i) mechanic&#8217;s, materialmen&#8217;s, and similar
liens, (ii) liens arising under worker&#8217;s compensation, unemployment
insurance, social security, retirement, and similar legislation, (iii) liens on
goods in transit incurred pursuant to documentary letters of credit, in each
case arising in the ordinary course of business of the Company and not material
to the Company, and (iv) liens for current Taxes that are being contested in
good faith.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>Taxes</i></b>"
shall mean all taxes, charges, fees, levies or other similar assessments or
liabilities, including, without limitation, income, gross receipts, ad valorem,
premium, value-added, excise, real property, personal property, sales, use,
transfer, withholding, employment, payroll and franchise taxes imposed by the
United States of America or any state, local or foreign government, or any
agency thereof, or other political subdivision of the United States or any such
government, and any interest, fines, penalties, assessments or additions to tax
resulting from, attributable to or incurred in connection with any tax or any
contest or dispute thereof and any amounts of Taxes of another person that the
Company or any subsidiary thereof is liable to pay by law or
otherwise.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-3-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>Tax
Returns</i></b>" means all reports, returns, declarations, statements or other
information supplied or required to be supplied to a taxing authority in
connection with Taxes including, without limitation, any schedules, attachments
or amendments thereto.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<b><i>Third Party
Intellectual Property Rights</i></b>" shall mean all material written licenses,
sublicenses and other agreements as to which the Company is a party and pursuant
to which the Company is authorized to use any third party patents, patent
rights, trademarks, service marks, trade secrets or copyrights, including
software which is used in the business of the Company or which form a part of
any existing product or service of the Company, excluding commercially available
licensed software programs sold to the public.</font><p align="center">
<!--<a name="_Toc167166955"></a>--><font size="2"><b>ARTICLE
II</b></font><p align="center">
<!--<a name="_Toc167166956"></a>--><font size="2"><b>THE TRANSACTION</b></font><p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Merger.</b>  Upon and subject to the terms and conditions of this Agreement, the
Merger Sub shall merge with and into the Company (such merger is referred to
herein as the "<b><i>Merger</i></b>") at the Effective Time.  From and after the
Effective Time, the separate corporate existence of the Merger Sub shall cease
and the Company shall continue as the surviving corporation in the Merger (the
"<b><i>Surviving Corporation</i></b>").  The Surviving Corporation shall be
operated as a wholly-owned subsidiary of the Parent.  The "<b><i>Effective
Time</i></b>" shall be the time at which the articles of merger of the Company
and the Merger Sub (the "<b><i>Articles of Merger</i></b>"), prepared and
executed in accordance with the relevant provisions of the Maryland General
Corporation Law (the "<b><i>MGCL</i></b>"), is filed with and accepted by the
Department of Assessments and Taxation of the State of Maryland.  The Merger
shall have the effects specified in this Agreement, the Articles of Merger and
the applicable provisions of the MGCL.  Without limiting the generality of the
foregoing, and subject thereto, at the Effective Time, all of the property,
rights, privileges, powers and franchises of the Company and the Merger Sub
shall vest in the Surviving Corporation, and all debts, liabilities and duties
of the Company and the Merger Sub shall become the debts, liabilities and duties
of the Surviving Corporation.</font><p>
<!--<a name="_Ref157842062"></a>--><!--<a name="_Toc167166957"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consideration;
Conversion of the Company Stock.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event that all of the Company Stock are converted as a result of the Merger,
the holders of the Company Stock will be issued an aggregate of 4,000,000 shares
of the Parent Stock as determined pursuant to Section 2.2(b)
hereafter.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Effective Time and without any further action on the part of the Parent, the
Company or any other Person, each of the Company Stock outstanding as of
immediately prior to the Effective Time (other than any the Company Stock that
are Dissenting Shares) shall be converted into the right to receive 400 shares
of the Parent Stock (the "<b><i>Merger Shares</i></b>") but in no event will
more than 4,000,000 shares in aggregate be issued.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within
five (5) Business Days after the Closing Date, the Parent shall deliver to the
stockholders of the Company in connection with the Merger and in consideration
for the conversion of the Company Stock, stock certificates representing the
Merger Shares issued in the names of such stockholders and in the amounts set
forth in <u>Schedule 2.2</u>.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-4-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<!--<a name="_Toc167166958"></a>--><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2"><b>2.3</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>The
Closing.</b>  The closing of the transactions contemplated by this Agreement
(the "<b><i>Closing</i></b>") shall take place at the Washington, DC offices of
Seyfarth Shaw LLP, on or before May 25, 2007 or, if all of the conditions to the
obligations of the Parties to consummate the transactions contemplated hereby
have not been satisfied or waived by such date, on the third Business Day after
the satisfaction or waiver of all conditions to the obligations of the Parties
to consummate the transactions contemplated hereby (other than those conditions
which by their terms can only be satisfied on the date of the Closing) (the
"<b><i>Closing Date</i></b>").  If the Closing is consummated, the Parent, the
Merger Sub and the Company will be deemed to have waived any of the conditions
set forth in Article VI to the extent not satisfied at or prior to the
Closing.</font><p>
<!--<a name="_Ref157850472"></a>--><!--<a name="_Toc167166959"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Actions
at the Closing.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company shall deliver the following to the Parent:</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;certificates
representing the Company Stock, accompanied by stock powers duly executed in
blank or duly executed instruments of transfer, medallion guaranteed, and any
other documents that are necessary to transfer to the Parent good and valid
title to the Company Stock free and clear of all liens; and</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
various certificates, instruments and documents referred to in Section 6.2 to be
delivered by the Company.  All certificates representing the Company Stock
surrendered to the Parent shall be canceled after such delivery.  Until
surrendered as contemplated by this Section2.4, each such certificate
representing the Company Stock (other than any certificate representing
Dissenting Shares) shall be deemed, from and after the Effective Time, to
represent only the right to receive the applicable Merger Shares in accordance
with this Agreement.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Parent shall deliver the following to the Company:</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;certificates
representing the Merger Shares in accordance with Section2.2; and</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
various certificates, instruments and documents referred to in Section 6.3 to be
delivered by the Parent or the Merger Sub.</font><p>
<!--<a name="_Ref157859060"></a>--><!--<a name="_Toc167166960"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect
on Capital Stock.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Effective Time, the Company Stock shall, except with respect to any
Dissenting Shares, by virtue of the Merger and without any action on the part of
any Party or the holder thereof, automatically be canceled and extinguished and
converted into the right to receive the Merger Shares.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-5-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Effective Time, each share of the Merger Sub Common Stock issued and
outstanding immediately prior to the Effective Time shall be converted into and
exchanged for one validly issued, fully paid and nonassessable share of common
stock, par value $0.01 per share, of the Surviving Corporation.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the foregoing, no fractional shares of the Parent Stock shall be issued as part
of the Merger Shares.  All shares of the Parent Stock issued to the holders of
the Company Stock at the Effective Time pursuant to this Section 2.5 shall be
rounded to the nearest whole number.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the foregoing, no amounts shall be payable at or after the Effective Time with
respect to any Dissenting Shares (as defined in Section 2.14) or any shares of
the Company Stock with respect to which dissenters&#8217; rights have not
terminated.  In the case of Dissenting Shares, payment shall be made in
accordance with </font><!--<a
href="mergerplan.htm#_Ref158004608">0</a>--><font size="2"> and the MGCL.  In the
case of any shares with respect to which dissenters&#8217; rights have not
terminated as of the Effective Time, if such the Company Stock become Dissenting
Shares, payment shall be made in accordance with </font><!--<a
href="mergerplan.htm#_Ref158004608">0</a>--><font size="2"> and the MGCL, and if,
instead, the dissenters&#8217; rights with respect to such the Company Stock
irrevocably terminate after the Effective Time, such shares shall be entitled
only to receive the applicable Merger Shares upon delivery of the certificate(s)
representing the applicable the Company Stock.</font><p>
<!--<a name="_Toc167166961"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificate
Legends.</b></font><font size="2">  The Merger Shares to be issued pursuant to
this Article II shall not have been registered and shall be characterized as
"restricted securities" under the federal securities laws, and under such laws
such shares may be resold without registration under the Securities Act only in
certain limited circumstances.  Each certificate evidencing Merger Shares to be
issued pursuant to this Article II shall bear the following legend:</font></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p style="margin-left:45">THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN
ACQUIRED FOR INVESTMENT AND HAVE NOT  BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933.  SUCH SHARES MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF
SUCH REGISTRATION WITHOUT AN EXEMPTION UNDER THE SECURITIES ACT OR AN OPINION OF
LEGAL COUNSEL REASONABLY ACCEPTABLE TO THE ISSUER THAT SUCH REGISTRATION IS NOT
REQUIRED.</p></td>
</tr>
</table></div>
<p>
</p>
<p>
<!--<a name="_Toc167166962"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificate
of Incorporation.</b></font><font size="2">  At the Effective Time, the Articles
of Incorporation of the Company, as in effect immediately prior to the Effective
Time, shall be the Articles of Incorporation of the Surviving Corporation until
hereafter amended as provided by the MGCL.</font><p>
<!--<a name="_Toc167166963"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bylaws.</b></font><font size="2">
The Bylaws of the Surviving Corporation shall be the same as the Bylaws of the
Company immediately prior to the Effective Time.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-6-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<!--<a name="_Toc167166964"></a>--><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2"><b>2.9</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Directors
and Officers.</b>  The directors of the Company shall become the directors of
the Surviving Corporation immediately after the Effective Time.  The officers of
the Company shall become the officers of the Surviving Corporation immediately
after the Effective Time, retaining their respective positions.</font><p>
<!--<a name="_Toc167166965"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Closing
of Transfer Books.</b></font><font size="2">  At the Effective Time, each of the
holders of the Company Stock shall cease to have any rights as a stockholder of
the Company (except as set forth in this Agreement with respect to the Merger
Shares), and the stock transfer books of the Company shall be closed with
respect to all the Company Stock outstanding immediately prior to the Effective
Time.  No further transfer of any such the Company Stock shall be made on such
stock transfer books after the Effective Time.  If, after the Effective Time, a
valid certificate previously representing any the Company Stock is presented to
the Parent, such certificate shall be canceled and exchanged as provided in this
Article II.</font><p>
<!--<a name="_Toc167166966"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax
and Accounting Consequences.</b></font><font size="2">  It is intended by the
parties hereto that the Merger shall constitute a reverse triangular merger
reorganization within the meaning of Section&nbsp;368(a)(2)(E) of the
Code.</font><p>
<!--<a name="_Toc167166967"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional
Action.</b></font><font size="2">  The Surviving Corporation may, at any time
after the Effective Time, take any action, including executing and delivering
any document, in the name and on behalf of the Company, necessary to consummate
the Merger and confirm the effectiveness of the Merger, so long as such action
is not inconsistent with this Agreement.</font><p>
<!--<a name="_Toc167166968"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taking
of Necessary Action; Further Action.</b></font><font size="2">  If, at any time
after the Effective Time, any further action is necessary or desirable to carry
out the purposes of this Agreement and to vest the Surviving Corporation with
full right, title and possession to all assets, property, rights, privileges,
powers and franchises of the Company and the Merger Sub, the officers and
directors of the Company and the Merger Sub are fully authorized in the name of
their respective corporations or otherwise to take, and each of them shall take,
all such lawful and necessary action, so long as such action is not inconsistent
with this Agreement.</font><p>
<!--<a name="_Ref85247092"></a>--><!--<a name="_Ref158004608"></a>--><!--<a name="_Toc167166969"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dissenters&#8217;
Rights.</b></font><font size="2">  The Company Stock that have not been voted
for approval of this Agreement or consented thereto in writing and with respect
to which a demand for payment and appraisal have been properly made in
accordance with the MGCL ("<b><i>Dissenting Shares</i></b>") will not be
converted into the right to receive the Merger Shares otherwise payable with
respect to such the Company Stock at or after the Effective Time, but will be
converted into the right to receive from the Surviving Corporation such
consideration as may be determined to be due with respect to such Dissenting
Shares pursuant to the MGCL.  If a holder of Dissenting Shares (a
"<b><i>Dissenting Stockholder</i></b>") withdraws his or her demand for such
payment and appraisal or becomes ineligible for such payment and appraisal,
then, as of the Effective Time or the occurrence of such event of withdrawal or
ineligibility, whichever last occurs, such holder&#8217;s Dissenting Shares will
cease to be Dissenting Shares and will be converted into the right to receive,
and will be exchangeable for, the Merger Shares in accordance with Section 2.2
of this Agreement.  The Company will give the Parent and Merger Sub prompt
notice of any demand received by the Company from a holder of Dissenting Shares
for appraisal of such Dissenting Stockholder&#8217;s the Company Stock, and the
Parent shall have the right to participate in all negotiations and proceedings
with respect to such demand.  The Company agrees that, except with the prior
written consent of the Parent, or as required under the MGCL, it will not
voluntarily make any payment with respect to, or settle or offer or agree to
settle, any such demand for appraisal.  Each Dissenting Stockholder who,
pursuant to the provisions of the MGCL, becomes entitled to payment of the value
of the Dissenting Shares will receive payment therefor but only after the value
therefor has been agreed upon or finally determined pursuant to such provisions.
Any portion of the Merger Shares that would otherwise have been payable with
respect to Dissenting Shares if such the Company Stock were not Dissenting
Shares will be retained by the Parent.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-7-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p align="center">
<!--<a name="_Toc167166970"></a>--><!--<a name="_Ref157916341"></a>--><font size="2"><b>ARTICLE
III</b></font><p align="center">
<font size="2"><b>REPRESENTATIONS AND WARRANTIES OF THE COMPANY</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in
the Company Disclosure Letter attached to this Agreement (the "<b><i>Company
Disclosure Letter</i></b>"), the Company hereby represents and warrants to the
Parent and the Merger Sub as follows:</font><p>
<!--<a name="_Toc167166971"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Organization,
Qualification and Corporate Power.</b></font><font size="2">  The Company is a
corporation duly organized, validly existing and in corporate good standing
under the laws of the State of Maryland.  The Company is duly qualified to
conduct business and is in corporate good standing under the laws of each
jurisdiction in which the nature of its businesses or the ownership or leasing
of its properties requires such qualification, except where the failure to be so
qualified or in good standing would not have a Material Adverse Effect on the
Company.  The Company has the corporate power and authority to carry on the
businesses in which it is engaged and to own and use the properties owned and
used by it.  The Company has furnished or made available to the Parent true and
complete copies of its Articles of Incorporation and Bylaws, each as amended and
as in effect on the date hereof (hereinafter the "<b><i>Company Charter</i></b>"
and "<b><i>Bylaws</i></b>", respectively).  The Company is not in default under
or in violation of any provision of the Company Charter or Bylaws.</font><p>
<!--<a name="_Ref158005021"></a>--><!--<a name="_Toc167166972"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalization.</b></font><font size="2">
The authorized capital stock of the Company consists of 10,000,000 shares of
capital stock, all of which are designated as common stock, $0.01 par value, and
of which 10,000 shares are issued and outstanding.  Section 3.2 of the Company
Disclosure Letter sets forth a complete and accurate list of all stockholders of
the Company, indicating the number of Company Stock held by each stockholder and
their respective addresses and taxpayer identification numbers.  All issued and
outstanding shares of Company Stock have been duly authorized and validly
issued, and are fully paid and nonassessable.  All of the outstanding shares of
Company Stock and other outstanding securities of the Company have been duly and
validly issued in compliance with federal and state securities laws, including
applicable exemptions from any requirements for registration or qualification.
There are no outstanding or authorized subscriptions, options, warrants, plans
or, except for this Agreement and as contemplated by this Agreement, other
agreements or rights of any kind to purchase or otherwise receive or be issued,
or securities or obligations of any kind convertible into, any shares of capital
stock or other securities of the Company, and there are no dividends which have
accrued or been declared but are unpaid on the capital stock of the Company.
There are no outstanding or authorized stock appreciation, phantom stock or
similar rights with respect to the Company.  All of the issued and outstanding
shares of the Company&#8217;s capital stock are free and clear of any liens,
pledges, encumbrances, charges, agreements adversely effecting title to such
shares or claims (other than those created by virtue of this Agreement or by the
Parent), and the certificates evidencing the ownership of such shares are in
proper form for the enforcement of the rights and limitations of rights
pertaining to said shares which are set forth in the Company Charter and
Bylaws.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-8-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<!--<a name="_Toc167166973"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authorization
of Transaction.</b></font><font size="2">  Subject to the Company Stockholder
Approval (as defined below) of the Merger and this Agreement, the Company has
the corporate power and authority to execute and deliver this Agreement and to
perform its obligations hereunder.  The execution and delivery of this Agreement
and, subject to the adoption of this Agreement and the approval of the Merger by
at least a majority of the votes represented by the outstanding Company Stock
entitled to vote on this Agreement and the Merger, voting in accordance with the
MGCL and the Company Charter (the "<b><i>Company Stockholder Approval</i></b>"),
the performance by the Company of this Agreement and the consummation by the
Company of the transactions contemplated hereby have been duly and validly
authorized by all necessary corporate action on the part of the Company.  This
Agreement has been duly and validly executed and delivered by the Company and,
assuming the due authorization, execution and delivery by the Parent and the
Merger Sub, constitutes a valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms, except as
enforcement may be limited by bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws affecting the enforcement of
creditors&#8217; rights generally, and except that the availability of equitable
remedies, including specific performance, is subject to the discretion of the
court before which any proceeding therefor may be brought.</font><p>
<!--<a name="_Toc167166974"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncontravention.</b></font><font size="2">
Subject to receipt of the Company Stockholder Approval, compliance with the
applicable requirements of the Securities Act and any applicable state
securities laws and the filing of the Articles of Merger as required by the
State of Maryland, neither the execution and delivery of this Agreement by the
Company, nor the consummation by the Company of the transactions contemplated
hereby, will: (a)&nbsp;conflict with or violate any provision of the Company
Charter or the Bylaws; (b)&nbsp;require on the part of the Company any filing
with, or any permit, authorization, consent or approval of, any Governmental
Entity, other than (i) those required solely by reason of the Parent&#8217;s or
the Merger Sub&#8217;s participation in the transactions contemplated hereby,
(ii) those required to be made by the Parent or the Merger Sub, and (iii) any
filing, permit, authorization, consent or approval which if not made or obtained
would not have a Material Adverse Effect on the Company; (c) conflict with,
result in a breach of, constitute (with or without due notice or lapse of time
or both) a default under, result in the acceleration of, create in any party the
right to accelerate, terminate, modify or cancel, or require any notice, consent
or waiver under, any contract listed in Section 3.14 of the Company Disclosure
Letter, except for any conflict, breach, default, acceleration, right to
accelerate, termination, modification, cancellation, notice, consent or waiver
that would not reasonably be expected to have a Material Adverse Effect on the
Company; (d) result in the imposition of any Security Interest upon any assets
of the Company; or (e) violate any order, writ, injunction, decree, statute,
rule or regulation applicable to the Company, any of its properties or assets,
other than such conflicts, violations, defaults, breaches, cancellations or
accelerations referred to in clauses (a) through (e) (inclusive) hereof which
would not have a Material Adverse Effect on the
Company.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-9-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<!--<a name="_Toc167166975"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsidiaries.</b></font><font size="2">
The Company does not have any direct or indirect subsidiaries or any equity
interest in any other firm, corporation, membership, joint venture, association
or other business organization.</font><p>
<!--<a name="_Toc167166976"></a>--><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2"><b>3.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Removed
and Reserved] </b> </font><p>
<!--<a name="_Toc167166977"></a>--><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2"><b>3.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Absence
of Certain Changes</b>.  Since the Balance Sheet Date, the Company has conducted
its business as ordinarily conducted consistent with past practice and there has
not occurred any change, event or condition (whether or not covered by
insurance) that has resulted in, or would reasonably be expected to result in
any Material Adverse Effect on the Company.</font><p>
<!--<a name="_Toc167166978"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undisclosed
Liabilities</b></font><font size="2">.  The Company has no liability (whether
known or unknown, whether absolute or contingent, whether liquidated or
unliquidated and whether due or to become due), except for (a) liabilities
accrued, reflected, reserved against on the Financial Statements, (b)
liabilities which have arisen since the Balance Sheet Date, in the ordinary
course of business, (c) contractual or statutory liabilities incurred in the
ordinary course of business, and (d) liabilities which would not have a Material
Adverse Effect on the Company.</font><p>
<!--<a name="_Toc167166979"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax
Matters</b></font><font size="2">.  The Company has timely (taking into account
extensions of time to file) filed all Tax Returns that it was required to file
and all such Tax Returns were correct and complete in all material respects.
All Taxes that the Company is or was required by law to withhold or collect have
been duly withheld or collected and, to the extent required, have been paid to
the proper Governmental Entity or deposited in accordance with law.</font><p>
<!--<a name="_Ref157870608"></a>--><!--<a name="_Toc167166980"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets.</b></font><font size="2">
The Company has good and marketable title to or, in the case of leased assets, a
valid leasehold interest in, all tangible assets necessary for the conduct of
its businesses as presently conducted.  Except as set forth in Section 3.10 on
the Company Disclosure Letter, no asset of the Company (tangible or intangible)
is subject to any Security Interest.  All machinery and equipment is in good
condition and repair, normal wear and tear excepted.  All leases of personal
property to which the Company is a party are fully effective and afford the
Company peaceful and undisturbed possession of the subject matter of the lease.
The Company is not in violation of any zoning, building, safety or environmental
ordinance, regulation or requirement or other law or rule applicable to the
operation of the owned or leased assets (the violation of which would have a
Material Adverse Effect on its business), nor has the Company received any
written notice of violation with which it has not complied.</font><p>
<!--<a name="_Toc167166981"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owned
Real Property.</b></font><font size="2">  The Company does not own any real
property.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-10-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<!--<a name="_Ref157870785"></a>--><!--<a name="_Toc167166982"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real
Property Leases.</b></font><font size="2">  Section 3.12 of the Company
Disclosure Letter lists all real property leased or subleased to the Company.
The Company has delivered or made available to the Parent correct and complete
copies of the leases and subleases (as amended to date) listed in Section 3.12
of the Company Disclosure Letter.  With respect to each lease and sublease
listed in Section 3.12 of the Company Disclosure Letter:</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
lease or sublease is legal, valid, binding, enforceable and in full force and
effect with respect to the Company and, to the Company&#8217;s knowledge, is
legal, valid, binding, enforceable and in full force and effect with respect to
each other party thereto, and will continue to be so following the Closing in
accordance with the terms thereof as in effect prior to the Closing (in each
case except as enforceability may be limited by bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium or other similar laws
affecting the enforcement of creditor&#8217;s rights generally, and except that
the availability of equitable remedies, including specific performance, is
subject to the discretion of the court before which any proceeding therefor may
be brought);</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company is not in breach or default under any such lease or sublease and, to the
Company&#8217;s knowledge, no other party to the lease or sublease is in breach
or default, and, no event has occurred which, with notice or lapse of time,
would constitute a breach or default or permit termination, modification, or
acceleration thereunder;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
are no oral agreements or forbearance programs in effect as to the lease or
sublease;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has not received any written notice of any dispute with regards to any
lease or sublease; and</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has not assigned, transferred, conveyed, mortgaged, deeded in trust or
encumbered any interest in the leasehold or subleasehold.</font><p>
<!--<a name="_Ref157842834"></a>--><!--<a name="_Toc167166983"></a>--><!--<a name="_Ref157869858"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intellectual
Property.</b></font><font size="2">  Section 3.13 of the Company Disclosure
Letter is a true and complete list of (i) all Intellectual Property presently
owned or held by the Company and (ii) any license agreements under which the
Company has access to any confidential information or Intellectual Property used
by the Company in its business (such licenses and agreements, collectively, the
"<b><i>Intellectual Property Rights</i></b>") necessary for the conduct of the
Company&#8217;s business as conducted and as currently proposed to be conducted
by the Company.  Except as set forth in Section 3.13 of the Company Disclosure
Letter, the Company owns, or has the right to use, free and clear of all
Security Interests, all of the Intellectual Property and the Intellectual
Property Rights.  Except as set forth in Section 3.13 of the Company Disclosure
Letter, there are no outstanding options, licenses or agreements of any kind
relating to the Intellectual Property and the Intellectual Property Rights, nor
is the Company bound by or a party to any options, licenses or agreements of any
kind with respect to any of the Intellectual Property, the Intellectual Property
Rights and the patents, trademarks, service marks, trade names, copyrights,
trade secrets, licenses, information and other proprietary rights and processes
of any other person or entity other than such licenses or agreements arising
from the purchase of "off the shelf" or standard products.  The Company has not
received any communications alleging that the Company has violated or, by
conducting its business as conducted and as currently proposed to be conducted
by the Company, violates any Third Party Intellectual Property Rights and to the
Company&#8217;s knowledge, the business as conducted and as currently proposed
to be conducted by the Company will not cause the Company to infringe or violate
any Third Party Intellectual Property Rights.  There is no defect in the title
to any of the Intellectual Property or, to the extent that the Company has title
to Intellectual Property Rights to any Intellectual Property Rights.  Except as
set forth in Section 3.13 of the Company Disclosure Letter, to the
Company&#8217;s knowledge, no officer, employee or director is obligated under
any contract (including any license, covenant or commitment of any nature) or
other agreement, or subject to any judgment, decree or order of any court or
administrative agency, that would conflict or interfere with the performance of
such person&#8217;s duties as an officer, employee or director of the Company,
the use of such person&#8217;s best efforts to promote the interests of the
Company or the Company&#8217;s business as conducted or as currently proposed to
be conducted by the Company.  No prior employer of any current or former
employee of the Company has any right, title or interest in the Intellectual
Property and to the Company&#8217;s knowledge, no person or entity has any
right, title or interest in any Intellectual Property.  It is not and will not
be with respect to the business as currently proposed to be conducted necessary
for the Company to use any inventions of any of its employees  made prior to
their employment by the Company.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-11-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<!--<a name="_Ref157870944"></a>--><!--<a name="_Toc167166984"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts.</b></font><font size="2">
Section 3.14 of the Company Disclosure Letter lists the following written
arrangements (including, without limitation, written agreements) to which the
Company is a party:</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
written arrangement (or group of related written arrangements) for the lease of
personal property from or to third parties providing for lease payments in
excess of  $5,000 per annum including such lease arrangements with purchase
commitments or similar obligations known to the Company;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
written arrangement (or group of related written arrangements) for the licensing
or distribution of software, products or other personal property or for the
furnishing or receipt of services, (i) which involves more than the sum of
$5,000 per annum, (ii) in which the Company has granted rights to license,
sublicense or copy, "most favored nation" pricing provisions or exclusive
marketing or distribution rights relating to any<b> </b>products or territory or
has agreed to purchase a minimum quantity of goods or services or has agreed to
purchase goods or services exclusively from a certain party, and (iii) which
calls for performance by the Company that as of the date hereof has not been
fully completed;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
written arrangement establishing a partnership or joint venture;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
written arrangement (or group of related written arrangements) under which it
has created, incurred, assumed or guaranteed (or may create, incur, assume or
guarantee) indebtedness (including capitalized lease obligations) involving more
than $5,000 or under which it has imposed (or may impose) a Security Interest on
any of its assets, tangible or intangible;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
list of all parties to any written arrangement concerning confidentiality,
non-disclosure or noncompetition;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
written arrangement involving any of the stockholders of the Company or their
affiliates, as defined in Rule 12b-2 under the Exchange Act
("<b><i>Affiliates</i></b>");</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
written arrangement under which the consequences of a default or termination
could have a Material Adverse Effect on the Company;</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-12-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
other written arrangement (or group of related written arrangements) either (i)
involving (A) more than $5,000 and (B) performance by the Company that as of the
date hereof has not been fully completed, or (ii) not entered into in the
ordinary course of business;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
written arrangement under which the Company provides maintenance or support
services to any third party with regard to the Company&#8217;s products and any
written arrangement containing a commitment by the Company to provide support
for any such products for more than one year from the date of this Agreement
involving, in each case, more than $5,000 (other than arrangements which by
their terms permit the customer to extend such services after the expiration of
the initial one year term);</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
written arrangement by which the Company has agreed to make available any
consulting, enablement consulting, or education services (i) having a value in
excess of $5,000 and (ii) providing for performance by the Company that as of
the date hereof has not been fully completed; and</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
other material contract or agreement as such terms are defined in Item
601(b)(10) of Regulation S-K promulgated under the Securities Act, to which the
Company is a party.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has
delivered to or made available to the Parent a correct and complete copy of each
such written arrangement referred to above.  With respect to each such written
arrangement so listed: (i) the written arrangement is legal, valid, binding and
enforceable and in full force and effect with respect to the Company and, to the
Company&#8217;s knowledge, the written arrangement is legal, valid, binding and
is enforceable and in full force and effect with respect to each other party
thereto (in each case except as enforceability may be limited by bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium or other similar
laws affecting the enforcement of creditor&#8217;s rights generally, and except
that the availability of equitable remedies, including specific performance, is
subject to the discretion of the court before which any proceeding therefor may
be brought); (ii) the written arrangement will continue to be legal, valid,
binding and enforceable and in full force and effect against the Company, and to
the Company&#8217;s knowledge against each other party thereto, immediately
following the Closing in accordance with the terms thereof (in each case except
as enforceability may be limited by bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or other similar laws affecting the
enforcement of creditor&#8217;s rights generally, and except that the
availability of equitable remedies, including specific performance, is subject
to the discretion of the court before which any proceeding therefor may be
brought) as in effect prior to the Closing; and (iii) the Company is not in
breach or default, and, to the Company&#8217;s knowledge, no other party thereto
is in breach or default, and no event has occurred which with notice or lapse of
time would constitute a breach or default or permit termination, modification,
or acceleration, under the written arrangement; except, in each case, for
breaches, defaults and events that would not have a Material Adverse Effect on
the Company.  The Company is not a party to any oral contract, agreement or
other arrangement which, if reduced to written form, would be required to be
listed in Section 3.14 of the Company Disclosure Letter under the terms of this
Section 3.14.</font></p>
&nbsp;	<div align="center" color="#000080" style="position:relative; left: -5"><b>-13-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div>&nbsp;	<p>
<!--<a name="_Ref157871581"></a>--><!--<a name="_Toc167166985"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance.</b></font><font size="2">
Section 3.15 of the Company Disclosure Letter lists each insurance policy
(including fire, theft, casualty, general liability, director and officer,
workers compensation, business interruption, environmental, product liability
and automobile insurance policies and bond and surety arrangements) to which the
Company is a party, a named insured, or otherwise the beneficiary of coverage at
any time within the past year.  Section 3.15 of the Company Disclosure Letter
lists each person or entity required to be listed as an additional insured under
each such policy.  Each such policy is in full force and effect and by its terms
and with the payment of the requisite premiums thereon will continue to be in
full force and effect following the Closing.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is not in
breach or default, and does not anticipate being in breach or default after
Closing (including with respect to the payment of premiums or the giving of
notices) under any such policy, and no event has occurred which, with notice or
the lapse of time, would constitute such a breach or default or permit
termination, modification or acceleration, under such policy; except for any
breach, default, event, termination, modification or acceleration that would not
have a Material Adverse Effect on the Company; and the Company has not received
any written notice or to the Company&#8217;s knowledge, oral notice, from the
insurer disclaiming coverage or reserving rights with respect to a particular
claim or such policy in general.  The Company has not incurred any material
loss, damage, expense or liability covered by any such insurance policy for
which it has not properly asserted a claim under such policy.</font><p>
<!--<a name="_Toc167166986"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Litigation.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
are no:  (i)&nbsp;unsatisfied judgments, orders, decrees, stipulations or
injunctions; or (ii) claims, complaints, actions, suits, proceedings or hearings
or, to the Company&#8217;s knowledge, investigations in or before any
Governmental Entity or any arbitrator or to the Company&#8217;s knowledge
expected to be before any Governmental Entity or any arbitrator; to which the
Company, any officer, director, employee or agent of the Company (in such
person&#8217;s capacity as an officer, director, employee or agent of the
Company and not personally) is or was (for the two years prior to and including
the date hereof) a party or, to the knowledge of the Company, is threatened to
be made a party.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
are no material agreements or other documents or instruments settling any claim,
complaint, action, suit or other proceeding against the Company.</font><p>
<!--<a name="_Toc167166987"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal
Compliance; Restrictions on Business Activities.</b></font><font size="2">  The
Company and the conduct and operation of its business are in material compliance
with each law (including rules, regulations and requirements thereunder) of any
federal, state, local or foreign government or any Governmental Entity which (a)
affects or relates to this Agreement or the transactions contemplated hereby or
(b)&nbsp;is applicable to the Company or its business, except where such
non-compliance would not reasonably be expected to have a Material Adverse
Effect on the Company.  There is no agreement, judgment, injunction, order or
decree binding upon the Company which has or would reasonably be expected to
have the effect of prohibiting or materially impairing any current or future
business practice of the Company, as currently contemplated by the Company, and
any acquisition of property of the Company or the conduct of business by the
Company as currently conducted or proposed to be
conducted.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-14-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<!--<a name="_Ref157871852"></a>--><!--<a name="_Toc167166988"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.18&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employees.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
the Company&#8217;s knowledge, no employee has any plans to terminate employment
with the Company within six months of the date hereof.  The Company is not a
party to or bound by any collective bargaining agreement, nor has it experienced
any material strikes, grievances, claims of unfair labor practices or other
collective bargaining disputes.  The Company has no knowledge of any
organizational effort made or threatened, either currently or within the past
two years, by or on behalf of any labor union with respect to employees of the
Company.  The Company is in compliance in all material respects with all
currently applicable laws and regulations respecting wages, hours, occupational
safety, or health, fair employment practices, and discrimination in employment
terms and conditions, and is not engaged in any unfair labor practice except, in
each case, where such practice or failure to comply would not reasonably be
expected to have a Material Adverse Effect.  There are no pending claims against
the Company under any workers compensation plan or policy or for long term
disability.  There are no proceedings pending or, to the Company&#8217;s
knowledge, threatened, between the Company and its employees, which proceedings
have or would reasonably be expected to have a Material Adverse Effect on the
Company.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.18 of the Company Disclosure Letter contains a list of employees whose
employment has been terminated by the Company in the ninety (90) days prior to
Closing; including the name, address, date and reason for such
termination.</font><p>
<!--<a name="_Ref157871924"></a>--><!--<a name="_Toc167166989"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.19&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee
Benefits.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.19(a) of the Company Disclosure Letter contains a complete and accurate list
of all Employee Benefit Plans maintained, or contributed to, by the Company, or
any ERISA Affiliate.  Complete and accurate copies of (i)&nbsp;all such Employee
Benefit Plans which have been reduced to writing, (ii)&nbsp;written summaries of
all such unwritten Employee Benefit Plans, (iii)&nbsp;all related trust
agreements, insurance contracts and summary plan descriptions and (iv)&nbsp;all
annual reports filed on IRS Form 5500, 5500C or 5500R for the last three plan
years (or such shorter period with respect to which the Company or any ERISA
Affiliate has an obligation file Form 5500) for each Employee Benefit Plan, have
been delivered or made available to the Parent.  Each Employee Benefit Plan has
been administered in all material respects in accordance with its terms and each
of the Company, and the ERISA Affiliates has met its obligations in all material
respects with respect to such Employee Benefit Plan and has made all required
contributions thereto within the time frames as prescribed by ERISA and the
Code.  The Company and all Employee Benefit Plans are in material compliance
with the currently applicable provisions of ERISA and the Code and the
regulations thereunder.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-15-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
the Company&#8217;s knowledge, there are no investigations by any Governmental
Entity, termination proceedings or other claims (except claims for benefits
payable in the normal operation of the Employee Benefit Plans and proceedings
with respect to qualified domestic relations orders), suits or proceedings
against or involving any Employee Benefit Plan or asserting any rights or claims
to benefits under any Employee Benefit Plan that could give rise to any material
liability.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
the Employee Benefit Plans that are intended to be qualified under Section
401(a) of the Code have received determination letters from the Internal Revenue
Service to the effect that such Employee Benefit Plans are qualified and the
plans and the trusts related thereto are exempt from federal income taxes under
Sections 401(a) and 501(a), respectively, of the Code, or the remedial amendment
period for requesting such determination has not yet expired, no such
determination letter has been revoked and revocation has not been threatened,
and no such Employee Benefit Plan has been amended since the date of its most
recent determination letter or application therefor in any respect, and no act
or omission has occurred, that would adversely affect its
qualification.</font></p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Neither the Company nor any ERISA Affiliate has ever maintained an Employee Benefit Plan subject to Section 412 of the Code or Title IV of ERISA.	<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
no time has the Company or any ERISA Affiliate been obligated to contribute to
any "multi-employer plan" (as defined in Section 4001(a)(3) of ERISA).</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
are no unfunded obligations under any Employee Benefit Plan providing benefits
after termination of employment to any employee of the Company (or to any
beneficiary of any such employee), including but not limited to retiree health
coverage and deferred compensation, but excluding continuation of health
coverage required to be continued under Section 4980B of the Code and insurance
conversion privileges under federal or state law.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
act or omission has occurred and no condition exists with respect to any
Employee Benefit Plan maintained by the Company or any ERISA Affiliate that
would subject the Company or any ERISA Affiliate to any material fine, penalty,
tax or liability of any kind imposed under ERISA or the Code.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
Employee Benefit Plan is funded by, associated with, or related to a "voluntary
employee&#8217;s beneficiary association" within the meaning of Section
501(c)(9) of the Code.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-16-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
Employee Benefit Plan, plan documentation or agreement, summary plan description
or other written communication distributed generally to employees by its terms
prohibits the Company from amending or terminating any such Employee Benefit
Plan.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.19(j) of the Company Disclosure Letter discloses each: (i)&nbsp;agreement with
any director, executive officer or other key employee of the Company (A) the
benefits of which are contingent, or the terms of which are altered, upon the
occurrence of a transaction involving the Company of the nature of any of the
transactions contemplated by this Agreement, (B) providing any term of
employment or compensation guarantee, or (C) providing severance benefits or
other benefits after the termination of employment of such director, executive
officer or key employee; (ii) agreement, plan or arrangement under which any
person may receive payments from the Company that may be subject to the tax
imposed by Section&nbsp;4999 of the Code or included in the determination of
such person&#8217;s "parachute payment" under Section 280G of the Code; and
(iii) agreement or plan binding the Company, including, without limitation, any
option plan, stock appreciation right plan, restricted stock plan, stock
purchase plan, severance benefit plan, or any Employee Benefit Plan, any of the
benefits of which will be increased, or the vesting of the benefits of which
will be accelerated, by the occurrence of any of the transactions contemplated
by this Agreement or the value of any of the benefits of which will be
calculated on the basis of any of the transactions contemplated by this
Agreement.</font><p>
<!--<a name="_Ref157872027"></a>--><!--<a name="_Toc167166990"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.20&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Permits.</b></font><font size="2">
Section 3.20 of the Company Disclosure Letter sets forth a list of all material
Permits issued to or held by the Company.  Such listed Permits are the only
Permits that are required for the Company to conduct its business as presently
conducted, except for those the absence of which would not have a Material
Adverse Effect on the Company.  Each such Permit is in full force and effect and
to the Company&#8217;s knowledge, no suspension or cancellation of such Permit
is threatened and there is no basis for believing that such Permit will not be
renewable upon expiration.  Each such Permit will continue in full force and
effect following the Closing.</font><p>
<!--<a name="_Toc167166991"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.21&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brokers&#8217;
Fees.</b></font><font size="2">  The Company has no liability or obligation to
pay any fees or commissions to any broker, investment banking firm, finder or
agent with respect to the transactions contemplated by this Agreement.</font><p>
<!--<a name="_Toc167166992"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.22&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Books
and Records.</b></font><font size="2">  The minute books and other similar
records of the Company contain true and complete records of all material actions
taken at any meetings of the Board of Directors<b> </b>or any committee thereof
and of all written consents executed in lieu of the holding of any such
meetings.</font><!--<a name="_Ref157872151"></a>--><!--<a name="_Toc167166993"></a>--><font size="2"><b>
</b></font><p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.23&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Banking
Relationships and Investments.</b>  Section 3.23 of the Company Disclosure
Letter sets forth an accurate, correct and complete list of all banks and
financial institutions in which the Company has an account, deposit,
safe-deposit box or borrowing relationship, factoring arrangement or other loan
facility or relationship, including the names of all persons authorized to draw
on those accounts or deposits, or to borrow under loan facilities, or to obtain
access to such boxes.  The Company Disclosure Letter sets forth an accurate,
correct and complete list of all certificates of deposit, debt or equity
securities and other investments  (the "<b><i>Investments</i></b>") owned,
beneficially or of record, by the Company.  The Company has good and legal title
to all such Investments.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-17-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<!--<a name="_Toc167166994"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.24&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Environmental
Protection.</b></font><font size="2">  No substances that are defined by any
Governmental Entity concerning the environment as toxic materials, hazardous
wastes or hazardous substances (including without limitation any asbestos, oils,
petroleum-derived compound or pesticides) (collectively, "<b><i>Hazardous
Materials</i></b>") are or have been located in, on or about any of the
Company&#8217;s leased real property.  The Company&#8217;s leased real property
has not been used for the storage, manufacture or disposal of Hazardous
Materials, and the Company has not used, or provided permission to others to
use, its leased real property for the storage, manufacture or disposal of
Hazardous Materials.  Specifically, but without limitation, there are and have
been no storage tanks located on any of the Company&#8217;s leased real
property.  No Hazardous Materials have been transported off site from the
Company&#8217;s leased real property.</font><p>
<!--<a name="_Ref158004977"></a>--><!--<a name="_Toc167166995"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.25&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dissenting
Shares.</b></font><font size="2">  Except as set forth in Section 3.25 of the
Company Disclosure Letter, no holder of the Company Stock who, pursuant to the
MGCL, has the right to dissent to the Merger and demand payment for such the
Company Stock, has dissented and demanded payment for the fair value of such the
Company Stock in accordance with the MGCL in connection with the Merger,
including any such holder that subsequently has withdrawn, failed to perfect or
otherwise lost such holder&#8217;s right to such payment.</font><p>
<!--<a name="_Toc167166996"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.26&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Company
Action.</b></font><font size="2">  The Board of Directors of the Company has
unanimously (i) determined that the Merger is fair and in the best interests of
the Company and its stockholders, (ii) adopted this Agreement in accordance with
the provisions of the MGCL, and (iii) directed that this Agreement and the
Merger be submitted to the stockholders for their adoption and approval and
resolved to recommend that the stockholders vote in favor of the adoption of
this Agreement and the approval of the Merger.</font><p>
<!--<a name="_Toc167166997"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.27&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Access
to Information.</b></font><font size="2">  Until the Closing, the Company will
allow the Parent and its agents reasonable access to the files, books, records
and offices of the Company, including, without limitation, any and all
information relating to the Company&#8217;s taxes, commitments, contracts,
leases, licenses, and real, personal and intangible property and financial
condition.  The Company will cause its accountants to cooperate with the Company
and its agents in making available all financial information reasonably
requested, including without limitation the right to examine all working papers
pertaining to all financial statements prepared or audited by such
accountants.</font><p>
<!--<a name="_Toc167166998"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.28&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disclosure.</b></font><font size="2">
No representation or warranty by the Company contained in this Agreement,
including any statement contained in the Company Disclosure Letter or any
Closing Document contains any untrue statement of a material fact or omits to
state any material fact necessary, in light of the circumstances under which it
was made, in order to make the statements herein or therein not
misleading.</font><p align="center">
<font size="2"><b>ARTICLE IV</b></font><p align="center">
<!--<a name="_Toc167166999"></a>--><!--<a name="_Ref157917007"></a>--><font size="2"><b>REPRESENTATIONS
AND WARRANTIES OF</b></font><br><font size="2"><b>THE PARENT AND THE MERGER
SUB</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the Parent and
the Merger Sub, jointly and severally, represents and warrants to the Company
that, as of the date hereof, the statements contained in this </font><!--<a
href="mergerplan.htm#_Ref157917007">0</a>--><font size="2"> are true and correct,
except as set forth in the schedule provided by the Parent and the Merger Sub to
the Company and attached hereto (the "<b><i>Parent Disclosure
Letter</i></b>"):</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-18-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<!--<a name="_Toc167167000"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Organization.</b></font><font size="2">
Each of the Parent and the Merger Sub is a corporation duly organized, validly
existing and in good standing under the laws of the state of its incorporation.
Each of the Parent and the Merger Sub is duly qualified to conduct business and
is in corporate good standing under the laws of each jurisdiction in which the
nature of its businesses or the ownership or leasing of its properties requires
such qualification, except where the failure to be so qualified or in good
standing would not have a Material Adverse Effect on the Parent or the Merger
Sub.  Each of the Parent and the Merger Sub has the corporate power and
authority to carry on the business in which it is engaged and to own and use the
properties owned and used by it.  The Parent and the Merger Sub have each
furnished or made available to the Company true and complete copies of their
Certificates of Incorporation or Articles of Incorporation, as the case may be,
and Bylaws, each as amended and as in effect on the date hereof.  Neither the
Parent nor the Merger Sub is in default under or in violation of any provision
of its Certificate of Incorporation or Articles of Incorporation, as the case
may be, or Bylaws, as amended.</font><p>
<!--<a name="_Ref157872595"></a>--><!--<a name="_Toc167167001"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalization.</b></font><font size="2">
The authorized capital stock of the Parent consists of 50,056,075 shares of
capital stock, 50,000,000 of which are the Parent Stock, and of which 27,624,658
shares are issued and outstanding, and 56,075 of which are shares of preferred
stock, $10 par value per share, none of which are issued and outstanding.  All
of the issued and outstanding shares of the Parent Stock are duly authorized,
validly issued, fully paid, nonassessable and free of all preemptive rights.
All of the outstanding shares of the Parent Stock and other securities of the
Parent have been duly and validly issued in compliance with federal and state
securities laws.  The authorized capital stock of the Merger Sub consists of
1,000 shares of common stock, $0.01 par value, all of which are issued and
outstanding.  All of the issued and outstanding shares of capital stock of
Merger Sub are duly authorized and validly issued, and fully paid and
nonassessable, and were issued in compliance with all applicable laws.  Except
as set forth in Section 4.2 of the Parent Disclosure Letter, there are no
outstanding or authorized subscriptions, options, warrants, plans or, except for
this Agreement and as contemplated by this Agreement, other agreements or rights
of any kind to purchase or otherwise receive or be issued, or securities or
obligations of any kind convertible into, any shares of capital stock or other
securities of the Parent or Merger Sub, and there are no dividends which have
accrued or been declared but are unpaid on the capital stock of the Parent or
Merger Sub.</font><p>
<!--<a name="_Toc167167002"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authorization
of Transaction.</b></font><font size="2">  Subject to the Merger Sub Stockholder
Approval (as defined below), each of the Parent and the Merger Sub has the
corporate power and authority to execute and deliver this Agreement and to
perform its obligations hereunder.  The execution and delivery of this Agreement
and, subject to the adoption of this Agreement and the approval of the Merger by
at least a majority of the votes represented by the outstanding Merger Sub
Common Stock entitled to vote on this Agreement and the Merger, voting in
accordance with the MGCL and the Articles of Incorporation of the Merger Sub
(the "<b><i>Merger Sub Stockholder Approval</i></b>"), the performance by the
Parent and the Merger Sub of this Agreement and the consummation of the
transactions contemplated hereby by the Parent and the Merger Sub have been duly
and validly authorized by all necessary corporate action on the part of the
Parent and the Merger Sub.  This Agreement has been duly and validly executed
and delivered by the Parent and the Merger Sub and, assuming the due
authorization, execution and delivery by the Company, constitutes a valid and
binding obligation of the Parent and the Merger Sub, enforceable against them in
accordance with its terms, except as enforcement may be limited by bankruptcy,
insolvency or other similar laws affecting the enforcement of creditors&#8217;
rights generally, and except that the availability of equitable remedies,
including specific performance, is subject to the discretion of the court before
which any proceeding therefor may be brought.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-19-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<!--<a name="_Toc167167003"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncontravention.</b></font><font size="2">
Subject to compliance with the applicable requirements of the Securities Act,
any applicable state securities laws and the Exchange Act and the filing of the
Articles of Merger as required by the MGCL, neither the execution and delivery
of this Agreement, nor the consummation by the Parent or the Merger Sub of the
transactions contemplated hereby or thereby, will: (a) conflict with or violate
any provision of the Certificate of Incorporation or Articles of Incorporation,
as the case may be, or Bylaws of the Parent or the Merger Sub; (b) require on
the part of the Parent or the Merger Sub any filing with, or any permit,
authorization, consent or approval of, any Governmental Entity, other than those
(i) required solely by reason of the Company&#8217;s participation in the
transactions contemplated hereby or (ii) to be made by the Company or (iii) any
filing, permit, authorization, consent or approval which, if not made or
obtained, would not have a Material Adverse Effect on the Parent; (c) result in
the imposition of any Security Interest upon any assets of the Parent or the
Merger Sub; or (d) violate any order, writ, injunction, decree, statute, rule or
regulation applicable to the Parent or the Merger Sub or any of their properties
or assets, except for any violation that would not have a Material Adverse
Effect on the Parent or the Merger Sub.</font><p>
<!--<a name="_Ref157873923"></a>--><!--<a name="_Toc167167004"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsidiaries.</b></font><font size="2">
Except for the Merger Sub, the Parent does not have any direct or indirect
subsidiaries or any equity interest in any other firm, corporation, membership,
joint venture, association or other business organization.</font><p>
<!--<a name="_Ref157873617"></a>--><!--<a name="_Toc167167005"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reports
and Financial Statements.</b></font><font size="2">  The Parent has filed all
forms, reports, schedules, registration statements, proxy statements and other
documents (including any document required to be filed as an exhibit thereto)
required to be filed by the Parent with the Securities and Exchange Commission
("<b><i>SEC</i></b>") on a timely basis, and has made available to the Company
such forms, reports and documents in the form filed with the SEC.  All such
required forms, reports, schedules, registration statements, proxy statements
and other documents (including those that the Parent may file subsequent to the
date hereof) are referred to herein as the "<b><i>SEC Reports</i></b>."  As of
their respective dates, the SEC Reports (including, without limitation, any
financial statements or schedules included or incorporated by reference therein)
(i) were prepared in accordance with the requirements of the Securities Act or
the Exchange Act, as the case may be, and the rules and regulations of the SEC
thereunder applicable to such SEC Reports and (ii) did not at the time they were
filed (or if amended or superseded by a filing prior to the date of this
Agreement, then on the date of such filing) contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading.  Except as disclosed in Section 4.6
of the Parent Disclosure Letter, the SEC Reports filed by the Parent and
publicly available prior to the date of this Agreement, as of the date hereof,
there has not been any Material Adverse Effect with respect to the Parent that
would require disclosure under the Securities Act.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-20-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<!--<a name="_Toc167167006"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Absence
of Certain Changes.</b></font><font size="2">  Since the date of its most recent
SEC Report, the Parent has conducted its business as ordinarily conducted
consistent with past practice and there has not occurred any change, event or
condition (whether or not covered by insurance) that has resulted in, or would
reasonably be expected to result in any Material Adverse Effect on the
Parent.</font><p>
<!--<a name="_Toc167167007"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merger
Shares.</b></font><font size="2">  The Merger Shares have been duly authorized
and, when issued in consideration for the conversion of the Company Stock, as a
result of the Merger and pursuant to the terms hereof, will be validly issued,
fully paid and non-assessable, and not subject to any liens, pledges, charges,
encumbrances, restrictions of any kind, preemptive rights or any other rights or
interests of third parties or any other encumbrances, except for applicable
securities law restrictions on transfer, including those imposed by Regulation D
or Section 4(2) of the Securities Act and Rule 144 promulgated under the
Securities Act and under applicable "blue sky" state securities laws.  Assuming
that all of the holders of the Company Stock are "accredited investors," as such
term is defined in Regulation D promulgated under the Securities Act, and that
all such Persons have complied with all of the terms and conditions of this
Agreement, the offer and sale of the Merger Shares under this Agreement will be
exempt from the registration requirements of the Securities Act and in
compliance with all federal and state securities laws.</font><p>
<!--<a name="_Toc167167008"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business
of the Merger Sub.</b></font><font size="2">  The Merger Sub is not and has
never been a party to any material agreements and has not conducted any
activities other than in connection with the organization of the Merger Sub, the
issuance of the Merger Sub Common Stock, the negotiation and execution of this
Agreement and the consummation of the transactions contemplated hereby.  The
Merger Sub has not incurred or assumed any expenses or liabilities prior to the
Closing.</font><p>
<!--<a name="_Toc167167009"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Qualification
as a Reorganization.</b></font><font size="2">  Neither the Parent nor the
Merger Sub has any plan or intention to both (a) discontinue (or cause the
Surviving Corporation to discontinue) the historic business of the Surviving
Corporation (assuming that the business of the Company as of the date of the
Merger is the Surviving Corporation&#8217;s historic business) and (b) cease (or
cause the Surviving Corporation to cease) to use a significant portion of the
Surviving Corporation&#8217;s historic business assets in a trade or business
(assuming that the assets of the Company as of the date of the Merger constitute
the Surviving Corporation&#8217;s historic business assets).  Neither the Parent
nor the Merger Sub has any plan or intention to cause the Surviving Corporation
to dispose of assets following the Merger such that after the Merger the
Surviving Corporation will no longer continue to hold (as such term is used in
Code Section 368(a)(2)(E)(i)) substantially all of its assets and the assets of
the Merger Sub.  For purposes of the foregoing, the term "substantially all"
means at least 90 percent of the fair market value of the net assets and at
least 70 percent of the fair market value of the gross assets of the Merger Sub
and the Surviving Corporation.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-21-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<!--<a name="_Toc167167010"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Absence
of Plans.</b></font><font size="2">  Since the date of its most recent SEC
Report, the Board of Directors of the Parent has not authorized any
recapitalization, reclassification, spin-off, stock split, stock combination,
stock or extraordinary cash dividend, or reverse split with respect to the
Parent Stock.</font><p>
<!--<a name="_Toc167167011"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disclosure.</b></font><font size="2">
No representation or warranty by the Parent or the Merger Sub contained in this
Agreement, including any statement contained in the Parent Disclosure Letter, or
any Closing Document contains any untrue statement of a material fact or omits
to state any material fact necessary, in light of the circumstances under which
it was made, in order to make the statements herein not
misleading.</font><p align="center">
<font size="2"><b>ARTICLE V</b></font><p align="center">
<font size="2"><b>COVENANTS</b></font><p>
<!--<a name="_Toc167167013"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Best
Efforts.</b></font><font size="2">  Each of the Parties shall use its best
efforts, to the extent commercially reasonable, to take all actions and to do
all things necessary, proper or advisable to consummate the transactions
contemplated by this Agreement.</font><p>
<!--<a name="_Toc167167014"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities
Laws.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Parent, the Merger Sub, and the Surviving Corporation shall take such steps as
may be necessary to comply with the securities and blue sky laws of all
jurisdictions which are applicable to the issuance of the Parent Stock in
connection with the Merger.  The Company shall use its best efforts, to the
extent commercially reasonable, to assist the Parent as may be necessary to
comply with such securities and blue sky laws.</font><p>
<!--<a name="_Ref167166170"></a>--><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So
long as the Parent or any successor entity has securities registered under the
Securities Act or the Exchange Act, the Parent or such successor entity shall
file all reports required to be filed by it under the Securities Act and the
Exchange Act, all to the extent required pursuant to Rule 144 to enable
stockholders who exchange the Company Stock for the Parent Stock pursuant to the
terms of this Agreement to sell the Parent Stock pursuant to Rule 144 adopted by
the Securities and Exchange Commission under the Securities Act (as such rule
may be amended from time to time) or any similar rule or regulation hereafter
adopted by the Securities and Exchange Commission.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-22-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
at any time after the Effective Time, the Parent takes or fails to comply with
its obligations under the immediately preceding paragraph </font><!--<a
href="mergerplan.htm#_Ref167166170">0</a>--><font size="2">, or if Rule 144 is not
available to the stockholders who exchange the Company Stock for the Parent
Stock pursuant to the terms of this Agreement as a result of any action taken or
not taken by the Parent, then the Parent shall enter into a registration rights
agreement with each such stockholder in form and substance reasonably acceptable
to the Parent and such stockholder setting forth the rights of such stockholder
to require Parent to register the sale of such stockholder&#8217;s Merger Shares
under the Securities Act, <u>provided</u>, <u>however</u>, that no such
stockholder shall have any right to require the Parent to register the sale of
such stockholder&#8217;s Merger Shares under the Securities Act prior to the
time such stockholder would have been able to sell such stockholder&#8217;s
Merger Shares under Rule 144 had Rule 144 been available.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
order to provide documentation for reliance upon the exemptions from the
registration and prospectus delivery requirements for such transactions, each
shareholder of the Company shall execute and deliver to the Parent an investment
representation letter in substantially the same form as that attached hereto as
<b><u>Exhibit A</u></b>.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with the transaction contemplated by this Agreement, the Parent and
the Company shall each file, with the assistance of the other and their
respective legal counsel, such notices, applications, reports, or other
instruments as may be deemed by them to be necessary or appropriate to document
reliance on such exemptions, and the appropriate regulatory authority in the
states where the shareholders of the Company reside unless an exemption
requiring no filing is available in such jurisdictions, all to the extent and in
the manner as may be deemed by such parties to be appropriate.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
order to more fully document reliance on the exemptions as provided herein, the
Company, the Company Shareholders, and the Parent shall execute and deliver to
the other, at or prior to the Closing, such further letters of representation,
acknowledgment, suitability, or the like as the Company or the Parent and their
respective counsel may reasonably request in connection with reliance on
exemptions from registration under such securities laws.</font><p>
<!--<a name="_Toc167167015"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reorganization.</b></font><font size="2">
Except for the transactions contemplated by this Agreement neither the Parent
nor the Merger Sub will take any action, or cause the Surviving Corporation to
take any action, which would have the result of disqualifying the Merger as a
reorganization pursuant to Section 368(a)(2)(E) of the Code.  In addition,
neither the Parent nor the Merger Sub will adopt any position (or cause the
Surviving Corporation to adopt any position) which is inconsistent with the
treatment of the Merger as a tax-free reorganization.</font><p>
<!--<a name="_Toc167167016"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reasonable
Commercial Efforts and Further Assurances.</b></font><font size="2">  Each
Party, at the reasonable request of another Party, and as soon as practicable,
shall execute and deliver at the requesting Party&#8217;s expense such other
instruments and do and perform such other acts and things as may be necessary or
desirable for effecting completely the consummation of this Agreement and the
transactions contemplated hereby.</font><p>
<!--<a name="_Ref157915764"></a>--><!--<a name="_Toc167167017"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
Solicitation.</b></font><font size="2">  Neither the Parent nor the Company, nor
any of their respective subsidiaries, affiliates, officers, directors,
representatives or agents shall, directly or indirectly, solicit, initiate or
encourage (including by way of furnishing information) any person, entity or
group concerning any merger, sale of substantial assets outside the ordinary
course of business, sale of shares of capital stock or similar transaction
involving itself or any of its subsidiaries or divisions (other than the
transactions contemplated by this Agreement), provided that either of them may
participate in negotiations with or furnish information to a third party if its
Board of Directors believes, after consultation with its outside counsel, that
the failure to do so would be a breach of its fiduciary duty under applicable
law. Each of the Parent and the Company shall promptly advise the other of any
such inquiries or proposals.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-23-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<!--<a name="_Toc167167018"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indemnification.</b></font><font size="2">
All rights to indemnification and advancement of expenses existing in favor of
those Persons who are or were directors, officers, agents or employees of the
Company or the Parent (the "<b><i>Indemnified Persons</i></b>") for acts and
omissions occurring prior to the Effective Time, as provided in the
Company&#8217;s and the Parent&#8217;s Certificate of Incorporation or by-laws
(in each case as in effect as of the date of this Agreement), shall survive the
Merger and shall be fully complied with by the Parent and the Surviving
Corporation, to the fullest extent permitted by the laws of the State of
Delaware or the State of Maryland, as the case may be.</font><p>
<!--<a name="_DV_C256"></a>--><!--<a name="_DV_M213"></a>--><!--<a name="_DV_C258"></a>--><!--<a name="_DV_M214"></a>--><!--<a name="_DV_C259"></a>--><!--<a name="_DV_M215"></a>--><!--<a name="_DV_M216"></a>--><!--<a name="_Toc167167019"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audited
Financial Statements.</b></font><font size="2">  Not later than 71 days
following the filing by the Parent of its Current Report on Form 8-K to report
this transaction within four days of the execution of this Agreement, the
Company shall deliver an audited balance sheet, an audited statement of
operations and an audited statement of cash flows at and for the periods
required under paragraph (2) of Item 9.01 of Form 8-K (the "<b><i>Audited
Financial Statements</i></b>"). The Audited Financial Statements will be
prepared in accordance with GAAP applied on a consistent basis throughout the
periods covered thereby, fairly and accurately present the financial condition,
results of operations and cash flows of the Company as of the respective dates
thereof and for the periods referred to therein and be consistent with the books
and records of the Company. </font><p align="center">
<!--<a name="_Toc167167020"></a>--><font size="2"><b>ARTICLE
VI</b></font><p align="center">
<font size="2"><b>CONDITIONS TO CONSUMMATION OF MERGER</b></font><p>
<!--<a name="_Toc167167021"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conditions
to Each Party&#8217;s Obligations.</b></font><font size="2">  The respective
obligations of each Party to consummate the Merger and the other transactions
contemplated hereby are subject to the satisfaction of the following conditions
unless any such condition is waived, in writing, by the other Party:</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;this
Agreement and the Merger shall have received the Company Stockholder
Approval;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Parent and the Company shall be satisfied that the issuances of the Parent Stock
in the transaction shall be exempt under Regulation D of the Securities Act and
Section&nbsp;4(2) of the Securities Act;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;no
temporary restraining order, preliminary or permanent injunction or other order
issued by any court of competent jurisdiction or other legal or regulatory
restraint or prohibition preventing the consummation of the Merger shall have
been issued, nor shall any proceeding brought by any Governmental Entity,
seeking any of the foregoing be pending; nor shall there be any action taken, or
any statute, rule, regulation or order enacted, entered, enforced or deemed
applicable to the Merger which makes the consummation of the Merger illegal;
and</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;no
proceeding in which the Company, the Parent or the Merger Sub shall be a debtor,
defendant or party seeking an order for its own relief or reorganization shall
have been brought or be pending by or against the Company, the Parent or the
Merger Sub under any United States or state bankruptcy or insolvency
law.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-24-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<!--<a name="_Ref157849315"></a>--><!--<a name="_Toc167167022"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conditions
to Obligations of the Parent and the Merger Sub.</b></font><font size="2">  The
obligation of each of the Parent and the Merger Sub to consummate the Merger is
subject to the satisfaction of the following additional conditions, unless any
such condition is waived, in writing, by the Parent:</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;this
Agreement and the Merger shall have been approved and adopted by the Company
Stockholders;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Company shall have obtained all of the waivers, permits, consents, assignments,
approvals or other authorizations, and effected all of the registrations,
filings and notices, referred to in the Company Disclosure Letter, except for
any which if not obtained or effected would not have a Material Adverse Effect
on the Company or on the ability of the Parties to consummate the transactions
contemplated by this Agreement;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
representations and warranties of the Company set forth in </font><!--<a
href="mergerplan.htm#_Ref157916341">0</a>--><font size="2"> shall be true and
correct in all material respects as of the Closing Date, except for
representations and warranties made as of a specified date, which shall be true
and correct in all material respects as of such date;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Company shall have performed or complied with, in all material respects, its
covenants set forth in Article V required to be performed or complied with under
this Agreement prior to the Closing Date;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Parent and the Merger Sub shall have received from the Secretary of the Company
a certificate (i)&nbsp;certifying the Company Charter, (ii)&nbsp;certifying the
Bylaws of the Company, (iii)&nbsp;certifying the resolutions of the Board of
Directors of the Company, (vi)&nbsp;certifying the resolutions of the
stockholders of the Company, and (v)&nbsp;attesting to the incumbency of the
officers of the Company;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Parent and the Merger Sub shall have received from the President of the Company
a certificate certifying (i) all of the Company&#8217;s representations and
warranties set forth in set forth in </font><!--<a
href="mergerplan.htm#_Ref157916341">0</a>--><font size="2"> continue to be true and
correct in all material respects as of the Closing Date, except for
representations and warranties made as of a specified date, which were true and
correct in all material respects as of such date and (ii) the Company has
performed or complied with, in all material respects, all of its covenants set
forth in Article V required to be performed or complied with under this
Agreement prior to the Closing Date;</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-25-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Company shall have delivered the certificates described in Section 2.4(a) hereof
and all other documents required to be delivered to the Parent on or before the
Closing Date;</font><p>
<!--<a name="OLE_LINK2"></a>--><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
actions to be taken by the Company in connection with the consummation of the
transactions contemplated hereby, and all certificates, opinions, instruments
and other documents required to effect the transactions contemplated hereby
shall be reasonably satisfactory in form and substance to the Parent and the
Merger Sub.</font><p>
<!--<a name="_Ref157858731"></a>--><!--<a name="_Toc167167023"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conditions
to Obligations of the Company.</b></font><font size="2">  The obligation of the
Company to consummate the Merger is subject to the satisfaction of the following
additional conditions, unless any such condition is waived, in writing, by the
Company:</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;this
Agreement and the Merger shall have been approved and adopted by the Parent, as
the sole stockholder of Merger Sub;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Parent and the Merger Sub shall have obtained all of the waivers, permits,
consents, approvals or other authorizations, and effected all of the
registrations, filings and notices (including, but not limited to any filings
that are required with the SEC prior to the consummation of the Merger), except
for any which if not obtained or effected would not have a Material Adverse
Effect on the Parent or the Merger Sub or on the ability of the Parties to
consummate the transactions contemplated by this Agreement;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
representations and warranties of the Parent and the Merger Sub set forth in
</font><!--<a href="mergerplan.htm#_Ref157917007">0</a>--><font size="2"> shall be true
and correct in all material respects as of the Closing Date, except for
representations and warranties made as of a specified date, which shall be true
and correct in all material respects as of such date;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;each
of the Parent and the Merger Sub shall have performed or complied with, in all
material respects, its respective agreements and covenants required to be
performed or complied with under this Agreement prior to the Closing
Date;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Company shall have received from the Secretary of the Parent a certificate (i)
certifying the Certificate of Incorporation of the Parent, (ii) certifying the
Bylaws of the Parent, (iii) certifying the resolutions of the Board of Directors
of the Parent, and (iv) attesting to the incumbency of the officers of the
Parent;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Company shall have received from the Secretary of the Merger Sub a certificate
(i) certifying the Certificate of Incorporation of the Merger Sub, (ii)
certifying the Bylaws of the Merger Sub, (iii) certifying the resolutions of the
Board of Directors, (iv) certifying the resolutions of the sole stockholder of
the Merger Sub, and (v) attesting to the incumbency of the officers of the
Merger Sub;</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-26-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Parent shall have delivered the certificates described in Section 2.4(b) hereof,
as applicable, and all other documents required to be delivered to the Parent on
or before the Closing Date;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
actions to be taken by the Parent or Merger Sub in connection with the
consummation of the transactions contemplated hereby, and all certificates,
opinions, instruments and other documents required to effect the transactions
contemplated hereby shall be reasonably satisfactory in form and substance to
the Company.</font><p>
<!--<a name="_Toc167167024"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
Waivers.</b></font><font size="2">  The Parties acknowledge and agree that if a
Party has actual knowledge of any breach by any other Party of any
representation, warranty, agreement or covenant contained in this Agreement, and
such Party proceeds with the Closing, such Party shall be deemed to have
irrevocably waived such breach for that particular breach only and such Party
and its successors and assigns shall not be entitled to assert any right or to
seek any remedy for any damages arising from any matters relating to such
breach, notwithstanding anything to the contrary contained herein or in any
certificate delivered pursuant hereto.</font><p align="center">
<font size="2"><b>ARTICLE VII</b></font><p align="center">
<font size="2"><b>TERMINATION; INDEMNIFICATION</b></font><p>
<!--<a name="_Ref157921219"></a>--><!--<a name="_Ref157922663"></a>--><!--<a name="_Toc167167026"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination
of Agreement.</b></font><font size="2">  The Parties may terminate this
Agreement prior to the Effective Time as provided below (provided that Merger
Sub shall not be deemed a Party for the purposes of this Section 7.1):</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Parties may terminate this Agreement by mutual written consent;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
Party may terminate this Agreement by giving written notice to the other Parties
at any time after the Company&#8217;s stockholders have voted on whether to
approve this Agreement and the Merger, in the event that this Agreement or the
Merger failed to receive the Company Stockholder Approval;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
Party may terminate this Agreement by giving written notice to the other Parties
upon the entry of any permanent injunction or other order of a court or other
competent authority preventing the consummation of the Merger that has become
final and nonappealable;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by
either Party (i) if there shall have been a breach of any representation,
warranty, covenant or agreement on the part of the other Party contained in this
Agreement such that the conditions set forth in Article VI would not be
satisfied and, in either such case, such breach is not capable of being cured
or, if capable of being cured, shall not have been cured prior to the Effective
Time; provided that no Party shall not have the right to terminate this
Agreement pursuant to this Section 7.1(d) if such Party (or, in the case of the
Parent, Merger Sub) is then in material breach of any of its covenants or
agreements contained in this Agreement, or (ii) if the Board of Directors of the
other Party (A) shall have withdrawn, modified or changed in a manner adverse to
the terminating Party its approval or recommendation of this Agreement or the
Merger or (B) shall have shall have failed to approve or recommend this
Agreement or the Merger by the proposed Closing Date; and</font><p>
<!--<a name="_Toc167167027"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect
of Termination.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
any party terminates this Agreement pursuant to Section 7.1(a), (b) or (c), all
obligations of the Parties hereunder shall terminate without any liability of
any Party to any other Party, including the directors, officers, employees,
agents, consultants, representatives, advisors, stockholders, members or
Affiliates of any Party.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-27-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
either Party terminates this Agreement pursuant to Section 7.1(d), then the
Party in breach of this Agreement shall pay the expenses of the terminating
Party in connection with the negotiation and drafting of this Agreement between
the Parties.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the foregoing, the following obligations shall survive termination of this
Agreement:  (i) the liability of any Party for any breach of this Agreement;
(ii) the obligations relating to press releases and announcements, as provided
in Section8.4; and (iii) each Party&#8217;s obligation to bear certain fees and
expenses incurred in connection with the preparation and negotiation of this
Agreement and the transactions contemplated herein as provided in Section
8.11.</font><p>
<!--<a name="_Toc167167028"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amendment.</b></font><font size="2">
Subject to applicable law, the Parties may cause this Agreement to be amended at
any time by execution of an instrument in writing signed on behalf of each of
the Parties.</font><p>
<!--<a name="_Toc167167029"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Extension,
Waiver.</b></font><font size="2">  At any time prior the Effective Time, any
Party may, to the extent legally allowed (i) extend the time for the performance
of any of the obligations or other acts of the other Parties, (ii) waive any
inaccuracies in the representations and warranties made to such Party contained
herein or in any document delivered pursuant hereto, and (iii) waive compliance
with any of the agreements or conditions for the benefit of such Party contained
herein.  Any agreement on the part of a Party to any such extension or waiver
shall be valid only if set forth in an instrument in writing signed on behalf of
such Party.</font><p>
<!--<a name="_Toc167167030"></a>--><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2"><b>7.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Survival
of Representations, Warranties and Covenants.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
representations and warranties of the parties contained in this Agreement will
remain operative and in full force and effect, regardless of any investigation
made by or on behalf of the other Parties to this Agreement, until the earlier
of the termination of this Agreement or one (1) year after the Closing Date (the
<b>"<i>Survival Period</i></b>"), whereupon such representations, warranties and
covenants will expire (except for covenants that by their terms survive for a
longer period). The Parties post-closing remedies for a breach are not limited
by the pre-closing discovery of a breach.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
covenants of the parties contained in this Agreement shall remain operative for
such periods of time as necessary for the applicable Party to fulfill such
covenant, unless otherwise agreed in writing by the other Parties.</font><p>
<!--<a name="_Toc167167031"></a>--><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2"><b>7.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indemnification
of the Parent</b>.  Subject to the limitations set forth in this Article VII,
the Company, agrees to indemnify and hold harmless the Parent and its officers,
directors, agents and employees, and each person, if any, who controls or may
control the Parent within the meaning of the Securities Act from and against any
and all damages:</font></p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Arising out of any misrepresentation or breach of or default in connection with any of the representations, warranties and covenants given or made by the Company in this Agreement or any certificate, document or instrument delivered by or on behalf of the Company pursuant hereto; or	<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-28-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Resulting
from any failure of the stockholders to have good, valid and marketable title to
the issued and outstanding the Company Stock held by them, free and clear of all
liens, claims, pledges, options, adverse claims, assessments or charges of any
nature whatsoever, or to have full right, capacity and authority to vote the
Company Stock in favor of the Merger and the other transactions contemplated by
the Merger Agreement.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing are
collectively referred to as the "<i>Parent Indemnity Claims</i>."</font><p>
<!--<a name="_Toc167167032"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indemnification
of the Company.</b></font><font size="2">  Subject to the limitations set forth
in this Article VII, the Parent and Merger Sub agree to jointly and severally
indemnify and hold harmless the Company and its officers, directors, agents and
employees, from and against any and all damages:</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Arising
out of any misrepresentation or breach of or default in connection with any of
the representations, warranties and covenants given or made by the Parent or
Merger Sub in this Agreement or any certificate, document or instrument
delivered by or on behalf of the Parent or Merger Sub pursuant hereto;
or</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Resulting
from any failure of the Parent to full right, capacity and authority to cause
all of the shares representing such the Parent Stock to be issued to the Company
stockholders in connection with the conversion of each share of the Company
Stock as required by this Agreement.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing are
collectively referred to as the "<b><i>Company Indemnity Claims</i></b>."  the
Company Indemnity Claims together with the Parent Indemnity Claims are
collectively referred to as the "<b><i>Indemnity Claims</i></b>."</font><p>
<!--<a name="_Toc167167033"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General
Notice and Procedural Requirements for Indemnity
Claims.</b></font><font size="2">  Notwithstanding the foregoing, the party or
person having the indemnity obligation under this Article VII (the
"<b><i>Indemnifying Party</i></b>"), shall be obligated to indemnify and hold
harmless the party or person entitled to indemnity under this Article VII (the
"<b><i>Indemnified Party</i></b>"), only with respect to any Indemnity Claims of
which the Indemnified Party notifies with specificity the Indemnifying Party in
accordance with Section 8.8 of this Agreement and, if applicable, within the
following time period: (i) with regard to any representation or warranty under
this Agreement, prior to the end of the Survival Period of such representation
or warranty (unless such Indemnity Claim relates to a claim arising prior to the
termination of the Survival Period, in which case the time period shall be
extended to thirty (30) days after such Indemnity Claim is first received by an
Indemnified Party); or (ii) with regard to any covenant under this Agreement
which by its terms expires, prior to the end of the survival period relating to
such covenant (unless such Indemnity Claim relates to a claim arising prior to
the termination of the applicable survival period, in which case the time period
shall be extended to thirty (30) days after such Indemnity Claim is first
received by an Indemnified Party).</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-29-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<!--<a name="_Toc167167034"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notice
and Procedural Requirements for Third Party Claims.</b></font><font size="2">
If a complaint, claim or legal action is brought by a third party (a
"<b><i>Third Party Claim</i></b>") as to which an Indemnified Party is entitled
to indemnification, the Indemnified Party shall give written notice of such
Third Party Claim to the Indemnifying Party in accordance with Section 8.8 of
this Agreement promptly after the Indemnified Party receives notice thereof,
which notice shall include a copy of any letter, complaint or similar writing
received by the Indemnified Party; provided however, that any failure to provide
or delay in providing such information shall not constitute a bar or defense to
indemnification except to the extent the Indemnifying Party has been prejudiced
thereby.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Indemnifying Party
shall have the right to assume the defense of such Third Party Claim with
counsel reasonably satisfactory to the Indemnified Party.  After notice from the
Indemnifying Party to the Indemnified Party of the Indemnifying Party&#8217;s
election so to assume the defense of such Third Party Claim, the Indemnifying
Party shall not be liable to the Indemnified Party for any legal or other
expenses subsequently incurred by the Indemnified Party in connection with the
defense of such Third Party Claim except as hereinafter provided.  If the
Indemnifying Party elects to assume such defense and select counsel, the
Indemnified Party may participate in such defense through its own separate
counsel, but the fees and expenses of such counsel shall be borne by the
Indemnified Party unless: (i) otherwise specifically agreed by the Indemnifying
Party; or  (ii) counsel selected by the Indemnifying Party determines that
because of a conflict of interest between the Indemnifying Party and the
Indemnified Party such counsel for the Indemnifying Party cannot adequately
represent both parties in conducting the defense of such action.  In the event
the Indemnified Party maintains separate counsel because counsel selected by the
Indemnifying Party has determined that such counsel cannot adequately represent
both parties because of a conflict of interest between the Indemnifying Party
and the Indemnified Party, then the Indemnifying Party shall not have the right
to direct the defense of such Third Party Claim on behalf of the Indemnified
Party.</font></p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The failure of the Indemnifying Party to notify an Indemnified Party of its election to defend such Third Party Claim within thirty (30) days after notice thereof was given to the Indemnifying Party shall be deemed a waiver by the Indemnifying Party of its rights to defend such Third Party Claim.	<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-30-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div>&nbsp;	<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Indemnifying
Party assumes the defense of a Third Party Claim, the obligations of the
Indemnifying Party shall include taking all steps necessary in the defense of
such Third Party Claim and holding the Indemnified Party harmless from and
against any and all Damages caused or arising out of any settlement approved by
the Indemnified Party or any judgment in connection with the claim or
litigation.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Indemnifying
Party does not assume the defense of such Third Party Claim in accordance with
this Section, the Indemnified Party may defend against such claim or litigation
in such manner as it deems appropriate; <u>provided</u>, <u>however</u>, that
the Indemnified Party may not settle such Third Party Claim without the prior
written consent of the Indemnifying Party; provided that the Indemnifying Party
may not withhold such consent unless it has provided security of a type and in
an amount reasonably acceptable to the Indemnified Party for the payment of its
indemnification obligations with respect to such Third Party Claim.  The
Indemnifying Party shall promptly reimburse the Indemnified Party for the amount
of Damages caused or arising out of any judgment rendered with respect to such
Third Party Claim, and for all costs and expenses incurred by the Indemnified
Party in the defense of such claim.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Indemnifying Party
may settle any Third Party Claim in its sole discretion without the prior
written consent of the Indemnified Party, provided that such settlement involves
only the payment of cash by the Indemnifying Party to the claimant and does not
impose any other obligation on the Indemnifying Party or any liability or
obligation on the Indemnified Party.</font><p>
<!--<a name="_Toc167167035"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notice
and Procedural Requirements for Direct Claims.</b></font><font size="2">  Any
claim for indemnification by an Indemnified Party on account of Damages which do
not result from a Third Party Claim (a "<b><i>Direct Claim</i></b>") shall be
asserted by giving the Indemnifying Party reasonably prompt notice thereof in
accordance with Section 8.8 of this Agreement; <u>provided</u>, <u>however</u>,
that any failure to provide, or delay in providing, such notification shall not
constitute a bar or defense to indemnification except to the extent the
Indemnifying Party has been prejudiced thereby.  After receiving notice of a
Direct Claim, the Indemnifying Party will have a period of thirty (30) days
within which to respond in writing to such Direct Claim.  If the Indemnifying
Party rejects such claim or does not respond within such thirty (30) day period
(in which case the Indemnifying Party will be deemed to have rejected such
claim), the Indemnified Party will be free to pursue such remedies as may be
available to the Indemnified Party on the terms and subject to the provisions of
this Article VII.</font><p align="center">
<font size="2"><b>ARTICLE VIII</b></font><p align="center">
<font size="2"><b>MISCELLANEOU</b>S</font><p>
<!--<a name="_Toc167167037"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
Third Party Beneficiaries.</b></font><font size="2">  This Agreement shall not
confer any rights or remedies upon any person other than the Parties and their
respective successors and permitted assigns.</font><p>
<!--<a name="_Toc167167038"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Entire
Agreement.</b></font><font size="2">  This Agreement, the Company Disclosure
Letter, the Parent Disclosure Letter, the Schedules, the Exhibits, the documents
and instruments and other agreements among the parties referred to herein
constitute the entire agreement among the Parties and supersedes any prior
understandings, agreements or representations by or among the Parties, written
or oral, with respect to the subject matter hereof.</font><p>
<!--<a name="_Toc167167039"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Succession
and Assignment.</b></font><font size="2">  This Agreement shall be binding upon
and inure to the benefit of the Parties named herein and their respective
successors, heirs, legal representatives and permitted assigns.  No Party may
assign either this Agreement or any of its rights, interests, or obligations
hereunder without the prior written approval of the other
Parties.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-31-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<!--<a name="_Ref157923340"></a>--><!--<a name="_Toc167167040"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Public
Announcement.</b></font><font size="2">  Upon execution of this Agreement, the
Parent and the Company will issue a press release approved by both parties
announcing the Merger.  Thereafter, the Parent and the Company may issue such
press releases, and make such other disclosures regarding the Merger, as each
determines are required under applicable securities laws or regulatory rules,
any such press releases being subject to the prior approval, not to be
unreasonably withheld, of the other party.  Any press releases by the Parent
will be filed under Form 8-K with the Securities Exchange Commission.</font><p>
<!--<a name="_Ref498241115"></a>--><!--<a name="_Toc167167041"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Confidentiality.</b></font><font size="2">
The Parent and the Company each recognize that they have received and will
receive confidential information concerning the other during the course of the
Merger negotiations and preparations.  Accordingly, the Parent and the Company
each agrees (a)&nbsp;to use its respective best efforts to prevent the
unauthorized disclosure of any confidential information concerning the other
that was or is disclosed during the course of such negotiations and
preparations, and is clearly designated in writing as confidential at the time
of disclosure, and (b)&nbsp;to not make use of or permit to be used any such
confidential information other than for the purpose of effectuating the Merger
and related transactions.  The obligations of this section will not apply to
information that (i)&nbsp;is or becomes part of the public domain, (ii)&nbsp;is
disclosed by the disclosing party to third parties without restrictions on
disclosure, (iii)&nbsp;is received by the receiving party from a third party
without breach of a nondisclosure obligation to the other party, or (iv)&nbsp;is
required to be disclosed by law, including with the Securities and Exchange
Commission.  If this Agreement is terminated, all copies of documents containing
confidential information shall be returned by the receiving party to the
disclosing party.</font><p>
<!--<a name="_Toc167167042"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Counterparts,
Facsimile Signatures.</b></font><font size="2">  This Agreement may be executed
with counterpart signature pages or in two or more counterparts, each of which
shall be deemed an original but all of which together shall constitute one and
the same instrument.  This Agreement may be executed by facsimile
signatures.</font><p>
<!--<a name="_Toc167167043"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Headings.</b></font><font size="2">
The section headings contained in this Agreement are inserted for convenience
only and shall not affect in any way the meaning or interpretation of this
Agreement.</font><p>
<!--<a name="_Ref157923484"></a>--><!--<a name="_Toc167167044"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notices.</b></font><font size="2">
All notices, requests, demands, claims, and other communications hereunder (each
a "<b><i>Notice</i></b>") shall be in writing.  Any Notice shall be (a) sent by
registered or certified mail, return receipt requested, postage prepaid, (b)
sent via a reputable nationwide overnight courier service, charges prepaid or
(c) sent via facsimile or email (with acknowledgment of complete transmission)
with a confirmation copy by registered or certified mail or overnight courier as
aforesaid, in each case to the intended recipient as set forth
below:</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-32-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to the
Company:</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Abba
David
Poliakoff</font><br><!--<a name="OLE_LINK1"></a>--><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;233
East Redwood
Street</font><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltimore,
Maryland
21202</font><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Facsimile:
(410)
576-4032</font><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Email:
apoliakoff@gfrlaw.com</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Copies to:</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neuberger,
Quinn, Gielen, Rubin &amp; Gibber,
P.A.</font><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One
South Street, 27th
Floor</font><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltimore,
Maryland
21202</font><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention:
Hillel Tendler,
Esquire</font><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Facsimile:
(410)
951-6038</font><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Email:
ht@nqgrg.com</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to the Parent or
Merger Sub:</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Champions
Biotechnology, Inc.
</font><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2200
Wilson Boulevard, Suite
102-316</font><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Arlington,
Virginia
22201</font><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention:
James
Martell</font><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Facsimile:
(703)
832-8311</font><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Email:
SportsInc@aol.com</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Copy to:</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seyfarth
Shaw
LLP</font><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;815
Connecticut Avenue,
N.W.</font><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Suite
500</font><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Washington,
DC
20006</font><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention:
Ernest Stern,
Esq.</font><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Facsimile:
(202)
828-5393</font><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Email:
estern@seyfarth.com</font></p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Notice shall be deemed to have been given and effective upon receipt (or refusal of receipt).  Any Party may change the address to which Notices hereunder are to be delivered by giving the other Parties notice in the manner herein set forth.	<p>
<!--<a name="_Toc167167045"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Governing
Law.</b></font><font size="2">  This Agreement shall be governed by and
construed in accordance with the internal laws (and not the law of conflicts) of
the Commonwealth of Virginia.  In addition, each of the Parties hereto (a)
consents to submit itself to the personal jurisdiction of any federal court or
state courts located in the Commonwealth of Virginia in the event any dispute
arises out of this Agreement or any of the transactions contemplated by this
Agreement, (b) agrees that it will not attempt to deny or defeat such personal
jurisdiction by motion or other request for leave from any such court, and (c)
agrees that it will not bring any action relating to this Agreement or any of
the transactions contemplated hereby in any court other than a federal court or
a state court located in the Commonwealth of Virginia.</font></p>
&nbsp;	<div align="center" color="#000080" style="position:relative; left: -5"><b>-33-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div>&nbsp;	<p>
<!--<a name="_Toc167167046"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Severability.</b></font><font size="2">
If any term or other provision of this Agreement is invalid, illegal or
incapable of being enforced by any rule of law, or public policy, all other
conditions and provisions of this Agreement will 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 manner adverse to any party.  Upon
such determination that any term or other provision is invalid, illegal or
incapable of being enforced, the parties hereto will 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 transactions
contemplated hereby are fulfilled to the maximum extent possible.</font><p>
<!--<a name="_Ref157923357"></a>--><!--<a name="_Toc167167047"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expenses;
Attorney&#8217;s Fees.</b></font><font size="2">  In the event that the Merger
is consummated, all federal and state regulatory and transfer agent fees of the
Parent and the Merger Sub in connection with the Merger shall be paid out of the
proceeds from the financing.  In addition, with respect to all other costs and
expenses relating to the Merger, each of the Parent and the Company shall be
responsible for and bear all of their own costs and expenses; <u>provided</u>,
<u>however</u>, that whether or not the Merger is consummated, the Company shall
pay all legal fees incurred by the Parent in connection with its pursuing and/or
consummating the Merger if the Company breaches this Agreement and the Parent
shall pay the Company legal fees if the Parent either breaches this Agreement or
accepts a topping offer.    Notwithstanding the foregoing, if any Party hereto
initiates any legal action arising out of or in connection with this Agreement,
the prevailing party in such legal action shall be entitled to recover from the
other Party all reasonable attorney&#8217;s fees, expert witness fees and
expenses incurred by the prevailing party in connection therewith.</font><p>
<!--<a name="_Toc167167048"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disclosure
Letters.</b></font><font size="2">  The Company Disclosure Letter shall be
arranged in separate parts corresponding to the numbered and lettered sections
contained in this Agreement, and the information disclosed in any numbered or
lettered part shall qualify only (a) the corresponding section of this Agreement
and (b) other sections of </font><!--<a
href="mergerplan.htm#_Ref157916341">0</a>--><font size="2"> to the extent it is
clear (notwithstanding the absence of a specific cross reference) from a reading
of the disclosure that such disclosure is applicable to such other sections.
The Parent Disclosure Letter shall be arranged in separate parts corresponding
to the numbered and lettered sections contained in this Agreement, and the
information disclosed in any numbered or lettered part shall qualify only (a)
the corresponding section of this Agreement, and (b) other sections of </font><!--<a
href="mergerplan.htm#_Ref157917007">0</a>--><font size="2"> to the extent it is
clear (notwithstanding the absence of a specific cross reference) from a reading
of the disclosure that such disclosure is applicable to such other sections.
The inclusion of any information in the Company Disclosure Letter or the Parent
Disclosure Letter shall not be deemed to be an admission or acknowledgment that
such information is required to be included herein, is material, has or would
have a Material Adverse Effect, or is outside the ordinary course of
business.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-34-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<!--<a name="_Toc167167049"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction.</b></font><font size="2">
The Parties agree that they have been represented by counsel during the
negotiation, preparation and execution of this Agreement and, therefore, waive
the application of any law, regulation, holding or rule of construction
providing that ambiguities in an agreement or other document will be construed
against the party drafting such agreement or document.  Any reference to any
federal, state, local, or foreign statute or law shall be deemed also to refer
to all rules and regulations promulgated thereunder, unless the context requires
otherwise.</font><p>
<!--<a name="_Toc167167050"></a>--><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incorporation
of Exhibits and Schedules.</b></font><font size="2">  The Exhibits, the
Schedules, the Parent Disclosure Letter and the Company Disclosure Letter
identified in this Agreement are incorporated herein by reference and made a
part hereof.</font><p align="center">
<font size="2"><b>[Signatures begin on following
page]</b></font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-35-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the
Parties hereto have executed this Agreement as of the date first above
written.</font></p>
&nbsp;	<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="302.666591" colspan="1" rowspan="1" >
<p>
<font size="2"><b>PARENT:</b></font></p>
</td>
<td width="334.666583" colspan="1" rowspan="1" >
<p>
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY,
INC.</b></font><br><br><br><font size="2">By: <u>/s/ James
Martell&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font><br><font size="2">
&nbsp;Name:  James Martell</font><br><font size="2">    &nbsp;Title:
President</font></p>
</td>
</tr>
<tr valign="top">
<td width="302.666591" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="334.666583" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="302.666591" colspan="1" rowspan="1" >
<p>
<font size="2"><b>MERGER SUB:</b></font></p>
</td>
<td width="334.666583" colspan="1" rowspan="1" >
<p>
<font size="2"><b>BIOMERK ACQUISITION
CORP.</b></font><br><br><br><font size="2">By:<u> /s/ James Martell</u>
<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font><br><font size="2">
&nbsp;Name:  James Martell</font><br><font size="2">    &nbsp;Title:
President</font></p>
</td>
</tr>
<tr valign="top">
<td width="302.666591" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="334.666583" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="302.666591" colspan="1" rowspan="1" >
<p>
<font size="2"><b>COMPANY:</b></font></p>
</td>
<td width="334.666583" colspan="1" rowspan="1" >
<p>
<font size="2"><b>BIOMERK, INC.</b></font><br><br><br><font size="2">By: <u>/s/
Abba David
Poliakoff&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font><br><font size="2">
&nbsp;Name:  Abba David Poliakoff</font><br><font size="2">    &nbsp;Title:
President</font></p>
</td>
</tr>
<tr valign="top">
<td width="302.666591" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="334.666583" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>-36-</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="right">
<font size="2"><b><u>EXHIBIT A</u></b></font><p align="center">
<font size="2"><b><u>Form of Investment Representation
Letter</u></b></font><p align="center">
<b>INVESTMENT REPRESENTATIONS</b><br><b>AND</b><br><b>ACCREDITED INVESTOR
QUESTIONNAIRE</b><p align="center">
<b>In connection with the agreement and plan of merger</b><br><b>by and
among</b><br><b>Champions Biotechnology, Inc.,</b><br><b>Biomerk Acquisition
Corp.,</b><br><b>and</b><br><b>Biomerk, Inc.</b></p align="center">
&nbsp;	<p align="center">
<b>For ALL Investors</b><br><b>(ALL Investors, including Joint investors, must
<i>INITIAL</i> where appropriate):</b><p>
<b>Initial _______</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I certify that I am
acquiring the subject securities for my own account and with no present
intention of distributing or selling such securities, and no one other than
myself has any beneficial interest in such securities. I understand that the
offer and sale by of the securities I am acquiring have not been registered
under the Securities Act of 1933, as amended (the &#8220;Securities Act&#8221;),
by reason of their contemplated issuance in transactions exempt from the
registration and prospectus delivery requirements of the Securities Act pursuant
to Section 4(2) thereof and the Rules and Regulations promulgated thereunder,
and that the reliance of the issuer of such securities on such exemption from
registration is predicated in part on my representations set forth herein. I
acknowledge that a restrictive legend consistent with the foregoing has been or
will be placed on the certificates representing the securities.<p>
<b>Initial _______&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>I certify that<b> </b>I have
received from the issuer and reviewed such information as I consider necessary
or appropriate to evaluate the risks and merits of an investment in the subject
securities. I have had the opportunity to question and have questioned, to the
extent I  have deemed necessary or appropriate, representatives of the issuer so
as to receive answers and verify information obtained in my examination of the
issuer.<p>
<b>Initial _______</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I certify that I,
individually and/or together with my professional advisors, have such knowledge
and experience in financial, tax and business matters, including substantial
experience in evaluating and investing in securities (including the securities
of new and speculative companies), so as to enable me to use the information
referred to above and any other information made available by the issuer to me
in order to evaluate the merits and risks of and investment in the subject
securities and to make an informed investment decision with respect
thereto.</p align="center">
&nbsp;	<p align="center">
<b>For Individual Investors Only</b><br><b>(all Individual Investors must
<i>INITIAL</i> where appropriate;</b><br><b>if this is a Joint investment
<i>BOTH</i> investors must <i>INITIAL</i> where appropriate):</b><p>
<b>Initial _______&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>I certify that<b> </b>I have
a net worth (including home, furnishings and automobiles) of at least $1 million
either individually or through aggregating my individual holdings and those in
which I have a joint, community property or other similar shared ownership
interest with my spouse.<p>
<b>Initial _______&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>I certify that<b> </b>I have
had an annual gross income for the past two years of at least $200,000 (or
$300,000 jointly with my spouse) and expect my income (or joint income, as
appropriate) to reach the same level in the current year.<p>
<b>Initial _______&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>I certify that<b> </b>I am a
director or executive officer of Biomerk, Inc. (the
"<b>Company</b>").</p align="center">
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<p align="center">
<b>For Non-Individual Investors</b><br><b>(all Non-Individual Investors must
<i>INITIAL</i> where appropriate):</b><p>
<b>Initial _______&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>The Subscriber certifies
that it is a partnership, corporation, limited liability company or business
trust that is 100% owned by persons who meet either of the criteria for
Individual Investors, above.<p>
<b>Initial _______&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>The Subscriber certifies
that it is a partnership, corporation, limited liability company or business
trust that has total assets of at least $5 million and was not formed for the
purpose of investing in the Company.<p>
<b>Initial _______&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>The Subscriber certifies
that it is an employee benefit plan whose investment decision is made by a plan
fiduciary (as defined in ERISA &#167;3(21)) that is a bank, savings and loan
association, insurance company or registered investment adviser.<p>
<b>Initial _______&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>The Subscriber certifies
that it is an employee benefit plan whose total assets exceed $5,000,000 as of
the date of the Subscription Agreement.<p>
<b>Initial _______&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>The Subscriber certifies
that it is a self-directed employee benefit plan whose investment decisions are
made solely by persons who meet either of the criteria for Individual Investors,
above.<p>
<b>Initial _______&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>The Subscriber certifies
that it is a U.S. bank, U.S. savings and loan association or other similar U.S.
institution acting in its individual or fiduciary capacity.<p>
<b>Initial _______&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>The Subscriber certifies
that it is a broker-dealer registered pursuant to &#167;15 of the Securities
Exchange Act of 1934.<p>
<b>Initial _______&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>The Subscriber certifies
that it is an organization described in &#167;501(c)(3) of the Internal Revenue
Code with total assets exceeding $5,000,000 and not formed for the specific
purpose of investing in the Company.<p>
<b>Initial _______&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>The Subscriber certifies
that it is a trust with total assets of at least $5,000,000, not formed for the
specific purpose of investing in the Company, and whose purchase is directed by
a person with such knowledge and experience in financial and business matters
that he is capable of evaluating the merits and risks of the prospective
investment.<p>
<b>Initial _______&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>The Subscriber certifies
that it is a plan established and maintained by a state or its political
subdivisions, or any agency or instrumentality thereof, for the benefit of its
employees, and which has total assets in excess of $5,000,000.<p>
<b>Initial _______&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>The Subscriber certifies
that it is an insurance company as defined in &#167;2(a)(13) of the Securities
Act or a registered investment company.<p align="center">
<b>Personal Investor Information</b></p>
<p>
</p>
<p>
<font face="MrsEavesRoman">Investor Name(s):
________________________________________________________________________</font><p>
<font face="MrsEavesRoman">Individual executing Profile or Trustee:
_______________________________________________________________________</font><p>
<font face="MrsEavesRoman">Social Security Numbers / Federal I.D. Number:
________________________________________________________________________</font><p>
<font face="MrsEavesRoman">Date of Birth: _________________
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marital Status:
_________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
<p>
</p>
<p>
<font face="MrsEavesRoman">Joint Party Date of
Birth:_________________</font></p align="center">
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<b>Personal Investor Information (continued)</b></p>
<p>
</p>
<p>
<font face="MrsEavesRoman">Investment Experience (Years): ___________</font><p>
<font face="MrsEavesRoman">Annual Income: _________________</font><p>
<font face="MrsEavesRoman">Liquid Net Worth:_____________</font><p>
<font face="MrsEavesRoman">Net Worth: ________________</font><p>
<font face="MrsEavesRoman">Investment Objective(s) <b><i>(circle one or
more):</i></b> Long Term Capital Appreciation, Short Term Trading,
Businessman&#8217;s Risk, Income, Safety of Principal, Tax Exempt Income or
other</font><p>
<font face="MrsEavesRoman">Home Street Address:
________________________________________________________________________</font><p>
<font face="MrsEavesRoman">Home City, State &amp; Zip Code:
________________________________________________________________________</font><p>
<font face="MrsEavesRoman">Home Phone: ________________________ Home Fax:
________________________ </font><p>
<font face="MrsEavesRoman">Home Email: _______________________________</font><p>
<font face="MrsEavesRoman">Employer:
________________________________________________________________________</font><p>
<font face="MrsEavesRoman">Employer Street Address:
________________________________________________________________________</font><p>
<font face="MrsEavesRoman">Employer City, State &amp; Zip Code:
________________________________________________________________________</font><p>
<font face="MrsEavesRoman">Bus. Phone: __________________________ Bus. Fax:
__________________________ </font><p>
<font face="MrsEavesRoman">Bus. Email:
________________________________</font><p>
<font face="MrsEavesRoman">Type of Business:</font></p align="center">
<h6 align="center">
<font face="MrsEavesRoman" size="3"><b>If you are an NASD member or affiliate of
an NASD member firm, please identify the firm:
______________</b></font><br><hr></h6>
<p>
</p>
<p>
<font face="MrsEavesRoman"><b>Signature
_______________________________________</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Date_______________</b></font></p align="center">
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<DESCRIPTION>PRESS RELEASE EX 99.1
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Exhibit 99.1<p align="center">
<font size="4" color="#ff0000">CHAMPIONS  Biotechnology, Inc.</font><br>2200
Wilson Boulevard, Suite 102-316<br>Arlington, VA 22201, USA<br>Tel:
703-526-0400<br>Fax: 703-832-8311<p align="center">
<b>Champions Biotechnology, Inc. acquires Biomerk, Inc. </b></p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Arlington, VA., May 21, 2007. Champions Biotechnology, Inc. (OTC Bulletin Board: CSBR), announced today that it has entered into an agreement and plan of merger with&nbsp;Biomerk, Inc., a private biotechnology company. Champions Biotechnology will issue 4,000,000 restricted shares of its common stock to acquire ownership of Biomerk. 	<p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Biomerk is focused on generating a
novel preclinical platform of human cancer tumor immune-deficient mice
xenografts (Biomerk Tumorgrafts&#8482;).  Biomerk, Inc. was founded in 2006 and
is owned by Dr. David Sidransky, a major shareholder in Champions Biotechnology.
James Martell, President and CEO of Champions Biotechnology, has served as a
consultant to Biomerk, providing advice regarding the management and
administration of Biomerk. Biomerk Tumorgrafts&#8482;, unlike standard cell line
derived xenografts, are implanted directly from primary human cancer tumors and
never passaged in cell tissue culture. Biomerk believes that these xenografts
more closely reflect human cancer biology and are more predictive of clinical
outcome. Biomerk has several patent applications relating to xenograft models
used for identifying potentially active chemotherapeutic agents. Biomerk and
Champions Biotechnology believe that pharmaceutical companies, as part of their
drug discovery and post marketing efforts, are more receptive to utilizing
services that are more predictive and that might provide for a faster and less
expensive path for their drug approval. These services will allow for their
screening of Biomerk Tumorgrafts&#8482; to evaluate tumor sensitivity/resistance
to various single and combination standard and novel chemotherapy agents.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Champions Biotechnology was interested
in acquiring Biomerk since it believes that there are significant synergies
between the know-how, expertise and proposed business of Biomerk and the
biotechnology business embarked upon by Champions Biotechnology. Biomerk
provides Champions Biotechnology with access to a novel preclinical technology
platform. It also provides interim financing to cover current operating costs
until longer term capital is obtained to finance Champions Biotechnology&#8217;s
future development, since Biomerk has approximately $475,000 cash. In addition,
it has certain business relationships that Champions Biotechnology believes will
be helpful in achieving its business plan. <p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#8220;I am very pleased by this
acquisition as we strongly believe in Biomerk&#8217;s potential in improving
methods and approaches to cancer treatment&#8221; said James Martell, President
and CEO of Champions Biotechnology.  &#8220;This acquisition is Champions
Biotechnology&#8217;s second acquisition since our decision in January 2007 to
focus on building a biotechnology company from the ground up as our new business
approach.  We are actively engaged in pursuit of additional opportunities to
grow and strengthen the company.&#8221;</p align="center">
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<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After the acquisition, Champions
Biotechnology will have 31,624,658 issued and outstanding common shares. Of
those, 23,573,000 will be restricted common shares.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>About Champions Biotechnology, Inc.
</i><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Champions Biotechnology is a
biotechnology company that is engaged in the acquisition and early stage
development of a portfolio of new therapeutic drug candidates and also the
acquisition and development of novel technologies that Champions Biotechnology
hopes will improve methods of and approaches to disease treatment.  This is
being accomplished by drawing upon the established expertise, knowledge and
insight of experts, including two of Champions Biotechnology&#8217;s
shareholders, Drs. David Sidransky and Manuel Hidalgo, who have wide-ranging
contacts in the pharmaceutical industry, academia and government.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Champions Biotechnology plans to
develop a portfolio of new therapeutic drug candidates through pre-clinical
trials and possibly early phase ("first in man") clinical trials.  If
therapeutic drug candidates reach this early stage of development, Champions
Biotechnology intends to partner with, sell or license them to pharmaceutical
and/or biotechnology companies, as appropriate. Management believes this
strategy will enable Champions Biotechnology to leverage the competencies of
these partners or licensees to maximize Champions Biotechnology&#8217;s return
on investment in a relatively short time frame. Champions Biotechnology believes
that this model is unlike that of typical new biotechnology companies that look
to bring the process of drug development through all phases of discovery,
development, regulatory approvals, and marketing, which requires a very large
financial commitment and a long time, typically more than a decade, to
realize.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February 2007, Champions
Biotechnology acquired the patent rights to two Benzoylphenylurea (BPU) sulfur
analog compounds that have shown promising potent activity against prostate and
pancreatic cancer cell lines (Journal of Medicinal Chemistry, 2006, Vol. 49,
No.7, 2357-2360).  The acquired rights include pending U.S. Patent Application
no. 11/673,519 and the corresponding international patent application
(PCT/US2006/014449) filed under the Patent Cooperation Treaty (PCT), both
entitled Design and Synthesis of Novel Tubulin Polymerization Inhibitors:
Benzoylphenylurea (BPU) Sulfur Analogs.  <p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This press release contains
"forward-looking statements" (within the meaning of the Private Securities
Litigation Act of 1995) that inherently involve risk and uncertainties.
Champions Biotechnology generally uses words such as "believe," "may," "could,"
"will," "intend," "expect," "anticipate," "plan," and similar expressions to
identify forward-looking statements. One should not place undue reliance on
these forward-looking statements. Champions Biotechnology&#8217;s actual results
could differ materially from those anticipated in the forward-looking statements
for many unforeseen factors, which may include, but are not limited to, changes
in general economic conditions, the ongoing threat of terrorism, ability to have
access to financing sources on reasonable terms and other risks that are
described in this document. Although Champions Biotechnology believes the
expectations reflected in the forward-looking statements are reasonable, they
relate only to events as of the date on which the statements are made, and
Champions Biotechnology&#8217;s future results, levels of activity, performance
or achievements may not meet these expectations. Champions Biotechnology does
not intend to update any of the forward-looking statements after the date of
this press release to conform these statements to actual results or to changes
in Champions Biotechnology&#8217;s expectations, except as required by law. <p>
Contact: James Martell (703) - 526-0400</p align="center">
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