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<ACCESSION-NUMBER>0001104659-07-080741
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<PERIOD>20071102
<ITEMS>1.01
<ITEMS>2.03
<ITEMS>3.02
<ITEMS>9.01
<FILING-DATE>20071107
<DATE-OF-FILING-DATE-CHANGE>20071107
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>KRATOS DEFENSE & SECURITY SOLUTIONS, INC.
<CIK>0001069258
<ASSIGNED-SIC>4899
<IRS-NUMBER>133818604
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
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<FILE-NUMBER>000-27231
<FILM-NUMBER>071222138
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<BUSINESS-ADDRESS>
<STREET1>4810 EASTGATE MALL
<STREET2>.
<CITY>SAN DIEGO
<STATE>CA
<ZIP>92121
<PHONE>858-812-7300
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>4810 EASTGATE MALL
<STREET2>.
<CITY>SAN DIEGO
<STATE>CA
<ZIP>92121
</MAIL-ADDRESS>
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<FORMER-CONFORMED-NAME>WIRELESS FACILITIES INC
<DATE-CHANGED>19990817
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<TEXT>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">UNITED STATES</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">SECURITIES AND EXCHANGE COMMISSION</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Washington,
DC&#160; 20549</font></b></p>

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

<div align="center" style="margin:0in 0in .0001pt;text-align:center;"><hr size="1" width="25%" noshade color="black" align="center"></div>

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

<h2 align="center" style="color:black;font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="5" color="black" face="Times New Roman" style="color:windowtext;font-size:18.0pt;">FORM&nbsp;8-K</font></b></h2>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">CURRENT REPORT</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Pursuant to Section&nbsp;13 or 15(d)&nbsp;of<br>
the Securities Exchange Act of 1934</font></b></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date of Report (Date of
earliest event reported): <b>November&nbsp;2, 2007</b></font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">KRATOS DEFENSE&nbsp;&amp; SECURITY SOLUTIONS,&nbsp;INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of registrant as
specified in its charter)</font></p>

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

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
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  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Delaware</font></b></p>
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  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">0-27231</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">13-3818604</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or
  Other Jurisdiction of<br>
  Incorporation)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission <br>
  File Number)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(I.R.S.
  Employer<br>
  Identification Number)</font></p>
  </td>
 </tr>
</table>

</div>

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

<h3 align="center" style="color:black;font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">4810
Eastgate Mall<br>
San Diego, CA 92121</font></b></h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of Principal Executive
Offices) (Zip Code)</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(858) 812-7300</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Registrant&#146;s telephone number,
including area code)</font></p>

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

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Former name or former address,
if changed since last report.)</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check the appropriate box below if the Form&nbsp;8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of
the following provisions (<i>see</i> General
Instruction A.2. below):</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font>
Written communications pursuant to Rule&nbsp;425 under the Securities Act (17
CFR 230.425)</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font>
Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR
240.14a-12)</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font>
Pre-commencement communications pursuant to Rule&nbsp;14d-2(b)&nbsp;under the
Exchange Act (17 CFR 240.14d-2(b))</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font>
Pre-commencement communications pursuant to Rule&nbsp;13e-4(c)&nbsp;under the
Exchange Act (17 CFR 240.13e-4(c))</p>

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

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 1.01 &#160;&#160;Entry into a Material Definitive Agreement.</font></b></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On November&nbsp;2, 2007, Kratos Government Solutions,&nbsp;Inc. (&#147;<i>Parent</i>&#148;), a wholly-owned subsidiary of Kratos Defense&nbsp;&amp; Security Solutions,&nbsp;Inc. (&#147;<i>Kratos</i>&#148;), entered into an Agreement and Plan of Merger (the &#147;<i>Merger Agreement</i>&#148;) with Haverstick Consulting,&nbsp;Inc. (&#147;<i>Haverstick</i>&#148;). Pursuant to the Merger Agreement, a wholly-owned subsidiary of Parent shall be merged with and into Haverstick (the &#147;<i>Merger</i>&#148;), and Haverstick shall be the surviving corporation in the Merger and shall continue its corporate existence under the laws of the State of Indiana as a wholly-owned subsidiary of Parent after the Merger. The completion of the Merger is subject to customary closing conditions. The Board of Directors of each of Parent and Haverstick approved the Merger and the Merger Agreement.</font></p><p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p><p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Upon completion of the Merger, all outstanding shares of capital stock of Haverstick will be exchanged for an aggregate consideration equal to approximately 7,480,000 shares of Kratos common stock and $69,500,000 in cash, subject to certain adjustments. Approximately 2,858,000 shares of Kratos common stock and $1,170,000 in cash shall be withheld as security for satisfaction of certain indemnification obligations and payable over a twenty-one month period following the closing date of the Merger pursuant to the terms of the Merger Agreement.</font></p><p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p><p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The shares of Kratos common stock issued in connection with the Merger will be issued in a private placement transaction pursuant to Section&nbsp;4(2)&nbsp;of the Securities Act of 1933, as amended (the &#147;<i>Securities Act</i>&#148;), and the rules&nbsp;and regulations promulgated thereunder. Pursuant to the terms of the Merger Agreement, Parent has agreed to use its reasonable best efforts to file a resale registration statement covering the shares issuable in connection with the Merger promptly following the closing date. In the event that the shares of Kratos common stock issued at the closing (the &#147;<i>Closing Stock</i>&#148;) are not salable under Rule&nbsp;144 promulgated under the Securities Act (&#147;<i>Rule&nbsp;144</i>&#148;) or pursuant to an effective registration statement as of the twelve month anniversary of the closing date, holders of the Closing Stock may&nbsp;elect to exchange such shares for a cash amount equal to $2.74 per share in accordance with the terms of the Merger Agreement. Until the date on which the shares of Closing Stock are salable under Rule&nbsp;144 or pursuant to an effective registration statement, interest shall accrue on the value of the Closing Stock at a floating rate of one-month LIBOR plus four percent (4%) per annum. The value of the Closing Stock for purposes of calculating the accrued interest shall be determined in accordance with the terms of the Merger Agreement and the aggregate interest amount shall be payable by Parent in shares of Kratos common stock. Parent shall pay the cash portion of the purchase price with cash to be provided under a $75,000,000 credit facility to be provided by KeyBank Capital Markets (&#147;<i>KeyBank</i>&#148;) pursuant to the terms of that certain Facility Letter by and among Kratos and KeyBank, dated October&nbsp;24, 2007 (collectively, the &#147;<i>Facility Letter</i>&#148;).</font></p><p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p><p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The foregoing descriptions of the Merger Agreement and the Facility Letter do not purport to be complete and are qualified in their entirety by the Merger Agreement and the Facility Letter attached as Exhibit&nbsp;2.1 and Exhibit&nbsp;10.1, respectively, to this Current Report on Form&nbsp;8-K and incorporated herein by reference. Kratos issued a press release on November&nbsp;5, 2007 regarding the execution of the Merger Agreement, a copy of which is attached as Exhibit&nbsp;99.1 to this Current Report on Form&nbsp;8-K.</font></p><p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p><p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Merger Agreement has been included to provide investors with information regarding its terms. It is not intended to provide any other factual information about Kratos, Parent and Haverstick. The Merger Agreement contains representations and warranties that each of Kratos, Parent and Haverstick made to the other. The assertions embodied in those representations and warranties are qualified by information in confidential disclosure schedules that the parties have exchanged in connection with signing the Merger Agreement. The disclosure schedules contain information that modifies, qualifies and creates exceptions to the representations and warranties set forth in the Merger Agreement. Accordingly, investors should not rely on the representations and warranties as characterizations of the actual state of facts at the time they were made or otherwise.</font></p>

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

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 2.03 &#160;&#160;Creation of a Direct Financial Obligation.</font></b></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In connection with the proposed Merger referred to in Item 1.01 of this Current Report on Form&nbsp;8-K, Kratos entered into that certain Facility Letter, dated October&nbsp;24, 2007, with KeyBank for a $75,000,000 senior credit facility (the &#147;<i>Credit Facility</i>&#148;). Pursuant to the terms of the Facility Letter, the Credit Facility will consist of a $25,000,000 four year revolving credit facility, which will include a $10,000,000 sub-limit for letters of credit, and a $50,000,000 five year term loan credit facility. The proceeds under the Credit Facility may&nbsp;be used for general</font></p>

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

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

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">corporate purposes including refinancing of existing bank debt, working capital and acquisitions. The terms of the Credit Facility agreement shall contain representations and warranties, as well as reporting and financial covenants, customary for financings of this type. Among other things, the provisions of the Credit Facility shall limit the incurrence of additional debt and require the maintenance of certain financial ratios.</font></p><p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p><p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The foregoing description of the Facility Letter does not purport to be complete and is qualified in its entirety by the Facility Letter attached as Exhibit&nbsp;10.1 to this Current Report on Form&nbsp;8-K and incorporated herein by reference.</font></p><p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 3.02&#160;&#160;
Unregistered Sales of Equity Securities.</font></b></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
information set forth under Item 1.01 of this Current Report on Form&nbsp;8-K
is hereby incorporated by reference into this Item 3.02.</font></p>

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

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 9.01 &#160;&#160;Financial Statements and Exhibits.</font></b></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&nbsp;<i>Financial Statements of Businesses Acquired.</i></font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The financial information required by this
item, if any, with respect to the Merger, will be filed as soon as practicable,
and in any event not later than 71 days after the date on which any Current
Report on Form&nbsp;8-K is required to be filed pursuant to Item 2.01.</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&nbsp;<i>Pro Forma Financial Information.</i></font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The pro forma financial information required
by this item, if any, with respect to the Merger, will be filed as soon as
practicable, and in any event not later than 71 days after the date on which
any Current Report on Form&nbsp;8-K is required to be filed pursuant to Item
2.01.</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&nbsp;<i>Exhibits.</i></font></p>

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

<table border="0" cellspacing="0" cellpadding="0" width="90%" style="border-collapse:collapse;margin-left:.5in;width:90.0%;">
 <tr>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.1</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="91%" valign="top" style="padding:0in 0in 0in 0in;width:91.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Agreement and Plan of Merger, dated November&nbsp;2, 2007, by and
  among Kratos Defense and Security Solutions,&nbsp;Inc., Kratos Government
  Solutions,&nbsp;Inc., Haverstick Acquisition Corporation and Haverstick
  Consulting,&nbsp;Inc.</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="91%" valign="top" style="padding:0in 0in 0in 0in;width:91.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facility Letter, dated October&nbsp;24, 2007, by and between Kratos
  Defense and Security Solutions,&nbsp;Inc. and KeyBank Capital Markets.</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="91%" valign="top" style="padding:0in 0in 0in 0in;width:91.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">Press Release of Kratos Defense and Security Solutions,&nbsp;Inc.
  issued on November&nbsp;5, 2007</font>.</font></p>
  </td>
 </tr>
</table>

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

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

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

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

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

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

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

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="45%" valign="top" style="padding:0in 0in 0in 0in;width:45.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="54%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:54.16%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">KRATOS DEFENSE&nbsp;&amp; SECURITY
  SOLUTIONS,&nbsp;INC.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="45%" valign="top" style="padding:0in 0in 0in 0in;width:45.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="54%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:54.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="45%" valign="top" style="padding:0in 0in 0in 0in;width:45.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: November&nbsp;7, 2007</font></p>
  </td>
  <td width="39%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:39.82%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;/s/ James R.
  Edwards</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in 0in 0in 0in;width:14.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="45%" valign="top" style="padding:0in 0in 0in 0in;width:45.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="54%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:54.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">James R. Edwards</font></p>
  </td>
 </tr>
 <tr>
  <td width="45%" valign="top" style="padding:0in 0in 0in 0in;width:45.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="54%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:54.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Senior Vice President, General Counsel and Secretary</font></p>
  </td>
 </tr>
</table>

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

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT&nbsp;INDEX</font></b></p>

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

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="11%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.08%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit&nbsp;Number</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.3%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="86%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:86.62%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:6.84%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.1</font></p>
  </td>
  <td width="4%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:4.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:86.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Agreement and Plan of Merger, dated November&nbsp;2, 2007, by and
  among Kratos Defense and Security Solutions,&nbsp;Inc., Kratos Government
  Solutions,&nbsp;Inc., Haverstick Acquisition Corporation and Haverstick
  Consulting,&nbsp;Inc.</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="padding:0in 0in 0in 0in;width:86.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facility Letter, dated October&nbsp;24, 2007, by and between Kratos
  Defense and Security Solutions,&nbsp;Inc. and KeyBank Capital Markets.</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="padding:0in 0in 0in 0in;width:86.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">Press Release of Kratos Defense and Security Solutions,&nbsp;Inc.
  issued on November&nbsp;5, 2007</font>.</font></p>
  </td>
 </tr>
</table>

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

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<DOCUMENT>
<TYPE>EX-2.1
<SEQUENCE>2
<FILENAME>a07-28412_1ex2d1.htm
<DESCRIPTION>EX-2.1
<TEXT>
<html>

<head>





</head>

<body lang="EN-US">

<div>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 2.1</font></b></p>

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

<div style="border:none;border-top:double windowtext 1.5pt;padding:1.0pt 0in 0in 0in;">

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

</div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AGREEMENT AND PLAN OF MERGER</font></b></p>

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

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

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">KRATOS DEFENSE AND SECURITY SOLUTIONS, INC.,</font></b></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">KRATOS GOVERNMENT SOLUTIONS, INC.,</font></b></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">HAVERSTICK ACQUISITION CORPORATION AND</font></b></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">HAVERSTICK CONSULTING, INC.</font></b></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dated as of November 2, 2007</font></p>

<div style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 1.0pt 0in;">

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

</div>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

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

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

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

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="20%" colspan="2" valign="bottom" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="74%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">PAGE</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.6%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="81%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:81.2%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.6%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE I</font></b></p>
  </td>
  <td width="81%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:81.2%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DEFINITIONS; CONSTRUCTION</font></b></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 1.1</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Definitions</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 1.2</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Construction</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.6%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE II</font></b></p>
  </td>
  <td width="81%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:81.2%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">THE MERGER</font></b></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">14</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.1</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Merger</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.2</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Closing; Effective Time</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.3</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Effects of the Merger</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.4</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Certificate of Incorporation; Bylaws</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.5</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Directors; Officers</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.6</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Manner and Basis of Converting Capital Stock</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.7</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Merger Consideration</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.8</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dissenters&#146; Rights</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.9</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exchange Procedures</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.10</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Further Assurances</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.11</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Closing Stock Consideration Resale</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.6%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE III</font></b></p>
  </td>
  <td width="81%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:81.2%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">REPRESENTATIONS AND WARRANTIES OF THE
  COMPANY</font></b></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">22</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.1</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Organization, Power and Standing</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.2</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Capital Structure</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.3</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Authority</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.4</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consents and Approvals; No Violation; Litigation</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.5</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Charter and Bylaws</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.6</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Financial Statements</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.7</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accounts Receivable</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">26</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.8</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tax Matters</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">27</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.9</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Absence of Certain Changes or Events</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">28</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.10</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title to and Sufficiency of Assets</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">29</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.11</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Permits and Compliance</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">29</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.12</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Certain Business Practices</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">30</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.13</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Actions and Proceedings</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">30</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.14</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Employment Issues</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">30</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.15</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Certain Agreements</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">31</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.16</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ERISA</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">32</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.17</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Intellectual Property</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">33</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.18</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Environmental Matters</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">34</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.19</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Suppliers, Customers, Distributors and Significant Employees</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">34</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.20</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Contracts</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">34</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.21</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Insurance</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">37</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.22</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Transactions with Affiliates</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">37</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.23</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Brokers</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">38</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.24</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Government Furnished Equipment</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">38</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.25</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Government Contracting</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">38</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="102" style="border:none;"></td>
  <td width="52" style="border:none;"></td>
  <td width="556" style="border:none;"></td>
  <td width="39" style="border:none;"></td>
 </tr>
</table>

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

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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


<div>

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

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="20%" colspan="2" valign="bottom" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="74%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">PAGE</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.6%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="81%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:81.2%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.26</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Claims and Invoices</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">39</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.27</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Representations and Warranties</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.6%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE IV</font></b></p>
  </td>
  <td width="81%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:81.2%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">REPRESENTATIONS AND WARRANTIES OF PARENT,
  MERGER SUB AND KRATOS</font></b></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">40</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.1</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Organization, Standing and Power</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.2</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Authority</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.3</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consents and Approvals; No Violation</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">41</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.4</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Brokers</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">41</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.5</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Certificate of Incorporation and Bylaws of Merger Sub</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">41</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.6</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SEC Documents; Financial Statements</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">42</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.7</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Representations and Warranties</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">42</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.8</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Financial Capacity</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">42</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.6%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE V</font></b></p>
  </td>
  <td width="81%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:81.2%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">COVENANTS RELATING TO CONDUCT OF BUSINESS</font></b></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">42</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 5.1</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Conduct of Business by the Company Pending the Merger</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">42</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 5.2</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No Solicitation</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">45</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.6%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE VI</font></b></p>
  </td>
  <td width="81%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:81.2%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ADDITIONAL AGREEMENTS</font></b></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">45</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.1</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Company Shareholder Approval</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">45</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.2</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Access to Information</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">45</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.3</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Indemnification of Directors and Officers</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">45</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.4</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notification of Certain Matters</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">46</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.5</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fees and Expenses</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">46</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.6</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Reasonable Best Efforts</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">46</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.7</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Public Announcements</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">47</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.8</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Shareholders&#146; Representative</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">48</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.9</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Holdback Consideration</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">49</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.10</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Indemnification of Parties</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">52</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.11</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Resignations</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">53</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.12</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Guarantee of Kratos</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">53</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.13</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tax Matters</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">53</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.14</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Registration Statement</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">53</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.15</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Continuing Employees</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">53</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.16</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Discounted Engagements</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">54</font></p>
  </td>
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 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.17</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Assistance with Financing</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">54</font></p>
  </td>
 </tr>
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  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.6%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE VII</font></b></p>
  </td>
  <td width="81%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:81.2%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CONDITIONS PRECEDENT TO THE MERGER</font></b></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">54</font></b></p>
  </td>
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  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.1</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Conditions to Each Party&#146;s Obligation to Effect the Merger</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">54</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.2</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Conditions to Obligation of the Company to Effect the Merger</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">55</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.3</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Conditions to Obligations of Parent and Merger Sub to Effect the
  Merger</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">56</font></p>
  </td>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

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

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="20%" colspan="2" valign="bottom" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="74%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">PAGE</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.6%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="81%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:81.2%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.6%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE VIII</font></b></p>
  </td>
  <td width="81%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:81.2%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">TERMINATION, AMENDMENT AND WAIVER</font></b></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">57</font></b></p>
  </td>
 </tr>
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  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 8.1</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Termination</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">57</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 8.2</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Effect of Termination</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">58</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 8.3</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amendment</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">59</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 8.4</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Waiver</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">59</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.6%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE IX</font></b></p>
  </td>
  <td width="81%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:81.2%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">GENERAL PROVISIONS</font></b></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">59</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.1</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notices</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">59</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.2</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interpretation</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">61</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.3</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Counterparts</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">61</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.4</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Entire Agreement; Third-Party Beneficiaries</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">61</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.5</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Governing Law</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">61</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.6</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Assignment</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">61</font></p>
  </td>
 </tr>
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  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.7</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Severability</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">61</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.8</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Survival of Representations, Warranties and Agreements</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">62</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.9</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Enforcement of this Agreement</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">62</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:20.5%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.10</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dispute Resolution</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.2%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">62</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="102" style="border:none;"></td>
  <td width="52" style="border:none;"></td>
  <td width="556" style="border:none;"></td>
  <td width="39" style="border:none;"></td>
 </tr>
</table>

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

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBITS &amp; SCHEDULES</font></u></b></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Schedules</font></u></i>:</p>

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

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="16%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:16.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule A</font></p>
  </td>
  <td width="83%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:83.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Parties to Shareholder
  Agreements</font></p>
  </td>
 </tr>
 <tr>
  <td width="16%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:16.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule 3.17(a)</font></p>
  </td>
  <td width="83%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:83.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">RM Rights</font></p>
  </td>
 </tr>
 <tr>
  <td width="16%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:16.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule 3.26</font></p>
  </td>
  <td width="83%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:83.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Claims and Invoices</font></p>
  </td>
 </tr>
 <tr>
  <td width="16%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:16.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule 6.16</font></p>
  </td>
  <td width="83%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:83.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Discounted Engagements</font></p>
  </td>
 </tr>
 <tr>
  <td width="16%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:16.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule 2.5(b)*</font></p>
  </td>
  <td width="83%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:83.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Surviving Corporation Officers</font></p>
  </td>
 </tr>
 <tr>
  <td width="16%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:16.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule 2.9(a)*</font></p>
  </td>
  <td width="83%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:83.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Common Stock Closing
  Consideration</font></p>
  </td>
 </tr>
 <tr>
  <td width="16%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:16.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule 7.3(b)</font></p>
  </td>
  <td width="83%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:83.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">List of Required Consents</font></p>
  </td>
 </tr>
 <tr>
  <td width="55%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:55.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Company Disclosure Schedule</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="51%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:51.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Closing Cash Schedule*</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="51%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:51.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Closing Capital Lease
  Obligations Schedule*</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="51%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:51.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Closing Indebtedness Schedule*</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="51%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:51.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="51%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:51.06%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Exhibits</font></u></i>:</p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="51%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:51.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in 0in 0in 0in;width:10.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit A</font></p>
  </td>
  <td width="89%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:89.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Shareholders Agreement</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in 0in 0in 0in;width:10.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit B</font></p>
  </td>
  <td width="89%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:89.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Articles of Merger</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in 0in 0in 0in;width:10.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit C</font></p>
  </td>
  <td width="89%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:89.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Certificate of Merger</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in 0in 0in 0in;width:10.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit D</font></p>
  </td>
  <td width="89%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:89.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Opinion of Legal Counsel to Parent</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in 0in 0in 0in;width:10.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit E</font></p>
  </td>
  <td width="89%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:89.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Opinion of Legal Counsel to Company</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in 0in 0in 0in;width:10.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit F</font></p>
  </td>
  <td width="89%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:89.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Non-Competition Agreement</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in 0in 0in 0in;width:10.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit G</font></p>
  </td>
  <td width="89%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:89.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Parent Employment Agreement</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in 0in 0in 0in;width:10.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit H</font></p>
  </td>
  <td width="89%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:89.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">FIRPTA Certificate</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="82" style="border:none;"></td>
  <td width="42" style="border:none;"></td>
  <td width="259" style="border:none;"></td>
  <td width="37" style="border:none;"></td>
  <td width="330" style="border:none;"></td>
 </tr>
</table>

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

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

<hr size="1" width="25%" noshade color="black" align="left">

</font></i></div>

<p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">* To be delivered two business days prior to Effective Time</font></i></p>

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

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

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

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></i></div>

</div>
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<div style="font-family:Times New Roman;">

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AGREEMENT AND PLAN OF MERGER</font></b></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This <b>AGREEMENT AND PLAN OF MERGER</b> (this
&#147;<i>Agreement</i>&#148;) is dated as of November 2,
2007 (the &#147;<i>Execution Date</i>&#148;), among <b>KRATOS DEFENSE AND SECURITY SOLUTIONS, INC.</b>, a Delaware
corporation (&#147;<i>Kratos</i>&#148;), <b>KRATOS GOVERNMENT SOLUTIONS, INC.</b>, a
Delaware corporation and wholly-owned subsidiary of Kratos (&#147;<i>Parent</i>&#148;), <b>HAVERSTICK ACQUISITION
CORPORATION</b>, a Delaware corporation and a direct wholly-owned
subsidiary of Parent (&#147;<i>Merger Sub</i>&#148;),
and <b>HAVERSTICK CONSULTING, INC.</b>,
an Indiana corporation (the &#147;<i>Company</i>&#148;). Each
of Kratos, Parent, Merger Sub and the Company is a &#147;<i>Party</i>&#148;
and together, the &#147;<i>Parties</i>.&#148;</font></p>

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

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

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b>, the
Company, together with its Subsidiaries, is engaged in the business of
providing program management, engineering, technology, suborbital rockets and
rocket launch support services, and other professional services to the U.S.
Government, state and local governments, and the private sector (the &#147;<i>Business</i>&#148;);</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b>, the
respective Boards of Directors of Kratos, Parent, Merger Sub and the Company
have approved and declared advisable this Agreement, including the merger of
Merger Sub with and into the Company (the &#147;<i>Merger</i>&#148;), upon
the terms and subject to the conditions set forth herein; Parent, as the sole
stockholder of Merger Sub, has adopted this Agreement; and the Board of Directors
of the Company has directed that this Agreement be submitted to the owners of
all of the outstanding capital stock of the Company (collectively, the &#147;<i>Shareholders</i>&#148; or individually as a &#147;<i>Shareholder</i>&#148;)
for approval and adoption; and</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b>, concurrently
with the execution of this Agreement, in order to induce Parent and Merger Sub
to enter into this Agreement, the Shareholders listed on <u>Schedule&nbsp;A</u>
hereto are simultaneously entering into a Shareholder Agreement, which shall
include certain lock-up provisions relating to the Kratos Common Stock issued
pursuant to the terms hereunder (the &#147;<i>Shareholder Agreement</i>&#148;),
in the form attached hereto as <u>Exhibit&nbsp;A</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NOW, THEREFORE</font></b>, in
consideration of the foregoing and the respective representations, warranties,
covenants and agreements set forth herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Parties agree as follows:</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE I<br>
<br>
DEFINITIONS; CONSTRUCTION</font></b></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 1.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Definitions</u>.
The following capitalized terms as used herein shall have the meanings ascribed
to them in this <u>Article&nbsp;I</u>:</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Additional Contracts</i>&#148; has such meaning
as set forth in <u>Section&nbsp;3.20(c)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Adjustment Amount</i>&#148; means the difference
between the Target Net Working Capital Amount and the Net Working Capital, as
calculated and set forth on the final Net Working </font></p>

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

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

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

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></i></div>

</div>
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<div>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Capital Calculation in accordance with <u>Section 2.7(d)</u>. The
Adjustment Amount may be positive or negative.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Affiliated Person</i>&#148; means (i)&nbsp;any
holder of 10% or more of the Company Common Stock (measured on a fully diluted
basis), (ii)&nbsp;any director, or executive officer of the Company,
(iii)&nbsp;any Person that directly or indirectly controls, is controlled by,
or is under common control with, the Company or (iv)&nbsp;any member of the
immediate family of any such Persons.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Aggregate Interest Stock</i>&#148; means (i) the
Interest Amount divided by (ii) the Kratos Stock Price.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Aggregate Merger Consideration</i>&#148; has such
meaning as set forth in <u>Section 2.7(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Aggregate Stock Consideration Value</i>&#148;
means Twenty Million Five Hundred Thousand Dollars ($20,500,000).</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Articles of Merger</i>&#148; has such meaning as
set forth in <u>Section&nbsp;2.2(b)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Audited Financial Statements</i>&#148; has such
meaning as set forth in <u>Section&nbsp;3.6(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Base Cash Consideration</i>&#148; means
Sixty-Nine Million Five Hundred Thousand Dollars ($69,500,000).</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Business</i>&#148; has such meaning as set forth
in the Recitals of this Agreement.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Capital Leases</i>&#148; shall have such meaning
as set forth in Statement of Financial Accounting Standard No. 13 issued by the
Financial Accounting Standards Board in November 1976, as modified by
subsequent pronouncements and standards.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Cash Holdback Amount</i>&#148; means (i) the
Non-Qualified Shareholder Percentage multiplied by (ii) Nine Million Dollars
($9,000,000).</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Cash Holdback Consideration Percentage</i>&#148;
means the quotient obtained by dividing (i) the Cash Holdback Amount by (ii)
the Holdback Consideration.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Certificate of Merger</i>&#148; has such meaning
as set forth in <u>Section&nbsp;2.2(b)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Certificates</i>&#148; has such meaning as set
forth in <u>Section&nbsp;2.9(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Claim Notice</i>&#148; has such meaning as set
forth in <u>Section&nbsp;6.9(f)(i)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Closing</i>&#148; has such meaning as set forth
in <u>Section&nbsp;2.2(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Closing Capital Lease Obligations
Schedule</i>&#148; means the schedule of all obligations under the Company&#146;s
Capital Leases as of the Closing Date, prepared by the Company and delivered to
Parent two (2) business days prior to the Effective Time.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Closing Cash Consideration</i>&#148; has such
meaning as set forth in <u>Section 2.7(b)(ii)</u>.</font></p>

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

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

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

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></i></div>

</div>
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<div>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Closing Cash Schedule</i>&#148; means the
schedule of cash and cash equivalents held by the Company as of the Closing
Date, prepared by the Company and delivered to Parent two (2) business days
prior to the Effective Time.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Closing Date</i>&#148; has such meaning as set
forth in <u>Section&nbsp;2.2(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Closing Date Balance Sheet</i>&#148;
means the unaudited consolidated balance sheet of the Company as of the Closing
Date.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Closing Indebtedness Schedule</i>&#148; means the
schedule of all Indebtedness of the Company as of the Closing Date, prepared by
the Company and delivered to Parent two (2) business days prior to the
Effective Time.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Closing Merger Consideration</i>&#148; has such
meaning as set forth in <u>Section&nbsp;2.7(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Closing Stock</i>&#148; has such meaning as set
forth in <u>Section 2.11(b)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Closing Stock Consideration</i>&#148; has such
meaning as set forth in <u>Section&nbsp;2.7(b)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Closing Stock Consideration Value</i>&#148; means
(i) the Aggregate Stock Consideration Value <i>less</i> (ii) the
Stock Holdback Amount.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Code</i>&#148; means the Internal Revenue Code of
1986, as amended.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Collected Amount</i>&#148; has such meaning as
set forth in <u>Schedule 3.26</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Common Stock Closing Consideration</i>&#148; has
such meaning as set forth in <u>Section 2.7(c)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Company</i>&#148; has such meaning as set forth at
the beginning of this Agreement.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Company Agreement</i>&#148; means any contract or
agreement between the Company and the Shareholders.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Company Business Personnel</i>&#148; has such
meaning as set forth in <u>Section&nbsp;3.14(b)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Company Bylaws</i>&#148; has such meaning as set
forth in <u>Section&nbsp;3.4(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Company Capital Lease Obligations Amount</i>&#148;
means the aggregate amount of all obligations under the Company&#146;s Capital
Leases as of the Closing Date as set forth on the Closing Capital Lease
Obligations Schedule.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Company Cash Amount</i>&#148; means the cash and
cash equivalents held by the Company as of the Closing Date, as set forth on
the Closing Cash Schedule.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Company Charter</i>&#148; has such meaning as set
forth in <u>Section&nbsp;3.4(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Company Common Stock</i>&#148; has such meaning
as set forth in <u>Section&nbsp;2.6(b)</u>.</font></p>

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

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

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

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></i></div>

</div>
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<div style="font-family:Times New Roman;">

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Company Disclosure Schedule</i>&#148; means that
certain letter dated the date hereof and delivered on the date hereof by the
Company to Parent, which relates to this Agreement and is designated therein as
the Company Disclosure Schedule.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Company Indebtedness Amount</i>&#148; means all
Indebtedness of the Company as of the Closing Date as set forth on the Closing
Indebtedness Schedule plus (a) the amount of any fees payable as a result of
the Closing to persons listed on Schedule 3.23 and (b) any amounts payable as
severance or termination payments pursuant to Company Agreements or employment
agreements arising from the Merger and the transaction contemplated hereby.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Company Indemnified Parties</i>&#148; has such
meaning as set forth in <u>Section 6.3</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Company Indemnity Claim</i>&#148; means the
amount of any and all Damages incurred by a Parent Group Member in connection
with or arising from:</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any
breach by the Company of any of its covenants, agreements or obligations in this
Agreement prior to the Effective Time; or</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any
breach of any warranty or the inaccuracy of any representation of the Company
contained or referred to in this Agreement or any certificate delivered by or
on behalf of the Company pursuant hereto; or</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any
and all amounts payable to holders of Dissenting Shares, if any, to the extent
such amounts exceed the Common Stock Closing Consideration which would have
been payable to such holders had they not exercised their dissenters&#146; rights,
together with any Expenses associated with the defense of such claims.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Company Intellectual Property</i>&#148; has such
meaning as set forth in <u>Section&nbsp;3.17(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Company Licenses</i>&#148; has such meaning as
set forth in <u>Section&nbsp;3.17(c)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Company Multiemployer Plan</i>&#148; means a &#147;multiemployer
plan&#148; (as defined in Section&nbsp;4001(a)(3) of ERISA) to which the Company or
any of its ERISA Affiliates is or has been obligated to contribute or otherwise
may have any liability.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Company Permits</i>&#148; has such meaning as set
forth in <u>Section&nbsp;3.11(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Company Plan</i>&#148; means a &#147;pension plan&#148; (as
defined in Section&nbsp;3(2) of ERISA (other than a Company Multiemployer
Plan)), a &#147;welfare plan&#148; (as defined in Section&nbsp;3(1) of ERISA), or any
other written or oral bonus, profit sharing, deferred compensation, incentive
compensation, stock ownership, stock purchase, stock option, phantom stock,
restricted stock, stock appreciation right, holiday pay, vacation, retention,
severance, medical, dental, vision, disability, death benefit, sick leave,
fringe benefit, personnel policy, insurance or other plan, arrangement or
understanding, in each case established or maintained by the Company or any of
its ERISA Affiliates or as to which the Company or any of its ERISA Affiliates
has contributed or otherwise may have any liability.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Company Shares</i>&#148; has such meaning as set
forth in <u>Section&nbsp;2.6(c)</u>.</font></p>

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

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

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

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></i></div>

</div>
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<div>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Company Stock Option Plan</i>&#148; means the
Company&#146;s 1999 Stock Option Plan, as amended.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Company Stock Options</i>&#148; means the options
to purchase shares of the Company Common Stock issued pursuant to the Company
Stock Option Plan.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Compensation Agreement</i>&#148; has such meaning
as set forth in <u>Section&nbsp;3.15</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Confidentiality Agreement</i>&#148; has such
meaning as set forth in <u>Section&nbsp;6.2</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Continuing Employees</i>&#148; has such meaning
as set forth in <u>Section 6.16</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Control</i>&#148; means the power, direct or
indirect, to (A)&nbsp;vote twenty-five percent (25%) or more of the securities
having ordinary voting power for the election of directors or similar governing
body or (B)&nbsp;direct, or cause the direction of, the management and policies
of a Person, whether by contract, office or otherwise.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Controversies</i>&#148; means any dispute or
disagreement with respect to a matter having, or that could reasonably be
expected to have, a Material Adverse Effect on the Company, between the Company
or any Subsidiary and any other Person.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Cost Accounting Standards</i>&#148; shall mean
the cost accounting standards as promulgated by the Cost Accounting Standards
Board.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>CRP Rules</i>&#148; has such meaning as set forth
in <u>Section 9.10(b)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Damages</i>&#148; means all assessments, losses,
damages, liabilities, debts, charges (including judgments and decrees which
give rise to any of the foregoing), costs and expenses, including, without
limitation, interest, penalties, court costs, attorney&#146;s fees and expenses, net
of all amounts received pursuant to insurance and net of the effect of any
deduction a Person takes as to Taxes on account of such Damages otherwise
incurred (assuming a thirty-eight percent (38%) tax rate); <i>provided</i>,
<i>however</i>, that the amount of Damages
otherwise incurred by a party shall be increased by the amount necessary to
off-set any Taxes that otherwise would be owed by the Person on account of
receipt of such an amount to the extent that such Taxes are owed.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Deductible</i>&#148; has such meaning as set
forth in <u>Section&nbsp;6.9(d)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>DGCL</i>&#148; means the Delaware General
Corporation Law, as amended.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Discounted Engagement</i>&#148; has such meaning
as set forth on <u>Schedule 6.16</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Discounted Loss Amount</i>&#148; has such meaning
as set forth in <u>Section 6.16</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Dispute</i>&#148; has such meaning as set forth
in <u>Section 9.10(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Dispute Notice</i>&#148; has such meaning as set
forth in <u>Section 9.10(b)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Disputing Party</i>&#148; has such meaning as set
forth in <u>Section 9.10(a)</u>.</font></p>

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

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

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

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></i></div>

</div>
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<div>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Dissenting Share Amount</i>&#148; has such
meaning as set forth in <u>Section&nbsp;2.8</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Dissenting Shares</i>&#148; has such meaning as
set forth in <u>Section&nbsp;2.8</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Dissenting Shareholder</i>&#148; has such meaning
as set forth in <u>Section&nbsp;2.8</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>DTI Associates</i>&#148; has such
meaning as set forth in <u>Section 3.17(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Effective Time</i>&#148; has such meaning as set
forth in <u>Section 2.2(b)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Employment Agreements</i>&#148; has such meaning
as set forth in <u>Section&nbsp;3.14(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Environmental Law</i>&#148; means any law, past
or present and as amended, and any judicial or administrative interpretation
thereof, including any judicial or administrative order, consent decree or
judgment, or common law, relating to pollution or protection of the
environment, health or safety or natural resources, including those relating to
the use, handling, transportation, treatment, storage, disposal, release or
discharge of Hazardous Substances.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Environmental Permit</i>&#148; means any permit,
approval, identification number, license or other authorization required under
any applicable Environmental Law.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>ERISA</i>&#148; means the Employee Retirement
Income Security Act of 1974, as amended.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>ERISA Affiliate</i>&#148; means any trade or
business (whether or not incorporated) which would be considered a single
employer with the Company pursuant to Section&nbsp;414(b), (c), (m) or (o) of
the Code and the regulations promulgated under those sections or pursuant to
Section&nbsp;4001(b) of ERISA and the regulations promulgated thereunder.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Exchange Certificates</i>&#148; has such meaning
as set forth in <u>Section 2.11(b)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Exchange Election</i>&#148; has such meaning as
set forth in <u>Section 2.11(b)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Exchange Election Notice</i>&#148; has such
meaning as set forth in <u>Section 2.11(b)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Execution Date</i>&#148; has such meaning as set
forth at the beginning of this Agreement.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Expenses</i>&#148; means any and all expenses
incurred in connection with investigating, defending or asserting any claim,
action, suit or proceeding incident to any matter hereunder (including court
filing fees, court costs, arbitration fees or costs, witness fees, and
reasonable fees and disbursements of legal counsel, investigators, expert
witnesses, consultants, accountants, valuation experts and other
professionals).</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Final Release Date</i>&#148; has such meaning as
set forth in <u>Section 6.9(b)(ii)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Financial Statements</i>&#148; has such meaning
as set forth in <u>Section&nbsp;3.6(b)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>FIRPTA Certificate</i>&#148; has such meaning as
set forth in <u>Section 7.3(j)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>First Release Date</i>&#148; has such meaning as
set forth in <u>Section 6.9(b)(i)</u>.</font></p>

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

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

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

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></i></div>

</div>
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<div>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>GAAP</i>&#148; means United States generally
accepted accounting principals, applied on a basis consistent with the basis on
which the Financial Statements were prepared.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Government Contracts</i>&#148; has such meaning
as set forth in <u>Section&nbsp;3.20(b)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Governmental Authority</i>&#148; means any United
States and/or foreign, federal, state, provincial, local or other governmental
authority of any kind or nature, including any department, subdivision,
commission, board, bureau, agency or instrumentality thereof, any court and any
administrative agency, and any comparable body performing any governmental
functions.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Governmental Entity</i>&#148; has such meaning as
set forth in <u>Section&nbsp;4.3(b)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Hazardous Substances</i>&#148; means
(A)&nbsp;petroleum and petroleum products, by-products or breakdown products,
radioactive materials, asbestos-containing materials and PCBs, and (B)&nbsp;any
other chemicals, materials or substances regulated as toxic or hazardous or as
a pollutant, contaminant or waste under any applicable Environmental Law.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Holdback Consideration</i>&#148; has such meaning
as set forth in <u>Section&nbsp;6.9(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>HSR Act</i>&#148; means the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>IBCL</i>&#148; means the Indiana Business
Corporation Law, as amended.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Impossibility Event</i>&#148; means any event due
to (i)&nbsp;the occurrence of a natural or man-made disaster, (ii)&nbsp;armed
conflict, (iii)&nbsp;act of terrorism, (iv)&nbsp;riot, (v)&nbsp;act of state,
(vi)&nbsp;a failure by Company to meet internal projections or forecasts or
published revenue or earnings predictions for any period ending on or after the
date of this Agreement (provided, however, that the facts and circumstances
underlying any such failure may, except as may be provided in clauses (i)
through (viii) of this definition, be considered in determining whether a
Material Adverse Change has occurred), (vii)&nbsp;conditions generally
affecting the industries in which the Company participates, national, regional
or world economies or financial markets or (viii)&nbsp;any effect arising
primarily out of or resulting primarily from actions contemplated by the
parties in connection with, or which is primarily attributable to, the
announcement or pendency of this Agreement and the transactions contemplated
hereby.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Indebtedness</i>&#148; means (a)&nbsp;any
indebtedness (plus interest, premium and penalties due from or arising out of
such indebtedness, or any refinancing thereof) (i)&nbsp;for borrowed funds,
(ii)&nbsp;due to sellers or lessors for any real or personal property,
(iii)&nbsp;due to lessors as to any Capital Leases, or (iv)&nbsp;for
reimbursement obligations with respect to letters of credit, (b)&nbsp;any debentures,
notes or other evidence of indebtedness issued in exchange for any of the
foregoing indebtedness, or any indebtedness arising from the satisfaction of
such indebtedness by a guarantor and (c) any prepayment penalties payable
pursuant to Section 1.8(b) of that certain Loan Agreement by and between the
Company and Menard, Inc., dated January 16, 2004, as amended.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Indemnified Liabilities</i>&#148; has such
meaning as set forth in <u>Section&nbsp;6.3</u>.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>

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

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></i></div>

</div>
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<div>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Indemnity Cap</i>&#148; has such meaning as set
forth in <u>Section 6.9(d)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Indemnity Payment</i>&#148; means any payment
that a Parent Group Member is entitled to receive hereunder as to a Company
Indemnity Claim.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Intellectual Property</i>&#148; means all
trademarks, trademark registrations, trademark rights and renewals thereof,
trade names, trade name rights, patents, patent rights, patent applications,
industrial models, mask works, circuits, inventions, invention disclosures,
designs, utility models, inventor rights, software, copyrights, copyright
registrations and renewals thereof, servicemarks, servicemark registrations and
renewals thereof, servicemark rights, domain names and corresponding rights,
trade secrets, applications for trademark and servicemark registrations,
know-how, confidential information and other proprietary rights, and any data
and information of any nature or form used or held for use in connection with
the Business as currently conducted or as currently contemplated by the
Company, together with all applications currently pending or in process for any
of the foregoing.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Interest Amount</i>&#148; has such meaning as set
forth in <u>Section 2.11(c)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Interest Stock</i>&#148; has such meaning as set
forth in <u>Section 2.11(c)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Inquiries</i>&#148; means any non-routine pending
requests for information.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Invoice Amount</i>&#148; has such meaning as set
forth in <u>Schedule 3.26</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Knowledge</i>&#148; means with respect to the
Company, the actual knowledge or awareness, after a reasonable investigation,
of Howard Bates, Jim Cotter, Dave Carter, Stephen Hilbert, Bruce Rankin, and
Eric Weber, if under the circumstances a reasonable person would have
determined such investigation was required or appropriate in the normal course
of fulfillment of such individual&#146;s duties. &#147;Knowledge&#148; means with respect to
Kratos, Parent or Merger Sub, the actual knowledge or awareness after a
reasonable investigation, of Eric M. DeMarco, Deanna H. Lund, Robin Mickle, and
Adam Larson, if under the circumstances a reasonable person would have
determined such investigation was required or appropriate in the normal course
of fulfillment of such individual&#146;s duties.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Kratos</i>&#148; has such meaning as set forth at
the beginning of this Agreement.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Kratos Common Stock</i>&#148; means the common
stock, par value $0.001 of Kratos.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Kratos Financial Statements</i>&#148; has such
meaning as set forth in <u>Section 4.6</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Kratos SEC Documents</i>&#148; has such meaning
as set forth in <u>Section 4.6</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Kratos Stock Price</i>&#148; means Two Dollars
and Seventy Four Cents ($2.74).</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Law</i>&#148; means, as to any Person, any
statute, rule, regulation, ordinance, code, guideline, law, judicial decision,
determination, order (including any injunction, judgment, writ, award or
decree), or consent of the Court, other Governmental Authority or arbitrator,
in each case </font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>

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

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></i></div>

</div>
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<div>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">applicable to or binding upon such Person, including the conduct of its
business, or any of its assets or revenues to which such Person or any of its
assets or revenues are subject.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Leases</i>&#148; has such meaning as set forth in
<u>Section&nbsp;3.20(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Liens</i>&#148; has such meaning as set forth in <u>Section&nbsp;3.10(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Losses</i>&#148; means any and all losses, costs,
obligations, liabilities, settlement payments, awards, judgments, fines,
penalties, damages, expenses, deficiencies or other charges.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Material Adverse Change</i>&#148; or &#147;<i>Material Adverse Effect</i>&#148; means, when used with respect to
the Company or Parent, as the case may be, any change or effect that is
materially adverse or unfavorable to the Business or the operations, assets,
liabilities, employee relationships, customer or supplier relationships,
earnings or results of operations, financial projections or forecasts, or the
business prospects and condition (financial or otherwise), of the Company and
its Subsidiaries, taken as a whole, or Kratos, Parent and their respective Subsidiaries,
taken as a whole, as the case may be; provided however, that a Material Adverse
Change or Material Adverse Effect shall not been deemed to have occurred upon
any change or effect related to the happening of any Impossibility Event.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Material Contracts</i>&#148; has such meaning as
set forth in <u>Section&nbsp;3.20(c)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Merger</i>&#148; has such meaning as set forth in
Recitals hereof.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Merging Corporations</i>&#148; means Merger Sub
and the Company, collectively.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Merger Sub</i>&#148; has such meaning as set
forth at the beginning of this Agreement.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Milestones</i>&#148; has such meaning as set
forth in <u>Schedule 3.26</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Negotiation Period</i>&#148; has such meaning as
set forth in <u>Section 9.10(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Net Working Capital</i>&#148;
means the difference between (i) total current assets, including, without
limitation, accounts receivable, physical inventories (less customary and
adequate reserves), prepaid expenses other than capitalized financing costs,
and deferred tax assets and other current assets, minus (ii) total current liabilities, including, without limitation,
accounts payable, accrued benefits, accrued liabilities less accrued interest
on debt facility, accrued Taxes, deferred revenue, deferred tax liabilities and
long term deferred revenue, in all cases as determined in a manner consistent
with the Company&#146;s past practices and, with respect to each such item, in
accordance with GAAP; <i>provided,</i>  <i>however</i>,
that (i) cash and cash equivalents, (ii) Indebtedness of the Company set forth
on the Closing Indebtedness Schedule and (iii) Capital Lease obligations of the
Company set forth on the Closing Capital Lease Obligations Schedule shall not
be included in calculating the Net Working Capital; <i>provided</i>,
<i>further</i>, <i>however</i>,
that long term liabilities omitted from the Closing Indebtedness Schedule or
Closing Capital Lease Obligations Schedule shall be included in calculating the
Net Working Capital.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Net Working Capital Calculation</i>&#148; has
such meaning as set forth in <u>Section 2.7(d)(i)</u>.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>

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

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></i></div>

</div>
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<div>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Non-Qualified Company Common Stock</i>&#148;
means shares of Company Common Stock held by a Non-Qualified Shareholder.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Non-Qualified Shareholders</i>&#148; means all
Shareholders other than the Qualified Shareholders.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Non-Qualified Shareholder Closing Cash Amount</i>&#148;
means an amount equal to (A) the Non-Qualified Shareholder Percentage
multiplied by the sum of (i) the Closing Cash Consideration plus (ii) the
Aggregate Stock Consideration Value <i><u style="font-style:italic;">less</u></i> (B)
the Cash Holdback Amount.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Non-Qualified Shareholder Percentage</i>&#148;
means the quotient obtained by dividing (i) the Non-Qualified Company Common
Stock by (ii) the sum of the Qualified Company Common Stock and the
Non-Qualified Company Common Stock.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Non-Competition Agreement</i>&#148; has such
meaning as set forth in <u>Section 7.3(e)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>NQSH Pro Rata</i>&#148; means in proportion to
the ratio of the number of shares of Non-Qualified Company Common Stock held by
a Non-Qualified Shareholder to the total number of shares of Non-Qualified
Company Common Stock then outstanding.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Outside Resale Date</i>&#148; has such meaning as
set forth in <u>Section 2.11(b)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Outstanding Invoices</i>&#148; has such meaning
as set forth in <u>Section 3.26(c)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Parent</i>&#148; has such meaning as set forth at
the beginning of this Agreement.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Parent Group Members</i>&#148; means Parent,
Kratos, the Surviving Corporation or any of their respective affiliates,
successors and assigns.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Parent Employment Agreement</i>&#148; has such
meaning as set forth in <u>Section 7.3(f)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Parent Representatives</i>&#148; has such meaning
as set forth in <u>Section&nbsp;6.2</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>PCB</i>&#148; means polychlorinated biphenyls.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Per Share Merger Consideration</i>&#148; means
Aggregate Merger Consideration divided by the number of outstanding shares of
Common Stock of the Company at Closing.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Person</i>&#148; means an individual, company,
agency, corporation, partnership, joint venture, limited liability company, association,
joint-stock company, trust, unincorporated organization or Governmental Entity.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Personal Property Leases</i>&#148; has such
meaning as set forth in <u>Section&nbsp;3.20(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Previous Equityholders</i>&#148; means each
Shareholder immediately prior to the Effective Time (other than Dissenting
Shareholders; <i>provided</i>, <i>however</i>,
that any Dissenting Shareholder that fails to perfect or effectively withdraws
or loses such right to appraisal shall thereafter be considered a Previous
Equityholder).</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>

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

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></i></div>

</div>
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<div>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Pro Rata</i>&#148; means in proportion to the
ratio of the number of shares of Company Common Stock held by a Shareholder to
the total number of shares of Company Common Stock outstanding at the Closing.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Proceedings</i>&#148; means any claims, controversies,
demands, actions, lawsuits, investigations, proceedings or other disputes,
formal or informal, including any by, involving or before any arbitrator or any
Governmental Authority.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Proprietary Asset</i>&#148; means any patent,
patent application, trademark (whether registered or unregistered), trademark
application, trade name, fictitious business name, service mark (whether
registered or unregistered), service mark application, copyright (whether
registered or unregistered), copyright application, maskwork, maskwork
application, trade secret, know-how, customer list, franchise system, computer
software, computer program, invention, design, blueprint, engineering drawing,
proprietary product, technology, proprietary right or other intellectual
property right or intangible asset.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Purchase Price</i>&#148; shall mean Ninety
Million Dollars ($90,000,000).</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Purchase Proposal</i>&#148; means any proposal
for a merger or other business combination involving the Company, or any
Subsidiary, or any proposal or offer to acquire in any manner, directly or
indirectly, an equity interest in, any voting securities of, or a substantial
portion of the assets of the Company, or any Subsidiary, other than the
transactions contemplated by this Agreement.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>QSH Pro Rata</i>&#148; means in proportion to the
ratio of the number of shares of Qualified Company Common Stock held by a
Qualified Shareholder to the total number of shares of Qualified Company Common
Stock then outstanding.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Qualified Company Common Stock</i>&#148; means
shares of Company Common Stock held by a Qualified Shareholder.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Qualified Shareholders</i>&#148; means the
Shareholders listed on <u>Schedule A</u>; <i>provided, however</i>,
that <u>Schedule A</u> shall be automatically updated following the Execution
Date to include additional parties that have delivered a duly executed and
completed Shareholders Agreement to Parent by 5:00 p.m., local time, on
November 4, 2007.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Qualified Shareholder Closing Cash Amount</i>&#148;
means an amount equal to (i) the Closing Cash Consideration <i><u style="font-style:italic;">less</u></i> (ii) the Non-Qualified
Shareholder Closing Cash Amount <i><u style="font-style:italic;">less</u></i> (iii)
the Cash Holdback Amount.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Qualified Shareholder Percentage</i>&#148; means
the quotient obtained by dividing (i) the Qualified Company Common Stock by
(ii) the sum of the Qualified Company Common Stock and the Non-Qualified
Company Common Stock.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Real Estate</i>&#148; means, with respect to the
Company, all of the fee or leasehold ownership right, title and interest of the
Company, in and to all real estate and improvement owned or leased by the
Company and which is used by the Company in connection with the operation of
the Business.</font></p>

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

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

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

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></i></div>

</div>
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<div>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Real Estate Leases</i>&#148; has such meaning as
set forth in <u>Section&nbsp;3.20(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Registration Statement</i>&#148; has such meaning
as set forth in <u>Section 2.11(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Resolution Firm</i>&#148; has such meaning as set
forth in <u>Section 2.7(d)(i)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Resolution Period</i>&#148; has such meaning as
set forth in <u>Section 2.7(d)(i)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>RM</i>&#148; shall have such meaning as set forth
on <u>Schedule 3.17(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>RM Applications</i>&#148; shall have such meaning
as set forth on <u>Schedule 3.17(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Rule 144</i>&#148; means Rule 144 promulgated
under the Securities Act of 1933, as amended.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Salable Date</i>&#148; has such meaning as set
forth in <u>Section 2.11(c)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>SEC</i>&#148; has such meaning as set forth in <u>Section
2.11(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Section&nbsp;8(a) Contracts</i>&#148; means those
Government Contracts of the Company which have been issued pursuant to
Section&nbsp;8(a) of the Small Business Act (Public Law 85-536), as amended,
and are listed in <u>Schedule&nbsp;3.20(b)</u> of the Company Disclosure
Schedule.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Selected Milestones</i>&#148; has such meaning as
set forth in <u>Schedule 3.26</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Set-Aside Contracts</i>&#148; means a restricted
federal contract for which only a Small Business Concern may submit offers.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Shareholders</i>&#148; has such meaning as set
forth in the recitals of this Agreement.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Shareholders&#146; Representative</i>&#148; has such
meaning as set forth in <u>Section 6.8(a)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Shareholders&#146; Representative Account</i>&#148;
has such meaning as set forth in <u>Section&nbsp;6.8(b)(i)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Shareholders&#146; Representative Account Fund</i>&#148;
has such meaning as set forth in <u>Section&nbsp;6.8(b)(i)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Shareholders&#146; Representative Fund Release Date</i>&#148;
has such meaning as set forth in <u>Section&nbsp;6.8(b)(i)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Shareholders&#146; Representative&#146;s Objection</i>&#148;
has such meaning as set forth in <u>Section 2.7(d)(i)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Small Business Concern</i>&#148; means a concern,
including its affiliates, that is independently owned and operated, not
dominant in the field of operation in which it is binding on Government
contracts, and qualified as a small business under the criteria in 13 CRF ART
121 and the size standards in the solicitation.</font></p>

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

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

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

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></i></div>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Stock Holdback Amount</i>&#148; means (i) the
Qualified Shareholder Percentage multiplied by (ii) Nine Million Dollars
($9,000,000).</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Stock Holdback Consideration Percentage</i>&#148;
means the quotient obtained by dividing (i) the Stock Holdback Amount by (ii)
the Holdback Consideration.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Subsidiary</i>&#148; means any corporation,
partnership, limited liability company, joint venture or other legal entity of
which Parent or the Company, as the case may be (either alone or through or
together with any other Subsidiary), owns, directly or indirectly, fifty
percent (50%) or more of the stock or other equity interests the holders of
which are generally entitled to vote for the election of the board of directors
or other governing body of such corporation, partnership, limited liability
company, joint venture or other legal entity means.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Subsidiary Bylaws</i>&#148; has such meaning as
set forth in <u>Section 3.5(b)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Subsidiary Charter</i>&#148; has such meaning as
set forth in <u>Section 3.5(b)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Survival Period</i>&#148; has such meaning as set
forth in <u>Section&nbsp;9.8</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Surviving Corporation</i>&#148; has such meaning
as set forth in <u>Section 2.1</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Tail Policy</i>&#148; has such meaning as set
forth in <u>Section&nbsp;6.3</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Target Net Working Capital Amount</i>&#148; means
Thirteen Million Two Hundred Forty-Two Thousand Four Hundred Eighty-Six Dollars
($13,242,486), which is the average Net Working Capital as of June 30, 2007,
July 31, 2007 and August 31, 2007.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Taxes</i>&#148; has such meaning as set forth in <u>Section&nbsp;3.8</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Tax Returns</i>&#148; has such meaning as set
forth in <u>Section&nbsp;3.8</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Third-Party Claim</i>&#148; has such meaning as
set forth in <u>Section 6.9(g)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Treasury Regulation</i>&#148; means the temporary
and final regulations promulgated under the Code.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Unaudited Financial Statements</i>&#148; has such
meaning as set forth in <u>Section&nbsp;3.6(b)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Unresolved Amount</i>&#148; has such meaning as
set forth in <u>Section 6.9(e)</u>.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<i>Worker Safety Laws</i>&#148; has such meaning as
set forth in <u>Section&nbsp;3.11(d)</u>.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 1.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Construction</u>.
Unless the context of this Agreement clearly requires otherwise,
(a)&nbsp;references to the plural include the singular, and references to the
singular include the plural, (b)&nbsp;references to any gender include the
other gender, (c)&nbsp;the words &#147;include,&#148; &#147;includes&#148; and &#147;including&#148; do not
limit the preceding terms or words and will be deemed to be followed by the
words &#147;without limitation&#148;, (d)&nbsp;the terms &#147;hereof,&#148; &#147;herein,&#148; &#147;hereunder,&#148;
&#147;hereto&#148; and similar terms in this Agreement refer to this Agreement as a whole
and not to any particular provision of this Agreement, (e)&nbsp;the terms &#147;day&#148;
and &#147;days&#148; mean and refer to </p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>

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

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></i></div>

</div>
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<div style="font-family:Times New Roman;">

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">calendar day(s) and (f)&nbsp;the terms &#147;year&#148; and &#147;years&#148; mean and
refer to calendar year(s). Unless otherwise set forth herein, references in
this Agreement to (a)&nbsp;any document, instrument or agreement (including
this Agreement) include (1)&nbsp;all exhibits, schedules and other attachments
thereto, (2)&nbsp;all documents, instruments or agreements issued or executed
in replacement thereof and (3)&nbsp;such document, instrument or agreement, or
replacement or predecessor thereto, as amended, modified or supplemented from
time to time in accordance with its terms and in effect at any given time, and
(b)&nbsp;a particular Law means such Law as amended, modified, supplemented or
succeeded, from time to time and in effect through the Closing Date. All
Article, Section, Exhibit and Schedule references herein are to Articles,
Sections, Exhibits and Schedules of this Agreement, unless otherwise specified.
This Agreement will not be construed as if prepared by one of the Parties, but
rather according to its fair meaning as a whole, as if all Parties had prepared
it. All accounting terms not specifically defined herein will be construed in
accordance with GAAP.</font></p>

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

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

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

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

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>The
Merger</u>. Upon the terms and subject to the conditions hereof, and in
accordance with the IBCL and DGCL, Merger Sub shall be merged with and into the
Company at the Effective Time. As a result of the Merger, the separate
corporate existence of Merger Sub shall cease and the Company shall continue as
the surviving corporation of the Merger (the &#147;<i>Surviving
Corporation</i>&#148;) and shall continue its corporate existence under the
IBCL.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Closing;
Effective Time</u>. The closing of the transactions contemplated by this
Agreement (the &#147;<i>Closing</i>&#148;) and all actions
specified in this Agreement to occur at the Closing shall take place at the
offices of Morrison &amp; Foerster LLP, 12531 High Bluff Drive, San Diego,
California 92130, at 10:00 a.m., local time, on the second business day following
the day on which the last of the conditions set forth in <u>Article&nbsp;VII</u>
shall have been fulfilled or waived (other than those conditions that by their
nature are satisfied at Closing, but subject to the waiver of fulfillment of
those conditions) or at such other time and place as Parent and the Company
shall agree (the &#147;<i>Closing Date</i>&#148;). On the Closing
Date and subject to the terms and conditions hereof, the Parties hereto shall
cause the Merger to be consummated by filing (i)&nbsp;an Articles of Merger,
together with a plan of merger in accordance with the provisions of the IBCL,
in substantially the same form as attached hereto as <u>Exhibit&nbsp;B</u>
(collectively, the &#147;<i>Articles of Merger</i>&#148;),
executed in accordance with the relevant provisions of the IBCL, with the Secretary
of State of the State of Indiana, and (ii)&nbsp;a Certificate of Merger, in
substantially the form attached hereto as <u>Exhibit&nbsp;C</u> (the &#147;<i>Certificate of Merger</i>&#148;) executed in accordance with the
relevant provisions of the DGCL, with the Secretary of State of the State of
Delaware. The date and time at which the Merger shall become effective is 11:59
pm on the Closing Date as specified in the Articles of Merger to be filed with
the Secretary of State of the State of Indiana (or at such subsequent time as
Parent and the Company shall agree and as shall be specified in the Articles of
Merger), such time being referred to herein as the &#147;<i>Effective
Time</i>.&#148;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Effects
of the Merger</u>. At the Effective Time, the effect of the Merger shall be as
provided in the applicable provisions of the IBCL, the DGCL, this Agreement,
the Articles of Merger and the Certificate of Merger. Without limiting the
generality of the </p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">foregoing and subject thereto, as of the Effective Time, all
properties, rights, immunities, privileges, powers and franchises of the
Company and Merger Sub shall vest in the Surviving Corporation, and all debts,
liabilities and duties of the Company and Merger Sub shall become the debts,
liabilities and duties of the Surviving Corporation.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.4</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Certificate
of Incorporation; Bylaws</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>At
and following the Effective Time, the Amended and Restated Articles of
Incorporation of the Company attached to the Articles of Merger filed with the
Secretary of State of the State of Indiana shall be the Articles of
Incorporation of the Surviving Corporation until thereafter duly amended.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>At
and following the Effective Time, the bylaws of the Company, as in effect
immediately prior to the Effective Time, shall be the bylaws of the Surviving
Corporation until thereafter duly amended.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.5</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Directors;
Officers</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
directors of Merger Sub immediately prior to the Effective Time shall be the
directors of the Surviving Corporation, until the earlier of their resignation
or removal or until their respective successors are duly elected and qualified,
as the case may be.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
persons whose names are set forth on <u>Schedule 2.5(b)</u> shall, effective
immediately upon the Effective Time, be the officers of the Surviving
Corporation, until the earlier of their resignation or removal or until their
respective successors are duly elected and qualified, as the case may be.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.6</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Manner
and Basis of Converting Capital Stock</u>. As of the Effective Time, by virtue
of the Merger and without any action on the part of Merger Sub, the Company or
the holders of any securities of the Merging Corporations:</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Merger
Sub Common Stock</u>. Each share of common stock, par value $0.001 per share,
of Merger Sub issued and outstanding immediately prior to the Effective Time
shall be converted into one validly issued, fully paid and nonassessable share
of common stock, par value $0.001 per share, of the Surviving Corporation and
shall constitute the only shares of capital stock of the Surviving Corporation
outstanding immediately after the Effective Time. Each stock certificate of
Merger Sub evidencing ownership of any such shares shall continue to evidence
ownership of such shares of capital stock of the Surviving Corporation.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Cancellation
of Treasury Stock and Parent-Owned Stock</u>. Each share of common stock, no
par value, of the Company (&#147;<i>Company Common Stock</i>&#148;)
held in the treasury of the Company and any shares of Company Common Stock
owned by Parent or by any direct or indirect wholly-owned Subsidiary of Parent
or the Company (including any shares of Company Common Stock issued by the
Company pursuant to a stock option) immediately prior to the Effective Time
shall be canceled and extinguished without any conversion thereof and no
payment shall be made with respect thereto.</p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Conversion
of Company Common Stock</u>. Subject to <u>Section&nbsp;2.8 </u>hereof, each
share of Company Common Stock issued and outstanding immediately prior to the
Effective Time (other than shares to be canceled in accordance with <u>Section&nbsp;2.6(b)</u>
and other than Dissenting Shares, as hereinafter defined) (the &#147;<i>Company Shares</i>&#148;) shall be converted into (A)&nbsp;the right
to receive the Common Stock Closing Consideration as set forth in <u>Section&nbsp;2.7(c)</u>
hereof, (B)&nbsp;the uncertificated right to receive a Pro Rata share of the
Adjustment Amount, if any, upon the terms and conditions prescribed by <u>Section
2.7(d)</u> and (C)&nbsp;the uncertificated right to receive a Pro Rata share of
the Holdback Consideration, in an amount and upon the terms and conditions
prescribed by <u>Section&nbsp;6.9</u> hereof (collectively, the &#147;<i>Common Stock Merger Consideration</i>&#148;). As of the Effective
Time, all such shares of Company Common Stock, when so converted, shall no longer
be outstanding and shall automatically be canceled and retired, and shall cease
to exist, and each holder of a certificate representing any such shares shall
cease to have any rights with respect thereto, except the right to receive the
Common Stock Merger Consideration as provided herein.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Treatment
of Company Option Plan</u>. The Company Option Plan shall terminate as of the
Effective Time and the provisions in any Company Option Plan or any other plan
providing for the issuance, transfer or grant of any Company Common Stock or
any interest in respect of any capital stock of the Company shall be deleted as
of the Effective Time, and the Company shall ensure that following the
Effective Time no participant in any Company Option Plan or any other plan
shall have any right thereunder to acquire any Company Common Stock or any
capital stock of the Surviving Corporation or any interest in respect of any
Company Common Stock or any capital stock of the Surviving Corporation.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.7</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Merger
Consideration</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Aggregate
Merger Consideration</u>. The aggregate Merger consideration shall consist of
(A) the sum of (i) the Purchase Price, (ii) the Adjustment Amount, and (iii)
the Company Cash Amount less (B) the sum of (i) the Company Indebtedness
Amount, (ii) the Company Capital Lease Obligations Amount and (iii) the
Shareholders&#146; Representative Account Fund (the &#147;<i>Aggregate
Merger Consideration</i>&#148;). The portion of the Aggregate Merger
Consideration payable by Parent at the Closing to the Previous Equityholders (the
&#147;<i>Closing Merger Consideration</i>&#148;) shall
consist of the Closing Cash Consideration and the Closing Stock Consideration
as hereinafter provided. The remaining amount of the Aggregate Merger
Consideration, if any, shall be paid in accordance with <u>Section 2.7(d)</u>
and <u>Section 6.9</u>.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Closing
Merger Consideration</u>. The Closing Merger Consideration payable to the
Previous Equityholders by Parent at Closing shall consist of the following:</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Closing
Cash Consideration</u>. The amount of cash payable by Parent at Closing to the
Previous Equityholders as hereinafter provided shall be equal to (A) the sum of
(i) the Base Cash Consideration and (ii) the Company Cash Amount <i>less</i> (B) the sum of (i) the Shareholders&#146; Representative
Account Fund, (ii) the Company Indebtedness Amount and (iii) the Company
Capital Lease Obligations Amount (collectively, the &#147;<i>Closing Cash
Consideration</i>&#148;). The Cash Holdback Amount shall be withheld from the
Closing Cash Consideration paid to the Previous Equityholders at Closing as
provided in <u>Section 2.7(c)</u>.</p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Closing
Stock Consideration</u>:&#160; The number of
shares of Kratos Common Stock issuable by Parent to the Qualified Shareholders
as hereinafter provided shall be equal to quotient obtained by dividing (A) the
Aggregate Stock Consideration Value <i>less</i> the Stock
Holdback Amount by (B) the Kratos Stock Price (collectively, the &#147;<i>Closing Stock Consideration</i>&#148;).</p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>No
Fractional Shares</u>. In lieu of fractional shares that would otherwise be
issued to the Qualified Shareholders under this Agreement, Qualified
Shareholders that would have been entitled to receive a fractional share shall
receive such whole number of shares of Kratos Common Stock as is equal to the
precise number of shares of Kratos Common Stock to which such person would be
entitled rounded up to the nearest whole number.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Dissenting
Share Amount</u>. To the extent that the amounts payable (if any) to Dissenting
Shareholders for each Dissenting Share pursuant to <u>Section 2.8</u> is less
than the Dissenting Share Amount, such difference in value shall be added back
into the Holdback Consideration and distributed in accordance with <u>Section
6.9</u>.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Payment
for Company Capital Stock</u>. Upon the Effective Time, subject to the terms of
this Agreement, each holder of Company Shares shall be entitled to receive the
following for each Company Share held by such holder (the &#147;<i>Common Stock
Closing Consideration</i>&#148;):</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Non-Qualified
Shareholders</u>. Each holder of Non-Qualified Company Common Stock shall be
entitled to receive upon the Effective Time the amount in cash equal to
(A)&nbsp;the Non-Qualified Shareholder Closing Cash Amount divided by number of
shares of Non-Qualified Company Common Stock outstanding at Closing multiplied
by (B)&nbsp;the number of shares of Non-Qualified Company Common Stock held of
record by such Non-Qualified Shareholder that has been converted into the right
to receive the Common Stock Merger Consideration.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Qualified
Shareholders</u>. Each holder of Qualified Company Common Stock shall be
entitled to receive the following upon the Effective Time:</p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(A)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
amount in cash equal to (A)&nbsp;the Qualified Shareholder Closing Cash Amount
divided by number of shares of Qualified Company Common Stock outstanding at
Closing multiplied by (B)&nbsp;the number of shares of Qualified Company Common
Stock held of record by such Qualified Shareholder that has been converted into
the right to receive the Common Stock Merger Consideration; and</p>

<p style="margin:0in 0in .0001pt;text-indent:2.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(B)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
number of shares of Kratos Common Stock equal to (A)&nbsp;Closing Stock
Consideration divided by the number of shares of Qualified Company Common Stock
outstanding at Closing multiplied by (B)&nbsp;the number of shares of Qualified
Company Common Stock held of record by such Qualified Shareholder that has been
converted into the right to receive the Common Stock Merger Consideration.</p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Post-Closing
Working Capital Adjustment</u>.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Net
Working Capital Calculations</u>. Within sixty (60) days following the Closing
Date, Parent shall deliver to the Shareholders&#146; Representative its calculations
of the Net Working Capital of the Company as of the Closing Date (the &#147;<i>Net Working Capital Calculation</i>&#148;) together with a copy of
the Closing Date Balance Sheet. Within thirty (30) days following receipt of
the Net Working Capital Calculation, the Shareholders&#146; Representative may
object to the Net Working Capital Calculation by giving written notice to
Parent setting forth the reasons for the Shareholders&#146; Representative&#146;s
objection and the Shareholders&#146; Representative&#146;s proposed adjustments to Parent&#146;s
calculation (&#147;<i>Shareholder Representative&#146;s Objection</i>&#148;).
If the Shareholders&#146; Representative fails to object to the Net Working Capital
Calculation within such thirty (30) day period, the Shareholders&#146;
Representative will be deemed to have conclusively agreed with and shall be
bound by the Net Working Capital Calculation for the purposes of <u>Section
2.7(d)(ii)</u>, and the Purchase Price will be adjusted as set forth in <u>Section
2.7(d)(ii)</u> based on the Net Working Capital Calculation. If the
Shareholders&#146; Representative objects to the Net Working Capital Calculation,
the Shareholders&#146; Representative and Parent shall confer in good faith for a
period of up to fifteen (15) days following Parent&#146;s receipt of the
Shareholders&#146; Representative&#146;s Objection (the &#147;<i>Resolution
Period</i>&#148;) to attempt to reach agreement regarding such calculation. If
the Shareholders&#146; Representative and Parent are unable to reach agreement
during the Resolution Period, then the Shareholders&#146; Representative and Parent
shall confer in good faith for up to five (5) days to agree on a nationally
recognized independent accounting firm, which shall not be the regular
accounting firm of Parent or the Company (the &#147;<i>Resolution
Firm</i>&#148;) to resolve the outstanding disagreement in accordance with
the procedures set forth below; <i>provided</i>, <i>however</i>, that if the Shareholders&#146; Representative and Parent
cannot agree on a Resolution Firm, then each of the Shareholders&#146;
Representative and Parent will select a nationally recognized accounting firm
and the two firms selected by the Shareholders&#146; Representative and Parent will
select the Resolution Firm. The Resolution Firm will review the Net Working
Capital Calculation and the Shareholders&#146; Representative&#146;s Objection and make a
final written determination of the Net Working Capital Calculation, which
determination shall be conclusive and binding on the Shareholders&#146;
Representative and Parent. The Resolution Firm&#146;s engagement shall be solely
limited to determining the Net Working Capital Calculation.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Purchase
Price Adjustments</u>. The Purchase Price shall be increased, dollar for
dollar, by the amount, if any, by which the Net Working Capital Calculation
determined in accordance with <u>Section 2.7(d)(i)</u>, produces an amount
greater than the Target Net Working Capital Amount. The Purchase Price shall be
decreased, dollar for dollar, by the amount, if any, by which the Net Working
Capital Calculation determined in accordance with <u>Section 2.7(d)(i)</u>
produces an amount less than the Target Net Working Capital Amount. The amount
of any decrease, plus interest at a rate of prime per annum from the Closing
Date until the date deducted pursuant to this <u>Section 2.7(d)(ii),</u> shall
be deducted by Parent from the Holdback Consideration by (A) reducing the Cash
Holdback Amount by the product of (x) the Adjustment Amount and (y) the Cash
Holdback Consideration Percentage and (B) reducing the Stock Holdback Amount by
the product of (x) the Adjustment Amount and (y) the Stock Holdback Consideration
Percentage. The amount of any increase, plus interest at a rate of prime per
annum from the Closing Date until the date distributed pursuant to this <u>Section
2.7(d)(ii)</u>, shall be paid on a Pro Rata basis by Parent to each Previous
Equityholder that has surrendered </p>

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

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</font></i></div>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Certificates for cancellation and has received therefor the Common
Stock Closing Consideration in cash.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Costs
of Resolution Firm</u>. If a Resolution Firm is engaged pursuant to <u>Section
2.7(d)(i)</u>, the Shareholders&#146; Representative and Parent shall bear the fees
and expenses of such engagement in equal proportions unless otherwise provided
hereinafter. If the net adjustment of all disputed items determined by the
Resolution Firm results in a net adjustment in favor of the Shareholders&#146;
Representative of greater than ten percent (10%) of the net adjustment proposed
by the Shareholders&#146; Representative, then the Shareholders&#146; Representative
shall be deemed to be the prevailing Party and Parent shall be deemed to be the
non-prevailing Party for purposes of this subsection. If the net adjustment of
all disputed items determined by the Resolution Firm results in a net
adjustment in favor of Parent of greater than ten percent (10%) of the net
adjustment proposed by the Shareholders&#146; Representative, then Parent shall be
deemed to be the prevailing Party and the Shareholders&#146; Representative shall be
deemed to be the non-prevailing Party for purposes of this subsection. The
non-prevailing Party shall pay all reasonable costs, fees and expenses related
to the Resolution Firm&#146;s engagement pursuant to <u>Section 2.7(d)(i)</u> with
respect to the Purchase Price adjustment calculations, including reasonable
fees and expenses of attorneys, accountants and other professionals incurred by
the prevailing Party.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Cooperation</u>.
The Shareholders&#146; Representative and Parent shall provide such documents and
materials as reasonably requested by the other Party and shall fully cooperate
with the other in order to determine the calculations set forth in this <u>Section
2.7(d)</u>.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.8</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Dissenters&#146;
Rights</u>. Notwithstanding anything in this Agreement to the contrary, if
required by the IBCL (but only to the extent required thereby) shares of
Company Common Stock that are issued and outstanding immediately prior to the
Effective Time and that are held by a Shareholder (a &#147;<i>Dissenting
Shareholder</i>&#148;) who properly exercises dissenters rights thereto in
accordance with Chapter 44&nbsp;of the IBCL (&#147;<i>Dissenting
Shares</i>&#148;) shall not be converted as described in <u>Section&nbsp;2.6(c)</u>,
but shall be converted into the right to receive payment of the appraised value
of such shares in accordance with the provisions of Chapter 44 of the IBCL,
until such holder fails to perfect or effectively withdraws or loses such
holder&#146;s right to appraisal and payment under the IBCL. On the Closing Date an
amount of the Closing Cash Consideration shall be withheld by Parent from the
Aggregate Merger Consideration payable under this Agreement equal to the number
of Dissenting Shares multiplied by the Per Share Merger Consideration (&#147;<i>Dissenting Share Amount</i>&#148;). If, after the Effective Time, any
Dissenting Shareholder fails to perfect or effectively withdraws or loses such
right, each share of such Dissenting Shareholder shall thereupon be treated as
if they had been converted as of the Effective Time into the right to receive
the Per Share Merger Consideration, without any interest thereon. The Company
shall give Parent (i)&nbsp;prompt notice of any demands received by the Company
for appraisal of shares, or any withdrawals of such demands, (which notice
shall in no event be given later than two business days after receipt by the
Company of any such demand) and (ii)&nbsp;the right to participate in and, in
Parent&#146;s sole and exclusive discretion, direct all negotiations and proceedings
with respect to any such demands. The Company shall not, without the prior
written consent of Parent, make any payment with respect to, or settle, offer
to settle or otherwise negotiate, any such demands.</p>

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

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</font></i></div>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.9</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Exchange
Procedures</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Surrender of
Certificates</u>. Prior to the Effective Time, the Company shall mail or
otherwise deliver to the Previous Equityholders, (i)&nbsp;a letter of
transmittal (which shall specify that delivery shall be effected, and risk of
loss and title to the certificates for Company Common Stock (the &#147;<i>Certificates</i>&#148;) shall pass, only upon
proper delivery of the Certificates to Parent), (ii)&nbsp;such other customary
documents as may be reasonably required pursuant to such instructions and
(iii)&nbsp;instructions for use in effecting the surrender of the Certificates
and payment therefor. The Company shall solicit such letters of transmittal,
other documents and Certificates from the Previous Equityholders, and surrender
the same to Parent. Upon surrender to Parent of a Certificate (together with
such letter of transmittal and other documents, properly completed and duly
executed) at or following the Closing, the holder of such Certificate shall be
entitled to such holders&#146; Pro Rata portion of Common Stock Closing
Consideration as set forth on <u>Schedule 2.9(a)</u> (such schedule to be
delivered to Parent two (2) business days prior to the Effective Time), subject
to any applicable withholding as required under the Code, or under any
provisions of state, local or foreign tax law; <i>provided</i>,
<i>however</i>, that with respect to any
Closing Stock Consideration payable by Parent to the Qualified Shareholders at
Closing, Parent shall (i) deliver written instructions to its transfer agent as
of the Closing Date authorizing the preparation and issuance of any Closing
Stock Consideration to the Qualified Shareholders and (ii) cause all shares of
Kratos Common Stock representing such Closing Stock Consideration to be
delivered as soon as commercially practicable thereafter.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>No Further Ownership
Rights in Shares</u>. Upon the payment of the Common Stock Closing
Consideration upon the surrender of Certificates representing the ownership of
the Company Common Stock in accordance with the terms of this <u>Article&nbsp;II</u>,
such payment shall be deemed to have been paid in full satisfaction of all
rights pertaining to the shares of Company Common Stock theretofore represented
by such Certificates, subject only to the right to receive the Holdback
Consideration and the Adjustment Amount, if any, in accordance with the terms
and conditions of <u>Section 6.9</u> and <u>Section&nbsp;2.7(d)</u>,
respectively. At the Effective Time, the stock transfer books of the Company
shall be closed, and there shall be no further registration of transfers on the
stock transfer books of the Surviving Corporation of the shares of Company
Common Stock that were outstanding immediately prior to the Effective Time. If,
after the Effective Time, Certificates are presented to the Surviving
Corporation for any reason, they shall be canceled in exchange for the right to
receive the Per Share Merger Consideration as provided in this <u>Article&nbsp;II</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Lost, Stolen or
Destroyed Certificates</u>. If any Certificate shall have been lost, stolen or
destroyed, upon the making of an affidavit of that fact by the Person claiming
such Certificate to be lost, stolen or destroyed and, if required by Parent,
the posting by such Person of a bond, in such reasonable amount as Parent may
direct, or an indemnity agreement reasonably acceptable to Parent, as indemnity
against any claim that may be made against them with respect to such
Certificate, Parent will pay in exchange for such lost, stolen or destroyed
Certificate the Merger Consideration to which the holders thereof are entitled
pursuant to <u>Section&nbsp;2.6.</u></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Adjustments</u>. If
at any time during the period between the date of this Agreement and the
Effective Time, any change in the outstanding shares of capital stock of the
Company shall occur as a result of any reclassification, recapitalization, stock
split (including </p>

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

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

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">reverse stock
split) or combination, exchange or readjustment of shares, or any stock
dividend or stock distribution, the Common Stock Merger Consideration and other
similarly dependent items shall be equitably adjusted to reflect such change.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.10</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Further Assurances</u>.
If at any time after the Effective Time, the Surviving Corporation shall
consider or be advised that any deeds, bills of sale, assignments or assurances
or any other acts or things are necessary, desirable or proper (a)&nbsp;to
vest, perfect or confirm, of record or otherwise, in the Surviving Corporation
its right, title or interest in, to or under any of the rights, privileges,
powers, franchises, properties or assets of either of the Merging Corporations,
or (b)&nbsp;otherwise to carry out the purposes of this Agreement, the Company
or Surviving Corporation, as applicable, and their respective proper officers
and directors or their designees shall be authorized to execute and deliver, in
the name and on behalf of either of the Merging Corporations, all such deeds,
bills of sale, assignments and assurances and to do, in the name and on behalf
of either Merging Corporation or any such Shareholder, all such other acts and
things as may be necessary, desirable or proper to vest, perfect or confirm the
Surviving Corporation&#146;s right, title or interest in, to or under any of the
rights, privileges, powers, franchises, properties or assets of such Merging
Corporation and otherwise to carry out the purposes of this Agreement.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.11</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Closing Stock
Consideration Resale</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Registration
Statement</u>. Promptly following the Closing, Parent shall use its reasonable
best efforts to prepare and file a registration statement with the Securities
and Exchange Commission (the &#147;<i>SEC</i>&#148;)
for the resale of the shares of Kratos Common Stock issued or issuable to the
Qualified Shareholders pursuant to this Agreement (the &#147;<i>Registration Statement</i>&#148;). Subject to the
last two sentences of <u>Section 6.14</u>, Parent shall cause such Registration
Statement to be declared effective under the Securities Act of 1933, as
amended, as soon as possible after filing with SEC.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Outside Resale Date;
Exchange Election</u>. In the event that any of the shares of Kratos Common
Stock issued to a Qualified Shareholder at the Closing (the &#147;<i>Closing Stock</i>&#148;) are not salable under Rule
144 or pursuant to an effective Registration Statement as of the twelve month
anniversary of the Effective Date (the &#147;<i>Outside
Resale Date</i>&#148;), such Qualified Shareholder may elect to exchange each
share of Closing Stock held of record by such Qualified Shareholder that is not
salable under Rule 144 or pursuant to an effective Registration Statement on
the date of such election for a per share cash amount equal to the Kratos Stock
Price (the &#147;<i>Exchange Election</i>&#148;)
by delivering to Parent within fifteen (15) business days following the Outside
Resale Date (i) written notice of the Exchange Election, including the number
of shares of Closing Stock to be exchanged therefor (the &#147;<i>Exchange Election Notice</i>&#148;), and (ii) the
certificate(s) representing the shares of Closing Stock to be exchanged
pursuant to the Exchange Election (the &#147;<i>Exchange
Certificates</i>&#148;). Upon receipt of a duly executed Exchange Election
Notice, together with the Exchange Certificates, delivered by a Qualified
Shareholder in accordance with this <u>Section 2.11(b)</u>, Parent shall
promptly deliver to such Accredited Shareholder the aggregate cash payment
determined in accordance herewith.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Salable Date;
Interest Stock</u>. Until the date on which all shares of Closing Stock are
salable under Rule 144 or pursuant to an effective Registration Statement (the &#147;<i>Salable </i></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Date</font></i>&#148;), interest on the Closing Stock
Consideration Value shall accrue, computed on the basis of actual days elapsed
over a 360-day year, at a floating rate of one-month LIBOR (LIBOR to reset on
the first business day of each month) plus 4% per annum, from the Effective
Time to and including the Salable Date (the &#147;<i>Interest
Amount</i>&#148;). The Interest Amount shall be payable by Parent in shares
of Kratos Common Stock as provided in this <u>Section 2.11(c)</u>. Each
Qualified Shareholder who received shares of Closing Stock shall be entitled to
receive that number of shares of Kratos Common Stock equal to (A)&nbsp;the
Aggregate Interest Stock divided by the number of shares of Closing Stock held
of record by the Qualified Shareholders at the Salable Date multiplied by
(B)&nbsp;the number of shares of Closing Stock held of record by such Qualified
Shareholder at the Salable Date (the &#147;<i>Interest
Stock</i>&#148;). Parent shall deliver the Interest Stock to the Qualified
Shareholders as soon as commercially practicable following the Salable Date.</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE III<br>
<br>
REPRESENTATIONS AND WARRANTIES OF THE COMPANY</font></b></p>

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<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company
represents and warrants to Kratos, Parent and Merger Sub that the statements
contained in this <u>Article&nbsp;III</u> are current and complete, except as
set forth in the Company Disclosure Schedule, which Company Disclosure Schedule
shall specifically identify the section of this Agreement for which each
exception is taken:</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Organization,
Power and Standing</u>. The Company and its Subsidiaries are corporations duly
organized, validly existing and in good standing under the laws of the State of
Indiana and have the requisite corporate power and authority to carry on their
business as now being conducted. No receiver has been appointed of the whole or
any part of the assets or undertakings of the Company or any of its Subsidiaries,
no administrative order has been made (and no petition therefor has been
presented) in relation to the Company or any Subsidiary, no proposal for a
voluntary arrangement between the Company or any Subsidiary and any of their
creditors has been made or is contemplated by the Company or a Subsidiary and
no petition has been presented, no order has been made and no resolution has
been passed for the dissolution or winding up of the Company or any Subsidiary.
<u>Section&nbsp;3.1</u> of the Company Disclosure Schedule sets forth all
jurisdictions in which the Company and its Subsidiaries are qualified as a
foreign business. The Company, and each Subsidiary, is duly qualified to do
business, and is in good standing, in each jurisdiction where the character of
its properties owned or held under lease or the nature of its activities makes
such qualification necessary, except where the failure to be so qualified would
not, individually or in the aggregate, have a Material Adverse Effect on the
Company or the Business.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Capital Structure</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>As of the date hereof,
the authorized capital stock of the Company consists of five hundred million
(500,000,000) shares of common stock, with no par value.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>As of the date hereof:</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Thirty-one million
one-hundred ninety-four thousand two-hundred forty-three (31,194,243) shares of
Common Stock are issued and outstanding, all of which were </p>

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

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

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">validly
issued, fully paid and nonassessable and were not issued in violation of any
preemptive or similar right;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>No shares were held in
the treasury of the Company; and</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Three million
forty-eight thousand seven-hundred eighty (3,048,780) shares were reserved for
the Company Stock Option Plan.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Section&nbsp;3.2(c)</u>
of the Company Disclosure Schedule contains a correct and complete list as of
the date of this Agreement of each outstanding Company Stock Option, all of
which have already vested, including the holder, date of grant, exercise price
and number of shares of Company Common Stock subject thereto</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Section 3.2(d)</u>
of the Company Disclosure Schedule sets forth a true and complete list, as of
the date of this Agreement, of each Shareholder who holds Company Common Stock,
together with their address and the number of shares of the Company Common
Stock held by such Shareholder.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth in <u>Section
3.2(e)</u> of the Company Disclosure Schedule, there are no options, warrants,
calls, rights or agreements to which the Company is a party or by which the Company
is bound obligating the Company to issue, deliver or sell, or cause to be
issued, delivered or sold, additional shares of capital stock of the Company or
obligating the Company to grant, extend or enter into any such option, warrant,
call, right or agreement, and there are no outstanding contractual rights to
which the Company is a party, the value of which is based on the value of the
Company Common Stock. Except as set forth in <u>Section&nbsp;3.2(e)</u> of the
Company Disclosure Schedule, there are no outstanding contractual obligations
of the Company to repurchase, redeem or otherwise acquire any shares of Company
Common Stock.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Section&nbsp;3.2(f)</u>
of the Company Disclosure Schedule sets forth a complete list of all
Subsidiaries of the Company and all corporations, limited liability companies,
partnerships or other entities in which the Company has an interest. All of the
outstanding shares of capital stock or other equity interests of each
Subsidiary of the Company have been validly issued, are fully paid and nonassessable.
<u>Section&nbsp;3.2(f)</u> of the Company Disclosure Schedule lists the legal
and beneficial owner of record as to all outstanding shares or capital stock or
other equity interests of each Subsidiary of the Company.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Company does not
have any outstanding bonds, debentures, notes or other obligations the holders
of which have the right to vote (or which are convertible into, or exchangeable
or exercisable for, securities having the right to vote) with the Shareholders
on any matter.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>To the Knowledge of the
Company, each Qualified Shareholder set forth on <u>Schedule A</u> is an &#147;accredited
investor&#148; within the meaning of SEC Rule 501 of Regulation D, as presently in
effect.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Authority</u>. On
or prior to the date of this Agreement, the Board of Directors of the Company
has approved this Agreement in accordance with the IBCL and the Shareholder
Agreements have been executed and delivered by the Shareholders set forth on </p>

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

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

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;A</font></u>.
The Company has all requisite corporate power and authority to enter into this
Agreement to consummate the transactions contemplated hereby. The execution and
delivery of this Agreement by the Company and the consummation by the Company
of the transactions contemplated hereby have been duly authorized by all
necessary corporate action (including Board action) on the part of the Company,
subject to (i)&nbsp;approval and adoption of this Agreement by the holders of
the Company Common Stock as required by the IBCL, (ii)&nbsp;the filing of the
Articles of Merger as required by the IBCL and (iii)&nbsp;the filing of the
Certificate of Merger as required by the DGCL. This Agreement has been duly
executed and delivered by the Company and (assuming the valid authorization,
execution and delivery of this Agreement by Parent and Merger Sub, and binding
effect of this Agreement on Parent and Merger Sub) constitutes the valid and
binding obligation of the Company enforceable against the Company in accordance
with its terms, except insofar as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors&#146; rights generally, or by principles governing the availability of
equitable remedies.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.4</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Consents and
Approvals; No Violation; Litigation</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except with respect to
the Section&nbsp;8(a) Contracts and except as set forth in <u>Section 3.4(a)</u>
of the Company Disclosure Schedule, assuming that all consents, approvals,
authorizations and other actions described in <u>Section&nbsp;3.4(b)</u> have
been obtained and all filings and obligations described in <u>Section&nbsp;3.4(b)</u>
have been made, the execution and delivery of this Agreement does not, and the
consummation of the transactions contemplated hereby and compliance with the
provisions hereof will not, result in any violation of, or default (with or
without notice or lapse of time, or both) under, or give to others a right of
termination, cancellation or acceleration of any obligation or result in the
loss of a material benefit under, or result in the creation of any lien,
security interest, charge or encumbrance upon any of the properties or assets
of the Company under, any provision of (i)&nbsp;the Articles of Incorporation
of the Company, as amended (the &#147;<i>Company
Charter</i>&#148;) or the Bylaws of the Company, as amended (the &#147;<i>Company Bylaws</i>&#148;), (ii)&nbsp;any Company
Agreement or any other note, bond, mortgage, indenture, lease or other
agreement, instrument, permit, concession, franchise or license applicable to
the Company or (iii)&nbsp;any judgment, order, decree, statute, law, ordinance,
rule or regulation applicable to the Company or any of its respective
properties or assets, other than, in the case of clauses&nbsp;(ii) or (iii),
any such violations, defaults, rights, liens, security interests, charges or
encumbrances that, individually or in the aggregate, would not have a Material
Adverse Effect on the Company, materially impair the ability of the Company to
perform its obligations hereunder or prevent the consummation of any of the
transactions contemplated hereby.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>No filing or
registration with, or authorization, consent or approval of, any Governmental
Entity is required by or with respect to the Company in connection with the
execution and delivery of this Agreement by the Company or is necessary for the
consummation of the Merger and the other transactions contemplated by this
Agreement, except for:</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the filing of the
Articles of Merger with the Secretary of State of the State of Indiana, the
filing of the Certificate of Merger with the Secretary of the State of Delaware
and appropriate documents with the relevant authorities of other states in
which the Company is qualified to do business;</p>

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

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

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>such filings relating
to the Registration Statement and under the HSR Act; and</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>such other consents,
orders, authorizations, registrations, declarations and filings the failure of
which to be obtained or made would not, individually or in the aggregate, have
a Material Adverse Effect on the Company, materially impair the ability of the
Company to perform its obligations hereunder or prevent the consummation of any
of the transactions contemplated hereby.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth in <u>Section&nbsp;3.4(c)</u>
of the Company Disclosure Schedule, there is no outstanding claim or other
Proceeding pending by or against, or to the Knowledge of the Company threatened
by or against the Company or any Subsidiary (including at law or in equity or
before or by any Governmental Authority or arbitrator). To the Knowledge of the
Company, there is no basis for any such claim or other Proceeding. The Company
and each Subsidiary is in compliance in all material respects with all Laws
applicable to the Business as presently conducted by the Company and each
Subsidiary. No written notice has been received by the Company or any
Subsidiary during the past three (3) years alleging any violation of Law by the
Company or any Subsidiary. The Company and each Subsidiary has all material
Permits and Registrations necessary for the conduct and operation of the
Business as currently conducted by the Company and each Subsidiary, and <u>Section
3.4(c)</u> of the Company Disclosure Schedule sets forth a list of such permits.
Except as set forth in <u>Section&nbsp;3.4(c)</u> of the Company Disclosure
Schedule, the permits listed in <u>Section 3.4(c)</u> of the Company Disclosure
Schedule are valid and in full force and effect and will remain in full force
and effect after the Closing and consummation of the transaction contemplated
hereby. The Company and each Subsidiary is in material compliance with the
terms and conditions of all said permits.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.5</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Charter and Bylaws</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Company has
heretofore furnished to Parent a complete and correct copy of the Company
Charter and the Company Bylaws, each as amended to date. The Company Charter
and the Company Bylaws are in full force and effect. The Company is not in
violation of any provision of the Company Charter or the Company Bylaws that
would have a Material Adverse Effect on the Company.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each of the Company&#146;s
Subsidiaries has heretofore furnished to Parent a complete and correct copy of
its Articles of Incorporation, Certificate of Incorporation or Articles of
Organization, as the case may be, (collectively, the &#147;<i>Subsidiary Charters</i>&#148;) and its Bylaws
(collectively, the &#147;<i>Subsidiary Bylaws</i>&#148;),
each as amended to date. The Subsidiary Charters and the Subsidiary Bylaws are
in full force and effect. The Company&#146;s Subsidiaries are not in violation of
any provision of the applicable Subsidiary Charters or the Subsidiary Bylaws
that would have a Material Adverse Effect on the Company.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.6</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Financial
Statements</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Audited</u>. The
Company has delivered to Parent copies of Company&#146;s audited consolidated
financial statements as of and for the fiscal years ended December 31, 2004,
2005, and 2006, together with the notes thereto (the &#147;<i>Audited Financial Statements</i>&#148;). The </p>

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

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

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Audited
Financial Statements were prepared in accordance with GAAP consistently applied
throughout the periods indicated, are correct and complete and fairly present
the financial position and condition of the Company at the dates thereof and
the results of operations of the Company for the periods covered thereby, and
contain no material misstatements or omissions.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Unaudited</u>. The
Company has delivered to Parent copies of Company&#146;s unaudited consolidated
financial statements for the six (6) month period ended June 30, 2007, (the &#147;<i>Unaudited Financial Statements</i>&#148;). The
Unaudited Financial Statements were prepared in accordance with GAAP on a basis
consistent with the Audited Financial Statements and are correct and complete
and fairly present the financial position and condition of the Company at the
date thereof and the results of operations for the period covered thereby
(subject to customary year end adjustments and not including footnotes
necessary for presentation in accordance with GAAP) and contain no material
misstatements or omissions (the Audited Financial Statements and the Unaudited
Financial Statements, together, the &#147;<i>Financial
Statements</i>&#148;).</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Liabilities</u>. Except
as set forth in <u>Section&nbsp;3.6(c)</u> of the Company Disclosure Schedule
or as fully reflected or reserved against in the Financial Statements, the
Company does not have outstanding any liability or obligation of any nature
whatsoever (whether absolute, accrued, contingent or otherwise, including
liabilities for Taxes), other than liabilities (including liabilities for
Taxes) incurred in the ordinary course of business that, individually or in the
aggregate, would not have a Material Adverse Effect on the Company.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Internal Controls. </u>Except
as set forth in <u>Section&nbsp;3.6(d)</u> of the Company Disclosure Schedule,
the Company maintains a system of internal accounting controls sufficient,
based on and consistent with the size and ownership of the Business and the
Company, to provide reasonable assurance that: (i)&nbsp;transactions are
executed in accordance with management&#146;s general or specific authorizations;
(ii)&nbsp;transactions are recorded as necessary to permit preparation of
financial statements in conformity with GAAP and to maintain asset
accountability; (iii)&nbsp;access to assets is permitted only in accordance
with management&#146;s general or specific authorization; and (iv)&nbsp;the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.7</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Accounts
Receivable</u>. Except as set forth in <u>Section&nbsp;3.7</u> of the Company
Disclosure Schedule, to the Knowledge of the Company, all of the accounts and
notes receivable of the Company set forth in the Financial Statements (net of
the applicable reserves):</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>represent sales
actually made or transactions actually effected in the ordinary course of
business for goods or services delivered or rendered to unaffiliated customers
in bona fide arm&#146;s length transactions;</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>constitute valid
claims; and</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>are good and collectible
at the aggregate recorded amounts thereof (net of such reserves) without right
of recourse, defense, deduction, return of goods, counterclaim, or offset and
have been or will be collected in the ordinary course of business and
consistent with past experience.</p>

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

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

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.8</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Tax Matters</u>. Except
as set forth in <u>Section&nbsp;3.8</u> of the Company Disclosure Schedule, all
foreign, federal, state, county and local taxes, including, without limitation,
income, gross receipts, corporate franchise, stamp, transfer, sales, and use,
license, severance, excise, employment (including unemployment compensation
contributions), withholding, ad valorem, alternative or add-on minimum,
estimated, or any other similar taxes, special charges or levies, together with
any interest, additions or penalties with respect thereto and any interest in
respect of such additions or penalties (&#147;<i>Taxes</i>&#148;)
due and payable by the Company on or before the date of the Financial
Statements have been paid (whether disputed or not) or recognized as a
liability in the Financial Statements, and the Company has filed all tax
returns and reports required to be filed by the Company with all applicable
taxing authorities when due (taking into account any granted filing extension
requests) (collectively, the &#147;<i>Tax Returns</i>&#148;),
and such Tax Returns were accurate and complete in all material respects. The
provisions for Taxes included in the Unaudited Financial Statements represent,
in all material respects, adequate provision for all accrued and unpaid Taxes
of the Company, whether or not disputed, as of the date of the Unaudited
Financial Statements. To the Knowledge of the Company, positions taken by the
Company on such Tax Returns with respect to the liability of the Company for
Taxes or used in making provisions for Taxes in the Financial Statements are
proper and otherwise in accordance with a reasonable interpretation of the
Code, the regulations thereunder and cases, rulings and administrative guidance
related thereto as in effect at the time such positions were taken. The Company
will not be required to exclude any item of deduction from taxable income for
any taxable period (or portion thereof) ending prior to the Closing Date as a
result of any disallowed or deferred interest expense deduction. Except as set
forth in <u>Section&nbsp;3.8</u> of the Company Disclosure Schedule, the
Company has paid (or has recognized as a liability on its financial statements)
all Taxes that could form a charge or encumbrance on the Company or its assets
or that could become payable by Parent, Merger Sub or the Company as a result
of or in connection with any event relating to the Company occurring on or
before the Closing, whether or not shown on any Tax Return. The Company has no
outstanding or unsatisfied deficiency assessments with respect to any Taxes,
and there are no current audits or investigations by or disputes with any
authority with respect to any Taxes that may affect the Company or form a lien
or charge on any of its assets. The Company has not received written notice
that an examination of or proceeding concerning any Tax Return of the Company
is pending or threatened. The Company will not be required to include any item
of income in or exclude an item of deduction from any period ending after the
Closing Date resulting from a change in accounting method or period, a &#147;closing
agreement&#148; (as described in section 7121 of the Code), intercompany
transactions or an excess loss account, an installment sale or open transaction
disposition prior to Closing Date, or a prepaid amount received on or prior to
Closing Date. The Company has not waived any statute of limitations in respect
to Taxes or agreed to any extension of time with respect to a Tax assessment or
deficiency. The Company has not and will not be subject to accumulated earnings
Tax contained in sections 531 and 532 of the Code for periods ending on or
before the Closing Date. The Company is not a party to any Tax allocation or
sharing agreement. The Company has not been a member of an &#147;affiliated group&#148;
(as defined in Section&nbsp;1504(a) of the Code) filing a consolidated federal
income Tax Return (other than a group the common parent of which was the
Company) or has any Tax liability for any Person (other than the Company) under
Reg. Sec. 1.1502-6, as a transferee or successor, by contract, or otherwise.
All Company Stock Options (i)&nbsp;were granted in consideration for the
performance of &#147;services&#148; (as such term is defined in Section&nbsp;83 of the
Code) and (ii)&nbsp;are not the subject of any </p>

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

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

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">election
statement made under Section&nbsp;83(b) of the Code as those terms are defined
under Section&nbsp;83 of the Code and the Treasury Regulations thereunder. No
state or federal &#147;net operating loss&#148; or other tax attribute of the Company or
any Subsidiary is subject to the limitation on its use pursuant to Section 382
of the Code or comparable provisions of state law as a result of any &#147;ownership
change&#148; within the meaning of Section 382(g) of the Code or comparable
provisions of any state law occurring prior to the Effectiveness Time.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.9</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Absence of Certain
Changes or Events</u>. Except as set forth in <u>Section&nbsp;3.9</u> of the
Company Disclosure Schedule, and as contemplated or expressed herein, since
December 31, 2006:</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Company has not
incurred any liability or obligation (indirect, direct or contingent), or
entered into any oral or written agreement or other transaction, that is not in
the ordinary course of business or that would result in a Material Adverse
Effect on the Company;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Company has not
sustained any loss or interference with its business or properties from fire,
flood, windstorm, accident or other calamity (whether or not covered by
insurance) that has had, or would result in, a Material Adverse Effect on the
Company;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>there has been no
dividend or distribution of any kind declared, paid or made by the Company on
any class of its stock;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>there has not been,
(i)&nbsp;any change by the Company in its accounting methods, principles or
practices, (ii)&nbsp;any revaluation by the Company of any asset (including,
without limitation, any writing down of the value of inventory or writing off
of notes or accounts receivable), other than in the ordinary course of business
consistent with past practice, and (iii)&nbsp;any entry by the Company into any
commitment or transaction material to the Company, except in the ordinary
course of business and consistent with past practice;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>there has not been
(i)&nbsp;any adoption of a new Company Plan (as hereinafter defined),
(ii)&nbsp;any amendment to a Company Plan, (iii)&nbsp;any granting by the
Company to any executive officer or other key employee of the Company of any
increase in compensation, except in the ordinary course of business consistent
with prior practice, (iv)&nbsp;any granting by the Company to any such
executive officer or other key employee of any increase in retention,
severance, termination, or similar arrangements or agreements in effect as of
the date of the most recent financial statements or (v)&nbsp;any entry by the
Company into any employment, severance, retention, termination, similar
arrangement or agreement with any such executive officer or other key employee
except in the ordinary course of business consistent with prior practice;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>there has not been any
change in the amount or terms of the indebtedness of the Company other than in
the ordinary course of business;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>there has not been any
granting of a security interest in or lien on any property or assets of the
Company; and</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>there has been no event
causing a Material Adverse Effect on the Company, nor any set of circumstances
that would, individually or in the aggregate, result in a Material Adverse
Effect on the Company.</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">28</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.10</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Title to and
Sufficiency of Assets</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth in <u>Section&nbsp;3.10</u>
of the Company Disclosure Schedule, the Company owns, and as of the Effective
Time the Company will own, good and marketable title to all of its assets
constituting personal property to conduct the Business as presently conducted
by the Company (excluding, for purposes of this sentence, assets held under
leases), free and clear of any and all mortgages, liens, encumbrances, charges,
claims, restrictions, pledges, security interests or impositions (collectively,
&#147;<i>Liens</i>&#148;). Such assets, together
with all assets held by the Company under leases, include all tangible and
intangible personal property, contracts and rights required for the operation
of the Business as presently conducted.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Company owns, and
as of the Effective Time the Company will own, no Real Estate. All Real Estate
used by the Company is leased by the Company pursuant to the Real Estate Leases
and is adequate for the operation of the Business as presently conducted by the
Company. The leases to all Real Estate occupied by the Company are in full
force and effect and no event has occurred with the passage of time, the giving
of notice, or both, would constitute a default or event of default by the
Company or, to the Knowledge of the Company, any other Person who is a party
signatory thereto.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.11</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Permits and Compliance</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Company, together
with its Subsidiaries, is in possession of all franchises, grants,
authorizations, licenses, permits, easements, variances, exceptions, consents,
clearances (including appropriate security clearances), certificates, approvals
and orders necessary for the Company, together with its Subsidiaries, to own,
lease and operate its properties or to conduct the Business as it is now being
conducted (the &#147;<i>Company Permits</i>&#148;),
except where the failure to have any of the Company Permits would not,
individually or in the aggregate, have a Material Adverse Effect on the
Company, and no suspension or cancellation of any of the Company Permits is
pending or, to the Knowledge of the Company, threatened, except where the
suspension or cancellation of any of the Company Permits would not,
individually or in the aggregate, have a Material Adverse Effect on the
Company.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>To the Company&#146;s
Knowledge, it is not in violation of: (i)&nbsp;any applicable law, ordinance,
administrative, or governmental rule or regulation of any Governmental Entity,
including any consumer protection, kickback, procurement integrity, contingent
fee, gratuities to government officials, environmental, equal opportunity,
customs, export control, foreign trade and foreign corrupt practices laws,
securities laws, rules or regulations (including Cost Accounting Standards, the
National Industrial Security Program Manual (including all rules and
regulations relating to protection of classified information and retention of
facility and personnel security clearances), the Federal Acquisition
Regulations and any agency supplements thereto (e.g., FARS and NASA FAR
regulations) and the Truth in Negotiation Act), or (ii)&nbsp;any order, decree
or judgment of any Governmental Entity having jurisdiction over the Company,
including any Company Permit.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Company, together
with its Subsidiaries, has obtained all material regulatory approvals, and to
the Knowledge of the Company, the Company, together with its </p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">29</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subsidiaries,
has obtained all material regulatory approvals from any foreign regulatory
agencies, related to the products or services sold by the Company or any
Subsidiary.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth in <u>Section&nbsp;3.11</u>
of the Company Disclosure Schedule, the properties, assets and operations of
the Company, together with its Subsidiaries, are in material compliance with
all applicable federal, state, local and foreign laws, rules and regulations,
orders, decrees, judgments, permits and licenses relating to public and worker
health and safety (collectively, &#147;<i>Worker
Safety Laws</i>&#148;). With respect to such properties, assets and
operations, including any previously owned, leased or operated properties,
assets or operations, to the Knowledge of the Company, there are no past or
present conditions, circumstances, activities, practices, incidents, or actions
of the Company or any Subsidiary that may interfere with or prevent compliance
or continued compliance with applicable Worker Safety Laws except as set forth
in <u>Section&nbsp;3.11</u> of the Company Disclosure Schedule.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.12</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Certain Business
Practices</u>. None of the Company or any Subsidiary or, to the Knowledge of
the Company, any directors, officers, agents or employees of the Company or any
Subsidiary has (i)&nbsp;used any funds for unlawful contributions, gifts,
entertainment or other unlawful expenses relating to political activity,
(ii)&nbsp;made any unlawful payment to foreign or domestic government officials
or employees or to foreign or domestic political parties or campaigns or
violated any provision of the Foreign Corrupt Practice Act of 1977, as amended
or (iii)&nbsp;made any other unlawful payment.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.13</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Actions and
Proceedings</u>. Except as set forth in <u>Section&nbsp;3.13</u> of the Company
Disclosure Schedule, to the Knowledge of the Company there is no outstanding
order, judgment, injunction, award or decree of any Governmental Entity against
or involving the Company or any Subsidiary, or against or involving any of the
present or former directors, officers, employees, consultants, agents or
shareholders of the Company or any Subsidiary, as such, any of its or their
properties, assets or business or any Company Plan (as hereinafter defined) and
which is related to the Business. Except as set forth in <u>Section&nbsp;3.13</u>
of the Company Disclosure Schedule, there is no action, suit or claim, labor
dispute, or legal, administrative or arbitrative proceeding or investigation
(including claims for workers&#146; compensation or investigations by a Governmental
Entity), suspension or debarment (including under the False Claims Act) pending
or, to the Knowledge of the Company, threatened against or involving the
Company or any Subsidiary or any of its present or former directors, officers,
employees, consultants, agents or shareholders, as such, or any of its
properties, assets or business or any Company Plan and which is related to the
Business.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.14</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Employment Issues</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Section&nbsp;3.14(a)</u>
of the Company Disclosure Schedule sets forth a list of those employees of the
Company subject to written employment agreements (collectively, the &#147;<i>Employment Agreements</i>&#148;).</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Neither the Company nor
any Subsidiary is a party to any collective bargaining agreement, labor
contract or other agreement with a body representing any of its or their
employees. Neither the Company nor any Subsidiary is now, or has ever, engaged
in any unfair labor practice with respect to any Persons employed by or
otherwise performing services </p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">30</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">primarily for
the Company or any Subsidiary (the &#147;<i>Company
Business Personnel</i>&#148;), and, to the Knowledge of the Company, there is
no unfair labor practice complaint or grievance against the Company or any
Subsidiary by any Person pursuant to the National Labor Relations Act or any
comparable state or foreign law pending or threatened in writing with respect
to the Company Business Personnel and there have been no claims, inquiries,
citations, penalties assessed or other proceedings in respect of the Company or
any Subsidiary which relate to any provision of law relating to unfair labor
practices. There is no labor strike, dispute, slowdown or stoppage pending or,
to the Knowledge of the Company, threatened against or affecting the Company or
any Subsidiary which may interfere with the Business.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth in <u>Section&nbsp;3.14(c)</u>
of the Company Disclosure Schedule, the Company and each Subsidiary is in
material compliance with all applicable laws, rules and regulations which
relate to wages and hours and is not liable for any arrears of wages or any
taxes or penalties for failure to comply with any of the foregoing.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth in <u>Section&nbsp;3.14(d)</u>
of the Company Disclosure Schedule, the Company and each Subsidiary is in
material compliance with all applicable laws, rules and regulations which
relate to discrimination in employment, including those relating to race,
color, national origin, sex, religion, age, marital status, disability or any
other legally protected status and there are no pending or, to the Knowledge of
the Company, threatened discrimination charges or complaints against the
Company or any Subsidiary relating to race, color, national origin, sex,
religion, age, marital status, disability or any other legally protected
status.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth in <u>Section&nbsp;3.14(e)</u>
of the Company Disclosure Schedule, to the Knowledge of the Company, neither
the Company nor any Subsidiary is now, or during the three (3) years prior
hereto, has been, charged with or threatened with a charge of violation, or under
investigation with respect to a possible violation, of any provision of any law
relating to equal employment opportunity and there have been no complaints,
claims, inquiries, citations, penalties assessed or other proceedings in
respect of the Company or any Subsidiary which relate to any provision of any
law relating to equal employment opportunity, and neither the Company nor any
Subsidiary is liable for any back pay, forward pay, damages (including treble
or punitive damages), or any other amounts in respect thereof.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Section&nbsp;3.14(f)</u>
of the Company Disclosure Schedule contains a correct and complete list of the
name, start date, and current annual salary of all Company Business Personnel.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Company has not
incurred any liability or obligation under the Worker Adjustment and Retraining
Notification Act and the regulations promulgated thereunder, or any similar
state or local law that remains unsatisfied.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.15</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Certain Agreements</u>.
Except as to the Employment Agreements and for those agreements set forth in <u>Section&nbsp;3.15</u>
of the Company Disclosure Schedule, neither the Company nor any Subsidiary is a
party to any oral or written agreement or plan, including any severance
agreement, retention agreement or other similar agreement or arrangement, or
stock option plan, stock appreciation rights plan, restricted stock plan or
stock purchase plan </p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">31</font></p>

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</div>
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<div style="font-family:Times New Roman;">

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(collectively,
the &#147;<i>Compensation Agreements</i>&#148;),
pension plan (as defined in Section&nbsp;3(2) of the ERISA) or welfare plan (as
defined in Section&nbsp;3(1) of ERISA), which provides for the granting of any
benefits or that any of the benefits of which will be increased, or (except as
any acceleration of vesting of any Company Stock Options) the vesting of the benefits
of which will be accelerated, by the occurrence of any of the transactions
contemplated by this Agreement or (except as to the Company Stock Options) 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>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.16</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>ERISA</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each Company Plan is
listed in <u>Section&nbsp;3.16(a)</u> of the Company Disclosure Schedule. With
respect to each Company Plan, the Company has delivered to Parent a true and
correct copy of (i)&nbsp;the three most recent annual reports (Form 5500) filed
with the IRS, (ii)&nbsp;each such Company Plan that has been reduced to writing
and all amendments thereto, (iii)&nbsp;each trust agreement, insurance contract
or administration agreement relating to each such Company Plan, (iv)&nbsp;a
written summary of each unwritten Company Plan, (v)&nbsp;the most recent
summary plan description or other written explanation of each Company Plan
provided to participants, (vi)&nbsp;the most recent determination letter and
request therefor, if any, issued by the IRS with respect to any Company Plan
intended to be qualified under section 401(a) of the Code, (vii)&nbsp;any
request for a determination currently pending before the IRS and
(viii)&nbsp;all correspondence with the IRS, the Department of Labor or Pension
Benefit Guaranty Corporation relating to any outstanding controversy or audit. Each
Company Plan complies in all material respects with ERISA, the Code and all
other applicable statutes and governmental rules and regulations. Neither the
Company nor any ERISA Affiliate currently maintains, contributes to or has any
liability under or, at any time during the past six years has maintained or
contributed to, any pension plan which is subject to section 412 of the Code or
section 302 of ERISA or Title IV of ERISA. Neither the Company nor any ERISA
Affiliate currently maintains, contributes to or has any liability under or, at
any time during the past six years has maintained or contributed to, any
Company Multiemployer Plan.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as listed in <u>Section&nbsp;3.16(b)</u>
of the Company Disclosure Schedule, with respect to the Company Plans, to the
Knowledge of the Company, no event or set of circumstances has occurred and
there exists no condition or set of circumstances in connection with which the
Company or ERISA Affiliates or any Company Plan fiduciary (with respect to the
Company Plan) could be subject to any liability for any material violation of
the terms of such Company Plans, ERISA, the Code or any other applicable law. Except
as set forth in <u>Section&nbsp;3.16(b)</u> of the Company Disclosure Schedule,
all Company Plans that are intended by their terms to be, or are otherwise
treated by the Company as qualified under Section&nbsp;401(a) of the Code have
been determined by the IRS to be so qualified, or a timely application for such
determination is now pending and the Company is not aware of any reason why any
such Company Plan is not so qualified in operation. Except as set forth in <u>Section&nbsp;3.16(b)</u>
of the Company Disclosure Schedule, neither the Company nor any ERISA Affiliate
has any liability or obligation under any welfare plan or agreement, within the
meaning of Section 3(1) of ERISA, to provide health, life, disability
insurance, deferred compensation or pension benefits after termination of
employment to any employee or dependent other than as required by
Section&nbsp;4980B of the Code.</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">32</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth in <u>Section&nbsp;3.16(c)</u>
of the Company Disclosure Schedule, neither the Company nor any Subsidiary is a
party to any agreement, contract or arrangement that could result, separately
or in the aggregate, in the payment of any &#147;excess parachute payments&#148; within
the meaning of Section&nbsp;280G of the Code.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>With respect to each
Company Plan, all contributions and payments due on or prior to the Closing
have been or will be timely made.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.17</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Intellectual
Property</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Company owns title
to or possesses adequate licenses or other valid rights to use (including the
right to sublicense to customers, suppliers or others as needed) all of the
Intellectual Property that is necessary for the Business as currently conducted
by the Company (collectively, the &#147;<i>Company
Intellectual Property</i>&#148;). DTI Associates, Inc., a Virginia
corporation and wholly-owned subsidiary of the Company (&#147;<i>DTI Associates</i>&#148;), has joint ownership of
the RM design and data as set forth on <u>Schedule 3.17(a)</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Section&nbsp;3.17(b)</u>
of the Company Disclosure Schedule sets forth all of the Proprietary Assets
owned by the Company or any Subsidiary which have been registered with a
Governmental Entity. The Company has taken adequate steps to prevent the
unauthorized disclosure or use, of confidential information related to the
Proprietary Assets of the Company or any Subsidiary.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Section&nbsp;3.17(c)</u>
of the Company Disclosure Schedule lists each material license or other
agreement with a third party pursuant to which the Company or any Subsidiary
has the right to use the Intellectual Property of such party utilized in
connection with any product of, or service provided by, the Company or any
Subsidiary (the &#147;<i>Company Licenses</i>&#148;).</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth in <u>Section
3.17(d)</u> of the Company Disclosure Schedule, there are no pending or, to the
Knowledge of the Company, threatened interferences, re-examinations,
oppositions or cancellation proceedings involving any patents or patent rights,
trademarks or trademark rights, or applications therefor, of the Company or any
Subsidiary. There are no pending or, to the Knowledge of the Company,
threatened claims or litigation contesting the validity, ownership or right to
use, sell, license or dispose of the Company Intellectual Property.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>There is no breach or
violation by the Company or any Subsidiary under, and to the Knowledge of the
Company, no breach or violation by any other party to any Company License
which, individually or in the aggregate, would have a Material Adverse Effect
on the Company.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>There has been no
unauthorized disclosure or use by employees, consultants, officers, directors
and agents of, and, to the Knowledge of the Company, there has otherwise been
no unauthorized disclosure or use of, confidential information, trade secret
rights, processes and formulas, research and development results and other
know-how of the Company, which in each case could cause a Material Adverse
Effect.</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">33</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth in <u>Section&nbsp;3.17(g)</u>
of the Company Disclosure Schedule, neither the Company nor any Subsidiary has
licensed or otherwise permitted the use by any third party of any proprietary
information or Company Intellectual Property on terms or in a manner which,
individually or in the aggregate, would have a Material Adverse Effect on the
Company.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The conduct of the
Business as conducted in the past, or as currently conducted, did not and does
not infringe upon or conflict with, in any way, any Intellectual Property
rights of any third party.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth in
<u>Section&nbsp;3.17(i)</u> of the Company Disclosure Schedule, to the
Knowledge of the Company, there are no infringements of, or conflicts with, any
Company Intellectual Property.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.18</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Environmental
Matters</u>. To the Knowledge of the Company, the Company is in compliance in
all material respects with all applicable Environmental Laws, which compliance includes
the possession by the Company of all applicable Environmental Permits and other
required authorizations from any Governmental Entity required under applicable
Environmental Laws, and compliance with the terms and conditions thereof. Neither
the Company nor any Subsidiary has received any notice or other communication
(in writing or otherwise), whether from a Governmental Entity, citizens group,
employee or otherwise, that alleges that the Company or any Subsidiary is not
in compliance with the Environmental Law, and, to the Knowledge of the Company,
there are no circumstances that may prevent or interfere with the Company&#146;s or
any Subsidiary&#146;s compliance with any applicable Environmental Law in the future.
Except as set forth in <u>Section&nbsp;3.18</u> of the Company Disclosure
Schedule, there are no environmental assessments or audit reports or other
similar studies or analyses in the possession of or, to the Knowledge of the
Company, available to the Company or any Subsidiary relating to any real
property currently or formerly owned, leased or occupied by the Company or any
Subsidiary.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.19</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Suppliers,
Customers, Distributors and Significant Employees</u>. Except as set forth in <u>Section&nbsp;3.19</u>
of the Company Disclosure Schedule, neither the Company nor any Subsidiary has
received any notice or has any reason to believe that (a)&nbsp;any significant
supplier, including any sole source supplier, will not sell products, supplies,
merchandise and/or other goods to the Company or any Subsidiary at any time
after the Effective Time on terms and conditions substantially similar to those
used in its current sales to the Company or any Subsidiary, subject only to
general and customary price increases; (b)&nbsp;any significant customer of the
Company or any Subsidiary intends to terminate or limit or alter its business
relationship with the Company or any Subsidiary; or (c)&nbsp;any employee of
the Company or any Subsidiary intends to terminate or has terminated such
employee&#146;s employment with the Company or any Subsidiary.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.20</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Contracts</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Section&nbsp;3.20(a)</u>
of the Company Disclosure Schedule contains a list of all active leases and
subleases of Real Estate by the Company or any Subsidiary (collectively, the &#147;<i>Real Estate Leases</i>&#148;). <u>Section&nbsp;3.20(a)</u>
of the Company Disclosure Schedule also contains a list </p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">34</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of all leases
or subleases of personal property which are material to the operation of the
Business as currently conducted by the Company (collectively, the &#147;<i>Personal Property Leases</i>&#148;; the Real Estate
Leases and the Personal Property Leases are hereinafter collectively referred
to as the &#147;Leases&#148;).</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Section&nbsp;3.20(b)</u>
of the Company Disclosure Schedule contains a list of all Set-Aside Contracts
and active contracts to which the Company or any Subsidiary and any
Governmental Entity is a party, and any active contracts pursuant to which the
Company or any Subsidiary acts as a vendor or a subcontractor for a party
having a contract with a Governmental Entity (collectively, the &#147;<i>Government Contracts</i>&#148;). <u>Section&nbsp;3.20(b)</u>
of the Company Disclosure Schedule sets forth which of the Government Contracts
are Section&nbsp;8(a) Contracts and Set-Aside Contracts.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Section&nbsp;3.20(c)</u>
of the Company Disclosure Schedule contains a list of all active teaming
agreements and vendor and supply agreements which are material to the operation
of the Business as currently conducted by the Company or any Subsidiary
(collectively, the &#147;<i>Additional Contracts</i>&#148;)
(the Leases, Governmental Contracts and the Additional Contracts are
collectively referred to herein as the &#147;<i>Material
Contracts</i>&#148;).</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth in <u>Section&nbsp;3.20(d)</u>
of the Company Disclosure Schedule, neither the Company, any Subsidiary, nor,
to the Knowledge of the Company, any other party to any Material Contract is
currently in material violation, breach or default under any such contract or,
with or without notice or lapse of time or both, would be in violation or
breach of or default under any such contract.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth in <u>Section&nbsp;3.20(e)</u>
of the Company Disclosure Schedule, to the Knowledge of the Company, with
respect to the Government Contracts:</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>no Government Contract
was entered into with the anticipation that such contract would result in a
loss upon completion or performance thereof, nor has anything come to the
attention of the Company which would reasonably lead them to believe that there
are any such Government Contracts currently expected to result in any loss;</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Company and each
Subsidiary has made, in a timely and proper fashion, any and all material
claims to which it may be entitled and all appeals necessary to preserve its
rights in connection with all Government Contracts;</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>there are no open
Inquiries, investigations, disputes or Controversies with respect to any
Government Contracts; and</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>neither the Company nor
any Subsidiary has engaged in any collusive bidding, defective pricing,
conflicts of interest, or undisclosed product substitution or improper time or
expense charging or payment of gratuities with respect to any Government
Contract, and all statements, claims and certifications made in connection with
any Government Contract were true, accurate and complete in all material
respects when made.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as to any of
the Material Contracts, neither the Company nor any Subsidiary is a party to or
bound by:</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">35</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any contract for the
purchase, sale or lease of real property;</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any agreement which
provides for, or relates to, the incurrence by the Company or any Subsidiary of
debt for borrowed money (including, without limitation, any interest rate or
foreign currency swap, cap, collar, hedge or insurance agreements, or options
or forwards on such agreements, or other similar agreements for the purpose of
managing the interest rate and/or foreign exchange risk associated with its
financing);</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any non-competition
agreement, exclusive territory, exclusive product, no-hire or non-solicitation
agreement or similar agreement that limits or restricts the Company or any
Subsidiary from carrying on any business;</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any contract or
agreement which provides for a most favored pricing provision or any similar
provision for any customer of the Company or any Subsidiary; and</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any non-disclosure or
similar agreement restricting the Company&#146;s or any Subsidiary&#146;s ability to
disclose any information or data.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth in <u>Section&nbsp;3.20(g)</u>
of the Company Disclosure Schedule, there are no contracts or agreements of the
Company having terms or conditions which would have a Material Adverse Effect
on the Company or that materially impair the ability of the Company to conduct
the Business as currently conducted or would reasonably be expected to
materially impair the Surviving Corporation&#146;s ability to conduct the Business
after the Effective Time.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth in <u>Section&nbsp;3.20(h)</u>
of the Company Disclosure Schedule, each Material Contract constitutes a valid,
binding and enforceable obligation of the Company or any Subsidiary and, to the
Knowledge of the Company, the other parties thereto, enforceable against the
parties in accordance with its respective terms, subject to bankruptcy,
insolvency, reorganization, moratorium or other similar laws related to
creditor&#146;s rights and remedies generally, and is in full force and effect and
are expected to continue in full force and effect after the Effective Time, in
each case, without breaching the terms thereof or resulting in the forfeiture,
termination or impairment of any rights thereunder and without the consent,
approval or act of, or the making of any filing with, any other party. Neither
the Company nor any Subsidiary is in, or is alleged to be in, breach or default
thereunder, nor is there or is there alleged to be any basis for termination
thereof, and, to the Knowledge of the Company, no other party to any such
Material Contract has breached or defaulted thereunder or has acted or failed
to act in any manner that is reasonably likely to result in criminal charges or
claims for material damages being brought against the Company or any
Subsidiary, and, to the Knowledge of the Company, no event or set of
circumstances has occurred and no condition or state of facts or set of
circumstances exists which, with the passage of time or the giving of notice or
both, would constitute such a default or breach by the Company or any
Subsidiary, or by any such other party.</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">36</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.21</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Insurance</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Company together
with its Subsidiaries maintains insurance policies with financially sound
insurance companies or self-insurance programs of such types (including, but
not limited to, products liability, workmen&#146;s compensation and general
liability) and such amounts as, in the reasonable judgment of the Company, are
adequate for the Business and operations of the Company together with its
Subsidiaries as currently conducted (and as conducted heretofore).</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Section&nbsp;3.21</u>
of the Company Disclosure Schedule contains (i)&nbsp;an accurate and complete
list of all such policies and programs of insurance providing coverage for the
Company together with its Subsidiaries, including the name of the insurer, type
of insurance or coverage, policy number, and the amount of coverage and any
retention or deductible of the Company or any Subsidiary, and (ii)&nbsp;a
schedule setting forth the aggregate claims and all individual claims in excess
of Ten Thousand Dollars ($10,000) made under each such policy or program (or
any predecessor policy or program) during the last three (3) years.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>No notice of
cancellation, termination or reduction in coverage has been received by the
Company or any Subsidiary with respect to any policy listed in <u>Section&nbsp;3.21</u>
of the Company Disclosure Schedule. Neither the Company nor any Subsidiary has
been refused any insurance with respect to its assets or operations, nor has
its coverage been limited, by any insurance carrier to which it has applied for
any such insurance or which it has carried insurance during the last three (3)
years.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.22</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Transactions with
Affiliates</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth in <u>Section&nbsp;3.22(a)</u>
of the Company Disclosure Schedule, since December 31, 2006, neither the
Company nor any Subsidiary has, in the ordinary course of business or
otherwise, (i)&nbsp;purchased, leased or otherwise acquired any material
property or assets or obtained any material services from, (ii)&nbsp;sold,
leased or otherwise disposed of any material property or assets or provided any
material services to (except with respect to remuneration for services rendered
in the ordinary course of business as director, officer or employee of the
Company), (iii)&nbsp;entered into or modified in any manner any contract with,
or (iv)&nbsp;borrowed any money from, or made or forgiven any loan or other
advance (other than expenses or similar advances made in the ordinary course of
business) to, any Affiliated Person.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth in <u>Section&nbsp;3.22(b)</u>
of the Company Disclosure Schedule, (i)&nbsp;the contracts of the Company and
its Subsidiaries do not include any material obligation or commitment between
the Company and any Affiliated Person, (ii)&nbsp;the assets of the Company and
its Subsidiaries do not include any receivable or other obligation or
commitment from an Affiliated Person to the Company or any Subsidiary and (iii)&nbsp;the
liabilities of the Company and its Subsidiaries do not include any payable or
other obligation or commitment from the Company to any Affiliated Person.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>To the Knowledge of the
Company and except as set forth in <u>Section&nbsp;3.22(c)</u> of the Company
Disclosure Schedule, no Affiliated Person of the Company is a party to any
contract with any customer or supplier of the Company or any Subsidiary that </p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">37</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">affects in any
material manner the Business, financial condition or results of operation of
the Company.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Section&nbsp;3.22(d)</u>
of the Company Disclosure Schedule sets forth (i)&nbsp;for each officer,
director or employee who is a party to, or will receive benefits under, any
Compensation Agreement as a result of the transactions contemplated herein, the
total amount that each such Person may receive, or is eligible to receive
(excluding any Merger Consideration), assuming that the transactions
contemplated by this Agreement are consummated on the date hereof, and (ii)&nbsp;the
total amount of indebtedness owed to the Company or any Subsidiary from each
officer, director or employee of the Company or any Subsidiary.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.23</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Brokers</u>. Except
as disclosed on <u>Section 3.23</u> of the Company Disclosure Schedule, no
broker, investment banker or other Person is entitled to any broker&#146;s, finder&#146;s
or other similar fee or commission in connection with any of the transactions
contemplated by this Agreement based upon arrangements made by or on behalf of
the Company.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.24</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Government Furnished
Equipment</u>. The Company does not have any equipment or fixtures loaned,
bailed or otherwise furnished to or held by the Company by or on behalf of the
United States or any foreign country.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.25</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Government
Contracting</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth in <u>Section&nbsp;3.25(a)</u>
of the Company Disclosure Schedule, there are (i)&nbsp;no outstanding material
claims against the Company or any Subsidiary, either by any Governmental Entity
or any prime contractor, subcontractor, vendor or other third party arising
under or relating to any Government Contract, and (ii)&nbsp;no disputes between
the Company or any Subsidiary and any Governmental Entity under the Contract
Disputes Act or any other Federal statute or between the Company or any
Subsidiary and any prime contractor, subcontractor or vendor arising under or
relating to any such Government Contract. Except as set forth in <u>Section&nbsp;3.25(a)</u>
of the Company Disclosure Schedule, to the Knowledge of the Company, there are
no facts that could reasonably be expected to result in a claim or dispute
under clause&nbsp;(i) or (ii) of the immediately preceding sentence.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Company has
submitted all required provisional bid labor and indirect rates through fiscal
year 2007, and final indirect rates to the cognizant U.S. Government
administrative contracting officer through fiscal year 2006. All such
submissions are consistent with all government regulations cost accounting
rules and regulations, including but not limited to the Federal Acquisition
Regulations. No material unallowable costs were contained therein.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth in <u>Section&nbsp;3.25(c)</u>
of the Company Disclosure Schedule, neither the Company, any Subsidiary nor, to
the Knowledge of the Company, any of its present employees, consultants or
agents is (or during the last five (5) years has been) suspended or debarred
from doing business with any Governmental Entity or is (or during such period
was) the subject of a finding of non-responsibility or ineligibility for any
Governmental Entity.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth in <u>Section&nbsp;3.25(d)</u>
of the Company Disclosure Schedule, to the Knowledge of the Company, no
statement, representation or warranty made by </p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">38</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Company or any
Subsidiary in any Government Contract, any government bid or any exhibit
thereto or in any certificate, statement, list, schedule or other document
submitted or furnished to any Governmental Entity in connection with any
Government Contract or government bid (i)&nbsp;contained on the date so furnished
or submitted any untrue statement of material fact, or failed to state a
material fact necessary to make the statements contained therein, in light of
the circumstances in which they are made, not misleading, or (ii)&nbsp;contains
any untrue statement of a material fact, or fails to state a material fact
necessary to make the statements contained therein, in light of the
circumstances in which they are made, not misleading, except where, in the case
of both clauses&nbsp;(i) and (ii), any untrue statement or failure to state a
fact would not have a Material Adverse Effect on the Company.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Company together
with its Subsidiaries, in conducting the Business as it relates to government
contracts, is in material compliance with all government accounting principals
and governing regulations, including but not limited to, all laws relating to
government contract recordkeeping. No unidentified unallowable costs exist on
the books and records of the Company.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Company together
with its Subsidiaries has submitted all required labor rate proposals, as well
as all final indirect rate submissions, to the cognizant Defense Contract
Management Agency (DCMA) Administrative Contracting Officer for prior years in
accordance with applicable Federal Acquisition Regulations and there are no
outstanding or unresolved matters with respect thereto.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth on <u>Section&nbsp;3.25(g)</u>
of the Company Disclosure Schedule:&#160;
(i)&nbsp;none of the Company&#146;s or any Subsidiary&#146;s employees,
consultants or agents is (or, to the Knowledge of the Company, during the last
five (5) years has been) under administrative, civil or criminal investigation,
indictment or request for information by any Governmental Authority relating to
the performance of his or her duties to the Company or any Subsidiary;
(ii)&nbsp;there is not pending any audit or investigation of the Company, its
officers, employees or representatives nor, to the Knowledge of the Company,
within the last five (5) years has there been any audit or investigation of the
Company, officers, employees or representatives resulting in a material adverse
finding with respect to any alleged irregularity, misstatement or omission
arising under or relating to any government contract; and (iii)&nbsp;during the
last five (5) years, neither the Company no any Subsidiary has made any
voluntary disclosure to any Governmental Entity with respect to any
misstatements or omissions arising under or relating to any government contract
that has led or is expected to lead, either before or after the Effective Time,
to any of the consequences set forth in clause&nbsp;(i) or (ii) of the
immediately preceding sentence or any other material damage, penalty
assessment, recoupment of payment or disallowance of cost.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.26</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Claims and Invoices</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Neither the Company nor
any Subsidiary has any obligation to refund or otherwise repay the Collected
Amount.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Neither the Company nor
any Subsidiary is liable for, or under obligation to pay, any damages resulting
from delays in the completion of the Milestones.</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">39</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Company has
invoiced the Customer for the Invoice Amount for the completion of the Selected
Milestones (the &#147;<i>Outstanding Invoices</i>&#148;)
and the Outstanding Invoices constitute valid invoices and are good and collectible
in full without right of recourse, defense, deduction or offset.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.27</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Representations and
Warranties</u>. Each of the representations and warranties contained in this <u>Article&nbsp;III</u>
will be true and correct as of the Closing Date, except for (i)&nbsp;changes
therein specifically permitted by this Agreement or resulting from any
transaction expressly consented to in writing by Parent, (ii)&nbsp;any
transaction permitted by <u>Section&nbsp;5.1</u> of this Agreement, and
(iii)&nbsp;for those representations and warranties which address matters only
as of a particular date, in which case, those shall be true and correct as of
such date.</p>

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

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

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">REPRESENTATIONS AND WARRANTIES OF PARENT,
MERGER SUB AND KRATOS</font></b></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Parent, Merger
Sub and Kratos jointly and severally represent and warrant to the Company as
follows:</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Organization,
Standing and Power</u>. Kratos is a corporation duly organized, validly
existing and in good standing under the laws of its place of organization and
has the requisite corporate power and authority to carry on its business as now
being conducted. Parent is a corporation duly organized, validly existing and
in good standing under the laws of its place of organization and has the
requisite corporate power and authority to carry on its business as now being
conducted. Merger Sub is a corporation duly organized, validly existing and in
good standing under the laws of its place of incorporation and has the
requisite corporate power and authority to carry on its business as now being
conducted.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Authority</u>. On
or prior to the date of this Agreement, the respective Boards of Directors of
Kratos, Parent and Merger Sub have declared the Merger advisable and have
approved this Agreement. Each of Kratos, Parent and Merger Sub has all
requisite corporate power and authority to enter into this Agreement, and to
consummate the transactions contemplated hereby. The execution and delivery of
this Agreement by Kratos, Parent and Sub, the execution, and the consummation
by Kratos, Parent and Merger Sub of the transactions contemplated hereby have
been duly authorized by all necessary corporate action on the part of Kratos,
Parent and Sub, subject to the filing of the appropriate Articles of Merger as
required by the IBCL and the Certificate of Merger as required by the DGCL. This
Agreement has been duly executed and delivered by Kratos, Parent and Sub, and
(assuming the valid authorization, execution and delivery of this Agreement by
the Company, and the validity and binding effect hereof on the Company) this
Agreement constitutes the valid and binding obligation of Kratos, Parent and
Merger Sub enforceable against each of them in accordance with its terms,
except insofar as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors&#146;
rights generally, or by principles governing the availability of equitable
remedies.</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Consents and Approvals; No Violation</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Assuming that all consents, approvals, authorizations and other actions
described in clauses&nbsp;(i)&nbsp;through (iii)&nbsp;of the last sentence of
this <u>Section&nbsp;4.3(b)</u> have been obtained or been taken, as applicable,
the execution and delivery of this Agreement does not, and the consummation of
the transactions contemplated hereby and compliance with the provisions hereof
will not, result in any violation of, or default (with or without notice or
lapse of time, or both) under, any provision of (i)&nbsp;the<b>  </b>Certificate of Incorporation or Bylaws of
Kratos, Parent and Merger Sub, each as amended to date, (ii)&nbsp;any agreement
between Kratos, Parent or Merger Sub and the respective shareholders of each or
any note, bond mortgage, indenture, lease or other agreement, instrument,
permit, concession, franchise or license applicable to either Parent, Kratos or
Merger Sub and (iii)&nbsp;any judgment, order, decree, statute, law, ordinance,
rule or regulation applicable to Kratos, Parent or Merger Sub other than, in
the case of clauses (i),&nbsp;(ii) or (iii) of the last sentence of <u>Section&nbsp;4.3(a)</u>,
any such violations or defaults that, individually or in the aggregate, would
not have a Material Adverse Effect on Kratos, Parent or Sub, materially impair
the ability of Kratos, Parent or Merger Sub to perform their respective
obligations hereunder or prevent the consummation of any of the transactions
contemplated hereby.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>No filing or registration with, or authorization, consent or approval
of, any domestic (federal, state and local), foreign or supranational court,
board, department, commission, governmental body, regulatory agency, authority
or tribunal (a &#147;<i>Governmental Entity</i>&#148;)
is required by or with respect to Kratos, Parent or Merger Sub in connection
with the execution and delivery of this Agreement by Kratos, Parent or Sub, or
is necessary for the consummation of the Merger and the other transactions
contemplated by this Agreement, except for:</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the filing of the Articles of Merger with the
Secretary of State of the State of Indiana, the filing of the Certificate of
Merger with the Secretary of State of the State of Delaware, and appropriate
documents with the relevant authorities of other states in which the Company is
qualified to do business,</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>such filings relating to the Registration Statement and under the HSR
Act; and</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>such other consents, orders, authorizations, registrations,
declarations and filings the failure of which to be obtained or made would not,
individually or in the aggregate, have a Material Adverse Effect on Kratos,
Parent or Sub, materially impair the ability of Kratos, Parent or Merger Sub to
perform its obligations hereunder or prevent the consummation of any of the
transactions contemplated hereby.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.4</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Brokers</u>. Any broker, investment banker or other Person that is entitled to any
broker&#146;s, finder&#146;s or other similar fee or commission in connection with the
transactions contemplated by this Agreement based upon arrangements made by or
on behalf of Kratos, Parent or Merger Sub shall be paid by Parent.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.5</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Certificate of Incorporation and Bylaws of
Merger Sub</u>. Merger Sub has
heretofore made available to Company a complete and correct copy of Merger
Sub&#146;s Certificate </p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">41</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of Incorporation and Bylaws,
each as amended to date. Merger Sub&#146;s Certificate of Incorporation and Bylaws
are in full force and effect. Merger Sub is not in violation of any provision
of its Certificate of Incorporation or Bylaws.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.6</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>SEC Documents; Financial Statements</u>. As of their respective filing dates, the
Form 10-K for the fiscal year ended December 31, 2006, the Form 10-Q for the
quarterly period ended March 31, 2007 and the Form 10-Q for the quarterly period
ended June 30, 2007 for Kratos (the &#147;<i>Kratos
SEC Documents</i>&#148;) complied in all material respects with the
requirements of the Securities Act and the Securities Exchange Act of 1934, as
amended, and none of the Kratos SEC Documents contained any untrue statement of
a material fact or omitted to state a material fact required to be stated
therein or necessary to make the statements made therein, in light of the
circumstances in which they were made, not misleading. The financial statements
of Kratos, including the notes thereto included in the Kratos SEC Documents
(the &#147;<i>Kratos Financial Statements</i>&#148;),
complied as to form in all material respects with applicable accounting
requirements and with the published rules and regulations of the SEC with
respect thereto as of their respective dates, and have been prepared in
accordance with generally accepted accounting principles applied on a basis
consistent throughout the periods indicated and consistent with each other. The
Kratos Financial Statements fairly present in all material respects the
consolidated financial condition, operating results and cash flow of Kratos and
its Subsidiaries at the dates and during the periods presented therein
(subject, in the case of unaudited statements, to normal, recurring yearend adjustments).</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.7</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Representations and Warranties</u>. Each of the representations and warranties
contained in this <u>Article&nbsp;IV</u> will be true and correct as of the
Closing Date, except for (A)&nbsp;changes therein specifically permitted by
this Agreement or resulting from any transaction expressly consented to in
writing by the Company and (B)&nbsp;those representations and warranties which
address matters only as of a particular date, in which case, those shall be
true and correct as of such date.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.8</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Financial Capacity</u>. At Closing, Kratos and Parent Group Members
will have sufficient funds available to pay the Aggregate Merger Consideration.</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE V<br>
<br>
COVENANTS RELATING TO CONDUCT OF BUSINESS</font></b></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 5.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Conduct of Business by the Company Pending
the Merger</u>. Except as
expressly permitted herein or as set forth in <u>Section&nbsp;5.1</u> of the
Company Disclosure Schedule, from the Execution Date through the Effective
Time, the Company shall, and cause its Subsidiaries to, carry on the Business
in the ordinary course of its business as currently conducted and, to the
extent consistent therewith, use reasonable best efforts to preserve intact its
current business organizations, keep available the services of its current
officers and employees and preserve its relationships with customers, suppliers
and others having business dealings with it to the end that its goodwill and
ongoing business shall be unimpaired at the Effective Time. Without limiting
the foregoing, and except as otherwise expressly contemplated by this Agreement
or as set forth in <u>Section&nbsp;5.1</u> of the Company Disclosure Schedule
(with specific </p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">42</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">reference to the applicable
subsection below), the Company shall not, nor shall it permit any of its
Subsidiaries to, without the prior written consent of Parent:</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>(i)&nbsp;declare, set aside or pay any dividends on, or make any other
actual, constructive or deemed distributions in respect of, any of its capital
stock, or otherwise make any payments to its shareholders in their capacity as
such, (ii)&nbsp;split, combine or reclassify any of its capital stock or issue
or authorize the issuance of any other securities in respect of, in lieu of or
in substitution for shares of its capital stock or (iii)&nbsp;purchase, redeem
or otherwise acquire any shares of capital stock of the Company or any other
securities thereof or any rights, warrants or options to acquire any such
shares or other securities;</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>issue, deliver, sell, pledge, dispose of or otherwise encumber any
shares of its capital stock, any other voting securities or equity equivalent
or any securities convertible for or exchangeable into, or any rights, warrants
or options to acquire any such shares, voting securities, equity equivalent or
convertible securities, other than the issuance of shares of Company Common
Stock upon the exercise of Company Stock Options outstanding on the date of
this Agreement in accordance with their terms as of the date hereof;</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>create any subsidiary or amend the Company Charter or Company Bylaws or
amend or terminate any Employment Agreement;</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>acquire or agree to acquire by merging or consolidating with, or by
purchasing a substantial portion of the assets of or equity in, or by any other
manner, any business or any corporation, limited liability company,
partnership, association or other business organization or division thereof or
otherwise acquire or agree to acquire any assets other than in the ordinary
course of business consistent with past practice;</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>sell, lease or otherwise dispose of, or agree to sell, lease or
otherwise dispose of, any of its assets other than sales of inventory that are
in the ordinary course of business consistent with past practice;</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>(i)&nbsp;incur any indebtedness for borrowed
money or make any loans, advances or capital contributions to, or other
investments in, any other Person, other than in the ordinary course of business
consistent with past practices or (ii)&nbsp;post any bond or enter into any
letter of credit or other similar arrangement;</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>provide any guarantee, including any performance guarantee or any
guarantee of indebtedness for borrowed money, other than in the ordinary course
of business;</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>alter (through merger, liquidation, reorganization, restructuring or in
any other fashion) the corporate structure or ownership of the Company;</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>enter into or adopt any, amend or terminate
any existing, severance plan, agreement or arrangement or enter into or amend
any Company Plan or employment, retention or consulting agreement or other
similar agreement or arrangement, other than in the ordinary course of
business;</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">43</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>increase the compensation payable or to
become payable to its directors, officers or employees (except for increases in
the ordinary course of business consistent with past practice) or grant any
severance or termination pay to, any director or officer of the Company, or
establish, adopt, enter into, or, except as may be required to comply with
applicable law, amend in any material respect or take action to enhance in any
material respect or accelerate any rights or benefits under, any labor,
collective bargaining, bonus, profit sharing, thrift, compensation, stock
option, restricted stock, pension, retirement, deferred compensation,
employment, termination, severance, retention or other plan, agreement, trust,
fund, policy or arrangement for the benefit of any director, officer or
employee;</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>knowingly violate or knowingly fail to perform any obligation or duty
imposed upon it by any applicable federal, state, local or foreign law, rule,
regulation, guideline or ordinance, or under any order, settlement agreement or
judgment;</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>make any change to accounting policies or
procedures (other than actions required to be taken by generally accepted
accounting principles);</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>prepare or file any Tax Return inconsistent with past practice or, on
any such Tax Return, take any position, make any election, or adopt any method
that is inconsistent with positions taken, elections made or methods used in
preparing or filing similar Tax Returns in prior periods (it being understood
and agreed that Parent shall be permitted to review and comment upon any Tax
Return for a period of at least ten business days prior to its filing);</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>make or rescind any express or deemed tax election related to Taxes or
change any of its methods of reporting income or deductions for Tax purposes;</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>commence any litigation or proceeding with respect to any material Tax
liability or settle or compromise any material Tax liability or commence any
other litigation or proceedings or settle or compromise any other material
claims or litigation;</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>enter into, amend or terminate any agreement or contract with any
customer, supplier, sales representative, agent or distributor other than in
the ordinary course of business; or purchase any real property; or make or
agree to make any new capital expenditure or expenditures except in the
ordinary course of business consistent with past practice;</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(q)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>except in the ordinary course of business consistent with past
practice, enter into or amend any agreement or contract with any other Person
pursuant to which the Company is the licensor or licensee of any Intellectual
Property;</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(r)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>pay, discharge or satisfy any claims, liabilities
or obligations (whether or not absolute, accrued, asserted, contingent or
otherwise), other than the payment, discharge or satisfaction, in the ordinary
course of business consistent with past practice or in accordance with their
terms, of liabilities adequately reflected or reserved against in, the most
recent financial statements (or the notes thereto) of the Company or incurred
in the ordinary course of business consistent with past practice that would not
otherwise have a Material Adverse Effect on the Company; or</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">44</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(s)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>authorize, recommend, propose or announce an intention to do any of the
foregoing, or enter into any contract, agreement, commitment or arrangement to
do any of the foregoing.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 5.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>No Solicitation</u>. The parties hereby agree that the Company
shall not, nor shall it authorize or permit any officer, director, employee,
investment banker, financial advisor, attorney or other advisor or
representative of the Company or any Subsidiary to, directly or indirectly
(i)&nbsp;solicit, initiate, or encourage the submission of, any Purchase
Proposal, (ii)&nbsp;enter into any agreement with respect to or approve or
recommend any Purchase Proposal or (iii)&nbsp;participate in any discussions or
negotiations regarding, or furnish to any Person any information with respect
to the Company or any Subsidiary in connection with, or take any other action
to facilitate any inquiries or the making of any proposal that constitutes, or
may reasonably be expected to lead to, any Purchase Proposal.</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE VI<br>
<br>
ADDITIONAL AGREEMENTS</font></b></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Company Shareholder Approval</u>. Promptly after the Execution Date, the
Company shall call a shareholder meeting for the purpose of voting on this
Agreement and the Merger. The materials provided to the Company&#146;s shareholders
shall be subject to review and approval by Parent and shall include information
regarding the Company, the terms of the Merger and this Agreement.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Access to Information</u>. Subject to currently existing contractual
and legal restrictions applicable to the Company (all of which are disclosed in
<u>Section&nbsp;3.20(a), (b), (c), (d), (e), (g)</u> and <u>(h)</u> of the
Company Disclosure Schedule), the Company shall afford to the accountants,
counsel, financial and other advisors, affiliates and other representatives of
Parent (collectively, &#147;<i>Parent
Representatives</i>&#148;) reasonable access to, and permit them to make such
inspections as they may reasonably require of, during the period from the
Execution Date through the Effective Time, all of its properties, books,
contracts, commitments and records (including engineering records and Tax
Returns and the work papers of independent accountants, if available and
subject to the consent of such independent accountants) and, during such
period, the Company shall (i)&nbsp;make available promptly to Parent all
information concerning its business, properties and personnel as Parent may
reasonably request and (ii)&nbsp;promptly make available to Parent all
personnel of the Company knowledgeable about matters relevant to such
inspections. The Company shall cooperate with Parent and all Parent
Representatives in connection with, and in furtherance of, all of the foregoing
for any reasonable purpose of Parent. All information obtained by Kratos, Parent,
or Merger Sub pursuant to this <u>Section&nbsp;6.2</u> shall be kept
confidential in accordance with the letter dated May 10, 2007 from BB&amp;T
Capital Markets to Kratos relating to the confidentiality of information from
the Company<b>  </b>(the &#147;<i>Confidentiality Agreement</i>&#148;).</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Indemnification of Directors and Officers. </u>From and after the Effective Time, Parent
shall indemnify and hold harmless all officers and directors of the Company to
the same extent and in the same manner such Persons are indemnified as of the
date of this Agreement by the Company pursuant to the IBCL, the Company
Charter, Company Bylaws for acts or omissions occurring following the Effective
Time. The Company may elect to obtain, pay </p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">45</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">for and have in effect at
the Closing a directors&#146; and officers&#146; liability insurance policy covering the
present and former directors and officers of Company (the &#147;<i>Company Indemnified Parties</i>&#148;) for the
period beginning on the Closing and ending upon the final disposition of any
Indemnified Liabilities asserted or made prior to the sixth anniversary of the
Closing (the &#147;<i>Tail Policy</i>&#148;). The
Tail Policy, if any, shall have coverage limits as determined by the Company
and shall indemnify, defend and hold harmless the Company Indemnified Parties
against all losses, costs, damages, liabilities and expenses arising from
claims, demands, actions, causes of action, including reasonable attorneys&#146;
fees and expenses, that are paid in connection with any threatened or actual claim,
action, suit, proceeding or investigation based in whole or in part on or
arising in whole or in part out of or pertaining to the fact that such person
was a director or officer of Company whether pertaining to any matter existing
at or prior to the Closing and whether asserted or claimed prior to, at or
after the Closing (&#147;<i>Indemnified Liabilities</i>&#148;),
including all Indemnified Liabilities based in whole or in part on, or arising
in whole or in part out of, or pertaining to this Agreement, in each case to the
fullest extent permitted under Company&#146;s charter documents in effect
immediately prior to the Closing and under Indiana Law as the same exists or
may hereafter be amended to indemnify its own directors or officers, as the
case may be.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.4</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Notification of Certain Matters</u>. Parent shall use its reasonable best
efforts to give prompt notice to the Company, and the Company shall use its
reasonable best efforts to give prompt notice to Parent, of: (a)&nbsp;the
occurrence, or non-occurrence, of any event or circumstance, the occurrence, or
non-occurrence, of which it is aware and which would be reasonably likely to
cause (i)&nbsp;any representation or warranty contained in this Agreement and
made by it to be untrue or inaccurate in any material respect or (ii)&nbsp;any
covenant, condition or agreement contained in this Agreement and made by it not
to be complied with or satisfied in all material respects, and (b)&nbsp;any
failure of Parent, Sub, or the Company, as the case may be, to comply in a
timely manner with or satisfy any covenant, condition or agreement to be
complied with or satisfied by it hereunder. In addition to, and not in lieu of,
the foregoing, the Company shall use its reasonable best efforts to give prompt
notice to Parent of any change, circumstance or event which would be reasonably
likely to have a Material Adverse Effect on the Company. Notwithstanding the
foregoing, the delivery of any notice pursuant to this <u>Section&nbsp;6.4</u>
shall not limit or otherwise affect in any way the remedies available hereunder
to the party receiving such notice.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.5</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Fees and Expenses</u>. Except as otherwise set forth herein,
whether or not the Merger is consummated, all costs and expenses incurred in
connection with this Agreement and the transactions contemplated hereby, including
the fees and disbursements of counsel, financial advisors and accountants,
shall be paid by the party incurring such costs and expenses.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.6</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Reasonable Best Efforts</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Upon the terms and subject to the conditions set forth in this Agreement,
each of the parties agrees to use reasonable best efforts to take, or cause to
be taken, all actions, and to do, or cause to be done, and to assist and
cooperate with the other parties in doing, all things necessary, proper or
advisable to consummate and make effective, in the most expeditious manner
practicable, the Merger and the other transactions contemplated by this
Agreement, including:&#160; (i)&nbsp;the
obtaining of all necessary actions or non-actions, waivers, consents and </p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">46</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">approvals from all
Governmental Entities and the making of all necessary registrations and filings
(including filings with Governmental Entities) and the taking of all reasonable
steps as may be necessary to obtain an approval or waiver from, or to avoid an
action or proceeding by, any Governmental Entity, (ii)&nbsp;the obtaining of
all necessary consents, approvals or waivers from third parties; <i>provided</i>, <i>however</i>,
that, with respect to <u>Sections 6.6(a)(i</u>) and <u>6.6(a)(ii)</u>, except
for all filing fees related to obtaining any necessary approvals for the Merger
under the HSR Act which fees shall be paid by Parent, Parent shall not have any
obligation to offer or pay any consideration in order to obtain any such
consents, approvals or waivers; <i>provided</i>,
<i>further</i>, <i>however</i>, that, with respect to <u>Sections
6.6(a)(i)</u> and <u>6.6(a)(ii)</u>, the Company shall not offer or pay any
consideration, or make any agreement or understanding affecting the Business or
the assets, properties or liabilities of the Company, in order to obtain any
such consents, approvals or waivers, except with the prior written consent of
Parent which consent shall not be unreasonably withheld or delayed,
(iii)&nbsp;the defending of any lawsuits or other legal proceedings, whether
judicial or administrative, challenging this Agreement, or the consummation of
the transactions contemplated hereby, including seeking to have any stay,
temporary restraining order or preliminary injunction entered by any court or
other Governmental Entity vacated or reversed, and (iv)&nbsp;the execution and
delivery of any additional instruments necessary to consummate the transactions
contemplated by this Agreement. No party to this Agreement shall consent to any
voluntary delay of the consummation of the Merger at the behest of any
Governmental Entity without the consent of the other parties to this Agreement,
which consent shall not be unreasonably withheld.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each party shall use all reasonable best efforts to not take any
action, or enter into any transaction, which would cause any of its
representations or warranties contained in this Agreement to be untrue or
result in a breach of any covenant made by it in this Agreement.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Notwithstanding anything to the contrary contained in this Agreement
(including <u>Section&nbsp;6.6(a)</u> hereof), in connection with any filing or
submission required or action to be taken by either Parent or the Company or
any Governmental Entity to effect the Merger and to consummate the other
transactions contemplated hereby, the Company shall not, without Parent&#146;s prior
written consent, commit to any divestiture transaction, and neither Parent nor
any of its affiliates shall be required to divest or hold separate or otherwise
take or commit to take any action that limits its freedom of action with respect
to, or its ability to retain, the Company or any of the businesses, product
lines or assets of Parent or any of its Subsidiaries, or take any action that
otherwise would have a Material Adverse Effect on Parent or the Company.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.7</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Public Announcements</u>. Prior to the Closing, the Parties will not
issue any press release with respect to the transactions contemplated by this
Agreement or otherwise issue any written public statements with respect to such
transactions without the prior written consent of the other party, except as
may be required by applicable law or regulation, in which case the party making
such disclosure will first provide to the other party the text of the proposed
disclosure, the reasons such disclosure is required and the time and manner in
which the disclosure is intended to be made.</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">47</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.8</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Shareholders&#146; Representative</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Board of Directors of the Company, shall appoint Rollin M. Dick
(the &#147;<i>Shareholders&#146; Representative</i>&#148;)
as the agent and attorney-in-fact for and on behalf of each Previous
Equityholder to:</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>give and receive notices and communications,
organize or assume the defense of claims, agree to, negotiate, or enter into
settlements and compromises of, and demand arbitration and comply with orders
of courts and awards of arbitrators with respect to any claim; and</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>take all other actions specified in this Agreement to be taken by the
Shareholders&#146; Representative and to take all actions necessary or appropriate
in the judgment of the Shareholders&#146; Representative for the accomplishment of
the foregoing.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By accepting any
consideration under this Agreement, each Previous Equityholder shall be deemed
to irrevocably appoint and authorize the Shareholders&#146; Representative to act as
his or her agent hereunder with such powers as are delegated hereunder to the
Shareholders&#146; Representative and to take such other actions necessary or
appropriate in the judgment of the Shareholders&#146; Representative for the accomplishment
of the foregoing. The Shareholders&#146; Representative shall act in the best
interest of the Previous Equityholders as the Shareholders&#146; Representative
shall determine. No bond shall be required of the Shareholders&#146; Representative
and the Shareholders&#146; Representative shall receive no compensation for services
rendered from any of the Company, the Surviving Corporation, Merger Sub or
Parent, it being understood that any expenses of Shareholders&#146; Representative
shall be reimbursed by the Previous Equityholders Pro Rata (first from the
Shareholders&#146; Representative Account as below provided). Notices or
communications to or from the Shareholders&#146; Representative shall constitute
notice to or from any applicable Previous Equityholder. Any decision, act,
consent or instruction of the Shareholders&#146; Representative shall constitute a
decision of all Previous Equityholders and shall be final, binding and
conclusive upon each of the Previous Equityholders and Parent may rely upon any
written decision, act, consent or instruction of the Shareholders&#146;
Representative. Parent is hereby relieved from any liability to any Person for
any acts done by it in accordance with such written decision, act, consent or
instruction of the Shareholders&#146; Representative. The Shareholders&#146;
Representative shall not be held liable for acts done by it in good faith. In
the event that the Shareholders&#146; Representative dies, is disabled or otherwise
becomes unable to serve in such capacity pursuant to this Agreement, the
Previous Equityholders shall elect a Previous Equityholder to serve as the
Shareholders&#146; Representative by majority vote of the Previous Equityholders.
Each Previous Equityholder shall have one (1) vote for each Company Share owned
immediately prior to the Effective Date.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>(i)<font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>At the Closing, Parent shall deposit Two
Hundred Thousand Dollars ($200,000) of the Closing Cash Consideration (the &#147;<i>Shareholders&#146; Representative Account Fund</i>&#148;)
into an interest-bearing account in the name of the Shareholders&#146;
Representative for the benefit of the Previous Equityholders (the &#147;<i>Shareholders&#146; Representative Account</i>&#148;).
Subject to <u>Section 6.9(b)(ii)</u> the Shareholders&#146; Representative Account
Fund shall remain in the Shareholders&#146; Representative Account up to the later
of the Final Release Date or the date that any dispute (if any) between the
Shareholders&#146; Representative and Parent pursuant to this </p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">48</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Agreement has been resolved
(&#147;<i>Shareholders&#146; Representative Fund Release
Date</i>&#148;). Payment of the Shareholders&#146; Representative Account Fund on
the Shareholders&#146; Representative Fund Release Date shall be made on a Pro Rata
basis to the Previous Equityholders.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Notwithstanding any other provision of this Agreement or otherwise, the
Shareholders&#146; Representative is authorized to draw upon the Shareholders&#146;
Representative Account to pay expenses as he deems, in good faith, to be
necessary or appropriate in connection with the defense of Company Indemnity
Claims, or the enforcement on behalf of the Previous Equityholders of their
rights under this Agreement, and such other costs and expenses incurred in
connection with the consummation of any transaction contemplated by this
Agreement.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.9</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Holdback Consideration</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>At the Closing, Parent shall withhold the Cash Holdback Amount and the
Stock Holdback Amount from the Closing Merger Consideration (the &#147;<i>Holdback Consideration</i>&#148;) in order to
(i)&nbsp;fund any reduction in the Aggregate Merger Consideration resulting
from a negative Adjustment Amount, if applicable, and (ii)&nbsp;serve as
security for any Indemnity Payment. The Cash Holdback Amount shall accrue
interest at a rate of prime per annum until distributed in accordance with this
<u>Section 6.9</u>.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Parent shall pay the Holdback Consideration in accordance with the
following:</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>On the next business day after the twelve
(12) month anniversary of the Effective Time (the &#147;<i>First Release Date</i>&#148;), subject to the terms of this
Agreement, Parent shall (A) pay each Non-Qualified Shareholder that has
surrendered Certificates for cancellation and has received therefor the Common
Stock Closing Consideration in accordance with the terms of this Agreement,
cash equal to his or her NQSH Pro Rata portion of an amount equal to fifty
percent (50%) of the sum of the Cash Holdback Amount <i><u style="font-style:italic;">less</u></i> (a) the Cash Holdback
Consideration Percentage of any Indemnity Payments resolved prior to the First
Release Date and (b) the Cash Holdback Consideration Percentage of any
Unresolved Amount pursuant to <u>Section 6.9(e)</u> and (B) issue to each
Qualified Shareholder that has surrendered Certificates for cancellation and
has received therefor the Common Stock Closing Consideration in accordance with
the terms of this Agreement, the number of shares of Kratos Common Stock equal
to (1) his or her QSH Pro Rata portion of an amount equal to fifty percent
(50%) of the sum of the Stock Holdback Amount <i><u style="font-style:italic;">less</u></i> (a) the Stock Holdback Consideration Percentage of
any Indemnity Payments resolved prior to the First Release Date and (b) the
Stock Holdback Consideration Percentage of any Unresolved Amount pursuant to <u>Section
6.9(e)</u>, divided by (2) the Kratos Stock Price.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>On the next business day after the twenty-one (21) month anniversary of
the Effective Time (the &#147;<i>Final Release Date</i>&#148;),
subject to the terms of this Agreement, Parent shall (A) pay each Non-Qualified
Shareholder that has surrendered Certificates for cancellation and has received
therefor the Common Stock Closing Consideration in accordance with the terms of
this Agreement, cash equal to his or her NQSH Pro Rata portion of the remaining
amount of the Cash Holdback Amount <i><u style="font-style:italic;">less</u></i>
the Cash Holdback Consideration </p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">49</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Percentage of any Unresolved
Amount pursuant to <u>Section 6.9(e)</u> and (B) issue to each Qualified
Shareholder that has surrendered Certificates for cancellation and has received
therefor the Common Stock Closing Consideration in accordance with the terms of
this Agreement, the number of shares of Kratos Common Stock equal to (1) his or
her QSH Pro Rata portion of the remaining amount of the Stock Holdback Amount <i><u style="font-style:italic;">less</u></i> the Stock Holdback Consideration
Percentage of any Unresolved Amount pursuant to <u>Section 6.9(e)</u>, divided
by (2) the Kratos Stock Price.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Parent shall be entitled to deduct and withhold from the consideration
otherwise payable pursuant to this <u>Section&nbsp;6.9</u> such amounts as
Parent is required to deduct and withhold with respect to the making of such
payment under the Code or under any provisions of state, local or foreign tax
law. To the extent that amounts are so withheld by Parent, such withheld
amounts shall be treated for all purposes of this Agreement as having been paid
to the Previous Equityholders in respect of which such deduction or withholding
was made by Parent. Notwithstanding any other provision of this Agreement or
otherwise, the Previous Equityholders shall be responsible for any and all
Taxes imposed upon them in respect of the consideration they receive in respect
thereof.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Subject to the terms of <u>Sections 6.9(f) and 6.9(g)</u>, during the
Survival Period, if in accordance with <u>Section&nbsp;6.10(a)</u> below, and
subject to <u>Section&nbsp;6.9(d)</u> below, Parent is entitled to receive an
Indemnity Payment, and, if there shall be any remaining Holdback Consideration
being held by Parent, Parent shall (A) deduct from the Cash Holdback Amount the
applicable amount of the Company Indemnity Claim multiplied by the Cash
Holdback Consideration Percentage and (B) deduct from the Stock Holdback Amount
the applicable amount of the Company Indemnity Claim multiplied by the Stock
Holdback Consideration Percentage. Any amounts deducted by Parent from the
Holdback Consideration in accordance with this Agreement or amounts withheld
pursuant to clause&nbsp;(e) below shall be free and clear of any legal or equitable
claim asserted by the Shareholders&#146; Representative or any Previous Equityholder
or any of their respective affiliates, successors, heirs, spouses, executors,
administrators or legal representatives, including any common law or other
right of offset.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Notwithstanding the foregoing, no Indemnity Payment shall be paid until
the aggregate amount of all Indemnity Payments exceeds Two Hundred Fifty
Thousand Dollars ($250,000) (the &#147;<i>Deductible</i>&#148;),
after which Parent shall be entitled to receive from the Holdback
Consideration, the aggregate amount of all Indemnity Payments less the
Deductible, provided further that the aggregate Indemnity Payments to Parent
Group Members shall not exceed ten percent (10%) of the Purchase Price (the &#147;<i>Indemnity Cap</i>&#148;); <i>provided, however</i>, that in no event shall
there be any liability beyond the remaining Holdback Consideration at any time.
The Deductible and the Indemnity Cap shall not apply to any Company Indemnity
Claim or Indemnity Payments resulting from any Damages arising from any
Previous Equityholder&#146;s or Company&#146;s fraudulent conduct or intentional
misrepresentations or any willful breach of the Agreement.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If at the time payment is required to be made to the Previous
Equityholders in respect of the Holdback Consideration, any Claim Notice (as
defined below) given by Parent remains unresolved, Parent shall reduce the
amount of such payment by the maximum aggregate amount of exposure of Company
Indemnity Amount of Parent for all </p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">50</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">matters reflected in all
such unresolved Claim Notices (the &#147;<i>Unresolved
Amount</i>&#148;), pending final determination of such matters. To the extent
it is finally determined that Parent was not entitled to deduction of such
amounts, Parent shall promptly pay to the Previous Equityholders the
appropriate portion of the payments in respect of the Holdback Consideration.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>(i)<font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In
order to be entitled to receive any Indemnity Payment, Parent shall, during the
Survival Period, give the Shareholders&#146; Representative a notice (a &#147;<i>Claim Notice</i>&#148;) describing in reasonable
detail the facts giving rise to any Company Indemnity Claim (such as the
identity of the parties and the general nature of the claim) to the extent
reasonably practicable and shall include in such Claim Notice (if then known)
the amount or the method of computation of the amount of such matter, and a
reference to the provision of this Agreement or any other agreement, document
or instrument executed hereunder or in connection herewith upon which such
matter is based; <i>provided</i>, <i>however</i>, that (A)&nbsp;a Claim Notice in
respect of any action at law or suit in equity by or against a third Person as
to which an Indemnity Payment will be sought shall be given promptly after the
action or suit is commenced; and (B)&nbsp;failure to give such notice shall not
limit Parent&#146;s entitlement to an Indemnity Payment hereunder except to the
extent the Previous Equityholders shall have been prejudiced by such failure.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>After the giving of any Claim Notice pursuant hereto, the Shareholders&#146;
Representative shall have a period of thirty (30) days within which to respond
to the Claim Notice by providing a written notice to Parent. If the
Shareholders&#146; Representative does not respond in writing within such 30-day
period, the Shareholders&#146; Representative shall be deemed to have irrevocably
accepted the Claim Notice for an Indemnity Payment and shall have no further
right to contest such Claim Notice. If the Shareholders&#146; Representative does
respond within such 30-day period and rejects such Claim Notice in whole or in
part, the amount of the Indemnity Payment, if any, shall be determined:
(A)&nbsp;by the written agreement between Parent and the Shareholders&#146;
Representative; (B)&nbsp;by a final judgment or decree of an arbitrator or any
court of competent jurisdiction (as permitted hereby); or (C)&nbsp;by any other
means to which Parent and the Shareholders&#146; Representative shall agree. Any
part of any Indemnity Payment not rejected by the Shareholders&#146; Representative
shall be deducted from the Holdback Consideration. The judgment or decree of an
arbitrator or a court shall be deemed final when the time for appeal, if any,
shall have expired and no appeal shall have been taken or when all appeals
taken shall have been finally determined.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>(i)<font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In the event Parent becomes aware of any
claim, action or suit referred to in this <u>Section 6.9</u> (a &#147;<i>Third-Party Claim</i>&#148;), Parent shall promptly
provide a Claim Notice to the Shareholders&#146; Representative with respect to such
Third-Party Claim. The Shareholders&#146; Representative, at the Shareholders&#146;
Representative&#146;s sole cost and expense, has the right, exercisable by written
notice to Parent within thirty (30) days after receipt of a Claim Notice from
Parent with respect to a Third-Party Claim, to be represented by counsel of its
choice and reasonably acceptable to Parent and to assume, control, defend
against, negotiate and otherwise deal with any proceeding, claim, or demand
which relates to any such Third-Party Claim in accordance with the limits set
forth in this Agreement.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Parent may participate in the defense of any Third-Party Claim that the
Shareholders&#146; Representative is defending as provided in this <u>Section 6.9(g)</u>
with counsel of Parent&#146;s choice and at its expense. If the Shareholders&#146;
Representative does not assume the </p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">51</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">defense of a Third-Party
Claim in accordance with this <u>Section 6.9(g)</u>, Parent shall have the
right to control such defense. If the Shareholders&#146; Representative has assumed
the defense of a Third-Party Claim as provided in this <u>Section 6.9(g)</u>,
the Shareholders&#146; Representative will not be liable for any legal expenses
subsequently incurred by Parent in connection with the defense of the
Third-Party Claim; <i>provided</i>, <i>however</i>, that if the Shareholders&#146;
Representative fails to take reasonable steps necessary to defend diligently
such Third-Party Claim or abandons the defense of such Third-Party Claim,
Parent may assume its own defense and the Shareholders&#146; Representative will be
liable for all reasonable costs or expenses paid or incurred in connection with
such defense. The party controlling the defense of such Third-Party Claim shall
keep the other party advised of the status of such Third-Party Claim and the
defense thereof and shall consider in good faith the recommendations made by
the other party with respect thereto.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Neither Parent nor the Shareholders&#146; Representative shall have the
right to settle any Third-Party Claim without the consent of the other Party,
which consent shall not be unreasonably withheld or delayed; <i>provided</i>, <i>however</i>,
that the consent of Parent shall not be required if (1) any amounts payable
pursuant to such settlement or compromise do not exceed aggregate value of the
Holdback Consideration less any Unresolved Amount (or if the Shareholders&#146;
Representative agrees to pay any excess amount) and (2) such settlement is
solely for money damages, includes a complete written release of Parent and the
Surviving Corporation from all liability with respect to such Third-Party Claim
and does not impose any injunctive or equitable relief or other operational
restrictions on Parent or the Surviving Corporation. Except to the extent
provided in the preceding sentence, no settlement of any such Third-Party Claim
shall be determinative of the amount of any claim against the Shareholders&#146;
Representative or the Holdback Consideration.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Parties agree to cooperate fully with each other in connection with
the defense, negotiation or settlement of any such legal proceeding, claim or
demand. In the event that the Shareholders&#146; Representative has consented to
settlement of a Third-Party Claim pursuant to the provisions of this <u>Section
6.9(g)</u>, the Shareholders&#146; Representative shall have the power or authority
to object to the amount of any claim by Parent against the Holdback
Consideration or the Shareholders&#146; Representative in the amount of such
settlement.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.10</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Indemnification of Parties</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Indemnification by Company</u>. Each Parent Group Member shall be entitled
to be indemnified from any and all of the Damages related to any Company
Indemnity Claim in accordance with the provisions set forth in <u>Section&nbsp;6.9</u>
and <u>Section&nbsp;6.10</u> hereof.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Indemnification by Parent</u>. Parent, Kratos, and Merger Sub agree to
indemnify, defend and hold harmless the Company and each of its Shareholders,
directors, officers, agents and employees from and against any and all Damages
based upon, arising out of, or otherwise in respect of, which may be incurred
by virtue of or result from: (i)&nbsp;the inaccuracy in or breach of any
representation, warranty, covenant or agreement made by or on behalf of Parent,
Kratos or Merger Sub in this Agreement (including all schedules and exhibits
hereto) or in any certificate delivered by or on behalf of Parent, Kratos or
Merger Sub pursuant hereto; or (ii)&nbsp;enforcing the indemnification provided
for hereunder.</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">52</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>No Contribution</u>. The Previous Equityholders shall not have
and shall not exercise or assert (or attempt to exercise or assert), any right
of contribution, right of indemnity or other right or remedy against the
Surviving Corporation or any Affiliated Person of the Surviving Corporation in
connection with any indemnification obligation or any other liability to which
such shareholder may become subject under or in connection with this Agreement.
Notwithstanding the foregoing, the rights of any Company Indemnified Parties
under the Tail Policy shall not be impaired by the provisions of this Section&nbsp;6.10(c).</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Exclusive Remedy</u>. The parties hereto acknowledge and agree
that the provisions of this <u>Article&nbsp;VI</u> with respect to
indemnification shall be the exclusive remedy for Kratos and Parent Group
Members from and after the Closing Date.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.11</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Resignations</u>. On the Closing Date, the Company shall
cause to be delivered to Parent duly signed resignations from the members of
the Company&#146;s board of directors and, as contemplated by this Agreement, the
applicable officers of the Company, effective immediately after the Closing and
shall take such other action as is necessary to accomplish the foregoing.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.12</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Guarantee of Kratos</u>. Kratos hereby guarantees the payment by
Parent of any amounts payable by Parent pursuant to the Merger or otherwise
pursuant to this Agreement and will cause Parent to perform all of its other
obligations under this Agreement (including, without limitation, the payment of
the Purchase Price) in accordance with its terms.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.13</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Tax Matters</u>. The parties hereto agree that, to the maximum extent permitted under
Treasury Regulation 1.1502-76 and other existing guidance, costs arising on the
Closing Date or in connection with the Closing are deductible in the Company&#146;s
final tax return.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.14</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Registration Statement</u>. Subject to the terms hereof, with respect
to any Registration Statement prepared and filed by Parent in accordance with <u>Section
2.11</u>, Parent shall (i) prepare and file the Registration Statements with
the SEC for the resale of the shares of Kratos Common Stock issuable to the
Qualified Shareholders pursuant to this Agreement, (ii) cause such Registration
Statement(s) to be declared effective under the Securities Act of 1933, as
amended, and (iii) apply for additional listing on the Nasdaq Global Select
Market of the Kratos Common Stock issuable to the Qualified Shareholders
pursuant to this Agreement. The Qualified Shareholders shall provide promptly
to Parent such information as may be required or appropriate for inclusion in
the Registration Statement, or in any amendments or supplements thereto. Parent
shall have no obligation to cause the Registration Statement to be declared
effective by the SEC if the Qualified Shareholders fail to comply with the
information and cooperation obligations set forth in this <u>Section 6.14</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.15</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Continuing Employees</u>. Employees of the Company who continue
employment with the Surviving Corporation or Kratos or Parent (&#147;<i>Continuing Employees</i>&#148;) following the
Closing shall receive salary and benefits which in the aggregate are comparable
to the salary and benefits received immediately prior to Closing from the
Company or to the salary and benefits received by similarly situated employees
of Kratos or Parent.&nbsp;&nbsp; Continuing Employees shall receive past service
credit for their service with the Company and any Affiliate Person of the
Company (including for periods prior to the Company&#146;s acquisition of the </p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">53</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Affiliated Person) for
purposes of eligibility, vesting and (except for a defined benefit plan)
accrual of benefits under any employee benefit plan of Surviving Corporation,
Kratos or Parent under which they are eligible to participate on or after
Closing.&nbsp; In the event Continuing Employees become eligible under any group
health plan of Kratos or Parent following Closing, such Continuing
Employees&nbsp;shall receive credit for any co-payments, deductibles or other
out-of-pocket expenses paid under a group health plan of the Company or
Surviving Corporation for the year in which the change occurred.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.16</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Discounted Engagements</u>. In the event that Parent incurs any loss
relating to a Discounted Engagement during the Survival Period, Parent shall be
entitled to deduct the lesser of (i) fifteen percent (15%) of the revenue on
such Discounted Engagement or (ii) the negative gross margin on such Discounted
Engagement, up to an aggregate amount of One Hundred Fifty Thousand Dollars
($150,000) (the &#147;<i>Discounted Loss Amount</i>&#148;)
from the Holdback Consideration by (A) reducing the Cash Holdback Amount by the
product of (x) the Discounted Loss Amount and (y) the Cash Holdback
Consideration Percentage and (B) reducing the Stock Holdback Amount by the
product of (x) the Discounted Loss Amount and (y) the Stock Holdback
Consideration Percentage.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.17</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Assistance with Financing</u>. The Company agrees to reasonably assist
Kratos, Parent and Merger Sub in timely obtaining the financing contemplated by
the commitment letter, dated as of October 26, 2007, in connection therewith
(the &#147;<i>Financing</i>&#148;), including,
without limitation, by (A) assisting in the preparation of offering circulars,
confidential information memoranda and rating agency presentations with respect
to the Financing, as applicable, (B) delivering such Financial and statistical
information and projections relating to the Company and the Company
Subsidiaries as may be reasonably requested in connection with the Financing,
(C) arranging for the Company&#146;s independent accountants, lawyers and
consultants to provide such services that may be reasonably required in respect
of the financing (including the preparation of financial statements, pro forma
financial statements and comfort letters, in each case in compliance with
requirements for financings of this sort and otherwise satisfactory to the
lenders), (D) making appropriate officers of the Company available for due
diligence meetings and for participation in meetings with rating agencies and
prospective lenders, (E) providing timely access to diligence materials and
appropriate personnel to allow lenders and their representatives to complete
all appropriate diligence, (F) obtaining reliance letters addressed to the
agents and lenders in respect of the Financing providing for the right of such
agents and lenders to rely on any legal opinions, solvency opinions or fairness
opinions delivered to Kratos, Parent and/or Merger Sub in connection herewith,
and (G) providing assistance with respect to the review and granting of
security interests in collateral for the financing, and obtaining any consents
associated therewith (including prefiling of UCC financing statements which is
hereby authorized).</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE VII<br>
<br>
CONDITIONS PRECEDENT TO THE MERGER</font></b></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Conditions to Each Party&#146;s Obligation to
Effect the Merger</u>. The
respective obligations of each party to effect the Merger shall be subject to
the fulfillment at or prior to the Effective Time of the following conditions:</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">54</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Shareholder Approval</u>. This Agreement shall have been duly approved
by the requisite vote of the Shareholders in accordance with applicable law and
the Company Charter and Company Bylaws.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Approvals</u>. All authorizations, consents, orders, declarations or approvals of,
or filings with, or terminations or expirations of waiting periods imposed by,
any Governmental Entity that are necessary to effect the Merger or any of the
transactions contemplated hereby shall have been obtained, shall have been made
or shall have occurred.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>No Order</u>. No court or other Governmental Entity having jurisdiction over the
Company or Parent, or any of Parent&#146;s Subsidiaries, shall have enacted, issued,
promulgated, enforced or entered any law, rule, regulation, executive order,
decree, injunction or other order (whether temporary, preliminary or permanent)
which is then in effect and has the effect of making the Merger or any of the
transactions contemplated hereby illegal.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Nasdaq Listing</u>. The shares of Kratos Common Stock issuable
to the Qualified Shareholders pursuant to the terms of this Agreement, and such
other shares required to be reserved for issuance in connection with the
Merger, shall have been authorized for listing on the Nasdaq Global Select
Market upon official notice of issuance.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Conditions to Obligation of the Company to
Effect the Merger</u>. The
obligation of the Company to effect the Merger shall be subject to the
fulfillment at or prior to the Effective Time of the following additional
conditions:</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Performance of Obligations; Representations
and Warranties</u>. Each of
Parent, Merger Sub and Kratos shall have performed in all material respects
each of its agreements contained in this Agreement required to be performed on
or prior to the Effective Time, each of the representations and warranties of
Parent, Merger Sub and Kratos contained in this Agreement that is qualified by
materiality shall be true and correct on and as of the Effective Time as if
made on and as of such date (other than representations and warranties which
address matters only as of a certain date which shall be true and correct as of
such certain date) and each of the representations and warranties that is not
so qualified shall be true and correct in all material respects on and as of
the Effective Time as if made on and as of such date (other than
representations and warranties which address matters only as of a certain date
which shall be true and correct in all material respects as of such certain
date), in each case except as contemplated or permitted by this Agreement, and
the Company shall have received certificates signed on behalf of each of
Parent, Merger Sub and Kratos by its Chief Executive Officer and Chief
Financial Officer to such effect.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Opinion</u>. Parent shall deliver to the Company an opinion of counsel to Parent
and Merger Sub in the form of <u>Exhibit&nbsp;D.</u></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Material Adverse Change</u>. Since the date of this Agreement, there
shall have been no Material Adverse Change with respect to Parent, Merger Sub
or Kratos. The Company shall have received a certificate signed on behalf of
each of Parent, Merger Sub and Kratos by its Chief Executive Officer and Chief
Financial Officer to such effect.</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">55</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Conditions to Obligations of Parent and
Merger Sub to Effect the Merger</u>.
The obligations of Parent and Merger Sub to effect the Merger shall be subject
to the fulfillment at or prior to the Effective Time of the following
additional conditions:</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Performance of Obligations; Representations
and Warranties</u>. The Company
shall have performed in all material respects each of its agreements contained
in this Agreement required to be performed on or prior to the Effective Time,
each of the representations and warranties of the Company contained in this
Agreement that is qualified by materiality shall be true and correct on and as
of the Effective Time as if made on and as of such date (other than
representations and warranties which address matters only as of a certain date
which shall be true and correct as of such certain date) and each of the
representations and warranties that is not so qualified shall be true and
correct in all material respects on and as of the Effective Time as if made on
and as of such date (other than representations and warranties which address
matters only as of a certain date which shall be true and correct in all
material respects as of such certain date), in each case except as permitted by
this Agreement, and Parent shall have received a certificate signed on behalf
of the Company by its Chief Executive Officer and its Chief Financial Officer
to such effect.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Consents</u>.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Company shall have obtained the consent
or approval of (x)&nbsp;each Person or Governmental Entity listed on <u>Schedule
7.3(b)</u> and (y) each Person or Governmental Entity whose consent or approval
shall be required in connection with the transactions contemplated hereby under
any loan or credit agreement, note, mortgage, indenture, lease or other
agreement (including any Company Agreement) or instrument, except as to which
the failure to obtain such consents and approvals would not, in the reasonable
opinion of Parent, individually or in the aggregate, have a Material Adverse
Effect on the Company or Parent or upon the consummation of the transactions
contemplated in this Agreement.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In obtaining any approval or consent required to consummate any of the
transactions contemplated herein, no Governmental Entity shall have imposed or
shall have sought to impose any condition, penalty or requirement which, in the
reasonable opinion of Parent, individually or in aggregate would have a
Material Adverse Effect on the Company or Parent.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Material Adverse Change</u>. Since the date of this Agreement, there
shall have been no Material Adverse Change with respect to the Company. Parent
shall have received a certificate signed on behalf of the Company by the Chief
Executive Officer and the Chief Financial Officer of the Company to such
effect.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Company Stock Options</u>. All stock options granted under the Company
Stock Option Plan shall have been exercised or cancelled prior to the Effective
Time.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Dissenting Shares</u>. Holders of not more than seven percent (7%)
of the outstanding shares of the Company Common Stock at the Closing Date shall
have properly exercised and not revoked their rights to dissent to the Merger
under Chapter 44 of the IBCL.</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">56</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Opinion</u>. The Company shall deliver to Parent and Merger Sub an opinion of
counsel to the Company in the form of <u>Exhibit E</u>.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Non-competition and Non-interference
Agreement</u>. The execution and
delivery by Rollin M. Dick and Stephen C. Hilbert of a non-competition and
non-interference agreement with Parent in the form attached hereto as <u>Exhibit&nbsp;F</u>
(the &#147;<i>Non-Competition Agreement</i>&#148;),
pursuant to which such Persons agree not to compete or interfere with the
business of the Company or Parent for a period of three (3) years from the
Closing.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Parent Employment Agreement</u>. The execution and delivery by Howard W.
Bates of employment agreements with Parent in the form attached hereto as <u>Exhibit&nbsp;G</u>
(the &#147;<i>Parent Employment Agreement</i>&#148;).</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Resignations</u>. The Company shall deliver to Parent and
Merger Sub the resignations pursuant to <u>Section&nbsp;6.11</u>.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Schedules</u>. The Company shall have delivered the Closing Cash Schedule, the
Closing Indebtedness Schedule, the Closing Capital Lease Obligations Schedule
and <u>Schedule 2.9(a)</u> to Parent two (2) business days prior to the
Effective Time and such schedules shall be complete and accurate as of the
Effective Time.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>FIRPTA Certificate</u>. The delivery by the Company of a
certificate, signed by the Company under penalties of perjury, substantially in
the form attached hereto as <u>Exhibit H</u> (the &#147;<i>FIRPTA Certificate</i>&#148;).</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE VIII<br>
<br>
TERMINATION, AMENDMENT AND WAIVER</font></b></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 8.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Termination</u>. This Agreement may be terminated at any time prior to the Effective
Time, whether before or after any approval of the matters presented in
connection with the Merger by the Shareholders:</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>by mutual written consent of Parent and the Company;</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>by Parent if (i)&nbsp;any representation or warranty of the Company
contained in this Agreement shall be materially inaccurate or shall have been
breached in any material respect as of the date of this Agreement, or shall
have become materially inaccurate or shall be breached in any material respect
as of a date subsequent to the date of this Agreement (as if made on such
subsequent date) (it being understood that, for purposes of determining the
accuracy of such representations and warranties as of the date of this
Agreement or as of any subsequent date, (A)&nbsp;all materiality qualifications
and similar qualifications contained or incorporated directly or indirectly in
such representations and warranties shall be disregarded, and (B)&nbsp;any update
of or modification to the Company Disclosure Schedule made or purported to have
been made after the date of this Agreement shall be disregarded) or
(ii)&nbsp;any of the covenants or obligations of the Company contained in this
Agreement shall have been breached in any material respect; <i>provided</i>, <i>however</i>,
that if an inaccuracy in or breach of any representation or warranty of the
Company as of a date subsequent to the date of this Agreement or a breach of a </p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">57</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">covenant or obligation by
the Company is curable by the Company through the use of commercially
reasonable efforts during the ten (10) business day period commencing on the
date Parent notifies the Company in writing of the existence of such inaccuracy
or breach, then Parent may terminate this Agreement under this <u>Section&nbsp;8.1(b)</u>
as a result of such inaccuracy or breach only after the expiration of such ten
(10) business day period, provided the Company continues to exercise
commercially reasonable efforts to cure such inaccuracy or breach during such
ten (10) business day period;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>by the Company if (i)&nbsp;any representation or warranty of Parent,
Merger Sub and Kratos contained in this Agreement shall be materially
inaccurate or shall have been breached in any material respect as of the date
of this Agreement, or shall have become materially inaccurate or shall be
breached in any material respect as of a date subsequent to the date of this
Agreement (as if made on such subsequent date) (it being understood that, for
purposes of determining the accuracy of such representations and warranties as
of the date of this Agreement or as of any subsequent date, all materiality
qualifications and similar qualifications contained or incorporated directly or
indirectly in such representations and warranties shall be disregarded) or
(ii)&nbsp;any of the covenants or obligations of Parent, Merger Sub and Kratos
contained in this Agreement shall have been breached in any material respect; <i>provided</i>, <i>however</i>,
that if an inaccuracy in or breach of any representation or warranty of Parent,
Merger Sub and Kratos as of a date subsequent to the date of this Agreement or
a breach of a covenant or obligation by Parent, Merger Sub and Kratos is
curable by Parent through the use of commercially reasonable efforts during the
ten (10) business day period commencing on the date the Company notifies Parent
in writing of the existence of such inaccuracy or breach, then the Company may
terminate this Agreement under this <u>Section&nbsp;8.1(c)</u> as a result of
such inaccuracy or breach only after the expiration of such ten (10) business
day period, provided Parent, Merger Sub or Kratos, as the case may be,
continues to exercise commercially reasonable efforts to cure such inaccuracy
or breach during such ten (10) business day period; or</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>by either Parent or the Company if the Merger has not been effected on
or prior to the close of business on December 31, 2007; <i>provided</i>, <i>however</i>,
that the right to terminate this Agreement pursuant to this <u>Section&nbsp;8.1(d)</u>
shall not be available to any party (A) whose failure to fulfill any of its
obligations contained in this Agreement has been the cause of, resulted in, or
contributed to, the failure of the Merger to have occurred on or prior to the
aforesaid date or (B) who has failed to comply in all material respects with
any of its covenants or agreements contained in this Agreement, which failure
to comply has not been cured, or (iii) by either Parent or the Company if any
court or other Governmental Entity having jurisdiction over a party hereto
shall have issued an order, decree or ruling or taken any other action
permanently enjoining, restraining or otherwise prohibiting the transactions
contemplated by this Agreement and such order, decree, ruling or other action
shall have become final and nonappealable.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 8.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Effect of Termination</u>. In the event of termination of this
Agreement by either Parent or the Company, as provided in <u>Section&nbsp;8.1</u>,
this Agreement shall forthwith become void and there shall be no liability
hereunder on the part of the Company, Parent, Merger Sub or their respective
officers or directors (except for the last sentence of <u>Section&nbsp;6.2</u>,
<u>Section 6.9(d)</u> and the entirety of <u>Section&nbsp;6.5</u>, which shall
survive the termination); <i>provided</i>,
<i>however</i>, that nothing contained
in this <u>Section&nbsp;8.2</u> shall relieve any party hereto from any
liability for any </p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">58</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">breach of a representation
or warranty contained in this Agreement or the breach of any covenant contained
in this Agreement.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 8.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Amendment</u>. This Agreement may be modified or amended by the parties hereto, by
or pursuant to action taken by their respective Boards of Directors, in the
case of Merger Sub or the Company, or Parent, at any time before or after approval
of the matters presented in connection with the Merger by the Shareholders,
but, after any such approval, no modification or amendment shall be made which
by law requires further approval by such Shareholders without such further
approval; <i>provided</i>, <i>however</i>, that no modification or amendment
of this Agreement or of any provision of this Agreement shall be valid or
enforceable unless in writing duly executed by each of the parties hereto; <i>provided</i>, <i>further</i>,
<i>however</i>, that the Company
acknowledges and agrees that only the President of Parent shall be able to bind
Parent hereunder with respect to any modification or amendment of this
Agreement.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 8.4</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Waiver</u>. At any time prior to the Effective Time, the parties hereto may
(i)&nbsp;extend the time for the performance of any of the obligations or other
acts of the other parties hereto, (ii)&nbsp;waive any inaccuracies in the
representations and warranties contained herein or in any document delivered
pursuant hereto and (iii)&nbsp;waive compliance with any of the agreements or
conditions contained herein which may legally be waived. Any agreement on the
part of a party hereto to any such extension or waiver shall be valid only if
set forth in an instrument in writing signed on behalf of such party; <i>provided</i>, <i>however</i>,
that the Company acknowledges and agrees that only Parent shall be able to bind
Parent hereunder with respect to any extension or waiver of the agreements,
obligations, terms or conditions of this Agreement. No failure of any party to
exercise any power given such party hereunder or to insist upon strict
compliance by any party with its obligations hereunder, and no custom or
practice of the parties in variance with the terms hereof, shall constitute a
waiver of that party&#146;s right to demand exact compliance with the terms hereof.
Any waiver shall not obligate that party to agree to any further or subsequent
waiver or affect the validity of the provision relating to any such waiver.</p>

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

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

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

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

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Notices</u>. All notices, consents, approvals, requests and other communications
hereunder shall be in writing and shall be deemed given when delivered
personally, one day after being delivered to an overnight courier or when
telecopied (with a confirmatory copy sent by overnight courier) to the parties
at the following addresses (or at such other address for a party as shall be
specified by like notice):</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">If to Parent, Merger Sub, or the Surviving Corporation, to</font></i>:</p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Kratos Government Solutions,
Inc.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4810 Eastgate Mall</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">San Diego, CA 92121</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention: President</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile No.: (858)
812-9351</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">59</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">with copy
to</font></i>:</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Kratos Defense and Security
Solutions, Inc.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4810 Eastgate Mall</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">San Diego, CA 92121</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention: General Counsel</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile No.: (858)
228-2048</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">and a copy
to</font></i>:</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Morrison &amp; Foerster LLP</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12531 High Bluff Drive,
Suite 100</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">San Diego, CA 92130</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention: Scott M. Stanton,
Esq.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile No.: (858)
720-5125</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">If to the
Company (prior to the Effective Time), to</font></i>:</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Haverstick Consulting, Inc.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6270 Corporate Drive, Suite
100</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Indianapolis, IN 46278</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:&#160; Mr. Stephen C. Hilbert</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile No.:&#160; (317) 218-1705</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">with a
copy to</font></i>:</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Venable LLP</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8010 Towers Crescent Drive,
Suite 300</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vienna, VA 22182</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:&#160; Elizabeth R. Hughes, Esq.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile No.:&#160; (703) 760-1600</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to the Shareholders&#146;
Representative:</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MH Equity Investors</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Corporate Drive, Suite 200</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Indianapolis, IN 46278</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention: Rollin M. Dick</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile No.: (317)
218-1705</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">with a
copy to:</font></i></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MH Equity Investors</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Corporate Drive, Suite 200</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:74.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Indianapolis, IN 46278</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention: Stephen C.
Hilbert</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:75.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Facsimile No.: (317)
218-1705</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">60</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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<div style="font-family:Times New Roman;">

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Interpretation</u>. When a reference is made in this Agreement
to a Section, such reference shall be to a Section&nbsp;of this Agreement
unless otherwise indicated. The table of contents, captions and headings
contained in this Agreement are solely for convenience of reference and shall
not be used to interpret or construe this Agreement. Any references in this
Agreement to &#147;herein,&#148; &#147;hereto,&#148; &#147;herewith&#148; or &#147;hereunder&#148; shall be to this
Agreement as a whole. Whenever the words &#147;include,&#148; &#147;includes&#148; or &#147;including&#148;
are used in this Agreement, they shall be deemed to be followed by the words
&#147;without limitation.&#148;&#160; All parties have
participated in the negotiation and review of this Agreement and no provision
of this Agreement shall be construed more strictly against any party. All
remedies hereunder are cumulative, except as otherwise provided in this
Agreement.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Counterparts</u>. This Agreement may be executed in
counterparts, all of which shall be considered one and the same agreement, and
shall become effective when one or more counterparts have been signed by each
of the parties and delivered to the other parties.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.4</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Entire Agreement; Third-Party Beneficiaries</u>. This Agreement, together with the Company
Disclosure Schedule and the other documents and instruments executed in
connection herewith and except for the last sentence of <u>Section&nbsp;6.2</u>,
is an integrated document and contains the sole and entire agreement and
understanding between the parties as to the matters contained herein, and
except as expressly provided herein, fully supersedes and merges any and all
prior and contemporaneous agreements, understandings, proposals, negotiations,
arrangements and/or discussions, both written and oral, among the parties with
respect to the subject matter hereof. This Agreement, except for the provisions
of <u>Section&nbsp;6.3</u> and as expressly provided herein, is not intended to
confer upon any Person other than the parties hereto any rights or remedies
hereunder, provided that the parties hereto agree that the Shareholders&#146;
Representative shall be a third-party beneficiary to this Agreement and shall
have the right, on behalf of the Previous Equityholders to enforce any
provision of this Agreement that survives the Effective Date and remains a
continuing obligation of Parent and/or Surviving Corporation. This Agreement
shall be construed and interpreted without reference to the principle that a contract
is to be construed against the drafter of the contract, it being acknowledged
that the provisions of this Agreement have been drafted by the parties during
negotiations.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.5</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Governing Law</u>. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of California, regardless
of the laws that might otherwise govern under applicable principles of
conflicts of laws thereof. The Federal Arbitration Act shall apply to this
Agreement.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.6</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Assignment</u>. Neither this Agreement nor any of the rights, interests or
obligations hereunder shall be assigned by any of the parties hereto (whether
by operation of law or otherwise) without the prior written consent of the
other parties; <i>provided,</i>  <i>however</i>, that Parent may assign or pledge
as collateral this Agreement or any of the rights or interests hereunder to an
affiliate of Parent or to any financing sources. This Agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.7</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Severability</u>. 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 terms, </p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">61</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">conditions and provisions of
this Agreement shall nevertheless remain in full force and effect so long as
the economic and legal substance of the transactions contemplated hereby are
not affected in any manner materially adverse to any party. Upon such
determination that any term or other provision is invalid, illegal or incapable
of being enforced, the parties shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as closely as
possible in a mutually acceptable manner in order that the transactions
contemplated by this Agreement may be consummated as originally contemplated to
the fullest extent possible. If the parties fail to so agree within ten (10)
business days of such determination that any term or other provision is
invalid, illegal or incapable of being enforced, such holding shall not affect
the validity or enforceability of any other aspect hereof (or of such provision
in another jurisdiction) and the parties agree and hereby request that the
court or arbitrator(s) make such valid modifications to (or replacement of, if
necessary) the invalid provision as are necessary and reasonable to most
closely approximate the parties&#146; intent as evidenced hereby as a whole.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.8</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Survival of Representations, Warranties and
Agreements</u>. The
representations, warranties and agreements in this Agreement and any
certificate delivered pursuant hereto by any Person shall survive the Effective
Time for a period of twenty-one (21) months (the &#147;<i>Survival Period</i>&#148;).</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.9</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Enforcement of this Agreement</u>. The parties hereto agree that irreparable
damage would occur in the event that any of the provisions of this Agreement
were not performed in accordance with their specific wording or were otherwise
breached. Notwithstanding <u>Section&nbsp;9.11</u>, it is accordingly agreed
that the parties hereto and the Disputing Parties (as hereinafter defined)
shall be entitled to an injunction or injunctions to prevent breaches of this
Agreement and to enforce specifically the terms and provisions hereof; <i>provided</i>, <i>however</i>,
that, subject to <u>Section&nbsp;9.11</u>, such remedy shall be in addition to
any other remedy to which any party is entitled at law or in equity. Each party
hereto waives any right to a trial by jury in connection with any such action,
suit or proceeding and waives any objection based on forum non conveniens or
any other objection to venue thereof.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.10</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Dispute Resolution</u>.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Dispute</u>. Any controversy, claim or dispute of whatever nature, including
claims for fraud in the inducement and disputes as to arbitrability, arising
between the Shareholders&#146; Representative (including the Previous
Equityholders), on the one hand, and any Parent Group Member, on the other hand
(each, a &#147;<i>Disputing Party</i>&#148;) under
this Agreement or in connection with the transactions contemplated hereunder,
including those arising out of or relating to the breach, termination,
enforceability, scope, validity, or making of this Agreement, whether such
claim existed prior to or arises on or after the Closing Date (a &#147;<i>Dispute</i>&#148;), shall be resolved by good faith
negotiations among the Disputing Parties, such negotiation not to exceed a
period of thirty (30) consecutive days (the &#147;<i>Negotiation
Period</i>&#148;). In the event a Dispute remains unresolved following the
Negotiation Period, such Dispute shall be resolved by binding arbitration,
unless the Disputing Parties otherwise agree. The agreement to arbitrate
contained in this section shall continue in full force and effect despite the
expiration, rescission or termination of this Agreement.</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">62</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Arbitration; Submission to Jurisdiction</u>. Neither Disputing Party shall commence an
arbitration proceeding pursuant to the provisions of this Agreement unless such
Disputing Party shall first give a written notice (a &#147;<i>Dispute Notice</i>&#148;) to the other Disputing
Party setting forth the nature of the Dispute. The Dispute shall be determined
by binding arbitration in Dallas, Texas within twenty (20) business days after
receipt of a Dispute Notice. The arbitration shall be conducted in accordance
with the CPR Institute for Dispute Resolution (&#147;<i>CPR</i>&#148;) Rules for Non-Administered Arbitration (&#147;<i>CPR Rules</i>&#148;), subject to any modifications
contained in this Agreement. The Dispute shall be determined by a single,
neutral arbitrator, except that if the Dispute involves an amount in excess of
Four Hundred Thousand Dollars ($400,000) (exclusive of interest and costs),
three arbitrators shall be appointed. The Disputing Parties shall agree upon
the arbitrator(s) within the (10) business days after receipt of a Dispute
Notice. Each arbitrator shall be a retired state or federal judge or an
attorney with at least fifteen (15) years of business litigation experience.
Each arbitrator shall be a &#147;neutral&#148; arbitrator and not appointed by either
Disputing Party. If the Disputing Parties are unable to agree upon the
arbitrator(s) within such period, the arbitrator(s) shall be selected by CPR in
accordance with the CPR Rules. An award shall be made by a majority of the
arbitrators. The arbitrator(s) shall base the award on the &#147;four corners&#148; of
the Agreement, and only when the answer to a Dispute is not contained therein,
shall the arbitrators look to the governing law designated herein and judicial
precedent in accordance with the terms hereof to resolve the Dispute. Without
limiting the foregoing, nothing herein contained shall be deemed to give the
arbitrator(s) any authority, power or right to change, modify, add to or
subtract from this Agreement (except as expressly provided herein).</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The arbitrators shall have the authority to
award any remedy or relief that a court of competent jurisdiction could order
or grant, including equitable remedies, rescission, specific performance of any
obligation created under the Agreement, the issuance of an injunction, or the
imposition of sanctions for abuse or frustration of the arbitration process.
The arbitrators shall award to the prevailing party, if any, as determined by
the arbitrators, all of such party&#146;s reasonable Expenses.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Discovery will be limited to an exchange of directly relevant documents
and answers to interrogatories. Depositions will not be taken except as needed
in lieu of a live appearance. The arbitrator(s) shall resolve any discovery disputes.
The arbitrator(s) and counsel of record will have the power of subpoena process
as provided by law. The Disputing Parties knowingly and voluntarily waive their
rights to have any Dispute tried and adjudicated by a judge or a jury.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The arbitration shall be governed by the substantive laws of the State
of Indiana, applicable federal laws and the CPR Rules, regardless of laws that
might otherwise govern under applicable principles of conflicts of laws
thereof. Judgment upon award rendered may be entered in any court having
jurisdiction.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as otherwise required by law or in court proceedings to enforce
this Agreement or an award rendered hereunder or to obtain interim relief, the
Disputing Parties and the arbitrator(s) agree to keep confidential and not
disclose to third parties any information or documents obtained in connection
with the arbitration process, including the resolution of the Dispute. If
either Disputing Party fails to proceed with arbitration as provided in this
Agreement, or unsuccessfully seeks to stay the arbitration, or fails to comply
with the </p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">63</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">arbitration award, or is
unsuccessful in vacating or modifying the award pursuant to a petition or
application for judicial review, the other Disputing Party shall be entitled to
be awarded Expenses paid or incurred in successfully compelling such
arbitration or defending against the attempt to stay, vacate or modify such
arbitration award and/or successfully defending or enforcing the award.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each of the Disputing Parties hereto irrevocably submits in any suit,
action or proceeding arising out of or related to, and permitted by, this
Agreement or any of the transactions contemplated hereby to the non-exclusive
jurisdiction (including personal jurisdiction) of the Federal or state courts
in the States of Indiana, and each party waives any and all objections to
jurisdiction and to forum (including forum non conveniens) that they may have
under the laws of the United States or any such State.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[<i>Remainder of Page Intentionally Left Blank</i>]</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">64</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">IN WITNESS
WHEREOF</font></b>, Kratos,
Parent, Merger Sub and the Company have caused this Agreement to be signed by
their respective officers thereunto duly authorized all as of the date first
written above.</p>

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

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

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="8" valign="top" style="padding:0in 0in 0in 0in;width:53.34%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">KRATOS
  GOVERNMENT SOLUTIONS, INC.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="11%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:11.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="41%" valign="top" style="padding:0in 0in 0in 0in;width:41.68%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:11.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0in 0in 0in 0in;width:41.68%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.16%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="49%" colspan="7" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:49.16%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ JAMES R. EDWARDS</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Print Name:</font></p>
  </td>
  <td width="43%" colspan="3" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:43.34%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">James R. Edwards</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:5.42%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="47%" colspan="6" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:47.9%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Senior Vice President and
  General Counsel</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:11.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:41.68%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:11.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0in 0in 0in 0in;width:41.68%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="8" valign="top" style="padding:0in 0in 0in 0in;width:53.34%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">KRATOS
  DEFENSE AND SECURITY SOLUTIONS, INC.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:11.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0in 0in 0in 0in;width:41.68%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:11.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0in 0in 0in 0in;width:41.68%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.16%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="49%" colspan="7" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:49.16%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ ERIC DEMARCO</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" colspan="6" valign="top" style="padding:0in 0in 0in 0in;width:10.26%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Print Name:</font></p>
  </td>
  <td width="43%" colspan="2" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:43.08%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Eric DeMarco</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:5.42%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="47%" colspan="6" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:47.9%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President and CEO</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:11.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:41.68%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:11.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0in 0in 0in 0in;width:41.68%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="8" valign="top" style="padding:0in 0in 0in 0in;width:53.34%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">HAVERSTICK
  ACQUISITION CORPORATION</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:11.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0in 0in 0in 0in;width:41.68%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:11.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0in 0in 0in 0in;width:41.68%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.16%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="49%" colspan="7" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:49.16%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ JAMES R. EDWARDS</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:9.58%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Print Name:</font></p>
  </td>
  <td width="43%" colspan="5" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:43.76%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">James R. Edwards</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:5.42%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="47%" colspan="6" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:47.9%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Secretary</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:5.42%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="6" valign="top" style="border:none;padding:0in 0in 0in 0in;width:47.9%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:11.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0in 0in 0in 0in;width:41.68%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="8" valign="top" style="padding:0in 0in 0in 0in;width:53.34%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">HAVERSTICK
  CONSULTING, INC.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:11.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0in 0in 0in 0in;width:41.68%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:11.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0in 0in 0in 0in;width:41.68%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.16%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="49%" colspan="7" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:49.16%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ HOWARD W. BATES</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:9.76%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Print Name:</font></p>
  </td>
  <td width="43%" colspan="4" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:43.58%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Howard W. Bates</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:5.42%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="47%" colspan="6" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:47.9%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="349" style="border:none;"></td>
  <td width="31" style="border:none;"></td>
  <td width="9" style="border:none;"></td>
  <td width="31" style="border:none;"></td>
  <td width="1" style="border:none;"></td>
  <td width="2" style="border:none;"></td>
  <td width="2" style="border:none;"></td>
  <td width="10" style="border:none;"></td>
  <td width="312" style="border:none;"></td>
 </tr>
</table>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">[SIGNATURE PAGE TO AGREEMENT AND PLAN OF MERGER]</font></b></p>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">SCHEDULE A</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">PARTIES
TO SHAREHOLDER AGREEMENTS</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This schedule
has been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of
this schedule will be furnished supplementally to the Securities and Exchange
Commission upon request.</font></p>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">SCHEDULE 2.5(B)</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">SURVIVING
CORPORATION OFFICERS</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This schedule
has been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of
this schedule will be furnished supplementally to the Securities and Exchange
Commission upon request.</font></p>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">SCHEDULE 2.9(A)</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">COMMON
STOCK CLOSING CONSIDERATION</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This exhibit
has been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of
this exhibit will be furnished supplementally to the Securities and Exchange
Commission upon request.</font></p>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">SCHEDULE 3.17(A)</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">RM
RIGHTS</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This schedule has been omitted in accordance with Item 601(b)(2) of
Regulation S-K. A copy of this schedule will be furnished supplementally to the
Securities and Exchange Commission upon request.</font></p>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">SCHEDULE 3.26</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">CLAIMS
AND INVOICES</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This schedule
has been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of
this schedule will be furnished supplementally to the Securities and Exchange
Commission upon request.</font></p>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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


<div>

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">SCHEDULE 6.16</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">DISCOUNTED
ENGAGEMENT</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This schedule
has been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of
this schedule will be furnished supplementally to the Securities and Exchange
Commission upon request.</font></p>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">SCHEDULE 7.3(B)</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">LIST OF REQUIRED CONSENTS</font></b></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This schedule
has been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of
this schedule will be furnished supplementally to the Securities and Exchange
Commission upon request.</font></p>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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


<div>

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">COMPANY DISCLOSURE SCHEDULE</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This schedule
has been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of
this schedule will be furnished supplementally to the Securities and Exchange
Commission upon request.</font></p>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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


<div>

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">CLOSING CASH SCHEDULE</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This schedule
has been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of
this schedule will be furnished supplementally to the Securities and Exchange
Commission upon request.</font></p>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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


<div>

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">CLOSING CAPITAL LEASE OBLIGATIONS SCHEDULE</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This schedule
has been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of
this schedule will be furnished supplementally to the Securities and Exchange
Commission upon request.</font></p>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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


<div>

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">CLOSING INDEBTEDNESS SCHEDULE</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This schedule
has been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of
this schedule will be furnished supplementally to the Securities and Exchange
Commission upon request.</font></p>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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


<div>

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">EXHIBIT
A</font></u></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">SHAREHOLDERS
AGREEMENT</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This exhibit
has been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of
this exhibit will be furnished supplementally to the Securities and Exchange
Commission upon request.</font></p>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">EXHIBIT
B</font></u></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">ARTICLES
OF MERGER</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This exhibit
has been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of
this exhibit will be furnished supplementally to the Securities and Exchange
Commission upon request.</font></p>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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


<div>

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">EXHIBIT
C</font></u></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">CERTIFICATE
OF MERGER</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This exhibit
has been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of
this exhibit will be furnished supplementally to the Securities and Exchange
Commission upon request.</font></p>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">EXHIBIT
D</font></u></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">OPINION
OF LEGAL COUNSEL TO PARENT</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This exhibit
has been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of
this exhibit will be furnished supplementally to the Securities and Exchange
Commission upon request.</font></p>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">EXHIBIT
E</font></u></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">OPINION
OF LEGAL COUNSEL TO COMPANY</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This exhibit
has been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of
this exhibit will be furnished supplementally to the Securities and Exchange
Commission upon request.</font></p>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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


<div>

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">EXHIBIT
F</font></u></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">NON-COMPETITION
AND NON-SOLICITATION AGREEMENT</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This exhibit
has been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of
this exhibit will be furnished supplementally to the Securities and Exchange
Commission upon request.</font></p>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">EXHIBIT
G</font></u></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">PARENT
EMPLOYMENT AGREEMENT</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This exhibit
has been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of
this exhibit will be furnished supplementally to the Securities and Exchange
Commission upon request.</font></p>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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


<div>

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

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">EXHIBIT
H</font></u></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal !important;">FIRPTA
CERTIFICATE</font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><font face="Times New Roman" style="font-variant:normal !important;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This exhibit
has been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of
this exhibit will be furnished supplementally to the Securities and Exchange
Commission upon request.</font></p>

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

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>a07-28412_1ex10d1.htm
<DESCRIPTION>EX-10.1
<TEXT>
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<head>





</head>

<body lang="EN-US">

<div>

<table border="0" cellspacing="0" cellpadding="0" width="655" style="border-collapse:collapse;width:491.4pt;">
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  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="180" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:135.0pt;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
  10.1</font></b></p>
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman"><img width="105" height="49" src="g284121mai001.gif"></font></p>
  </td>
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 <tr>
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  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="180" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:135.0pt;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
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  <td width="475" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:4.95in;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="180" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:135.0pt;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">KeyBanc Capital Markets</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="475" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:4.95in;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="180" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:135.0pt;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">One Embarcadero Center, Ste. 1100</font></p>
  </td>
 </tr>
 <tr>
  <td width="475" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:4.95in;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="180" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:135.0pt;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">San Francisco, CA 94111</font></p>
  </td>
 </tr>
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  <td width="475" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:4.95in;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="180" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:135.0pt;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
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  <td width="475" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:4.95in;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="180" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:135.0pt;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Tel:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 415.733.2476</font></p>
  </td>
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 <tr>
  <td width="475" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:4.95in;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="180" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:135.0pt;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Fax:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 415.733.2480</font></p>
  </td>
 </tr>
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  <td width="475" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:4.95in;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="180" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:135.0pt;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">E-mail:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; kmcbride@keybanccm.com</font></p>
  </td>
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  <td width="475" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:4.95in;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="180" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:135.0pt;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
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  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="180" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:135.0pt;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
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  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="180" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:135.0pt;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
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  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="180" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:135.0pt;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
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  <td width="475" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:4.95in;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="180" valign="bottom" style="padding:0in 5.4pt 0in 5.4pt;width:135.0pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">October 24, 2007</font></p>
  </td>
 </tr>
</table>

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

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

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Kratos Defense &amp; Security Solutions, Inc.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bridge Pointe Corporate Centre</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4810 Eastgate Mall</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">San Diego, CA 92121</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention: Eric DeMarco, Executive President
and Chief Executive Officer</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Re:
$75,000,000 Senior Secured Credit Facilities &#151; Facilities Letter</u></font></p>

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

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

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You
have advised KeyBanc Capital Markets (&#147;KeyBanc&#148;) that Kratos Defense &amp;
Security Solutions, Inc. (&#147;you&#148; or the &#147;Company&#148;) intends to acquire (the &#147;Acquisition&#148;)
all the issued and outstanding capital stock (the &#147;Shares&#148;) of Haverstick
Consulting, Inc. (the &#147;Target&#148;) followed by a merger (the &#147;Merger&#148;) of the
Target with and into the Company. &#160;We
understand that the cash consideration to be paid for the Shares acquired in
connection with the Acquisition will be up to $69,000,000. &#160;You have further advised us that in connection
with the foregoing, the Company will obtain senior credit facilities (the &#147;Facilities&#148;
and, together with the Acquisition, the &#147;Transactions&#148;) in an aggregate
principal amount of up to US$75,000,000, as more fully described in the Summary
of Terms and Conditions attached hereto as Exhibit A (the &#147;Term Sheet&#148;).</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You
have requested that KeyBanc (i) agree to structure, arrange and syndicate the
Facilities, (ii) to serve as exclusive advisor, sole lead arranger, sole
bookrunner, sole syndication agent and administrative agent and (iii) through
its affiliate KeyBank National Association (&#147;KeyBank&#148;) commit to provide the
aggregate principal amount of the Facilities. &#160;KeyBanc is pleased to advise you of (i) its
willingness to act as exclusive advisor, sole lead arranger, sole bookrunner,
sole syndication agent and administrative agent for the Facilities and (ii) KeyBank&#146;s
commitment to provide the entire amount of the Facilities (the &#147;Commitment&#148;)
upon the terms and subject to the conditions set forth or referred to in this Facilities
Letter, the Term Sheet, the Conditions Annex attached hereto as Exhibit B (the &#147;Conditions
Annex&#148; and, together with this Facilities Letter and the Term Sheet, the &#147;Commitment
Letter&#148;) and in the letter of even date herewith addressed to you providing,
among other things, for certain fees relating to the Facilities (the &#147;Fee
Letter&#148;).</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KeyBanc
reserves the right and intends, prior to or after the execution of the
definitive documentation with respect to the Facilities (the &#147;Facilities
Documents&#148;), to syndicate all or a portion of its commitment to one or more
financial institutions or other persons (such entities, together with KeyBank,
the &#147;Lenders&#148;) identified by KeyBanc in consultation with, and reasonably
acceptable to, you, which Lenders will become parties to the Facilities
Documents. It is agreed that KeyBanc will act as the sole administrative agent
and exclusive advisor for, and </font></p>

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</div>
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<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">sole
lead arranger, sole bookrunner and sole syndication agent of, the Facilities
and that no additional agents or co-agents or co-arrangers will be appointed
without the prior written consent of KeyBanc.</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KeyBanc
shall be entitled, after consultation with the Company, to change the pricing,
terms, allocation or structure of the Facilities, provided that the total
amount of the Facilities remains unchanged, either before or after the closing
of the Facilities should KeyBanc, as the Lead Arranger, determine in its
reasonable discretion that such changes are advisable in order to ensure a
successful syndication or an optimal capital structure.&#160; The commitments of KeyBanc under any
Commitment Letter shall be subject to the agreements of this paragraph.&#160; The Term Sheet shall be deemed to be amended
to reflect such changes and the syndication process shall continue.&#160; The agreements in this paragraph shall
survive the closing of the Facilities.</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KeyBanc
will manage, in consultation with you, all aspects of the syndication,
including decisions as to the selection of institutions to be approached and
when they will be approached, when their commitments will be accepted and which
institutions will participate in the allocations of the commitments among the
Lenders. You agree to assist KeyBanc in forming any such syndicate and to
provide the potential Lenders, promptly upon request, with all information
reasonably requested by them to complete successfully the syndication,
including but not limited to (i) your assistance in the preparation of an
information package, including a Confidential Information Memorandum for the Facilities
and other materials for delivery to potential Lenders and participants, and (ii)
such other information and projections prepared by you or your advisors
relating to the Transactions as may be reasonably requested by KeyBanc or the potential
Lenders. You also agree to participate in, and to make appropriate senior
officers and representatives of the Company available to participate in,
informational meetings for potential Lenders and participants at such times and
places as KeyBanc may reasonably request and to use commercially reasonable
efforts to ensure that KeyBanc&#146;s syndication efforts materially benefit from
the Company&#146;s existing banking relationships.</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">At
KeyBanc&#146;s request, you agree to prepare versions of the information memoranda
and other marketing materials to be used in connection with the syndication
that do not contain material non-public information concerning the Company, its
affiliates or their securities.&#160; In
addition, you agree that unless specifically labeled &#147;Private&#151;Contains
Non-Public Information,&#148; no information, documentation or other data
disseminated to prospective lenders in connection with the syndication of the Facilities,
whether through an Internet website (including, without limitation, an
IntraLinks work-space), electronically, in presentations at meetings or
otherwise, will contain any material non-public information concerning the
Company, its affiliates or their securities.</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To
ensure an orderly and effective syndication of the Facilities, you agree that,
from the date hereof until the termination of the syndication (as reasonably
determined by KeyBanc), you will not and will not permit any of your affiliates
to, and after consummation of the Merger you will not permit the Target and its
affiliates to, syndicate or issue, attempt to syndicate or issue, announce or
authorize the announcement of the syndication or issuance of, or engage in
discussions concerning the syndication or issuance of, any debt security or
commercial bank or other debt facility (including any renewals thereof),
without the prior written consent of KeyBanc; provided, however, that the
foregoing shall not apply to the transactions contemplated in this Commitment
Letter.</font></p>

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</div>
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<div>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You
represent and warrant and covenant that:</font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)
all information (other than financial projections) taken with your filings with
the SEC which have been or are hereafter furnished to KeyBanc by you or any of
your representatives in connection with the Transactions is complete and
correct as of the date thereof in all material respects and does not contain
any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements contained therein not misleading in
light of the circumstances under which such statements were or are made; and</font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)
all financial projections taken with your filings with the SEC that have been
or are hereafter prepared by you or on your behalf and made available to
KeyBanc have been or will be prepared in good faith based upon what you believe
to be reasonable assumptions (it being understood that such projections are
subject to significant uncertainties and contingencies, many of which are
beyond your, or the Target&#146;s, control and that no assurance can be given that
the projections will be realized).</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You
agree to supplement the information and projections referred to in clauses (a)
and (b) above from time to time until completion of the syndication so that the
representations and warranties in the preceding sentence remain correct without
regard to when such information and projections were furnished. In issuing this
Commitment Letter and arranging and syndicating the Facilities, KeyBanc will be
entitled to use and rely on such information and projections without
independent verification thereof.</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
commitment of KeyBanc hereunder is subject to your compliance with the terms
and conditions of this Commitment Letter and the Fee Letter; please note,
however, that the terms and conditions of KeyBanc&#146;s commitment hereunder are
not limited to those set forth herein and that those matters that are not
covered or made clear herein are subject to mutual agreement of the parties
hereto.</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
addition to the fees described in the Term Sheet hereto, the Company will pay
the fees set forth in the Fee Letter. The terms of the Fee Letter are an
integral part of KeyBanc&#146;s commitment and undertaking hereunder and constitute
part of this Commitment Letter for all purposes hereof. Each of the fees
described in the Fee Letter and the Term Sheet hereto shall be nonrefundable
when paid unless otherwise specified. You agree that neither you nor any of
your affiliates will pay to any Lender any compensation or award any titles of
any kind for its participation in the Facilities except as expressly provided
for in this Commitment Letter, Term Sheet or in the Fee Letter, or as you and
we otherwise agree.</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You
agree to reimburse KeyBanc and its affiliates for their reasonable
out-of-pocket fees and expenses incurred in connection with the preparation,
execution and delivery of this letter, the Fee Letter and the Facilities
Documents and the activities thereunder or contemplated thereby, including
without limitation syndication expenses and the reasonable fees and expenses of
a single outside counsel to KeyBanc and its affiliates (whether incurred before
or after the execution of this letter), whether or not any of the transactions
contemplated hereby are consummated. You further agree to pay all reasonable
out-of-pocket costs and expenses of KeyBanc (including without limitation, reasonable
fees and disbursements of counsel) incurred in connection with the enforcement
of any of its rights and remedies hereunder.</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You
agree to indemnify and hold harmless each of KeyBanc and each other Lender,
their respective affiliates and each of their respective directors, officers,
employees, agents and </font></p>

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<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">advisors
(each, an &#147;Indemnified Party&#148;), from and against any and all claims, damages,
liabilities (including securities law liabilities), losses and expenses,
including reasonable fees, expenses and disbursements of counsel, which may be
incurred by or asserted against an Indemnified Party in connection with KeyBanc&#146;s
or any Lender&#146;s commitment or participation in the transactions contemplated by
this letter, the Facilities or any related matter or any investigation,
litigation or proceeding in connection therewith and whether or not the
Acquisition is consummated or the Facilities are drawn upon and whether or not
such investigation, litigation or proceeding is brought by the Company, any of
its shareholders or creditors, an Indemnified Party or any other person, or an
Indemnified Party is otherwise a party thereto, except to the extent such
claim, damage, loss, liability or expense resulted from such Indemnified Party&#146;s
own gross negligence or willful misconduct, as determined by a final,
non-appealable judgment of a court of competent jurisdiction.</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No
Indemnified Party shall be responsible or liable to any other party hereto or
any other person for consequential, special or punitive damages that may be
alleged as a result of this letter or the breach of any party&#146;s obligations
hereunder or have any liability (whether direct or indirect, in contract, tort
or otherwise) to the Company or any of its shareholders or creditors for or in
connection with the transactions contemplated hereby except to the extent such
liability resulted from such Indemnified Party&#146;s gross negligence or willful
misconduct, as determined by a final, non-appealable judgment of court of
competent jurisdiction.</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This
letter is delivered to you on the understanding that neither this letter nor
any other agreement between us related to this letter or the Transactions,
including the Term Sheet, and the Fee Letter, nor any of their terms or
substance shall be disclosed, directly or indirectly, to any other person
except (a) to your officers, agents and advisors who are directly involved in
the consideration of this matter (and then only on a confidential and &#147;need to
know&#148; basis) or (b) as may be compelled in a judicial or administrative
proceeding or as otherwise required by law (in which case you agree to inform
us promptly thereof); provided, however, that you may, after your acceptance of
this Commitment Letter and the Fee Letter, and only in connection with the
Acquisition, disclose this letter and the Term Sheet (including Annex I
attached thereto) and their terms and substance (but not the Fee Letter or its
terms and substance) (i) to the Target in connection with or related to the
Acquisition (and then only on a confidential and &#147;need to know&#148; basis), and
(ii) to other persons to the extent the information being disclosed has been
previously made publicly available other than through a breach of the terms of
this Commitment Letter. Notwithstanding any of the foregoing to the contrary,
you, KeyBanc and each Lender may disclose to any and all persons any
information with respect to the U.S. federal income tax treatment and U.S.
federal income tax structure of the transactions contemplated hereby and all
materials of any kind (including opinions or other tax analyses) that are
provided to KeyBanc or such Lender relating to the tax treatment and tax
structure.</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our
offer to provide the Facilities will terminate at 5:00 PM, Pacific Time, (i) on
October 26, 2007, unless on or before that time you accept this letter by
signing and returning an enclosed counterpart of this letter and the Fee Letter
and (ii) if accepted by you on or prior to such time, on the earlier of
December 28<sup>th</sup>, 2007 and the date of execution of the Facilities
Documents. In any event your obligations with respect to indemnification, fees,
costs, expenses, confidentiality, governing law, jurisdiction and waiver of
jury trial shall remain in full force and effect, regardless of any termination
of the commitment of KeyBanc made hereunder; provided, that upon execution of
the Facilities Documents, your obligations with respect to indemnification set
forth herein shall terminate automatically and be superseded by the
indemnification provisions of the Facilities Documents.</font></p>

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<div>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This
letter is intended to be solely for the benefit of the parties hereto and is
not intended to confer any benefits upon, or create any rights in favor of, any
person other than the parties hereto. You acknowledge that KeyBanc may provide
debt financing, equity capital or other services (including financial advisory
services) to parties whose interests may conflict with your or the Target&#146;s
respective interests. KeyBanc will not furnish confidential information
obtained from you, the Target or any of your or its respective affiliates to
any of KeyBanc&#146;s other customers. Furthermore, KeyBanc shall have no obligation
to use in connection with the transactions contemplated hereby, or to furnish
to you or the Target, confidential information obtained by KeyBanc or any of
its affiliates from any other person.</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
connection with all aspects of each transaction contemplated by this Commitment
Letter, you acknowledge and agree that: (i) the Facilities and any related
arranging or other services described in this Commitment Letter are an arm&#146;s-length
commercial transaction between you and your affiliates, on the one hand, and
KeyBanc, on the other hand, and you are capable of evaluating and understanding
and understand and accept the terms, risks and conditions of the transactions
contemplated by this Commitment Letter; (ii) in connection with the process
leading to such transaction, KeyBanc is and has been acting solely as principal
and is not a fiduciary for you or any of your subsidiaries or affiliates,
stockholders, creditors or employees or any other party; (iii) KeyBanc has not
assumed nor will it assume a fiduciary responsibility in your or your
subsidiaries&#146; or affiliates&#146; favor with respect to any of the transactions
contemplated hereby or the process leading thereto (irrespective of whether
KeyBanc has advised or is currently advising you or your subsidiaries or
affiliates on other matters) and KeyBanc has no obligation to you or your
subsidiaries or affiliates with respect to the transactions contemplated hereby
except those obligations expressly set forth in this Commitment Letter and the
definitive loan documentation; (iv) KeyBanc and its respective affiliates may
be engaged in a broad range of transactions that involve interests that differ
from yours and your subsidiaries and affiliates and KeyBanc has no obligation
to disclose any of such interests by virtue of any advisory, agency or
fiduciary relationship; and (v) KeyBanc has not provided any legal, accounting,
regulatory or tax advice with respect to any of the transactions contemplated
hereby and you have consulted your own legal, accounting, regulatory and tax
advisors to the extent you have deemed appropriate.&#160; You hereby waive and release, to the fullest
extent permitted by law, any claims that you may have against KeyBanc with
respect to any breach or alleged breach of fiduciary duty.</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
hereby notify you that, pursuant to the requirements of the USA Patriot Act,
Title III of Pub. L. 107-56 (signed into law October 25, 2001), as amended (the
&#147;Patriot Act&#148;), we may be required to obtain, verify and record information
that identifies the Company, which information includes its name, address and
tax identification number and other information regarding it that will allow us
to identify it in accordance with the Patriot Act.&#160; You agree to provide us with all
documentation and other information required by bank regulatory authorities
under the Patriot Act and any other &#147;know your customer&#148; and anti-money
laundering rules and regulations.</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This
letter and KeyBanc&#146;s commitment hereunder may not be assigned by you without
the prior written consent of KeyBanc, and any attempted assignment without such
consent shall be void. KeyBanc&#146;s commitment hereunder may be assigned thereby
to any of its affiliates or, in consultation with you, to any Lender. Any such
assignment to an affiliate shall not relieve KeyBanc from any of its
obligations hereunder unless and until the Facilities Documents with respect to
such assigned commitment shall have been executed and delivered by the parties
thereto, but any assignment to a Lender shall be by novation and shall release
KeyBanc from its commitment hereunder pro tanto. This letter may not be amended
or modified or any provision </font></p>

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<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">hereof
waived except in writing signed by you and KeyBanc. This Commitment Letter
together with the Term Sheet and the Fee Letter sets forth the entire agreement
between the parties with respect to the matters addressed herein and supersedes
all prior communications, written or oral, with respect hereto. This letter
shall be governed by and construed in accordance with the internal laws of the
State of New York. Each of the parties hereto irrevocably consents to the
exclusive jurisdiction and venue of the federal and/or state courts located
within the City of New York. The parties hereto hereby waive, to the fullest
extent permitted by applicable law, any objection that they may now or
hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to the provisions of this Commitment Letter or the Fee
Letter brought in any such court, and any claim that any such suit, action or
proceeding brought in any such court has been brought in an inconvenient forum.
Each party hereto irrevocably waives all right to trial by jury in any action,
proceeding or counterclaim (whether based on contract, tort or otherwise)
arising out of or relating to this Commitment Letter or the transactions
contemplated hereby or the actions of the parties hereto in the negotiation,
performance or enforcement hereof. This letter may be executed in any number of
counterparts, each of which when so executed and delivered shall be deemed an
original and all of which together shall constitute one and the same
instrument. Delivery of an executed counterpart of a signature page of this
letter by facsimile transmission shall be effective as delivery of a manually
signed counterpart hereof.</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
appreciate the opportunity to assist you in this very important transaction.</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.1pt;">Please evidence your
acceptance of this letter by signing and returning to the undersigned the
enclosed copy of this letter.</font></p>

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

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

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

<table border="0" cellspacing="0" cellpadding="0" width="43%" style="border-collapse:collapse;width:43.44%;">
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KEYBANC
  CAPITAL MARKETS</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By: </font></p>
  </td>
  <td width="90%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:90.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ </font><font size="2" style="font-size:10.0pt;">Kevin McBride</font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="90%" valign="top" style="padding:0in .7pt 0in .7pt;width:90.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Kevin McBride</font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="90%" valign="top" style="padding:0in .7pt 0in .7pt;width:90.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Managing Director</font></p>
  </td>
 </tr>
</table>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In consideration of the foregoing, the undersigned hereby acknowledge
and agree to the terms of the foregoing letter this 26th day of October, 2007.</font></p>

<p style="margin:12.0pt 0in .0001pt;page-break-after:avoid;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KRATOS DEFENSE &amp; SECURITY SOLUTIONS, INC.</font></p>

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

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

<table border="0" cellspacing="0" cellpadding="0" width="43%" style="border-collapse:collapse;width:43.44%;">
 <tr>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By: </font></p>
  </td>
  <td width="90%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:90.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Eric DeMarco</font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="90%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:90.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its:</font></p>
  </td>
  <td width="90%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:90.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President and CEO</font></p>
  </td>
 </tr>
</table>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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

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<DESCRIPTION>EX-99.1
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<p align="right" style="color:windowtext;margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit&nbsp;99.1</font></b></p>

<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr height="126" style="height:94.5pt;">
  <td width="69%" height="126" valign="top" style="height:94.5pt;padding:0in 0in 0in 0in;width:69.16%;">
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman"><img width="245" height="88" src="g284121mmi001.jpg"></font></p>
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman"><br><br></font></p>
  <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">FOR
  IMMEDIATE RELEASE</font></b></p>
  </td>
  <td width="30%" height="126" valign="top" style="height:94.5pt;padding:0in 0in 0in 0in;width:30.84%;">
  <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Press Contact:</font></b></p>
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Patrick Van de Wille</font></p>
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ashton Partners</font></p>
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">312-553-6704 Direct</font></p>
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Investor Contact:</font></b></p>
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hilary Andron</font></p>
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ashton Partners</font></p>
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">877-934-4687</font></p>
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">investor@kratosdefense.com</font></p>
  </td>
 </tr>
</table>

<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">KRATOS
DEFENSE&nbsp;&amp; SECURITY SOLUTIONS SIGNIFICANTLY BROADENS PORTFOLIO IN
DEFENSE MARKET WITH AGREEMENT TO ACQUIRE HAVERSTICK CONSULTING,&nbsp;INC.</font></b></p>

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

<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Strategic Transaction Expands
Kratos&#146; Footprint with Navy, Air Force and Non-DoD Agencies;</font></i></b></p>

<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Enhances Key Differentiator in Military
Range Support, Targets, Missile and Rocket Segment;</font></i></b></p>

<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Leadership Team Well Positioned
to Implement Smooth Integration</font></i></b></p>

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

<p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SAN DIEGO, CA</font></b>, <b><font style="font-weight:bold;">NOVEMBER&nbsp;5</font>, 2007</b>&#151; Kratos Defense and Security Solutions,&nbsp;Inc.
(Nasdaq: KTOS) (formerly Wireless Facilities,&nbsp;Inc. Nasdaq: WFII) a leading
national defense and security solutions provider, announced today that it has executed
a definitive agreement to acquire privately-held Haverstick Consulting,&nbsp;Inc.
for a purchase price of $90 million in cash and stock, which includes the satisfaction
of approximately $35 million of Haverstick&#146;s existing debt obligations. Haverstick
is a leading provider of engineering, logistics, suborbital rockets and rocket
launch support services, information technology, program management, and other professional
services primarily to the federal government, state and local governments, and
the private sector. The transaction is expected to close in late-November&nbsp;or
early December, subject to Hart-Scott-Rodino clearance and other customary
closing conditions, and is expected to be accretive to Kratos&#146; 2008 financials.</p>

<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;This
merger propels our growth in the federal market and demonstrates our commitment
to expand the business in areas of competitive differentiation, including
suborbital rockets and rocket launch support services,&#148; said Eric DeMarco,
president and CEO of Kratos Defense&nbsp;&amp; Security Solutions,&nbsp;Inc. &#147;Specifically,
the combination of Haverstick with Kratos significantly adds to our past
performance qualifications to drive larger contract opportunities. In addition,
this deal expands our presence with the U.S. Air Force, one of Haverstick&#146;s
largest opportunity areas and longest-standing customers, complements our West
coast-based Navy business with their strong East coast Navy presence, and</font></p>

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

<p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>

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

<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">positions
the Company to provide strategic solutions to the intelligence and defense
community with rocket and launch capabilities.&#148;</font></p>

<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DeMarco
continued, &#147;As I have indicated before, these are critical growth areas for
Kratos and very important differentiators for our business. With this transaction,
we now expect Kratos to generate approximately $300 million in annualized
revenues for 2008, and to increase Kratos&#146; EBITDA margin rate, which is a key
financial metric we are focused on. Haverstick&#146;s extremely talented technical
professionals and management, complementary services, and outstanding long-term
customer relationships, when joined with Kratos&#146; strong defense team, will
enable us to reach new heights in meeting the changing needs of our military and
civilian customers.&#148;</font></p>

<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Kratos
is uniquely positioned to help leverage and expand the Haverstick business in
exciting new ways,&#148; said Howard Bates, president and CEO of Haverstick
Consulting,&nbsp;Inc. &#147;Kratos&#146; growing and diverse presence with the DoD and other
federal government agencies, along with its technical expertise and reputation
for developing long-standing customer relationships is exactly what we&#146;ve been
seeking to take Haverstick to the next level and to more effectively support
our customers. An important aspect of this transaction involves Kratos stock
because we share in the vision of this management team, and their proven track
record of growing and integrating businesses. In addition, we believe the
natural synergies between the two companies will make for a compelling value
proposition to our combined customers and new prospects, and this is the
principle reason our shareholders supported the decision to join forces. Haverstick
greatly broadens the playing field for Kratos in both customer base and
geography, and offers the customers of both organizations the benefits of greater
customer reach and an expanded technical workforce with 87% holding DoD security
clearances. We believe this will be a perfect match and a huge win for our customers,
employees and shareholders.&#148;</font></p>

<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
transaction announced today includes a combination of cash and equity. The
total enterprise value of the transaction is approximately $90 million. $69
million of the purchase price will be made in cash, with $35 million of the
cash being utilized to pay Haverstick&#146;s existing debt, and approximately $21
million in unregistered shares of Kratos stock. Of the cash portion, approximately
$68 million will be utilized at closing, and approximately $1 million of the cash
and approximately $8 million of the stock will be retained in an indemnity
holdback. The Company is financing the cash portion of the transaction through
a secured credit facility arranged by KeyBanc Capital Markets, a subsidiary of
KeyCorp (NYSE: KEY). The aggregate $9 million of indemnity holdback will be
released at the rate of</font></p>

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

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

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

<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">50%
on the 12 month anniversary of the closing and the balance of 50% on the 21
month anniversary of the closing, although the exact amount would be subject to
any resolved and pending claims. The equity portion of the deal includes approximately
7.5 million of unregistered shares of Kratos stock. The number of unregistered Kratos
shares distributed was calculated using the trailing 20-day average stock price
at signing of the agreement.</font></p>

<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;There
are some important points associated with this transaction that are worth
noting,&#148; said DeMarco. &#147;From a financing perspective, our ongoing positive
relationship with KeyBanc is a strong testament to the overall financial
viability of Kratos, and also reflects KeyBanc&#146;s belief in this management team&#146;s
vision to aggressively build a profitable business. From a strategic fit
perspective, we believe this is a win-win transaction for Haverstick, Kratos,
our customers and Kratos shareholders. Not only is this an excellent addition
to the Kratos business with tremendous potential value, but Haverstick, by
virtue of assuming a portion of the transaction value in unregistered Kratos
stock, also has a clear interest in the success of this acquisition. The
Haverstick team is exceptional, and Howard Bates, the founder of Haverstick,
has a long and proven track record of working with a variety of agencies within
the federal government, particularly the Air Force. Howard will continue to
oversee Haverstick&#146;s existing government and non-DoD businesses, and he will
report directly to me. Additionally, from an integration standpoint, we are
confident this merger will proceed smoothly due to the similarities of our businesses,
company cultures, and nature of the work we both perform. Finally, in terms of
operational leverage, this deal increases our business scale by approximately
fifty percent and positively impacts our leverage on fixed, public company
G&amp;A.&#148;</font></p>

<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Haverstick
has developed a diverse base of high-profile customers, providing a stable platform&nbsp;for
continued growth. Approximately 75% of Haverstick&#146;s business is derived from
federal customers, primarily the DoD, with the balance from non-DoD, civilian
agencies, state and local agencies, and commercial enterprises. For example,
Haverstick was recently awarded a $50 million contract to support the Naval
Surface Warfare Center, Dahlgren Division, Engagement Systems Department, a
re-compete contract that Haverstick won in 2006 and has supported for over 18
years. Haverstick&#146;s projected annualized revenues will be approximately $97 million
in 2007 with an EBITDA margin of approximately 9%. Virtually all of Haverstick&#146;s
contract vehicles are categorized as &#145;full-and-open&#146; in nature or non set-aside
either for small business, or any other disadvantaged classification. Haverstick
is headquartered in Indianapolis, Indiana and has approximately 480 employees primarily
located throughout the East coast and Midwest. Over 90 percent of Haverstick&#146;s
staff works at customer locations or is located in one of Haverstick&#146;s
satellite offices.</font></p>

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

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

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

<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
connection with the transaction and as noted above, KeyBanc will provide the
funding, and Morrison Foerster LLP provided legal counsel to Kratos. For
Haverstick, BB&amp;T Capital Markets | Windsor Group was the financial advisor,
and Venable served as legal counsel.</font></p>

<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">About Haverstick Consulting,&nbsp;Inc.</font></b></p>

<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Based
in Indianapolis, Indiana, Haverstick Consulting,&nbsp;Inc. is a leading
provider of engineering, logistics, suborbital rockets and rocket launch
support services, information technology, program management, and other
professional services primarily to the federal government, state and local
governments, and the private sector. Approximately 75% of Haverstick&#146;s revenue
is derived from DoD and non-DoD agencies, including the U.S. Navy, U.S. Air
Force, Marines, NASA and the Department of Labor. Haverstick provides
technology and business solutions that help its clients build their
organizations by delivering measurable improvements in both the public and
private sector. DTI Associates, based in Arlington, Virginia, is a wholly owned
subsidiary of Haverstick and provides ISO-9000 certified engineering, technology,
and professional services to a wide range of government customers, including
the U.S. Navy, NASA and the Departments of Labor, and Education. Haverstick
Government Solutions, based in Dayton, Ohio, is a wholly owned subsidiary of
Haverstick and provides solutions primarily to the U.S. Air Force. RSS, Rocket
Support Services, is a wholly owned subsidiary of Haverstick and provides
suborbital rockets and associated launch and engineering services to various
defense customers throughout the world.</font></p>

<p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;line-height:normal;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">About Kratos
Defense&nbsp;&amp; Security Solutions</font></b></p>

<p style="color:windowtext;line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Kratos Defense&nbsp;&amp;
Security Solutions,&nbsp;Inc. (Nasdaq: KTOS) provides mission critical
engineering, IT services and war fighter solutions for the U.S. federal
government and for state and local agencies. Principle services include C4ISR,
weapon systems lifecycle support, military weapon range and technical services,
network engineering services, advanced IT services, security and surveillance
systems, and <font style="color:black;"><font color="black" face="Times New Roman" style="color:windowtext;">critical infrastructure design and integration</font></font>.
The Company is headquartered in San Diego, California, with resources
throughout the U.S. and in key strategic military locations. News and
information are available at www.KratosDefense.com.</font></p>

<p style="color:windowtext;margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">This press release shall not
constitute an offer to sell securities and is not soliciting an offer to buy
securities. The shares of common stock to be issued in the transaction will not
be registered under the Securities Act, or any state securities laws, and will
be issued in a private transaction under Regulation D. Unless the shares are
registered, they may&nbsp;not be offered or sold in the United States except
pursuant to an exemption from the registration requirements of the Securities
Act and applicable state laws.</font></p>

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

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

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

<p style="color:black;margin:0in 0in .0001pt;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">Notice Regarding Forward-Looking Statements</font></b></p>

<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:windowtext;line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This news release contains
certain forward-looking statements including, without limitation, expressed or
implied statements concerning the Company&#146;s expectations regarding the timing
of closing of the acquisition, anticipated benefits to be realized from the
acquisition, future financial performance and cash flows and market
developments that involve risks and uncertainties. Such statements are only
predictions, and the Company&#146;s actual results may&nbsp;differ materially.
Factors that may&nbsp;cause the Company&#146;s results to differ include, but are
not limited to: risks that the closing will be delayed or that the conditions
to closing will not be satisfied; risks that funding is unavailable or delayed
because KeyBanc is not satisfied with the results of its due diligence
investigation; risks that the anticipated benefits of the acquisition will not
be achieved; risks that the integration will prove more costly, take more time,
or be more distracting than currently anticipated; risks that the recent
divestitures and change in business focus will cause disruption of the Company&#146;s
operations and distraction of its management; risks that the Company&#146;s name
change will cause disruption to individual and/or institutional shareholders;
risks of adverse regulatory action or litigation; risks associated with debt
leverage; risks that changes or cutbacks in spending by the U.S. Department of
Defense may&nbsp;occur, which could cause delays or cancellations of key
government contracts; failure to successfully consummate acquisitions or
integrate acquired operations and competition in the marketplace which could
reduce revenues and profit margins. The Company undertakes no obligation to
update any forward-looking statements. These and other risk factors are more
fully discussed in the Company&#146;s Annual Report on Form&nbsp;10-K for the period
ended December&nbsp;31, 2006, the Company&#146;s Quarterly Reports on Form&nbsp;10-Q
for the periods ended March&nbsp;31, 2007 and June&nbsp;30, 2007,&#160; and in other filings made with the Securities
and Exchange Commission.</font></p>

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

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

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