<SEC-DOCUMENT>0001204459-11-001092.txt : 20110420
<SEC-HEADER>0001204459-11-001092.hdr.sgml : 20110420
<ACCEPTANCE-DATETIME>20110420163215
ACCESSION NUMBER:		0001204459-11-001092
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20110420
FILED AS OF DATE:		20110420
DATE AS OF CHANGE:		20110420

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Gildan Activewear Inc.
		CENTRAL INDEX KEY:			0001061894
		STANDARD INDUSTRIAL CLASSIFICATION:	APPAREL & OTHER FINISHED PRODS OF FABRICS & SIMILAR MATERIAL [2300]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14830
		FILM NUMBER:		11770919

	BUSINESS ADDRESS:	
		STREET 1:		600 BOULEVARD DE MAISONNEUVE OUEST
		STREET 2:		33RD FLOOR
		CITY:			MONTREAL
		STATE:			A8
		ZIP:			H3A 3J2
		BUSINESS PHONE:		5147352023

	MAIL ADDRESS:	
		STREET 1:		600 BOULEVARD DE MAISONNEUVE OUEST
		STREET 2:		33RD FLOOR
		CITY:			MONTREAL
		STATE:			A8
		ZIP:			H3A 3J2

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GILDAN ACTIVEWEAR INC
		DATE OF NAME CHANGE:	19980515
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>form6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>
<HTML>
<HEAD>
<TITLE>Gildan Activewear Inc.: Form 6-K - Filed by newsfilecorp.com</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF" style="font-size: 10pt;">
<hr noshade align="center" width="100%" size=3 color="black">


<p align="center"><font size="5"><strong>UNITED STATES<br>
  SECURITIES AND EXCHANGE COMMISSION</strong></font><br>
  Washington, D.C. 20549</p>

<p align="center"><b><font size="5">FORM 6-K</font></b></p>
<p align="center"><b>REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16
  OR 15d-16 <br>
  UNDER THE SECURITIES EXCHANGE ACT OF 1934</b></p>
<p align="center">For the month of <b>April, 2011</b></p>

<p align="center">Commission File Number: <b>001-14830</b></p>

<p align="center"><b><u><font size=5>GILDAN ACTIVEWEAR INC.</font></u></b> <br>
<i>(Translation of registrant's name into English) </i> </p>

<p align="center"><b>600 de Maisonneuve Boulevard West <br>
33rd Floor <br>
Montr&#233;al, Qu&#233;bec <br>
Canada H3A 3J2</b><br><i>(Address of principal executive offices) </i> </p>

<p align="left">Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.</p>
<p align="center">[<font style="font-size:1px;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>] Form 20-F &nbsp;&nbsp;[
X ] Form 40-F</p>

<p align="left">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [<font style="font-size:1px;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>]
</p>



<p align="left"> Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [<font style="font-size:1px;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>]
</p>



<p align="left">Indicate by check mark whether by furnishing the information
  contained in this Form, the registrant is also thereby furnishing the information
  to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
  of 1934.</p>

<p align="center">Yes [<font style="font-size:1px;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>] No [
X ]</p>

<p align="left"> If &quot;Yes&quot; is marked, indicate below the file number assigned to
the registrant in connection with Rule 12g3-2(b): N/A</p>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">

<p align="center"><b><u>SUBMITTED HEREWITH</u></b></p>

<p align="left"><u>Exhibits</u></p>

<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
<tr><td width="5%" valign="top" bgcolor="#EEEEEE">&nbsp;</td><td width="5%" valign="top" bgcolor="#EEEEEE"><a href="exhibit99-1.htm">99.1</a></td><td bgcolor="#EEEEEE"><a href="exhibit99-1.htm">Agreement and Plan of Merger
</a></td></tr>
<tr><td>&nbsp;</td></tr>
<tr><td width="5%" valign="top" bgcolor="#EEEEEE">&nbsp;</td><td width="5%" valign="top" bgcolor="#EEEEEE"><a href="exhibit99-2.htm">99.2</a></td><td bgcolor="#EEEEEE"><a href="exhibit99-2.htm">Material Change Report Dated April 11, 2011</a></td></tr>
<tr><td>&nbsp;</td></tr>
</table>

<p>&nbsp;</p>

<hr noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">

<p align="center"><strong><u>SIGNATURES</u></strong></p>

<p align="justify">Pursuant to the requirements of the Securities Exchange Act
  of 1934, the registrant has duly caused this report to be signed on its behalf
  by the undersigned, thereunto duly authorized.</p>

<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
	<tr>
		<td width="50%" valign="top">&nbsp;</td>
		<td colspan="2" valign="top"><b>GILDAN ACTIVEWEAR INC.</b></td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td colspan="2" valign="top">(Registrant)</td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td valign="top">&nbsp;</td>
		<td>&nbsp;</td>
	</tr>
	<tr>
		<td valign="top">Date: April 20, 2011</td>
		<td valign="top">By:</td>
		<td><i>/s/ Lindsay Matthews  </i></td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td valign="top">&nbsp;</td>
		<td><hr noshade align="center" width="100%" size=1 color="black"> </td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td valign="top">&nbsp;</td>
		<td>Lindsay Matthews  </td>
	</tr>
	<tr>
		<td width="50%" valign="top">&nbsp;</td>
		<td width="5%" valign="top">Title:</td>
		<td>Vice-President, General Counsel and Corporate Secretary</td>
	</tr>
</table>

<p>&nbsp; </p>

<hr noshade align="center" width="100%" size=5 color="Black"></BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exhibit99-1.htm
<DESCRIPTION>AGREEMENT AND PLAN OF MERGER
<TEXT>
<HTML>
<HEAD>
   <TITLE>Gildan Activewear Inc.: Exhibit 99.1 - Filed by newsfilecorp.com</TITLE>
   </HEAD>

<BODY style="font-size:10pt;">

<HR noshade align="center" width=100% size=3 color="black">
<!--$$/page=--><A name=page_1></A>
<P align=right><B>EXECUTION VERSION </B></P>
<P align=center><B>AGREEMENT AND PLAN OF MERGER </B></P>
<P align=center><B>among </B></P>
<P align=center><B>GOLD TOE MORETZ HOLDINGS CORP.,</B> </P>
<P align=center><B>GILDAN USA INC., </B></P>
<P align=center><B>MIDAS ACQUISITION CORP. </B></P>
<P align=center><B>and </B></P>
<P align=center><B>BLACKSTONE CAPITAL PARTNERS V L.P. <BR>AS THE STOCKHOLDER
REPRESENTATIVE </B></P>
<P align=center>dated as of April 11, 2011 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_2></A>
<P align=center><B>TABLE OF CONTENTS </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left width="15%" >&nbsp; </TD>
    <TD align=left width="80%">&nbsp; </TD>
    <TD align=right width="5%" >Page </TD></TR>
  <TR>
    <TD width="15%" >&nbsp; </TD>
    <TD width="80%">&nbsp; </TD>
    <TD width="5%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2>
    <p style="text-indent: -15pt; margin-left: 15pt">ARTICLE 1 DEFINITIONS </TD>
    <TD align=right width="5%" bgColor=#eeeeee >1 </TD></TR>
  <TR>
    <TD width="15%" >&nbsp; </TD>
    <TD width="80%">&nbsp; </TD>
    <TD width="5%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 1.1. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Definitions </TD>
    <TD align=right width="5%" bgColor=#eeeeee >1 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 1.2. </TD>
    <TD align=left width="80%">Interpretation and Rules of Construction </TD>
    <TD align=right width="5%" >12 </TD></TR>
  <TR>
    <TD bgColor=#eeeeee width="15%" >&nbsp; </TD>
    <TD width="80%" bgColor=#eeeeee>&nbsp; </TD>
    <TD width="5%" bgColor=#eeeeee >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=2>
    <p style="text-indent: -15pt; margin-left: 15pt">ARTICLE 2 THE MERGER </TD>
    <TD align=right width="5%" >13 </TD></TR>
  <TR>
    <TD bgColor=#eeeeee width="15%" >&nbsp; </TD>
    <TD width="80%" bgColor=#eeeeee>&nbsp; </TD>
    <TD width="5%" bgColor=#eeeeee >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 2.1. </TD>
    <TD align=left width="80%">Surviving Corporation </TD>
    <TD align=right width="5%" >13 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 2.2. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Effective Time </TD>
    <TD align=right width="5%" bgColor=#eeeeee >13 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 2.3. </TD>
    <TD align=left width="80%">Closing </TD>
    <TD align=right width="5%" >13 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 2.4. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Certificate of Incorporation
      and By-Laws </TD>
    <TD align=right width="5%" bgColor=#eeeeee >13 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 2.5. </TD>
    <TD align=left width="80%">Officers and Directors </TD>
    <TD align=right width="5%" >13 </TD></TR>
  <TR>
    <TD bgColor=#eeeeee width="15%" >&nbsp; </TD>
    <TD width="80%" bgColor=#eeeeee>&nbsp; </TD>
    <TD width="5%" bgColor=#eeeeee >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=2>
    <p style="text-indent: -15pt; margin-left: 15pt">ARTICLE 3 STATUS AND CONVERSION OF SECURITIES </TD>
    <TD align=right width="5%" >14 </TD></TR>
  <TR>
    <TD bgColor=#eeeeee width="15%" >&nbsp; </TD>
    <TD width="80%" bgColor=#eeeeee>&nbsp; </TD>
    <TD width="5%" bgColor=#eeeeee >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 3.1. </TD>
    <TD align=left width="80%">Status and Conversion of Securities </TD>
    <TD align=right width="5%" >14 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 3.2. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Escrow </TD>
    <TD align=right width="5%" bgColor=#eeeeee >16 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 3.3. </TD>
    <TD align=left width="80%">Adjustment to Equity Consideration </TD>
    <TD align=right width="5%" >16 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 3.4. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Closing of the Company Transfer
      Books </TD>
    <TD align=right width="5%" bgColor=#eeeeee >19 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 3.5. </TD>
    <TD align=left width="80%">Stockholder Consent </TD>
    <TD align=right width="5%" >20 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 3.6. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Withholding Rights </TD>
    <TD align=right width="5%" bgColor=#eeeeee >20 </TD></TR>
  <TR>
    <TD width="15%" >&nbsp; </TD>
    <TD width="80%">&nbsp; </TD>
    <TD width="5%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2>
    <p style="text-indent: -15pt; margin-left: 15pt">ARTICLE 4 REPRESENTATIONS AND
      WARRANTIES OF THE COMPANY </TD>
    <TD align=right width="5%" bgColor=#eeeeee >20 </TD></TR>
  <TR>
    <TD width="15%" >&nbsp; </TD>
    <TD width="80%">&nbsp; </TD>
    <TD width="5%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.1. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Organization, Etc. </TD>
    <TD align=right width="5%" bgColor=#eeeeee >20 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.2. </TD>
    <TD align=left width="80%">Capitalization of the Company and the Company
      Subsidiaries </TD>
    <TD align=right width="5%" >21 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.3. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Authority Relative to this
      Agreement, Etc. </TD>
    <TD align=right width="5%" bgColor=#eeeeee >22 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.4. </TD>
    <TD align=left width="80%">Consents and Approvals; No Violations </TD>
    <TD align=right width="5%" >22 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.5. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Financial Statements </TD>
    <TD align=right width="5%" bgColor=#eeeeee >22 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.6. </TD>
    <TD align=left width="80%">Absence of Certain Changes </TD>
    <TD align=right width="5%" >23 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.7. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Compliance with Law </TD>
    <TD align=right width="5%" bgColor=#eeeeee >24 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.8. </TD>
    <TD align=left width="80%">Corruption Laws </TD>
    <TD align=right width="5%" >25 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.9. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Litigation </TD>
    <TD align=right width="5%" bgColor=#eeeeee >25 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.10. </TD>
    <TD align=left width="80%">No Undisclosed Liabilities </TD>
    <TD align=right width="5%" >25 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.11. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Taxes </TD>
    <TD align=right width="5%" bgColor=#eeeeee >26 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.12. </TD>
    <TD align=left width="80%">Brokers&#146; and Finders&#146; Fees </TD>
    <TD align=right width="5%" >27 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.13. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Intellectual Property </TD>
    <TD align=right width="5%" bgColor=#eeeeee >27 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.14. </TD>
    <TD align=left width="80%">Employee Benefit Plans; Employees </TD>
    <TD align=right width="5%" >29 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.15. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Environmental Matters </TD>
    <TD align=right width="5%" bgColor=#eeeeee >31 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.16. </TD>
    <TD align=left width="80%">Material Contracts </TD>
    <TD align=right width="5%" >32 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.17. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Related-Party Transactions </TD>
    <TD align=right width="5%" bgColor=#eeeeee >32 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.18. </TD>
    <TD align=left width="80%">Real Property </TD>
    <TD align=right width="5%" >33 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.19. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Personal Property </TD>
    <TD align=right width="5%" bgColor=#eeeeee >34
</TD></TR></TABLE>
<P align=center>i </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_3></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">&nbsp; </TD>
    <TD align=left width="80%">&nbsp; </TD>
    <TD align=right width="5%" >Page </TD></TR>
  <TR>
    <TD nowrap width="15%" >
    <p style="margin-left: 30pt">&nbsp; </TD>
    <TD width="80%">&nbsp; </TD>
    <TD width="5%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.20. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Insurance </TD>
    <TD align=right width="5%" bgColor=#eeeeee >34 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.21. </TD>
    <TD align=left width="80%">Employment Matters </TD>
    <TD align=right width="5%" >35 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.22. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Bank Accounts </TD>
    <TD align=right width="5%" bgColor=#eeeeee >35 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.23. </TD>
    <TD align=left width="80%">Customers and Suppliers </TD>
    <TD align=right width="5%" >35 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.24. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Transaction Related Expenses
</TD>
    <TD align=right width="5%" bgColor=#eeeeee >36 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.25. </TD>
    <TD align=left width="80%">Canofil and Procesos </TD>
    <TD align=right width="5%" >36 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 4.26. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>No Other Representations or
      Warranties </TD>
    <TD align=right width="5%" bgColor=#eeeeee >37 </TD></TR>
  <TR>
    <TD nowrap width="15%" >
    <p style="margin-left: 30pt">&nbsp; </TD>
    <TD width="80%">&nbsp; </TD>
    <TD width="5%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2>
    <p style="text-indent: -15pt; margin-left: 15pt">ARTICLE 5 REPRESENTATIONS AND
      WARRANTIES OF THE STOCKHOLDER REPRESENTATIVE </TD>
    <TD align=right width="5%" bgColor=#eeeeee >37 </TD></TR>
  <TR>
    <TD nowrap width="15%" >
    <p style="margin-left: 30pt">&nbsp; </TD>
    <TD width="80%">&nbsp; </TD>
    <TD align=right width="5%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 5.1. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Organization and Good Standing
    </TD>
    <TD align=right width="5%" bgColor=#eeeeee >37 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 5.2. </TD>
    <TD align=left width="80%">Authority Relative to this Agreement, Etc </TD>
    <TD align=right width="5%" >37 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 5.3. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Consents and Approvals; No
      Violations </TD>
    <TD align=right width="5%" bgColor=#eeeeee >37 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 5.4. </TD>
    <TD align=left width="80%">No Other Representations or Warranties </TD>
    <TD align=right width="5%" >38 </TD></TR>
  <TR>
    <TD bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">&nbsp; </TD>
    <TD width="80%" bgColor=#eeeeee>&nbsp; </TD>
    <TD align=right width="5%" bgColor=#eeeeee >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=2>
    <p style="text-indent: -15pt; margin-left: 15pt">ARTICLE 6 REPRESENTATIONS AND WARRANTIES OF BUYER
      AND MERGER SUB </TD>
    <TD align=right width="5%" >38 </TD></TR>
  <TR>
    <TD bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">&nbsp; </TD>
    <TD width="80%" bgColor=#eeeeee>&nbsp; </TD>
    <TD align=right width="5%" bgColor=#eeeeee >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 6.1. </TD>
    <TD align=left width="80%">Organization, Etc. </TD>
    <TD align=right width="5%" >38 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 6.2. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Authority Relative to this
      Agreement, Etc. </TD>
    <TD align=right width="5%" bgColor=#eeeeee >38 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 6.3. </TD>
    <TD align=left width="80%">Consents and Approvals; No Violations </TD>
    <TD align=right width="5%" >38 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 6.4. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Compliance with Law; Permits
</TD>
    <TD align=right width="5%" bgColor=#eeeeee >39 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 6.5. </TD>
    <TD align=left width="80%">Litigation </TD>
    <TD align=right width="5%" >39 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 6.6. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Brokers&#146; and Finders&#146; Fees </TD>
    <TD align=right width="5%" bgColor=#eeeeee >39 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 6.7. </TD>
    <TD align=left width="80%">Financing </TD>
    <TD align=right width="5%" >39 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 6.8. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Investigation </TD>
    <TD align=right width="5%" bgColor=#eeeeee >39 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 6.9. </TD>
    <TD align=left width="80%">Merger Sub </TD>
    <TD align=right width="5%" >39 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 6.10. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>No Other Representations or
      Warranties </TD>
    <TD align=right width="5%" bgColor=#eeeeee >40 </TD></TR>
  <TR>
    <TD nowrap width="15%" >
    <p style="margin-left: 30pt">&nbsp; </TD>
    <TD width="80%">&nbsp; </TD>
    <TD align=right width="5%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2>
    <p style="text-indent: -15pt; margin-left: 15pt">ARTICLE 7 COVENANTS </TD>
    <TD align=right width="5%" bgColor=#eeeeee >40 </TD></TR>
  <TR>
    <TD nowrap width="15%" >
    <p style="margin-left: 30pt">&nbsp; </TD>
    <TD width="80%">&nbsp; </TD>
    <TD align=right width="5%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 7.1. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Conduct of Business </TD>
    <TD align=right width="5%" bgColor=#eeeeee >40 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 7.2. </TD>
    <TD align=left width="80%">Access to Information; Confidentiality </TD>
    <TD align=right width="5%" >42 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 7.3. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Retention of Records </TD>
    <TD align=right width="5%" bgColor=#eeeeee >43 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 7.4. </TD>
    <TD align=left width="80%">Consents and Approvals; Conditions </TD>
    <TD align=right width="5%" >43 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 7.5. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Filings with Governmental
      Authorities </TD>
    <TD align=right width="5%" bgColor=#eeeeee >43 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 7.6. </TD>
    <TD align=left width="80%">Directors&#146; and Officers&#146; Indemnification and
      Insurance </TD>
    <TD align=right width="5%" >44 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 7.7. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Employee Matters </TD>
    <TD align=right width="5%" bgColor=#eeeeee >46 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 7.8. </TD>
    <TD align=left width="80%">Taxes. </TD>
    <TD align=right width="5%" >47 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 7.9. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Further Assurances </TD>
    <TD align=right width="5%" bgColor=#eeeeee >48 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 7.10. </TD>
    <TD align=left width="80%">No Solicitation of Transactions </TD>
    <TD align=right width="5%" >48 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 7.11. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Transaction and Monitoring Fee
      Agreement; Engagement Letter; Stockholders Agreements </TD>
    <TD align=right width="5%" bgColor=#eeeeee >48 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 7.12. </TD>
    <TD align=left width="80%">Intellectual Property Rights Matters </TD>
    <TD align=right width="5%" >49 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 7.13. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Transaction Related Expenses
</TD>
    <TD align=right width="5%" bgColor=#eeeeee >50 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 7.14. </TD>
    <TD align=left width="80%">Notices; Release of Collateral </TD>
    <TD align=right width="5%" >50 </TD></TR></TABLE>
<P align=center>ii </P>
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noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">&nbsp; </TD>
    <TD align=left width="80%">&nbsp; </TD>
    <TD align=right width="5%" >Page </TD></TR>
  <TR>
    <TD nowrap width="15%" >
    <p style="margin-left: 30pt">&nbsp; </TD>
    <TD width="80%">&nbsp; </TD>
    <TD width="5%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 7.15. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Further Assurances </TD>
    <TD align=right width="5%" bgColor=#eeeeee >50 </TD></TR>
  <TR>
    <TD nowrap width="15%" >
    <p style="margin-left: 30pt">&nbsp; </TD>
    <TD width="80%">&nbsp; </TD>
    <TD width="5%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2>
    <p style="text-indent: -15pt; margin-left: 15pt">ARTICLE 8 CONDITIONS TO THE
      CLOSING </TD>
    <TD align=right width="5%" bgColor=#eeeeee >50 </TD></TR>
  <TR>
    <TD nowrap width="15%" >
    <p style="margin-left: 30pt">&nbsp; </TD>
    <TD width="80%">&nbsp; </TD>
    <TD width="5%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 8.1. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Conditions to the Obligations
      of Each Party to Effect the Closing </TD>
    <TD align=right width="5%" bgColor=#eeeeee >50 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 8.2. </TD>
    <TD align=left width="80%">Conditions to the Obligations of the Company to
      Effect the Closing </TD>
    <TD align=right width="5%" >51 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 8.3. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Conditions to the Obligations
      of Buyer and Merger Sub to Effect the Closing </TD>
    <TD align=right width="5%" bgColor=#eeeeee >51 </TD></TR>
  <TR>
    <TD nowrap width="15%" >
    <p style="margin-left: 30pt">&nbsp; </TD>
    <TD width="80%">&nbsp; </TD>
    <TD align=right width="5%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2>
    <p style="text-indent: -15pt; margin-left: 15pt">ARTICLE 9 SURVIVAL OF
      REPRESENTATION AND WARRANTIES </TD>
    <TD align=right width="5%" bgColor=#eeeeee >52 </TD></TR>
  <TR>
    <TD nowrap width="15%" >
    <p style="margin-left: 30pt">&nbsp; </TD>
    <TD width="80%">&nbsp; </TD>
    <TD align=right width="5%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 9.1. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Survival Period </TD>
    <TD align=right width="5%" bgColor=#eeeeee >52 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 9.2. </TD>
    <TD align=left width="80%">Indemnification </TD>
    <TD align=right width="5%" >52 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 9.3. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Indemnification Procedures </TD>
    <TD align=right width="5%" bgColor=#eeeeee >53 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 9.4. </TD>
    <TD align=left width="80%">Limitations on Indemnification </TD>
    <TD align=right width="5%" >55 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 9.5. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Tax Indemnification </TD>
    <TD align=right width="5%" bgColor=#eeeeee >55 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 9.6. </TD>
    <TD align=left width="80%">Losses Net of Insurance and Taxes </TD>
    <TD align=right width="5%" >56 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 9.7. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Indemnity Escrow </TD>
    <TD align=right width="5%" bgColor=#eeeeee >57 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 9.8. </TD>
    <TD align=left width="80%">Purchase Price Adjustment </TD>
    <TD align=right width="5%" >57 </TD></TR>
  <TR>
    <TD bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">&nbsp; </TD>
    <TD width="80%" bgColor=#eeeeee>&nbsp; </TD>
    <TD align=right width="5%" bgColor=#eeeeee >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left colSpan=2>
    <p style="text-indent: -15pt; margin-left: 15pt">ARTICLE 10 TERMINATION AND ABANDONMENT </TD>
    <TD align=right width="5%" >57 </TD></TR>
  <TR>
    <TD bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">&nbsp; </TD>
    <TD width="80%" bgColor=#eeeeee>&nbsp; </TD>
    <TD align=right width="5%" bgColor=#eeeeee >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 10.1. </TD>
    <TD align=left width="80%">Termination </TD>
    <TD align=right width="5%" >57 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 10.2. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Procedure and Effect of
      Termination </TD>
    <TD align=right width="5%" bgColor=#eeeeee >58 </TD></TR>
  <TR>
    <TD nowrap width="15%" >
    <p style="margin-left: 30pt">&nbsp; </TD>
    <TD width="80%">&nbsp; </TD>
    <TD align=right width="5%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee colSpan=2>
    <p style="text-indent: -15pt; margin-left: 15pt">ARTICLE 11 MISCELLANEOUS </TD>
    <TD align=right width="5%" bgColor=#eeeeee >58 </TD></TR>
  <TR>
    <TD nowrap width="15%" >
    <p style="margin-left: 30pt">&nbsp; </TD>
    <TD width="80%">&nbsp; </TD>
    <TD align=right width="5%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 11.1. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Amendment and Modifications </TD>
    <TD align=right width="5%" bgColor=#eeeeee >58 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 11.2. </TD>
    <TD align=left width="80%">Stockholder Representative </TD>
    <TD align=right width="5%" >59 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 11.3. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Extension; Waiver </TD>
    <TD align=right width="5%" bgColor=#eeeeee >59 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 11.4. </TD>
    <TD align=left width="80%">Entire Agreement; Assignment </TD>
    <TD align=right width="5%" >60 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 11.5. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Validity </TD>
    <TD align=right width="5%" bgColor=#eeeeee >60 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 11.6. </TD>
    <TD align=left width="80%">Notices </TD>
    <TD align=right width="5%" >60 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 11.7. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Mutual Drafting </TD>
    <TD align=right width="5%" bgColor=#eeeeee >61 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 11.8. </TD>
    <TD align=left width="80%">Waiver of Jury Trial </TD>
    <TD align=right width="5%" >62 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 11.9. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Specific Performance </TD>
    <TD align=right width="5%" bgColor=#eeeeee >62 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 11.10. </TD>
    <TD align=left width="80%">Publicity </TD>
    <TD align=right width="5%" >62 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 11.11. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Alternative Dispute Resolution
    </TD>
    <TD align=right width="5%" bgColor=#eeeeee >62 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 11.12. </TD>
    <TD align=left width="80%">Governing Law; Submission to Jurisdiction;
      Waivers </TD>
    <TD align=right width="5%" >63 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 11.13. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Descriptive Headings </TD>
    <TD align=right width="5%" bgColor=#eeeeee >63 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 11.14. </TD>
    <TD align=left width="80%">Severability </TD>
    <TD align=right width="5%" >63 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 11.15. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Counterparts </TD>
    <TD align=right width="5%" bgColor=#eeeeee >63 </TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap width="15%" >
    <p style="margin-left: 30pt">Section 11.16. </TD>
    <TD align=left width="80%">Expenses </TD>
    <TD align=right width="5%" >64 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee nowrap width="15%" >
    <p style="margin-left: 30pt">Section 11.17. </TD>
    <TD align=left width="80%" bgColor=#eeeeee>Parties in Interest </TD>
    <TD align=right width="5%" bgColor=#eeeeee >64
</TD></TR></TABLE>
<P align=center>iii </P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left colSpan=3>SCHEDULES </TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"  >&nbsp;</TD>
    <TD width="85%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee width="10%" >Schedule 1.1(a) </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="85%" bgColor=#eeeeee>Consents </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >Schedule 1.1(b) </TD>
    <TD noWrap align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="84%">Adjusted Working Capital </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee >Schedule 1.1(c) </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="84%" bgColor=#eeeeee>Key Executives </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >Schedule 1.1(d) </TD>
    <TD noWrap align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="84%">Knowledge </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee >Schedule 1.1(e) </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="84%" bgColor=#eeeeee>Permitted Encumbrances </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >Schedule 2.5 </TD>
    <TD noWrap align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="84%">Officers and Directors </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee >Schedule 3.1(a) </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="84%" bgColor=#eeeeee>Holders </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >Schedule 3.1(b) </TD>
    <TD noWrap align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="84%">Outstanding Debt and Lines of Credit </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee >Schedule 4.1(a) </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="84%" bgColor=#eeeeee>Organization </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >Schedule 4.1(b) </TD>
    <TD noWrap align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="84%">Organization </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee >Schedule 4.2(a)(i) </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="84%" bgColor=#eeeeee>Employee Restricted Stock
</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >Schedule 4.2(a)(ii) </TD>
    <TD noWrap align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="84%">Stock Options </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee >Schedule 4.2(b) </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="84%" bgColor=#eeeeee>Company Subsidiaries </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >Schedule 4.2(c) </TD>
    <TD noWrap align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="84%">Other Equity Ownership </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee >Schedule 4.4 </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="84%" bgColor=#eeeeee>Consents and Approvals </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >Schedule 4.5(a) </TD>
    <TD noWrap align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="84%">Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee >Schedule 4.5(b) </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="84%" bgColor=#eeeeee>Exceptions to Financial
      Statements </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >Schedule 4.6 </TD>
    <TD noWrap align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="84%">Certain Changes </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee >Schedule 4.9 </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="84%" bgColor=#eeeeee>Litigation </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >Schedule 4.11 </TD>
    <TD noWrap align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="84%">Taxes </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee >Schedule 4.12 </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="84%" bgColor=#eeeeee>Brokers&#146; and Finders&#146; Fees
  </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >Schedule 4.13(a) </TD>
    <TD noWrap align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="84%">Intellectual Property </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee >Schedule 4.13(b) </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="84%" bgColor=#eeeeee>Encumbrances on Intellectual
      Property </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >Schedule 4.13(c) </TD>
    <TD noWrap align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="84%">Litigation on Intellectual Property </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee >Schedule 4.13(d) </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="84%" bgColor=#eeeeee>Intellectual Property Licenses
    </TD></TR>
  <TR>
    <TD noWrap >&nbsp;</TD>
    <TD noWrap width="5%"  >&nbsp;</TD>
    <TD width="84%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee >Schedule 4.14(a) </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="84%" bgColor=#eeeeee>Employee Benefit Plans </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >Schedule 4.14(c) </TD>
    <TD noWrap align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="84%">Employee Benefit Plan Litigation </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee >Schedule 4.14(d) </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="84%" bgColor=#eeeeee>Welfare Benefits </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >Schedule 4.14(e) </TD>
    <TD noWrap align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="84%">Officer and Director Benefits </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee >Schedule 4.14(h) </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="84%" bgColor=#eeeeee>ERISA Liabilities </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >Schedule 4.14(i) </TD>
    <TD noWrap align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="84%">Material Unfunded Liabilities </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee >Schedule 4.15 </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="84%" bgColor=#eeeeee>Environmental Matters </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >Schedule 4.15(c) </TD>
    <TD noWrap align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="84%">Underground Storage Tanks (Environmental
      Representations) </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee >Schedule 4.16(a) </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="84%" bgColor=#eeeeee>Contracts </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >Schedule 4.16(b) </TD>
    <TD noWrap align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="84%">Contracts </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee >Schedule 4.17 </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="84%" bgColor=#eeeeee>Related-Party Transactions
  </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >Schedule 4.18(a) </TD>
    <TD noWrap align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="84%">Parcels </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee >Schedule 4.18(b) </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="84%" bgColor=#eeeeee>Leased Real Property </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >Schedule 4.18(c) </TD>
    <TD noWrap align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="84%">Landlord Consents </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee >Schedule 4.20(a) </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="84%" bgColor=#eeeeee>Insurance </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >Schedule 4.20(b) </TD>
    <TD noWrap align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="84%">Insurance </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee >Schedule 4.21 </TD>
    <TD noWrap align=left width="5%"  bgColor=#eeeeee
      >&nbsp;</TD>
    <TD align=left width="84%" bgColor=#eeeeee>Employment and Labor Matters
  </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >Schedule 4.22 </TD>
    <TD noWrap align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="84%">Bank Accounts </TD></TR></TABLE>
<P align=center>iv </P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee width="10%" >Schedule 4.23(a) </TD>
    <TD align=left width="5%"  bgColor=#eeeeee
    >&nbsp;</TD>
    <TD align=left width="85%" bgColor=#eeeeee>Customers </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left width="10%" >Schedule 4.23(b) </TD>
    <TD align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="85%">Suppliers </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee width="10%" >Schedule 4.24 </TD>
    <TD align=left width="5%"  bgColor=#eeeeee
    >&nbsp;</TD>
    <TD align=left width="85%" bgColor=#eeeeee>Transaction Related Expenses
  </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left width="10%" >Schedule 5.3 </TD>
    <TD align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="85%">Stockholder Representative Consents and
      Approvals </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee width="10%" >Schedule 6.3 </TD>
    <TD align=left width="5%"  bgColor=#eeeeee
    >&nbsp;</TD>
    <TD align=left width="85%" bgColor=#eeeeee>Buyer Consents and Approvals
  </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left width="10%" >Schedule 6.5 </TD>
    <TD align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="85%">Buyer Litigation </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee width="10%" >Schedule 7.7(c)(ii)
</TD>
    <TD align=left width="5%"  bgColor=#eeeeee
    >&nbsp;</TD>
    <TD align=left width="85%" bgColor=#eeeeee>Annual Bonus Plan </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left width="10%" >Schedule 7.12(b) </TD>
    <TD align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="85%">Actions to Protect Material Company
      Intellectual Property </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee width="10%" >Schedule 7.14 </TD>
    <TD align=left width="5%"  bgColor=#eeeeee
    >&nbsp;</TD>
    <TD align=left width="85%" bgColor=#eeeeee>Release of Collateral
  </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD noWrap align=left width="10%" >EXHIBITS </TD>
    <TD align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="85%">&nbsp; </TD></TR>
  <TR>
    <TD noWrap width="10%" >&nbsp; </TD>
    <TD width="5%"  >&nbsp;</TD>
    <TD width="85%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#eeeeee width="10%" >Exhibit A </TD>
    <TD align=left width="5%"  bgColor=#eeeeee
    >&nbsp;</TD>
    <TD align=left width="85%" bgColor=#eeeeee>Amended and Restated
      Certificate of Incorporation </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left width="10%" >Exhibit B </TD>
    <TD align=left width="5%"  >&nbsp;</TD>
    <TD align=left width="85%">Disclosure Schedule </TD></TR></TABLE><BR>
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<P align=center><B>AGREEMENT AND PLAN OF MERGER </B></P>
<P align=justify style="text-indent: 10%">AGREEMENT AND PLAN OF MERGER (this &#147;<U>Agreement</U>&#148;), dated
as of April 11, 2011, among Gold Toe Moretz Holdings Corp., a Delaware
corporation (the &#147;<U>Company</U>&#148;), Gildan USA Inc., a Delaware corporation
(&#147;<U>Buyer</U>&#148;), Midas Acquisition Corp., a Delaware corporation and a
wholly-owned subsidiary of Buyer (&#147;<U>Merger Sub</U>&#148;) and for the purposes of
Section 3.1(a)(iv), Article 5 and Sections 8.3(a), 8.3(e), 9.3(c), 9.7, 11.2 and
11.10, only, Blackstone Capital Partners V L.P. (&#147;<U>BCP</U>&#148;) as Stockholder
Representative (as defined herein).<B> </B></P>
<P align=justify style="text-indent: 10%">WHEREAS, the respective Boards of Directors of each of the
Company, Buyer (for itself and as the sole stockholder of Merger Sub) and Merger
Sub have determined that this Agreement is advisable and have approved the
merger of Merger Sub with and into the Company (the &#147;<U>Merger</U>&#148;), with the
Company continuing as the surviving corporation and a wholly-owned subsidiary of
Buyer, upon the terms and subject to the conditions set forth herein; </P>
<P align=justify style="text-indent: 10%">WHEREAS, pursuant to the Merger, the Common Stock will be
converted into the right to receive, on the terms and subject to the conditions
set forth herein, certain cash consideration in the amounts described herein;
</P>
<P align=justify style="text-indent: 10%">WHEREAS, concurrently with the execution of this Agreement, and
as a condition and inducement to Buyer&#146;s willingness to enter into this
Agreement, Merger Sub has entered into Employment and Non-Competition
Agreements, dated as of the date hereof and which shall be effective as of the
Effective Time, between Buyer, Merger Sub and Gildan Activewear Inc., on one
hand, and the Key Executives, on the other hand;</P>
<P align=justify style="text-indent: 10%">WHEREAS, concurrently with the execution of this Agreement
Buyer has obtained the Consents referred to on <U>Schedule 1(a)</U>; and </P>
<P align=justify style="text-indent: 10%">WHEREAS, the Board of Directors of the Company, in accordance
with the DGCL, the certificate of incorporation and the by-laws of the Company
(as amended), has approved this Agreement and the transactions contemplated
hereby, and has recommended that the Holders adopt this Agreement and approve
the transactions contemplated hereby. </P>
<P align=justify style="text-indent: 10%">NOW, THEREFORE, in consideration of the premises and the mutual
promises contained herein, the parties hereby agree as follows: </P>
<P align=center><B>ARTICLE 1 </B></P>
<P align=center><B><U>DEFINITIONS</U></B><B> </B></P>
<P align=justify style="text-indent: 10%"><U>Section 1.1.</U> <U>Definitions</U>. The terms defined in
this Article 1, whenever used herein, shall have the following meanings for all
purposes of this Agreement: </P>
<P align=justify style="text-indent: 10%">&#147;<U>Action</U>&#148; shall mean any action, claim, suit,
arbitration, proceeding or investigation by or before any Governmental Authority
or arbitration tribunal. </P>
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<P align=right>2 </P>
<P align=justify style="text-indent: 10%">&#147;<U>Acquisition Proposal</U>&#148; shall have the meaning set forth
in Section 7.10(b) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Adjusted Working Capital</U>&#148; shall mean Current Assets
minus Current Liabilities, as adjusted, as shown in <U>Schedule 1.1(b)</U>.</P>
<P align=justify style="text-indent: 10%">&#147;<U>Affiliate</U>&#148; shall mean, with respect to any specified
Person, a Person that, directly or indirectly, through one or more
intermediaries, controls, or is controlled by, or is under common control with,
such specified Person. For purposes of this definition, &#147;<U>control</U>&#148;, when
used with respect to any specified Person, means the power to direct the
management and policies of such Person, directly or indirectly, whether through
ownership of voting securities, by Contract or otherwise; and the terms
&#147;<U>controlling</U>&#148; and &#147;<U>controlled</U>&#148; have meanings correlative to the
foregoing. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Agreement</U>&#148; shall have the meaning set forth in the
preamble to this Agreement. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Annual Bonus Plan</U>&#148; shall have the meaning set forth in
Section 7.7(c) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Antitrust Division</U>&#148; shall have the meaning set forth in
Section 7.5(b) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Applicable Survival Period</U>&#148; shall have the meaning set
forth in Section 9.1(a) .  </P>
<P align=justify style="text-indent: 10%">&#147;<U>Audited Financial Statements</U>&#148; shall have the
meaning set forth in Section 4.5.  </P>
<P align=justify style="text-indent: 10%">&#147;<U>BCP</U>&#148; shall have the meaning set forth
in the preamble to this Agreement.<B><I> </I></B></P>
<P align=justify style="text-indent: 10%">&#147;<U>Benefit Plans</U>&#148; shall have the meaning set forth in
Section 4.14(a) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Business Day</U>&#148; shall mean any day other than a Saturday,
a Sunday or a day on which banks are required or authorized to be closed in
Montr&#233;al, Quebec or New York, New York. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Buyer</U>&#148; shall have the meaning set forth in the preamble
to this Agreement. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Buyer Indemnified Parties</U>&#148; shall have the meaning set
forth in Section 9.2(a) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Buyer Plans</U>&#148; shall have the meaning set forth in
Section 7.7(a) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Buyer Material Adverse Effect</U>&#148; shall mean a material
adverse effect on the ability of Buyer to consummate the transactions
contemplated by this Agreement or perform its obligations under this Agreement.
</P>
<P align=justify style="text-indent: 10%">&#147;<U>Canofil</U>&#148; shall mean Canofil, S.A. de C.V. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Cap</U>&#148; shall have the meaning set forth in Section 9.4(b)
.. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Certificate</U>&#148; shall have the meaning set forth in
Section 3.1(d)(ii) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Certificate of Merger</U>&#148; shall have the meaning set forth
in Section 2.3(b) . </P>
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<P align=right>3 </P>
<P align=justify style="text-indent: 10%">&#147;<U>Closing</U>&#148; shall have the meaning set forth in Section
2.3(a) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Closing Cash</U>&#148; shall mean the cash on the Company&#146;s
balance sheet, net of outstanding checks, as of the close of business on the
Business Day prior to the Closing Date. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Closing Date</U>&#148; shall have the meaning set forth in
Section 2.3(a) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Closing Net Working Capital Adjustment</U>&#148; shall have the
meaning set forth in Section 3.3(a) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Code</U>&#148; shall mean the Internal Revenue Code of 1986, as
amended. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Collateral Source</U>&#148; shall have the meaning set forth in
Section 9.6. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Common Stock</U>&#148; shall mean the common stock, par value
$0.10 per share, of the Company. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Company</U>&#148; shall have the meaning set forth in the
preamble to this Agreement. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Company Group</U>&#148; shall mean the Company and the Company
Subsidiaries. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Company Group Employees</U>&#148; shall have the meaning set
forth in Section 7.7(d) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Company Intellectual Property</U>&#148; means all Intellectual
Property rights on a worldwide basis, in each instance owned in whole or in part
by the Company or any of the Company Subsidiaries. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Company Licenses</U>&#148; shall have the meaning set forth in
Section 4.13(d) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Company Property</U>&#148; shall have the meaning set forth in
Section 4.18(b) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Company Stock Option</U>&#148; shall mean each option to acquire
shares of Common Stock issued under any Company Stock Plan.</P>
<P align=justify style="text-indent: 10%">&#147;<U>Company Stock Plan</U>&#148; means any stock option plan or
other stock or equity-related plan of the Company or any Company Subsidiary.
</P>
<P align=justify style="text-indent: 10%">&#147;<U>Company Subsidiaries</U>&#148; shall mean the Subsidiaries of
the Company, each of which is listed in <U>Schedule 4.2(b)</U>. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Compensation Package</U>&#148; shall have the meaning set forth
in Section 7.7(a) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Confidentiality Agreement</U>&#148; shall have the meaning set
forth in Section 7.2(b) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Contract</U>&#148; shall mean any written or oral contract,
agreement, arrangement, instrument or other commitment legally binding and
enforceable on the parties thereto under applicable Law. </P>
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<P align=right>4 </P>
<P align=justify style="text-indent: 10%">&#147;<U>Copyrights</U>&#148; shall have the meaning set forth in the
definition of &#147;Intellectual Property.&#148; </P>
<P align=justify style="text-indent: 10%">&#147;<U>Corruption Laws</U>&#148; shall have the meaning set forth in
Section 4.8. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Credit Agreements</U>&#148; shall mean (i) the First Lien Credit
Agreement, dated October 30, 2006, between the Company, Bear Stearns Corporate
Lending Inc, the Guarantors named therein and the Lenders named therein, as
amended as of the date hereof, and (ii) the Second Lien Credit Agreement, dated
October 30, 2006, between the Company, Wilmington Trust FSB, the Guarantors
named therein and the Lenders named therein, as amended as of the date hereof.
</P>
<P align=justify style="text-indent: 10%">&#147;<U>Current Assets</U>&#148; means all current assets of the Company
and the Company Subsidiaries as determined in accordance with GAAP applied on a
basis consistent with the Audited Financial Statements, but excluding the
Closing Cash and excluding any current and deferred income Taxes. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Current Liabilities</U>&#148; means all current liabilities of
the Company and the Company Subsidiaries as determined in accordance with GAAP
applied on a basis consistent with the Audited Financial Statements, but
including outstanding checks and excluding Outstanding Debt, accrued management
fees payable to Blackstone Management Partners L.L.C. pursuant to the Monitoring
Agreement and current and deferred income Taxes. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Deductible</U>&#148; shall have the meaning set forth in Section
9.4(a) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>DGCL</U>&#148; shall mean the General Corporation Law of the
State of Delaware, as amended. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Director and/or Officer Indemnified Party</U>&#148; shall have
the meaning set forth in Section 7.6(a) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Dissenting Shares</U>&#148; shall have the meaning set forth in
Section 3.5(b) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Effective Time</U>&#148; shall have the meaning set forth in
Section 2.2. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Employee Arrangement</U>&#148; shall have the meaning set forth
in Section 7.7(b) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Employment and Non-Competition Agreement</U>&#148; shall mean
each employment and non-competition agreement between the Company, on one hand,
and each Key Executive, on the other hand, entered into as described in the
recitals to this Agreement. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Encumbrance</U>&#148; shall mean any lien, security interest,
charge, mortgage, deed of trust, lease, license, covenant, restriction,
hypothecation, pledge, option to purchase or lease or otherwise acquire any
interest, right of first refusal or offer, conditional sales or other title
retention agreement, adverse right or ownership or use, easement, encroachment,
right of way or other title defect, third party right or encumbrance of any kind
or nature. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Engagement Letter</U>&#148; shall have the meaning set forth in
Section 7.11(a) . </P>
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<P align=justify style="text-indent: 10%">&#147;<U>Environmental Law</U>&#148; shall mean any Law (including common
law) relating to (a) the protection of the environment; (b) the exposure of
humans to Hazardous Materials; (c) occupational health and safety; or (d) the
management, Release or remediation of Hazardous Materials. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Environmental Permits</U>&#148; shall have the meaning set forth
in Section 4.15(a) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Equity Consideration</U>&#148; shall mean (1) the Total
Enterprise Value, plus (2) Closing Cash, minus (3) Outstanding Debt, the
Unfunded Pension Liability and Transaction Related Expenses. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Equity Consideration Adjustment Consultation Period</U>&#148;
shall have the meaning set forth in Section 3.3(g) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Equity Consideration Adjustment Review Period</U>&#148; shall
have the meaning set forth in Section 3.3(d) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>ERISA</U>&#148; shall mean the Employee Retirement Income
Security Act, of 1974, as amended. </P>
<P align=justify style="text-indent: 10%">&#147;<U>ERISA Affiliate</U>&#148; shall mean any single-employer entity
which is considered one employer with the Company under Section 4001 of ERISA or
Section 414 of the Code. </P>
<P align=justify style="text-indent: 10%">&#147;<U>ERISA Plan</U>&#148; shall have the meaning set forth in Section
4.14(b) </P>
<P align=justify style="text-indent: 10%">&#147;<U>Escrow Account</U>&#148; shall mean the escrow account in which
the Escrow Agent shall hold the Escrow Funds. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Escrow Agreement</U>&#148; shall have the meaning set forth in
Section 9.7. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Escrow Agent</U>&#148; shall have the meaning set forth in
Section 3.2. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Escrow Funds</U>&#148; shall have the meaning set forth in
Section 3.1(a)(iii) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Estimated Closing Cash</U>&#148; shall have the meaning set
forth in Section 3.3(b) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Excess Amounts</U>&#148; shall have the meaning set forth in
Section 7.11. </P>
<P align=justify style="text-indent: 10%">&#147;<U>FCPA</U>&#148; shall mean the Foreign Corrupt Practices Act of
1977, as amended. </P>
<P align=justify style="text-indent: 10%">&#147;<U>FTC</U>&#148; shall mean the United States Federal Trade
Commission. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Final Closing Cash Amount</U>&#148; shall have the meaning set
forth in Section 3.3(h) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Final Working Capital Amount</U>&#148; shall have the meaning
set forth in Section 3.3(h) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Financial Statements</U>&#148; shall have the meaning set forth
in Section 4.5. </P>
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<P align=justify style="text-indent: 10%">&#147;<U>Fully Diluted Shares</U>&#148; means the number of shares of
Common Stock outstanding immediately prior to the Effective Time. </P>
<P align=justify style="text-indent: 10%">&#147;<U>GAAP</U>&#148; shall mean United States generally accepted
accounting principles as in effect on the date or for the period with respect to
which such principles are applied. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Governmental Antitrust Authority</U>&#148; shall have the
meaning set forth in Section 7.5(b) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Governmental Authority</U>&#148; shall mean any federal,
territorial, state, provincial, local, county or municipal government,
governmental, regulatory or administrative agency, department, court,
commission, board, bureau or other authority or instrumentality, domestic or
foreign. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Hazardous Material</U>&#148; means any substance, material or
waste that is regulated or governed by any Environmental Law as hazardous, toxic
or otherwise posing a risk of harm, including, without limitation: (a) any
substance, material or waste that is defined or listed as &#147;hazardous waste,&#148;
&#147;extremely hazardous waste,&#148; &#147;restricted hazardous waste,&#148; &#147;hazardous
substance,&#148; &#147;hazardous material,&#148; &#147;toxic substance,&#148; &#147;solid waste,&#148; &#147;pollutant&#148;
or &#147;contaminant&#148; under any applicable Environmental Law, (b) any asbestos or
asbestos containing materials, and (c) any petroleum compounds, petroleum
products, mold, lead containing materials or polychlorinated biphenyls. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Holder</U>&#148; shall mean any holder of Common Stock
immediately prior to the Effective Time. </P>
<P align=justify style="text-indent: 10%">&#147;<U>HSR Act</U>&#148; shall mean the Hart-Scott-Rodino Antitrust
Improvement Act of 1976, as amended. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Independent Accountant</U>&#148; shall have the meaning set
forth in Section 3.3(h) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Initial Consideration</U>&#148; shall have the meaning set forth
in Section 3.1(a)(ii) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Initial Cash Amount</U>&#148; shall have the meaning set forth
in Section 3.3(c) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Initial Net Working Capital Amount</U>&#148; shall have the
meaning set forth in Section 3.3(c) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Initial Per Share Consideration</U>&#148; shall have the meaning
set forth in Section 3.1(a)(ii) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Initial Statement</U>&#148; shall have the meaning set forth in
Section 3.3(c) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Intellectual Property</U>&#148; shall mean all intellectual
property rights arising from or associated with the following, whether
protected, created or arising under the laws of the United States or any foreign
jurisdiction, including, without limitation, (1) all trademarks, certification
marks, collective marks, service marks, trade names, brand names, product names,
websites, URLs, Internet domain names and other Internet addresses or
identifiers, designs, slogans, logos, symbols, trade dress, design marks, assumed names, fictitious
names, d/b/a&#146;s, business names, corporate names and any and every other form of
trade identity and other indicia of origin, together with all goodwill related
to the foregoing and symbolized thereby and all applications (including
intent-to-use applications), registrations, and renewals in connection therewith
(collectively, &#147;<U>Marks</U> &#147;); (2) all inventions and discoveries (whether or
not reduced to practice), all improvements thereto, all patents (including
utility and design patents, industrial designs and utility models),
registrations, invention disclosures and applications therefor, together with
recordings, renewals, continuations, continuations-in-part, divisions,
revisions, reexaminations and reissues related to the foregoing (collectively,
&#147;<U>Patents</U> &#147;); (3) copyrights and copyrightable works and all copyrights in
all published and published works of authorship, including Software, artwork,
photographs, advertising and promotional materials and all copyright
applications, registrations and renewals in connection therewith (collectively,
&#147;<U>Copyrights</U> &#147;); (4) Software, technology, trade secrets and other
confidential business and technical information and any other confidential
information, including drawings, prototypes, business methods, customer lists,
know-how, processes, formulae, discoveries, inventions, methods, designs,
technical data, research and development information and other technical
information, and any other information meeting the definition of a trade secret
under the Uniform Trade Secrets Act or similar laws, in each case that derives
economic value (actual or potential) from not being generally known to other
Persons who can obtain economic value from its disclosure or use, excluding any
Patents or Copyrights that may cover or protect any of the foregoing
(collectively, &#147;<U>Trade Secrets</U> &#147;); and (5) any other proprietary,
intellectual or industrial property rights of any kind or nature that do not
comprise or are not protected by Marks, Patents, Copyrights or Trade Secrets,
and other legal protections and rights related to the foregoing.<B><I>
</I></B> </P>
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<P align=justify style="text-indent: 10%">&#147;<U>Interest Rate</U>&#148; shall mean an interest rate per annum
equal to 3.25% . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Inversiones</U>&#148; shall mean Inversiones Gaco, S.A. de C.V.
</P>
<P align=justify style="text-indent: 10%">&#147;<U>IRS</U>&#148; means the Internal Revenue Service. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Key Executives</U>&#148; shall mean the persons listed on
<U>Schedule 1.1(c)</U>. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Knowledge of the Company</U>&#148; shall mean the knowledge,
after inquiry of the officers with responsibility for the applicable matter, of
the persons listed on <U>Schedule 1.1(d)</U>. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Law</U>&#148; shall mean any law (including common law),
statute, code, ordinance, rule, regulation, order, writ, judgment, injunction,
decree or any other requirement of any Governmental Authority, federal, state,
county, municipal, domestic or foreign. </P>
<P align=justify style="text-indent: 10%">&#147;Lease Consolidation Amount&#148; shall mean $1,975,000. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Letter of Transmittal</U>&#148; shall have the meaning set forth
herein in Section 3.1(d)(ii) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Loss</U>&#148; shall have the meaning set forth in Section
9.2(a) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Marks</U>&#148; shall have the meaning set forth in the
definition of &#147;Intellectual Property.&#148; </P>
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<P align=justify style="text-indent: 10%">&#147;<U>Material Adverse Effect</U>&#148; shall mean any event,
circumstance, development, change or effect that, individually or in the
aggregate with all other events, circumstances, developments, changes or
effects, has (i) a material adverse effect on the ability of the Company to
consummate the transactions contemplated by this Agreement or to perform its
obligations under this Agreement or (ii) a material adverse effect on the
business, assets, liabilities, properties, results of operations or financial
condition of the Company Group, taken as a whole; <U>provided</U>,
<U>however</U>, that any such effect to the extent attributable to or resulting
from (A) any changes in general economic conditions (including but not limited
to events affecting the United States or global economy); (B) changes in
accounting principles applicable to any member of the Company Group resulting
from changes in GAAP after the date of this Agreement; (C) changes in applicable
Laws after the date of this Agreement; (D) any changes or effects that affect
generally the industries in which the Company operates or the capital,
financing, banking or currency markets to the extent they do not
disproportionately affect the Company Group as compared to similarly situated
companies operating in such industries; (E) any outbreak or escalation of
hostilities or war or any act of terrorism; or (F) the announcement or public
disclosure of this Agreement, the transactions contemplated hereby and the
identity or involvement by Buyer or its Affiliates shall, in each case, not be
considered in determining whether there has occurred a &#147;<U>Material Adverse
Effect.</U>&#148; </P>
<P align=justify style="text-indent: 10%">&#147;<U>Material Contract</U>&#148; shall refer to any (i) Contract
between any of the Company Group, on one hand, and a third party payor, on the
other hand, which calls for payment in excess of $250,000 per annum, (ii) other
Contract which calls for the payment by or on behalf of the Company or any of
the Company Subsidiaries in excess of $150,000 per annum, or the delivery by the
Company or any of the Company Subsidiaries of goods or services with a fair
market value in excess of $150,000 per annum, or provides for the Company or any
of the Company Subsidiaries to receive any payments in excess of, or any
property with a fair market value in excess of $150,000 per annum or (iii) any
other Contract which is material to the business or operations of the Company or
any of the Company Subsidiaries; <U>provided</U>, <U>however</U>, that purchase
orders with respect to customers and suppliers in the ordinary course of
business shall not constitute &#147;<U>Material Contracts</U>&#148;. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Merger</U>&#148; shall have the meaning set forth in the
recitals to this Agreement. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Merger Sub</U>&#148; shall have the meaning set forth in the
preamble to this Agreement. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Monitoring Agreement</U>&#148; shall have the meaning set forth
in Section 7.11. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Moretz Per Share Consideration</U>&#148; shall have the meaning
set forth in Section 3.1(a)(ii) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Moretz Shares</U>&#148; shall have the meaning set forth in
Section 3.1(a)(ii) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Moretz Stockholders</U>&#148; shall have the meaning set forth
in Appendix A. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Non-Moretz Per Share Consideration</U>&#148; shall have the
meaning set forth in Section 3.1(a)(iii) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Non-Moretz Shares</U>&#148; shall have the meaning set forth in
Section 3.1(a)(iii) . </P>
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<P align=justify style="text-indent: 10%">&#147;<U>Non-Moretz Holders</U>&#148; shall mean all Holders other than
the Moretz Stockholders. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Non-U.S. Benefit Plans</U>&#148; shall have the meaning set
forth in Section 4.14(a) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Notice of Equity Consideration Adjustment Disagreement</U>&#148;
shall have the meaning set forth in Section 3.3(f) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Outside Date</U>&#148; shall have the meaning set forth in
Section 10.1(b) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Outstanding Debt</U>&#148; shall mean, with respect to the
Company Group, the aggregate principal amount of, premium, if any, accrued
interest on and prepayment penalties and any other fees and expenses, if any,
with respect to, the indebtedness and obligations for borrowed money outstanding
as of immediately prior to the Closing, and any other (i) indebtedness or
liability of the Company Group for borrowed money, (ii) obligations of the
Company Group evidenced by bonds, debentures, notes or other similar
instruments, (iii) obligations of the Company Group with respect to capitalized
leases, (iv) amounts owing as deferred purchase price of property (other than
inventory purchased in the ordinary course) or services, (v) obligations under
any interest rate, currency or other hedging agreement, (vi) commitments to
repay deposits or advances by and owing to third parties (but only in excess of
the restricted cash related thereto) and (vii) guarantees of or other assurances
of payment by the Company Group with respect to any obligations described in
subparts (i) through (vi) immediately above of another Person, in each case,
outstanding immediately prior to the Closing. For the avoidance of doubt, the
parties acknowledge that Outstanding Debt does not include obligations under
trade payables, taxes payable (including deferred taxes and reserves for taxes),
accrued expenses, professional liability reserves, pension related liabilities
or any letters of credit and any obligations of the Company Group thereunder.<B>
</B></P>
<P align=justify style="text-indent: 10%">&#147;<U>Parcel</U>&#148; shall have the meaning set forth in Section
4.18(a) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Patents</U>&#148; shall have the meaning set forth in the
definition of &#147;Intellectual Property.&#148; </P>
<P align=justify style="text-indent: 10%">&#147;<U>Paying Agent</U>&#148; shall have the meaning set forth in
Section 3.1(d)(i) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Pension Plan</U>&#148; shall mean each Benefit Plan that is
subject to ERISA, is an &#147;employee pension benefit plan&#148; within the meaning of
Section 3(2) of ERISA, and is intended to be a tax-qualified defined benefit
plan under Section 401(a) of the Code. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Permits</U>&#148; shall have the meaning set forth in Section
4.7. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Permitted Encumbrances</U>&#148; shall mean: </P>
<P align=justify style="text-indent: 5%; margin-left: 5%">(i) all Encumbrances identified on <U>Schedule 1.1(e)</U>; </P>
<P align=justify style="text-indent: 5%; margin-left: 5%">(ii) all Encumbrances for Taxes or assessments, to the extent
not yet delinquent or, if delinquent, to the extent being contested in good
faith by appropriate proceedings; </P>
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<P align=justify style="text-indent: 5%; margin-left: 5%">(iii) all materialmen&#146;s, mechanics&#146;, repairmen&#146;s, employees&#146;,
contractors&#146; or operators&#146; liens or similar Encumbrances arising in the ordinary
course of business; </P>
<P align=justify style="text-indent: 5%; margin-left: 5%">(iv) liens arising under personal property leases incurred in
the ordinary course of business; </P>
<P align=justify style="text-indent: 5%; margin-left: 5%">(v) all rights reserved to or vested in any Governmental
Authority to control or regulate any asset or property in any manner and all
Laws applicable to assets or properties, including all zoning and similar Laws
(but not violations of any of the foregoing); and </P>
<P align=justify style="text-indent: 5%; margin-left: 5%">(vi) with respect to any real property or interests in real
property, any title defects, easements, encroachments, rights of way,
restrictions, covenants, third party rights, options, claims or other similar
charges, which, individually or in the aggregate, do not materially detract
from, materially diminish the value of, or materially interfere with the use,
operation or possession of such real property. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Person</U>&#148; shall mean any domestic or foreign individual,
partnership, company, association, limited liability company, trust, joint
venture, estate, corporation, custodian, trustee, executor, administrator,
nominee or any other entity. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Post-Closing Adjustment</U>&#148; shall mean the sum of (i)
Final Working Capital Amount minus the Preliminary Closing Date Net Working
Capital Amount and (ii) Final Closing Cash Amount minus Estimated Closing Cash.
</P>
<P align=justify style="text-indent: 10%">"<U>Preliminary Closing Date Net Working Capital Amount</U>"
shall have the meaning set forth in Section 3.3(a) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Preliminary Closing Date Net Working Capital Statement</U>"
shall have the meaning set forth in Section 3.3(a) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Procesos</U>&#148; shall mean Procesos Auxiliaries, S.A. de C.V.
</P>
<P align=justify style="text-indent: 10%">&#147;<U>Real Property Lease</U>&#148; shall have the meaning set forth
in Section 4.18(b) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Related-Party Leases</U>&#148; shall have the meaning set forth
in Section 7.15. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Release</U>&#148; when used in connection with Hazardous
Materials, shall have the meaning ascribed to that term in 42 U.S.C. 9601(22).
</P>
<P align=justify style="text-indent: 10%">&#147;<U>Representative</U>&#148; shall mean, with respect to any Person,
each of such Person&#146;s directors, officers, employees, representatives,
attorneys, accountants, advisors and agents. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Required Consents</U>&#148; shall mean the consents designated
as such on <U>Schedule 4.4</U>. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Restricted Stock</U>&#148; shall have the meaning set forth in
Section 3.1(f) . </P>
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<P align=justify style="text-indent: 10%">&#147;<U>Software</U>&#148; shall mean any and all (a) computer programs,
including any and all software and firmware implementations of algorithms,
models and methodologies, whether in source code or object code, (b) databases
and compilations, including any and all data and collections of data, whether
machine readable or otherwise, (c) descriptions, flow-charts and other work
product used to design, plan, organize and develop any of the foregoing and (d)
all documentation, including user manuals and training software, relating to any
of the foregoing, in each case developed, used or licensed by the Company or any
Company Subsidiary, or necessary for the conduct of the business of the Company
or any Company Subsidiary as currently conducted. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Stockholder Consent</U>&#148; shall mean the consent dated as of
the date of this Agreement signed by the Holders of at least 95% of the
outstanding shares of Common Stock in which each such Person consents to the
adoption of this Agreement, the consummation of the transactions contemplated by
this Agreement, waives any dissenters rights under Section 262 of the DGCL and
appoints the Stockholder Representative to act on their behalf pursuant to
Section 11.2.</P>
<P align=justify style="text-indent: 10%">&#147;<U>Stockholder Indemnified Parties</U>&#148; shall have the meaning
set forth in Section 9.2(b) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Stockholder Representative</U>&#148; shall have the meaning set
forth in Section 11.2(a) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Stockholders Agreements</U>&#148; shall have the meaning set
forth in Section 7.11(c) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Straddle Period</U>&#148; shall have the meaning set forth in
Section 9.5(a) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Subsidiary</U>&#148; of any Person shall mean (i) any
corporation no less than 50% of whose stock of any class or classes having by
the terms thereof ordinary or contingent voting power to elect directors or
managers of such corporation is owned by such Person directly or indirectly
through Subsidiaries of such Person, and (ii) any partnership, association,
joint venture, limited liability company or other entity in which such Person
directly or indirectly through any Subsidiaries has no less than a 50% equity or
voting interest or is a general or managing partner. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Surviving Corporation</U>&#148; shall have the meaning set forth
in Section 2.1. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Target Working Capital</U>&#148; shall mean $60,500,000. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Tax</U>&#148; shall mean any tax, charges, fees, levies,
imposts, duties or other assessments of a similar nature, imposed or required to
be withheld by any Tax Authority, including any interest, additions to tax or
penalties applicable thereto. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Tax Authority</U>&#148; shall mean any Governmental Authority
having jurisdiction over the assessment, determination, collection or imposition
of any Tax. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Tax Claim</U>&#148; shall have the meaning set forth in Section
9.5(c) . </P>
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<P align=justify style="text-indent: 10%">&#147;<U>Tax Return</U>&#148; shall mean any return, report, certificate,
form or similar statement or document (including any related or supporting
information or schedule attached thereto and any information return, amended Tax
return, claim for refund or declaration of estimated Tax) required or permitted
to be supplied to, or filed with, a Tax Authority in connection with the
determination, assessment or collection of any Tax or the administration of any
Laws, relating to any Tax. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Third Party Claim</U>&#148; shall have the meaning set forth in
Section 9.3(b) . </P>
<P align=justify style="text-indent: 10%">&#147;<U>Total Enterprise Value</U>&#148; shall mean $366,000,000. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Trade Secrets</U>&#148; shall have the meaning set forth in the
definition of &#147;Intellectual Property.&#148; </P>
<P align=justify style="text-indent: 10%">&#147;<U>Transaction Related Expenses</U>&#148; shall mean the aggregate
amount of (i) all fees and expenses payable to Blackstone Management Partners
L.L.C., Blackstone Advisory Partners L.P., and any other banker, counsel,
accountant, advisor, consultant, agent or representative retained by or on
behalf of the Company or any Company Subsidiary, in each case, relating to the
sale of the Company Group, including the preparation, negotiation, execution and
delivery of this Agreement and the consummation of the transactions contemplated
herein and (ii) any accrued and unpaid management fees or any other fees or
expenses payable to BCP (or its Affiliates). </P>
<P align=justify style="text-indent: 10%">&#147;<U>Unaudited Financial Statements</U>&#148; shall have the meaning
set forth in Section 4.5. </P>
<P align=justify style="text-indent: 10%">&#147;<U>Unfunded Pension Liability</U>&#148; shall mean $19,200,000.
</P>
<P align=justify style="text-indent: 10%">&#147;<U>WARN</U>&#148; shall mean the Workers Adjustment and Retraining
Notification Act, 29 U.S.C. Sec. 2101 et seq., as amended, and any other similar
state, local or government regulation or ordinance. </P>
<P align=justify style="text-indent: 10%"><U>Section 1.2.</U> <U>Interpretation and Rules of
Construction</U>. In this Agreement, except to the extent that the context
otherwise requires: </P>
<P align=justify style="text-indent: 5%; margin-left: 10%">(a) when a reference is made in this Agreement to an Article,
Section, Exhibit or Schedule, such reference is to an Article or Section of, or
an Exhibit or a Schedule to, this Agreement unless otherwise indicated; </P>
<P align=justify style="text-indent: 5%; margin-left: 10%">(b) whenever the words &#147;include,&#148; &#147;includes&#148; or &#147;including&#148; are
used in this Agreement, they are deemed to be followed by the words &#147;without
limitation&#148;; </P>
<P align=justify style="text-indent: 5%; margin-left: 10%">(c) the words &#147;hereof,&#148; &#147;herein&#148; and &#147;hereunder&#148; and words of
similar import, when used in this Agreement, refer to this Agreement as a whole
and not to any particular provision of this Agreement;</P>
<P align=justify style="text-indent: 5%; margin-left: 10%">(d) the definitions contained in this Agreement are applicable
to the singular as well as the plural forms of such terms; and </P>
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<P align=justify style="text-indent: 5%; margin-left: 10%">(e) any reference in this Agreement to $ shall mean U.S.
dollars. </P>
<P align=center><B>ARTICLE 2 </B></P>
<P align=center><B><U>THE MERGER</U></B><B> </B></P>
<P align=justify style="text-indent: 10%"><U>Section 2.1.</U> <U>Surviving Corporation</U>. At the
Effective Time and in accordance with the provisions of this Agreement and the
DGCL, Merger Sub shall be merged with and into the Company and shall cease to
exist, and the Company shall be the surviving corporation in the Merger
(hereinafter sometimes called the &#147;<U>Surviving Corporation</U>&#148;) and shall
continue its corporate existence under the laws of the State of Delaware and
shall succeed to all rights, privileges, powers, franchises, assets, liabilities
and obligations of the Company and Merger Sub in accordance with the provisions
of the DGCL. The name of the Surviving Corporation shall be Gold Toe Moretz
Holdings Corp. at and after the Effective Time. </P>
<P align=justify style="text-indent: 10%"><U>Section 2.2.</U> <U>Effective Time</U>. The Merger shall
become effective at the time of the filing of the Certificate of Merger with the
Secretary of State of the State of Delaware (or at such later time as shall be
agreed upon by the Company and Buyer and as shall be set forth in such
certificate) in accordance with the DGCL, which Certificate of Merger shall be
so filed at the time of the Closing. The date and time when the Merger becomes
effective are herein referred to as the &#147;<U>Effective Time</U>.&#148; </P>
<P align=justify style="text-indent: 10%"><U>Section 2.3.</U> <U>Closing</U>. </P>
<P align=justify style="text-indent: 10%">(a) The closing of the transactions contemplated by this
Agreement (the &#147;<U>Closing</U>&#148;) shall, subject to the satisfaction or waiver of
the conditions set forth in Article 8, be held at the offices of Simpson Thacher
&amp; Bartlett LLP in New York, New York, commencing at 9:00 a.m. local time (or
such other place and time as the parties shall mutually agree), on the third
Business Day after the conditions precedent set forth in Article 8 (other than
conditions to be satisfied at Closing) are satisfied or waived or at such other
time as the parties may mutually agree; <U>provided</U>, <U>however</U>, that in
the absence of the written agreement of the parties hereto to the contrary, the
Closing Date shall not be extended beyond the Outside Date. The date on which
the Closing is to occur is hereinafter referred to as the &#147;<U>Closing Date</U>.&#148;
</P>
<P align=justify style="text-indent: 10%">(b) At the Closing, the Company shall execute a certificate of
merger (the &#147;<U>Certificate of Merger</U>&#148;) and cause the Certificate of Merger
to be delivered for filing and recordation with the Secretary of State of the
State of Delaware in accordance with the DGCL. </P>
<P align=justify style="text-indent: 10%"><U>Section 2.4.</U> <U>Certificate of Incorporation and
By-Laws</U>. At the Effective Time, the certificate of incorporation and by-laws
of the Company, as in effect immediately prior to the Effective Time, shall be
amended and restated as of the Effective Time to be in the form of (except with
respect to the name of the Company) the certificate of incorporation and by-laws
of Merger Sub, and as so amended shall be the certificate of incorporation and
by-laws of the Surviving Corporation until thereafter amended as provided
therein or by applicable Law. </P>
<P align=justify style="text-indent: 10%"><U>Section 2.5.</U> <U>Officers and Directors</U>. The officers
and directors listed on <U>Schedule 2.5</U> shall be the initial officers and
directors of the Surviving Corporation, each to hold office in accordance with the certificate of incorporation and
by-laws of the Surviving Corporation. </P>
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<P align=center><B>ARTICLE 3 </B></P>
<P align=center><B><U>STATUS AND CONVERSION OF SECURITIES</U></B><B> </B></P>
<P align=justify style="text-indent: 10%"><U>Section 3.1.</U> <U>Status and Conversion of Securities</U>.
(a) At the Effective Time, by virtue of the Merger and without any action on the
part of the holders thereof: </P>
<P align=justify style="text-indent: 5%; margin-left: 10%">(i) All issued shares of Common Stock held by the Company as
treasury shares shall be automatically cancelled and no consideration shall be
issued or paid in respect thereof. </P>
<P align=justify style="text-indent: 5%; margin-left: 10%">(ii) Each share of Common Stock outstanding and held by the
Moretz Stockholders (the &#147;<U>Moretz Shares</U>&#148;) immediately prior to the
Effective Time shall be automatically converted into the right to receive an
amount in cash equal to (x) the Equity Consideration minus the Escrow Funds (the
&#147;<U>Initial Consideration</U>&#148;), divided by the number of Fully Diluted Shares
of Common Stock outstanding immediately prior to the Effective Time (the
&#147;<U>Initial Per Share Consideration</U>&#148;) plus (y) the Lease Consolidation
Amount divided by the number of Moretz Shares, payable at Closing (the
&#147;<U>Moretz Per Share Consideration</U>&#148;) and a pro-rata portion of any Escrow
Funds distributed to the Holders in accordance with the Escrow Agreement. </P>
<P align=justify style="text-indent: 5%; margin-left: 10%">(iii) Each share of Common Stock outstanding and held by the
Non-Moretz Holders (the &#147;<U>Non-Moretz Shares</U>&#148;) immediately prior to the
Effective Time (other than Dissenting Shares) shall be automatically converted
into the right to receive an amount in cash equal to (x) the Initial Per Share
Consideration minus (y) the Lease Consolidation Amount divided by the number of
Non-Moretz Shares, payable at Closing (the &#147;<U>Non-Moretz Per Share
Consideration</U>&#148;) and a pro-rata portion of any Escrow Funds distributed to
the Holders in accordance with the Escrow Agreement. </P>
<P align=justify style="text-indent: 5%; margin-left: 10%">(iv) Buyer shall pay or deliver (or cause the Surviving
Corporation to pay or deliver) the Equity Consideration at Closing as follows:
(a) the Moretz Per Share Consideration by wire transfer of immediately available
funds on behalf of each of the Moretz Shareholders (other than in respect of any
shares of Common Stock cancelled or converted pursuant to Section 3.1(a)(i)) set
forth on <U>Schedule</U> <U>3.1(a)</U> to an account (or accounts) specified at
least two (2) Business Days prior to the Closing by the Stockholder
Representative with respect to any of the Moretz Shareholders who has completed
a Letter of Transmittal at least two (2) Business Days prior to the Closing and
with respect to all other Moretz Shareholders, to the Paying Agent as specified
in Section 3.1(d); (b) the Non-Moretz Per Share Consideration by wire transfer
of immediately available funds on behalf of each of the Non-Moretz Shareholders
(other than in respect of Dissenting Shares or any shares of Common Stock
cancelled or converted pursuant to Section 3.1(a)(i)) set forth on Schedule 3.1(a) to an account (or accounts) specified
at least two (2) Business Days prior to the Closing by Stockholder
Representative with respect to any of the Non-Moretz Shareholders who has
completed a Letter of Transmittal at least two (2) Business Days prior to the
Closing and with respect to all other Non-Moretz Shareholders, to the Paying
Agent as specified in Section 3.1(d); and (c) $8,500,000 (the &#147;<U>Escrow
Funds</U>&#148;)<SUP> </SUP>by wire transfer of immediately available funds to the
Escrow Agent, to be held pursuant to the terms of the Escrow Agreement. </P>
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<P align=justify style="text-indent: 5%; margin-left: 10%">(v) Each share of common stock, par value $0.01 per share, of
Merger Sub outstanding immediately prior to the Effective Time shall be
converted into one fully paid and nonassessable share of common stock, par value
$0.01 per share, of the Surviving Corporation. </P>
<P align=justify style="text-indent: 5%; margin-left: 10%">(vi) All rights in respect of all shares of Common Stock shall
cease to exist, other than the right to receive the consideration as described
in Section 3.1(a)(ii) and Section 3.1(a)(iii) payable, in each case, at the
times provided for therein. </P>
<P align=justify style="text-indent: 10%">(b) Subject to the Company&#146;s full compliance with Section 7.14,
(i) immediately prior to the Closing, Merger Sub shall repay, or cause to be
repaid, on behalf of the Company and the Company Subsidiaries, all of the
Outstanding Debt which is listed on the first part of <U>Schedule 3.1 (b)</U>,
by wire transfer of immediately available funds as directed by the holders of
such Outstanding Debt and (ii) simultaneously with the Closing, Buyer shall
cause each outstanding letter of credit set forth on <U>Schedule 3.1(b)</U> to
be replaced with new letters of credit issued by financial institutions
acceptable to the beneficiaries of such existing letters of credit. </P>
<P align=justify style="text-indent: 10%">(c) Simultaneously with the Closing, Buyer shall pay, or cause
to be paid, on behalf of the Company, the Transaction Related Expenses by wire
transfer of immediately available funds as directed by the Company. </P>
<P align=justify style="text-indent: 5%; margin-left: 5%">(d) (i) At or prior to the Effective Time, Buyer shall deposit
(or cause to be deposited) with JPMorgan Chase Bank, N.A., acting in this
capacity as paying agent (the &#147;<U>Paying Agent</U>&#148;) sufficient funds to make
all payments pursuant to Section 3.1(a)(ii) and Section 3.1(a)(iii) (other than
funds used to make payment on the Closing Date as directed by any Holder who has
completed a Letter of Transmittal at least two (2) Business Days prior to the
Closing as provided in clause (a)(iv) above). Such funds may be invested by the
Paying Agent as directed by Buyer or, after the Effective Time, the Surviving
Corporation; <U>provided</U> that no such investment or losses thereon shall
affect the consideration payable to the Holders and following any losses Buyer
shall promptly provide additional funds to the Paying Agent for the benefit of
the Holders in the amount of any such losses. Any interest or income produced by
such investments will be payable to the Surviving Corporation. Any portion of
the funds deposited by Buyer (or caused to be deposited by Buyer) that remains
unclaimed by the Holders six (6) months after the Effective Time will be
returned to the Surviving Corporation upon demand. Any such Moretz Shareholders
who have not exchanged their shares of Common Stock for the Moretz Per Share
Consideration or any such Non-Moretz Shareholders who have not exchanged their shares of Common Stock for the Non-Moretz Per
Share Consideration prior to that time will thereafter look only to the
Surviving Corporation for payment of such funds. </P>
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<P align=justify style="text-indent: 5%; margin-left: 5%">(ii) At a reasonable time prior to the Closing Date, the
Company and Buyer shall deliver or mail to each holder of record, as of the time
of mailing, of a share of Common Stock (a) a letter of transmittal in a form
reasonably satisfactory to the Company and Buyer (a &#147;<U>Letter of
Transmittal</U>&#148;) and (b) instructions for use in effecting the payment for
Common Stock as provided herein. The Letter of Transmittal shall (x) contain
customary representations and warranties as to title, (y) confirm the
appointment of the Stockholder Representative to act on each Holder&#146;s behalf
pursuant to Section 11.2 and (z) specify that delivery shall be effected, and
risk of loss and title to the certificates representing any common stock (each,
a &#147;<U>Certificate</U>&#148; and, collectively, the &#147;<U>Certificates</U>&#148;) with
respect to the shares of Common Stock shall pass, only upon proper delivery of
the Certificates to the Company. Upon surrender to the Surviving Corporation of
a Letter of Transmittal duly executed and completed in accordance with the
instructions thereto and any other required documents, the Moretz Shareholders
shall be entitled to receive for each of the shares represented by such
Certificate the Moretz Per Share Consideration and the Non-Moretz Shareholders
shall be entitled to receive for each of the shares represented by such
Certificate the Non-Moretz Per Share Consideration. </P>
<P align=justify style="text-indent: 10%">(e) As of the Effective Time, pursuant to this Agreement and
without any action on the part of any holder thereof, each Company Stock Option
outstanding immediately prior to the Closing, whether or not then vested, shall
be cancelled and no consideration shall be issued or paid in respect thereof.
Prior to the Effective Time, the Company shall take all actions necessary to
effect the foregoing. </P>
<P align=justify style="text-indent: 10%">(f) Each share of Common Stock granted subject to vesting or
other lapse restrictions pursuant to any Company Stock Plan (collectively,
&#147;<U>Restricted Stock</U>&#148;) which is outstanding immediately prior to the
Effective Time shall vest and become free of such restrictions as of the
Effective Time and, at the Effective Time, such Restricted Stock shall be
treated in the same manner as all other shares of Common Stock under Section
3.1(a)(iii) of this Agreement. </P>
<P align=justify style="text-indent: 10%"><U>Section 3.2.</U> <U>Escrow</U>. At the Effective Time, Buyer
shall deliver to JPMorgan Chase Bank, N.A., acting in this capacity as escrow
agent (the &#147;<U>Escrow Agent</U>&#148;) a portion of the Equity Consideration equal to
the Escrow Funds in accordance with the provisions of Section 3.1(a)(iv), which
Escrow Funds shall be held by the Escrow Agent pursuant to the provisions of the
Escrow Agreement and used for purposes of any payments payable to Buyer or the
Holders pursuant to Article 9. </P>
<P align=justify style="text-indent: 10%"><U>Section 3.3.</U> <U>Adjustment to Equity Consideration</U>.
</P>
<P align=justify style="text-indent: 10%">(a) No later than three (3) Business Days prior to the Closing
Date, the Company shall provide to Buyer a statement (the "<U>Preliminary
Closing Date Net Working</U> <U>Capital Statement</U>") setting forth the
Company&#146;s good faith estimate of the Adjusted Working Capital, along with a reasonably detailed explanation of the
calculation thereof, as of the close of business on the Closing Date, on a
consolidated basis (the "<U>Preliminary Closing Date Net</U> <U>Working Capital
Amount</U>"). If the Preliminary Closing Date Net Working Capital Amount is
greater than the Target Working Capital, the Equity Consideration will be
increased dollar-for-dollar by the amount of such excess, and if the Preliminary
Closing Date Net Working Capital Amount is less than the Target Working Capital,
the Equity Consideration will be decreased dollar-for-dollar by the amount of
such shortfall (the "<U>Closing Net Working Capital</U> <U>Adjustment</U>&#148;). </P>
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<P align=justify style="text-indent: 10%">(b) No later than the close of business on the second Business
Day prior to the Closing Date, the Company shall provide to Buyer a statement
setting forth the Company&#146;s good faith estimate of the Closing Cash, along with
a reasonably detailed explanation of the calculation thereof on a consolidated
basis (the &#147;<U>Estimated Closing Cash</U>&#148;). </P>
<P align=justify style="text-indent: 10%">(c) Within 60 days following the Closing Date, Buyer shall
prepare and deliver to the Stockholder Representative a statement (the
&#147;<U>Initial Statement</U>&#148;) calculating and setting forth (A)(i) the Adjusted
Working Capital as of the close of business on the Business Day immediately
preceding the Closing Date and (ii) the difference between such amount and the
Preliminary Closing Date Net Working Capital Amount (such difference set forth
on the Initial Statement, which may be a positive or negative number, the
&#147;<U>Initial Net Working Capital</U> <U>Amount</U>&#148;), and (B)(i) the Closing Cash
and (ii) the difference between such amount and the Estimated Closing Cash (such
difference set forth on the Initial Statement, which may be a positive or
negative number, the &#147;<U>Initial Cash Amount</U>&#148;), which statement shall
include a worksheet setting forth in reasonable detail how each such amount was
calculated. The Initial Statement shall be prepared in accordance with GAAP
applied on a basis consistent with the Audited Financial Statements. </P>
<P align=justify style="text-indent: 10%">(d) During the 30 days immediately following the Stockholder
Representative&#146;s receipt of the Initial Statement (the &#147;<U>Equity Consideration
Adjustment Review</U> <U>Period</U>&#148;), the Stockholder Representative and its
representatives shall be permitted to review Buyer&#146;s working papers and working
papers of Buyer&#146;s independent accountants, if any, relating to the preparation
of the Initial Statement and the calculation of the Initial Net Working Capital
Amount and the Initial Cash Amount and Buyer shall make reasonably available to
the Stockholder Representative the individuals responsible for and knowledgeable
about the information used in, and the preparation or calculation of, the
Initial Statement, the Initial Net Working Capital Amount and the Initial Cash
Amount; <U>provided</U>, <U>however</U>, that the independent accountants of
Buyer shall not be obligated to make any working papers available to the
Stockholder Representative unless and until the Stockholder Representative has
signed a customary confidentiality and hold harmless agreement relating to such
access to working papers in form and substance reasonably acceptable to such
independent accountants. </P>
<P align=justify style="text-indent: 10%">(e) The Stockholder Representative shall, prior to the Closing,
and Buyer shall, following the Closing through the date that (i) the Final
Working Capital Amount becomes such in accordance with the penultimate sentence
of Section 3.3(h) and (ii) the Final Closing Cash Amount becomes such in
accordance with the last sentence of Section 3.3(h), take all actions reasonably
necessary to maintain and preserve all accounting books and records, policies
and procedures on which the Initial Statement is based so as not to impede or
delay the determination of the Initial Net Working Capital Amount or the
Final Working Capital Amount and the Initial Cash Amount or the Final Closing
Cash Amount, respectively, or the preparation of the Notice of Equity
Consideration Adjustment Disagreement in the manner and utilizing the methods
permitted by this Agreement. </P>
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<P align=justify style="text-indent: 10%">(f) The Stockholder Representative shall notify Buyer in
writing (the &#147;<U>Notice</U> <U>of Equity Consideration Adjustment
Disagreement</U>&#148;) prior to the expiration of the Equity Consideration
Adjustment Review Period if the Stockholder Representative disagrees with the
Initial Statement, the Initial Net Working Capital Amount or the Initial Cash
Amount. The Notice of Equity Consideration Adjustment Disagreement shall set
forth in reasonable detail the basis for such disagreement, the amounts involved
and the Stockholder Representative&#146;s determination of the amount of the Initial
Net Working Capital Amount or Initial Cash Amount, respectively, with reasonably
detailed supporting documentation. If no Notice of Equity Consideration
Adjustment Disagreement is received by Buyer on or prior to the expiration date
of the Equity Consideration Adjustment Review Period, then the Initial Net
Working Capital Amount and Initial Cash Amount, respectively, set forth in the
Initial Statement shall each be deemed to have been accepted by the Stockholder
Representative and shall each become final and binding upon the Stockholder
Representative and Buyer in accordance with the last sentence of Section 3.3(h)
.. </P>
<P align=justify style="text-indent: 10%">(g) During the 30 days immediately following the delivery of a
Notice of Equity Consideration Adjustment Disagreement (the &#147;<U>Equity
Consideration Adjustment Consultation</U> <U>Period</U>&#148;), the Stockholder
Representative and Buyer shall seek in good faith to resolve any disagreement
that they may have with respect to the matters specified in the Notice of Equity
Consideration Adjustment Disagreement. </P>
<P align=justify style="text-indent: 10%">(h) If, at the end of the Equity Consideration Adjustment
Consultation Period, the Stockholder Representative and Buyer have been unable
to resolve all disagreements that they may have with respect to the matters
specified in the Notice of Equity Consideration Adjustment Disagreement, then
the Stockholder Representative and Buyer shall submit all matters that remain in
dispute with respect to the Notice of Equity Consideration Adjustment
Disagreement (along with a copy of the Initial Statement marked to indicate
those line items that are in dispute) to PricewaterhouseCoopers LLP (the
&#147;<U>Independent Accountant</U>&#148;). In the event that the Independent Accountant
refuses or is otherwise unable to act as the Independent Accountant, the
Stockholder Representative and Buyer shall cooperate in good faith to appoint an
independent certified public accounting firm in the United States of national
recognition mutually agreeable to the Stockholder Representative and Buyer, in
which event &#147;Independent Accountant&#148; shall mean such firm. Within 30 days after
the submission of such matters to the Independent Accountant, or as soon as
practicable thereafter, the Independent Accountant, acting as an expert and not
as an arbitrator, will make a final determination, binding on the Stockholder
Representative and Buyer, in accordance with GAAP applied on a basis consistent
with the Audited Financial Statements and this Section 3.3(h), of the
appropriate amount of each of the line items in the Initial Statement as to
which the Stockholder Representative and Buyer disagree as specified in the
Notice of Equity Consideration Adjustment Disagreement. With respect to each
disputed line item, such determination, if not in accordance with the position
of either the Stockholder Representative or Buyer, shall not be in excess of the
higher, nor less than the lower, of the amounts advocated by the Stockholder
Representative in the Notice of Equity Consideration Adjustment Disagreement or Buyer in the Initial
Statement with respect to such disputed line item. The Independent Accountant
shall not review any line items or make any determination with respect to any
matter other than those matters in the Notice of Equity Consideration Adjustment
Disagreement that remain in dispute. The determination of the Adjusted Working
Capital as of the close of business on the Business Day immediately preceding
the Closing Date that is final and binding on the Stockholder Representative and
Buyer, as determined either through agreement of the Stockholder Representative
and Buyer or pursuant to Section 3.3(f) or (h), is referred to herein as the
&#147;<U>Final Working Capital Amount</U>&#148;. The determination of Closing Cash that is
final and binding on the Stockholder Representative and Buyer, as determined
either through agreement of the Stockholder Representative and Buyer or pursuant
to Section 3.3(f) or (h), is referred to herein as the &#147;<U>Final Closing Cash
Amount</U>&#148;. </P>
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<P align=justify style="text-indent: 10%">(i) The cost of the Independent Accountant&#146;s review and
determination shall be borne by the party who is not the prevailing party in the
dispute. For example, if the Stockholder Representative challenges items
underlying the calculation of the Final Working Capital Amount in the net amount
of $100,000, but the Independent Accountant determined the Stockholder
Representative has a valid claim for $50,001 or more of the $100,000, the
Stockholder Representative shall bear none of the fees and expenses of the
Independent Accountant and Buyer shall bear 100% of such fees and expenses;
<U>but</U> if the Independent Accountant determined that the Stockholder
Representative has a valid claim for $49,999 or less of the $100,000, the
Stockholder Representative shall bear 100% of the fees and expenses of the
Independent Accountant and Buyer shall bear none of such fees and expenses.
During the review by the Independent Accountant, Buyer and the Stockholder
Representative shall each make available to the Independent Accountant such
individuals and such information, books, records and work papers, as may be
reasonably required by the Independent Accountant to fulfill its obligations
under Section 3.3(h); <U>provided</U>, <U>however</U>, that the independent
accountants of the Stockholder Representative or Buyer shall not be obligated to
make any working papers available to the Independent Accountant unless and until
the Independent Accountant has signed a customary confidentiality and hold
harmless agreement relating to such access to working papers in form and
substance reasonably acceptable to such independent accountants. </P>
<P align=justify style="text-indent: 10%">(j) If the Post-Closing Adjustment is a positive amount, then
Buyer shall pay in cash to the Stockholder Representative and the Paying Agent
on behalf of the Holders the amount of the Post-Closing Adjustment (which amount
shall be distributed to the Holders pro-rata). If the Post-Closing Adjustment is
a negative amount, then the Escrow Agent shall pay in cash to Buyer the amount
equal to the absolute value of the Post-Closing Adjustment. Any such payment
shall be made by wire transfer of immediately available funds to an account
designated by the Stockholder Representative and the Paying Agent or Buyer (as
applicable) within five (5) Business Days after the Final Working Capital Amount
and Final Closing Cash Amount each have become such, together with interest
thereon, from the Closing Date through the date on which the Post-Closing
Adjustment is paid, at the Interest Rate calculated on a 365-day basis for the
actual number of days (including the first day but excluding the last day)
occurring in the period for which interest is payable. </P>
<P align=justify style="text-indent: 10%"><U>Section 3.4.</U> <U>Closing of the Company Transfer
Books</U>. At the Effective Time, the stock transfer books of the Company shall
be closed and no transfer of Common Stock shall thereafter be made. </P>
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<P align=justify style="text-indent: 10%"><U>Section 3.5.</U> <U>Stockholder Consent</U>.</P>
<P align=justify style="text-indent: 10%">(a) As of the date of this Agreement, the Stockholder Consent
has been executed and delivered, and a copy thereof has been delivered to the
Company and Buyer. </P>
<P align=justify style="text-indent: 10%">(b) Notwithstanding anything to the contrary contained in this
Agreement, shares of Common Stock that are issued and outstanding immediately
prior to the Effective Time and which are held by the Holders who have not voted
in favor of or consented to the Merger and who have properly demanded and
perfected their rights to be paid the fair value of such shares in accordance
with Section 262 of the DGCL (the &#147;<U>Dissenting Shares</U>&#148;, respectively)
shall not be cancelled and converted pursuant to and in accordance with Section
3.1 hereof, and the holders thereof shall be entitled to only such rights as are
granted by Section 262 of the DGCL; <U>provided</U>, <U>however</U>, that if any
such stockholder of the Company shall fail to perfect or shall effectively
waive, withdraw or lose such stockholder's rights under Section 262 of the DGCL,
such stockholder's Dissenting Shares in respect of which the stockholder would
otherwise be entitled to receive fair value under Section 262 of the DGCL shall
thereupon be deemed to have been cancelled and converted, at the Effective Time,
in accordance with the terms of Section 3.1. The Company shall give prompt
notice to Buyer of any demands received by the Company for appraisals of shares,
and Buyer shall have the right to participate in all negotiations and
proceedings with respect to such demands. </P>
<P align=justify style="text-indent: 10%"><U>Section 3.6.</U> <U>Withholding Rights</U>. Buyer, the
Surviving Corporation or the Paying Agent shall withhold or deduct from amounts
otherwise payable pursuant to this Agreement such amounts as Buyer, the
Surviving Corporation and the Paying Agent are required to deduct and withhold
with respect to the making of such payment under the Code, or any provision of
state, local or foreign tax Law, and shall duly pay such amounts to the proper
Governmental Authority. Such withheld and deducted amounts will be treated for
all purposes of this Agreement as having been paid to the recipients in respect
of which such deduction and withholding was made by Buyer, the Surviving
Corporation and the Paying Agent. </P>
<P align=center><B>ARTICLE 4 </B></P>
<P align=center><B><U>REPRESENTATIONS AND WARRANTIES OF THE COMPANY</U></B><B>
</B></P>
<P align=justify style="text-indent: 10%">The Company hereby represents and warrants to Buyer and Merger
Sub as follows: </P>
<P align=justify style="text-indent: 10%"><U>Section 4.1.</U> <U>Organization, Etc. </U>Each of the
Company and the Company Subsidiaries is duly organized, validly existing and in
good standing (where such status is recognized) under the Laws of the
jurisdiction of its organization, as listed on <U>Schedule 4.1(a)</U>, with all
corporate or limited liability company or other comparable power and authority
necessary to own, lease or operate the properties and assets owned, leased or
operated by it and to carry on its business as currently conducted. Each of the
Company and the Company Subsidiaries is qualified or licensed to do business as
a foreign entity in each jurisdiction listed on <U>Schedule 4.1(b)</U>, which
constitute all jurisdictions (in addition to the their respective jurisdiction
of organization) in which ownership of their respective property or assets or
the conduct of their respective business requires such qualification or license,
except where the failure to be so qualified or licensed has not had and is not
reasonably likely to have a Material Adverse Effect. True and complete copies of
the certificate of incorporation and by-laws (or other comparable governing
documents) of each of the Company and the Company Subsidiaries, as in effect as
of the date hereof, have been heretofore made available to Buyer. </P>
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<P align=justify style="text-indent: 10%"><U>Section 4.2.</U> <U>Capitalization of the Company and the
Company Subsidiaries</U>. </P>
<P align=justify style="text-indent: 10%">(a) <U>Schedule 4.2(a)</U> sets forth the authorized and the
issued and outstanding capital stock of the Company, and the owners thereof. All
issued and outstanding shares of capital stock of the Company are duly
authorized, validly issued, fully paid, nonassessable and, except as set forth
on <U>Schedule 4.2(a)</U>, free of preemptive rights, and held of record by the
Persons indicated on <U>Schedule 4.2(a)</U>, free and clear of any Encumbrances
other than as specified on <U>Schedule 4.2(a)</U>. Except as set forth on
<U>Schedule 4.2(a)</U>, there are no outstanding (i) securities convertible into
or exchangeable for the capital stock of the Company, (ii) options, warrants,
calls or other rights to purchase or subscribe for capital stock of the Company
or (iii) Contracts of any kind to which any of the Company and the Company
Subsidiaries is subject or bound requiring the issuance after the date hereof of
(x) any capital stock of the Company, (y) any convertible or exchangeable
security of the type referred to in clause (i) or (z) any options, warrants,
calls or rights of the type referred to in clause (ii). Except as set forth on
<U>Schedule 4.2(a)</U>, there are no outstanding or authorized stock
appreciation, phantom stock, profit participation, or similar rights with
respect to the Company. Except as set forth on <U>Schedule 4.2(a)</U>, there are
no voting trusts, proxies or other agreements or understandings with respect to
the voting of the capital stock of the Company or restrictions on the transfer
of the capital stock of the Company. The Company has no obligation to purchase,
redeem or otherwise acquire any capital stock of the Company or any Company
Subsidiary or any interests therein. </P>
<P align=justify style="text-indent: 10%">(b) <U>Schedule 4.2(b)</U> sets forth a complete list of the
Company Subsidiaries and the authorized and the issued and outstanding capital
stock or other ownership interests, as the case may be, of each of the Company
Subsidiaries and the owners thereof. All issued and outstanding shares of
capital stock or other ownership interests of each of the Company Subsidiaries
are duly authorized, validly issued, fully paid, nonassessable and, except as
set forth on <U>Schedule 4.2(b)</U>, free of preemptive rights and held of
record and owned beneficially by the Persons indicated on <U>Schedule
4.2(b)</U>, free and clear of any Encumbrances other than as specified on
<U>Schedule 4.2(b)</U>. Except as set forth on <U>Schedule 4.2(b)</U>, there are
no outstanding (i) securities convertible into or exchangeable for the capital
stock or other ownership interests of any of the Company Subsidiaries, (ii)
options, warrants, calls or other rights to purchase or subscribe for capital
stock or other ownership interests of any of the Company Subsidiaries or (iii)
Contracts of any kind by which any of the Company and the Company Subsidiaries
is subject or bound requiring the issuance after the date hereof of (x) any
capital stock or any other ownership interests of any of the Company
Subsidiaries, (y) any convertible or exchangeable security of the type referred
to in clause (i) or (z) any options, warrants, calls or rights of the type
referred to in clause (ii). There are no voting trusts, proxies or other
agreements or understandings with respect to the voting of the capital stock of
any Company Subsidiary or restrictions on the transfer of the capital stock of
any Company Subsidiary. No Company Subsidiary has any obligation to purchase,
redeem or otherwise acquire any capital stock of the Company or any Company
Subsidiary or any interests therein. </P>
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<P align=justify style="text-indent: 10%">(c) Other than as set forth on <U>Schedule 4.2(b)</U> and
<U>Schedule 4.2(c)</U>, the Company does not own, directly or indirectly, any
shares of capital stock of, or other equity, ownership, proprietary or voting
interest in, any Person. </P>
<P align=justify style="text-indent: 10%"><U>Section 4.3.</U> <U>Authority Relative to this Agreement,
Etc. </U>The Company has all requisite corporate power and authority to execute
and deliver this Agreement and to consummate the transactions contemplated
hereby. The execution and delivery by the Company of this Agreement and the
consummation of the transactions contemplated hereby, have been duly authorized
by all requisite corporate action of the Company other than the adoption of this
Agreement by the requisite consent of the stockholders of the Company. This
Agreement has been duly and validly executed and delivered by the Company and,
assuming this Agreement and the Escrow Agreement have been duly authorized,
executed and delivered by Buyer, this Agreement constitutes a legal, valid and
binding obligation of the Company, enforceable against it in accordance with its
respective terms, in each case, subject to applicable bankruptcy, insolvency,
reorganization, moratorium and similar Laws affecting creditors&#146; rights and
remedies generally. </P>
<P align=justify style="text-indent: 10%"><U>Section 4.4.</U> <U>Consents and Approvals; No
Violations</U>. Except for the Required Consents or as otherwise set forth on
<U>Schedule 4.4</U>, neither the execution, delivery and performance of this
Agreement by the Company nor the consummation by the Company of the transactions
contemplated hereby will (a) conflict with or violate any provision of the
certificate of incorporation or by-laws (or other comparable governing
documents) of the Company or any of the Company Subsidiaries, (b) require any
consent, waiver, approval, license, authorization or permit of, or filing with
or notification to, any Governmental Authority except for (i) compliance with
all applicable antitrust Laws and (ii) such consents and waivers, approvals,
licenses, authorizations, permits, filings or notifications which, if not
obtained or made, would not be reasonably likely to have a Material Adverse
Effect, (c) result in a violation or breach of, or constitute (with or without
notice or lapse of time or both) a default (or give rise to any right of
termination, cancellation or acceleration of any obligation to repay) under, or
require any consent, under any Material Contract to which the Company or any
Company Subsidiary is a party or by which any of their properties or assets may
be bound or (d) violate any Law applicable to the Company or any of the Company
Subsidiaries or by which any of their respective properties or assets are bound.
</P>
<P align=justify style="text-indent: 10%"><U>Section 4.5.</U> <U>Financial Statements</U>. Attached
hereto in <U>Schedule 4.5</U> are true and complete copies of (a) the audited
consolidated balance sheets and statements of operations, stockholders&#146; equity
and cash flows of the Company and the Company Subsidiaries as at December 31,
2010 and for the fiscal years ended December 31, 2009 and December 31, 2010 and
the notes thereto, accompanied by the reports thereon of the Company&#146;s
independent auditors for the periods then ended (the &#147;<U>Audited Financial
</U>Statements&#148;), and (b) the unaudited consolidated balance sheet and
statements of operations, stockholders&#146; equity and cash flows of the Company and
the Company Subsidiaries as at and for the monthly periods ended January 31,
2011 and February 28, 2011 (the &#147;<U>Unaudited Financial Statements</U>,&#148; and,
collectively with the Audited Financial Statements, the &#147;<U>Financial
Statements</U>&#148;). Except as disclosed in <U>Schedule 4.5(b)</U>, the Financial
Statements (i) are correct and complete in all material respects and have been
prepared in accordance with the books and records of the Company and the Company
Subsidiaries (except as may be indicated in the notes thereto), as the case may
be, (ii) fairly present the financial position, results of operations and cash
flows of the Company and the Company Subsidiaries as at the respective dates
thereof and for the respective periods indicated therein, except as otherwise
noted therein (none of which exceptions are material) and the absence of
footnotes, and (iii) have been prepared in accordance with GAAP applied on a
consistent basis throughout the periods indicated. </P>
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<P align=justify style="text-indent: 10%"><U>Section 4.6.</U> <U>Absence of Certain Changes</U>. Since
December 31, 2010, except to the extent contemplated by or in connection with
this Agreement, none of the Company or the Company Subsidiaries has (i) suffered
any event, circumstance, development, change or effect in its or their
respective businesses, results of operations or financial position which events,
circumstances, developments, changes or effects have had, or are reasonably
likely to have, a Material Adverse Effect or (ii) conducted its or their
respective businesses in a manner not in the ordinary and usual course
consistent with past practice or in a manner which has had, or is reasonably
likely to have a Material Adverse Effect. Without limiting the generality of the
foregoing, since December 31, 2010, except as set forth on <U>Schedule 4.6</U>
or except as, after the date of this Agreement, consented to by Buyer or
permitted by Section 7.1, none of the Company and the Company Subsidiaries has:
</P>
<P align=justify style="text-indent: 10%">(a) transferred, issued, sold or disposed of any shares of its
capital stock or other equity interests (other than issuances in connection with
the exercise of outstanding options) or granted options, warrants, calls or
other rights to purchase or otherwise acquire shares of its the capital stock or
other equity interests; </P>
<P align=justify style="text-indent: 10%">(b) declared, set aside or paid any dividend or made any other
distribution in respect to its capital stock (excluding distributions by the
Company Subsidiaries to the Company) or repurchased, redeemed or otherwise
acquired any outstanding shares of its capital stock or other of its securities
or other ownership interests; </P>
<P align=justify style="text-indent: 10%">(c) sold, exchanged or otherwise disposed of any property or
assets or entered into any lease or sublease of real property in any one
transaction or series of transactions for which the aggregate consideration or
aggregate rent paid or expected to be paid or payable over the term of such
lease or other agreement in any individual transaction or series of transactions
was in excess of $150,000; </P>
<P align=justify style="text-indent: 10%">(d) entered into, amended or terminated, or agreed to enter
into, amend or terminate, any Material Contract; </P>
<P align=justify style="text-indent: 10%">(e) merged or consolidated with or agreed to merge or
consolidate with, nor purchased or agreed to purchase any assets or capital
stock of, nor otherwise acquired, any corporation, partnership, limited
liability company or other business organization or division thereof; </P>
<P align=justify style="text-indent: 10%">(f) made any capital expenditure (or series of related capital
expenditures) involving more than $100,000 or outside the ordinary course of
business; </P>
<P align=justify style="text-indent: 10%">(g) effected any increase in the wages, salaries, compensation,
pension or other benefits payable to its executive employees or effected any
increase in the wages, salaries, compensation, pension or other benefits payable
by it to its employees other than (x) increases and adjustments in the ordinary course of business consistent
with past practice or (y) to the extent required by Law or under any written
agreement, arrangement, plan, program or policy; </P>
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<P align=justify style="text-indent: 10%">(h) established any new agreements, or increased obligations to
employees generally under any existing agreement, paid pensions, retirement
allowance or other employee benefits for its employees generally other than in
the ordinary course of business consistent with past practice or entered into or
amended any employment, severance, termination or similar agreement, other than
in the ordinary course of business consistent with past practice; </P>
<P align=justify style="text-indent: 10%">(i) made any revaluation of its assets or change in accounting
methods, principles or practices; </P>
<P align=justify style="text-indent: 10%">(j) suffered any material loss, damage, destruction or other
casualty (whether or not covered by insurance) to any of their assets; </P>
<P align=justify style="text-indent: 10%">(k) entered into an agreement with an Affiliate; </P>
<P align=justify style="text-indent: 10%">(l) granted any license or sublicense of any rights under or
with respect to any Company Intellectual Property except in the ordinary course
of business; </P>
<P align=justify style="text-indent: 10%">(m) instituted or settled any Action resulting in a loss of
revenue in excess of $150,000 in the aggregate; </P>
<P align=justify style="text-indent: 10%">(n) written off a note or account receivable, except for
write-offs in the ordinary course of business consistent with past practice;
</P>
<P align=justify style="text-indent: 10%">(o) incurred any indebtedness for borrowed money or guaranteed
any such indebtedness of another Person, issued or sold any debt securities or
warrants or other rights to acquire any debt securities of the Company or any
Company Subsidiary, guaranteed any debt securities of another Person, or entered
into any arrangement having the economic effect of any of the foregoing, except
for working capital borrowings incurred in the ordinary course of business
consistent with past practice; or </P>
<P align=justify style="text-indent: 10%">(p) agreed, committed, arranged or entered into any
understanding to do anything set forth in this Section 4.6. </P>
<P align=justify style="text-indent: 10%"><U>Section 4.7.</U> <U>Compliance with Law</U>. Each of the
Company and the Company Subsidiaries is and has been in compliance in all
material respects with all Laws applicable to the Company and the Company
Subsidiaries, respectively (including, without limitation, any consumer
protection, customs, export control and foreign trade laws ). Each of the
Company and the Company Subsidiaries has all material governmental permits,
licenses and authorizations necessary for the conduct of its respective business
as presently conducted (&#147;<U>Permits</U>&#148;) and is and has been in material
compliance with the terms of such Permits. Neither the Company nor any Company
Subsidiary is subject to any consent decree from any Governmental Authority. The
Company makes no representation or warranty in this Section 4.7 with respect to
corruption laws (including the FCPA), Tax matters, employee benefit matters or
Environmental Laws, which matters are exclusively addressed in Sections 4.8,
4.11, 4.14 and 4.15, respectively. </P>
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<P align=justify style="text-indent: 10%"><U>Section 4.8.</U> <U>Corruption Laws</U>. Neither the Company
nor the Company Subsidiaries nor, to the Knowledge of the Company, any director,
officer, agent, employee or other person associated with or acting on behalf of
the Company or the Company Subsidiaries, (i) has violated or is in violation of
any provision of the FCPA, any law, rule or regulation promulgated to implement
the Organisation for Economic Co-operation and Development Convention on
Combating Bribery of Foreign Public Officials in International Business
Transactions, signed December 17, 1997, or any other law, rule or regulation of
similar purpose (collectively, the &#147;<U>Corruption Laws</U>&#148;) or (ii) has taken
or is currently taking corrupt actions in furtherance of an offer, payment,
promise to pay or authorization of payment of anything of value, including cash,
checks, wire transfers, tangible and intangible gifts, favors, services and
entertainment and travel expenses, to (A) any executive, official, employee or
agent of a governmental department, agency or instrumentality, (B) a director,
officer, employee or agent of a wholly or partially government-owned or
-controlled company or business, (C) a political party or official thereof, or
candidate for political office, (D) an executive, official, employee or agent of
a public international organization (e.g., the International Monetary Fund or
the World Bank) or (E) a third party, in each case in this clause (ii) in order
to obtain, retain or direct business and while knowing or having a reasonable
belief that all or some portion will be used for the purpose of (x) influencing
any act, decision or failure to act by anyone described in clauses (ii)(A)-(D)
in his or her official capacity, (y) inducing anyone described in clauses
(ii)(A)-(D) to use his or her influence with a government or instrumentality to
affect any act or decision of such government or entity, or (z) securing an
improper advantage. </P>
<P align=justify style="text-indent: 10%"><U>Section 4.9.</U> <U>Litigation</U>. Except as set forth on
<U>Schedule 4.9</U>, there is no Action pending, or to the Knowledge of the
Company, threatened, against the Company or any of the Company Subsidiaries that
would reasonably be expected to (i) result in a liability or loss to the Company
of more than $100,000 or (ii) materially adversely affect the ability of the
Company to perform its obligations under this Agreement. Except as set forth on
<U>Schedule 4.9</U>, there are no outstanding writs, judgments, decrees,
injunctions or similar orders of any Governmental Authority by which the
Company, the Company Subsidiaries or any of their respective assets or
properties, are bound that would reasonably be expected to (i) result in a
liability or loss to the Company of more than $100,000, (ii) prevent the Company
and the Company Subsidiaries from conducting their business as currently
conducted in all material respects or (iii) materially adversely affect the
ability of the Company to perform its obligations under this Agreement. </P>
<P align=justify style="text-indent: 10%"><U>Section 4.10.</U> <U>No Undisclosed Liabilities</U>. Except
as set forth in the Financial Statements, neither the Company nor any of the
Company Subsidiaries has any indebtedness, obligations or liabilities of any
kind (whether accrued, absolute, contingent or otherwise, and whether due or to
become due) which is of a nature required by GAAP to be reflected in a balance
sheet or the notes thereto and which is not accrued or reserved against in the
balance sheet included in the Unaudited Financial Statements, other than
liabilities or obligations (i) otherwise specifically disclosed in this
Agreement or in the Schedules hereto, (ii) incurred since December 31, 2010 in
the ordinary course of the Company Group&#146;s business or (iii) that are not,
individually or in the aggregate, material to the Company and the Company
Subsidiaries, taken as a whole. </P>
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<P align=justify style="text-indent: 10%"><U>Section 4.11.</U> <U>Taxes</U>. Except as set forth on
<U>Schedule 4.11</U>: </P>
<P align=justify style="text-indent: 10%">(a) (i) all income and other material Tax Returns required to
be filed by or on behalf of the Company and each of the Company Subsidiaries
have been duly and timely filed with the appropriate Tax Authority (after giving
effect to any valid extensions of time in which to make such filings), and all
such Tax Returns are true and complete in all material respects, (ii) all
material Taxes required to be paid by the Company or any Company Subsidiary have
been paid or adequate reserves have been established on the applicable Financial
Statements, (iii) all deficiencies asserted or assessments made in writing, as a
result of any examinations by any Tax Authority of Tax Returns of or covering
the Company or the Company Subsidiaries have been fully paid or are being
contested in good faith and adequate reserves have been established on the
applicable Financial Statements in connection therewith, and to the Knowledge of
the Company no other audits or investigations by any Tax Authority relating to
any Tax Returns of or covering the Company or the Company Subsidiaries are in
progress, (iv) no waivers of statutes of limitation have been given by or
requested with respect to any Taxes of the Company or any of the Company
Subsidiaries which are currently in effect, (v) neither the Company nor any of
the Company Subsidiaries will be required, as a result of (A) a change in
accounting method for a Tax period beginning on or before the Closing, to
include any adjustment under Section 481(c) of the Code (or any similar
provision of state, local or foreign law) in taxable income for any Tax period
beginning on or after the Closing Date, or (B) any &#147;closing agreement&#148; as
described in Section 7172 or the Code (or any similar provision of state, local
or foreign Tax law), to include any material item of income in or exclude any
material item of deduction from any Tax period beginning on or after the
Closing, (vi) no closing agreements, private letter rulings, technical advance
memoranda or similar agreements or rulings have been entered into or issued by
any Tax Authority with respect to the Company or any of the Company
Subsidiaries, (vii) during the last two years, neither the Company nor any
Company Subsidiary has been a party to a transaction intended to qualify under
Section 355 of the Code as Tax-free with respect to the Company or the
applicable Company Subsidiary; (viii) each Company Subsidiary not organized as a
corporation is treated as a disregarded entity or a partnership for federal
income tax purposes; (ix) neither the Company nor any of the Company
Subsidiaries has engaged in any &#147;listed transactions&#148; within the meaning of
Treasury Regulation 1.6011 -4; and (x) each of the Company and the Company
Subsidiaries has withheld and paid all material Taxes required to have been
withheld and paid in connection with any amounts paid or owing to any employee,
independent contractor, creditor, stockholder, or other third party; </P>
<P align=justify style="text-indent: 10%">(b) No claim has been made in writing by a Tax Authority in a
jurisdiction where the Company or any Company Subsidiary does not file Tax
Returns that the Company or any Company Subsidiary is or may be subject to
taxation by that jurisdiction. There are no liens for Taxes upon the assets of
the Company or any of the Company Subsidiaries, except for liens for Taxes not
yet due and payable or for Taxes that are being contested in good faith by
appropriate proceedings and for which adequate reserves have been established on
the applicable Financial Statements; and </P>
<P align=justify style="text-indent: 10%">(c) None of the Company or any Company Subsidiary is a party to
any agreement providing for the allocation or sharing of Taxes with a party
other than the Company or a Company Subsidiary. Neither the Company nor any
Company Subsidiary (i) has been a member of an affiliated, combined,
consolidated or unitary Tax group for purposes of filing any Tax Return (other than a group the common parent of which was
the Company), or (ii) has any liability for Taxes of any person under Treasury
Regulation &#167;1.1502 -6 (or any similar provision of state, local or foreign Law),
as a transferee or successor, by contract, or otherwise. </P>
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<P align=justify style="text-indent: 10%"><U>Section 4.12.</U> <U>Brokers&#146; and Finders&#146; Fees</U>. Except
as set forth on <U>Schedule 4.12</U>, the Company has not employed any broker or
finder or incurred any liability for any investment banking fees, brokerage
fees, commissions or finders&#146; fees in connection with the transactions
contemplated by this Agreement. </P>
<P align=justify style="text-indent: 10%"><U>Section 4.13.</U> <U>Intellectual Property</U>. </P>
<P align=justify style="text-indent: 10%">(a) <U>Schedule 4.13(a)</U> sets forth a complete and accurate
list of (i) all registrations and applications for Company Intellectual
Property, indicating for each item the registration or application number and
the applicable filing jurisdiction and (ii) all material unregistered Marks
owned in whole or in part by the Company or any of the Company Subsidiaries. All
such registrations and applications for Company Intellectual Property are (A)
unexpired and subsisting, (B) to the Knowledge of the Company, valid and
enforceable and (C) not subject to any outstanding order, proceeding,
determination, judgment, decree or agreement issued by or with any Governmental
Authority and adversely affecting the Company&#146;s or any Company Subsidiary&#146;s use
of, or its rights, to such Intellectual Property, and neither the Company nor
any company Subsidiary has received any written notice of any of the foregoing.
Except as may be set forth on <U>Schedule 4.13(a)</U>, the Company and the
Company Subsidiaries have taken commercially reasonable actions to avoid the
abandonment, impairment or forfeiture of any of the material Company
Intellectual Property. </P>
<P align=justify style="text-indent: 10%">(b) Except as set forth on <U>Schedule 4.13(b)</U>, the Company
or a Company Subsidiary owns exclusively all right, title and interest
(beneficially and of record where applicable) to the Company Intellectual
Property free and clear of all Encumbrances (except Permitted Encumbrances),
exclusive licenses and non-exclusive licenses not granted in the ordinary course
of business. </P>
<P align=justify style="text-indent: 10%">(c) Except as set forth on <U>Schedule 4.13(c)</U>, to the
Knowledge of the Company, none of the products or services distributed, sold or
offered by the Company or any of the Company Subsidiaries, nor any materials or
other Intellectual Property used by the Company or any of the Company
Subsidiaries, nor the conduct of the business by the Company or any of the
Company Subsidiaries, has or currently materially infringes, misappropriates or
violates any materials or other Intellectual Property right of any third party.
Except as set forth on <U>Schedule 4.13(c)</U>, (i) neither the Company or any
of the Company Subsidiaries, nor, to the Knowledge of the Company, any of the
Company&#146;s or the Company Subsidiaries&#146; respective licensees, is a party to any
pending, outstanding, or, to the Knowledge of the Company, threatened or
imminent Action (including any written invitation to license any Patent), or has
received any written notice or claim, alleging that the conduct of the business
(including the sale of products and offering of services) or the Company or
Company Subsidiaries&#146; use of the Company Intellectual Property materially
violates the intellectual property rights of any third party, and to the
Knowledge of the Company, there is no valid basis for the same, (ii) there is no
Action against the Company or any Company Subsidiary pending or outstanding or,
to the Knowledge of the Company, threatened or imminent that seeks to challenge
or limit the Company&#146;s or Company Subsidiaries&#146; ownership of, or right to
use or enforce any of the Company Intellectual Property; (iii) to the Knowledge
of the Company, none of the Company Intellectual Property is being infringed,
impaired, misappropriated or otherwise violated by any third party; (iv) neither
the Company nor any of the Company Subsidiaries has issued any notice or claim
asserting that any such infringement, misappropriation or violation is occurring
or has occurred; (v) and there are no pending, outstanding, or, to the Knowledge
of the Company, threatened or imminent Actions asserting the same. </P>
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<P align=justify style="text-indent: 10%">(d) <U>Schedule 4.13(d)</U> sets forth a complete and accurate
list of all written agreements under which the Company or any Company Subsidiary
(i) is a licensor or licensee with respect to any material Intellectual Property
or (ii) has otherwise granted or received a license, covenant, release,
immunity, assignment or other right with respect to any material Intellectual
Property, including any settlement or coexistence agreement with respect to such
Intellectual Property (collectively the &#147;<U>Company Licenses</U>&#148;), other than
&#147;off-the-shelf&#148; agreements for commercially available software involving
aggregate payments to or by the Company and the Company Subsidiaries in any
fiscal year of an amount less than $100,000. Subject to applicable bankruptcy,
insolvency, reorganization, moratorium and similar Laws affecting creditors&#146;
rights and remedies generally and subject, as to enforceability, to general
principles of equity (regardless of whether enforcement is sought in a
proceeding at law or in equity), each Company License is a valid and binding
obligation of the Company (or a Company Subsidiary as the case may be) and, to
the Knowledge of the Company, the other parties thereto, enforceable against the
Company (or a Company Subsidiary as the case may be) and, to the Knowledge of
the Company, the other parties thereto, in accordance with its terms. Except as
set forth on <U>Schedule 4.13(d)</U>, neither the Company nor any Company
Subsidiary, nor to the Knowledge of the Company, any counterparty is in breach
of, or in material default under, any Company License, nor has there been any
waiver or deferral of enforcement of the rights of the Company, or Company
Subsidiary, as the case may be, or another Person under any such Company
License, nor any claim threatened or asserted that the Company or any Company
Subsidiary, or, to the Knowledge of the Company, another Person, has breached
any Company License. There is no outstanding or, to the Knowledge of the
Company, threatened order, judgment, decree, dispute or disagreement with
respect to any Company License that could adversely affect any of the Company&#146;s
or Company Subsidiary&#146;s use thereof or any of the respective rights and
obligations of any of the parties thereunder. No party to any Company License
has given notice of its intention to cancel, terminate, change the scope of
rights under or fail to renew such Company License. Neither the Company, any
Company Subsidiary nor, to the Knowledge of the Company, any other party to any
Company License, has repudiated in writing any material provision thereof.
Consummation of the transactions contemplated by this Agreement will not place
the Company or any of the Company Subsidiaries in breach or default of any
Company License, or trigger any modification, termination or acceleration
thereunder, or create any license under or Encumbrance on Intellectual Property
owned or held by the Buyer. </P>
<P align=justify style="text-indent: 10%">(e) Each of the Company and the Company Subsidiaries has taken
all reasonable steps to maintain the confidentiality of all material Trade
Secrets that are owned, used or held by the Company or any Company Subsidiary,
and to the Knowledge of the Company, such Trade Secrets have not been used,
disclosed to or discovered by any Person except pursuant to valid and
appropriate non-disclosure agreements which have not been breached, nor, to the
Knowledge of the Company, has any Person misappropriated any of its material
Trade Secrets. </P>
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<P align=justify style="text-indent: 10%">(f) The Company Intellectual Property and the Intellectual
Property licensed by the Company and the Company Subsidiaries under the Company
Licenses constitute all the Intellectual Property rights used in or necessary
for the conduct of the business of the Company and the Company Subsidiaries as
each is currently conducted, all of which rights shall survive unchanged upon
the consummation of the transactions contemplated by this Agreement. </P>
<P align=justify style="text-indent: 10%">(g) The Company and all Company Subsidiaries have taken
reasonable actions to police all material Marks included in the Company
Intellectual Property against unauthorized use by third parties. </P>
<P align=justify style="text-indent: 10%">(h) Except in the ordinary course of business, neither the
Company nor any of the Company Subsidiaries has agreed to indemnify any Person
for or against any interference, infringement, misappropriation, or other
conflict with respect to any of the Company Intellectual Property or any
Intellectual Property that was formerly Company Intellectual Property where such
indemnity could reasonably be expected to result in material liability to the
Company or the Company Subsidiaries. </P>
<P align=justify style="text-indent: 10%">(i) To the Knowledge of the Company, the information
technology, systems and software used by the Company and the Company
Subsidiaries in the conduct of their respective businesses, including all
systems used in connection with manufacturing, vendor management, order
processing, inventory and distribution, (i) operate and perform in all material
respects in accordance with their documentation and functional specifications
and otherwise as required by such businesses as presently conducted, (ii) have
not materially malfunctioned or failed within the past three (3) years and (iii)
are free from material bugs or other material defects. Each of the Company and
the Company Subsidiaries has implemented reasonable backup and disaster recovery
technology processes consistent with standard industry practice. </P>
<P align=justify style="text-indent: 10%"><U>Section 4.14.</U> <U>Employee Benefit Plans; Employees</U>.
</P>
<P align=justify style="text-indent: 10%">(a) <U>Schedule 4.14(a)</U> sets forth a true, complete and
correct list of each &#147;Benefit Plan,&#148; and separately identifies each Benefit Plan
that is maintained outside of the United States (such plans hereinafter being
referred to collectively as &#147;<U>Non-U.S. Benefit Plans</U>&#148;). The term
&#147;<U>Benefit Plan</U>&#148; means each &#147;employee benefit plan&#148; (within the meaning of
Section 3(3) of <U>ERISA</U>), employment and similar agreements, and each plan,
program or agreement providing any stock option, stock purchase, restricted
stock, pension, welfare, bonus, retirement, supplemental retirement, incentive,
equity-based compensation, tax gross-up, salary continuation, change in control,
severance, retention, vacation, Section 125, deferred compensation or education
assistance benefits, in which present or former employees or directors of the
Company or a Company Subsidiary participate or with respect to which the Company
or a Company Subsidiary has any liability, contingent or otherwise. </P>
<P align=justify style="text-indent: 10%">(b) Each Benefit Plan is in material compliance with all
applicable requirements of ERISA, the Code, and all other applicable Laws and
has been administered in all material respects in accordance with its terms and
all such applicable Laws. Each Benefit Plan which is subject to ERISA (an
&#147;<U>ERISA Plan</U>&#148;) that is an &#147;employee pension benefit plan&#148; within the
meaning of Section 3(2) of ERISA which is intended to be qualified within the
meaning of Section 401 of the Code has received a favorable determination letter
from the IRS or has applied to the IRS for such favorable determination letter
under Section 401(b) of the Code within the applicable remedial period, and
nothing, to the Knowledge of the Company, has occurred that would reasonably be
expected to result in the loss of the qualification of such ERISA Plan under
Section 401(a) of the Code. Neither the Company nor any of the Company
Subsidiaries has engaged in a transaction with respect to any ERISA Plan that,
assuming the taxable period of such transaction expired as of the date hereof,
could subject the Company or any Company Subsidiary to a tax or penalty imposed
by either Section 4975 or 4976 of the Code or Section 502(i) of ERISA in an
amount which would be material. </P>
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<P align=justify style="text-indent: 10%">(c) Except as set forth in <U>Schedule 4.14(c)</U>, there are
no pending or, to the Knowledge of the Company, threatened claims and no pending
or, to the Knowledge of the Company, threatened Action with respect to any
Benefit Plans, other than ordinary and usual claims for benefits by participants
and beneficiaries. </P>
<P align=justify style="text-indent: 10%">(d) Except as set forth in <U>Schedule 4.14(d)</U>, or to the
extent required by Section 4980B of the Code, no Benefit Plan provides welfare
benefits after an employee&#146;s or director&#146;s termination of service. </P>
<P align=justify style="text-indent: 10%">(e) Except as set forth in <U>Schedule 4.14(e)</U>, the
execution of this Agreement and the consummation of the transactions
contemplated hereunder will not (i) entitle any employee, officer or director of
the Company or any Company Subsidiary to severance pay, accelerate the time of
payment or vesting of any payment or funding of compensation or benefits, or
increase the amount payable under any Benefit Plan or (ii) constitute a
triggering event under any Benefit Plan (excluding for these purposes the
Employment and Non-Competition Agreements dated as of the date hereof between
Merger Sub and each Key Executive) which would result in any material payment
which could constitute an &#147;excess parachute payment&#148; (as such term is defined in
Section 280G(b)(1) of the Code) to any present or former employee, director or
individual consultant of the Company or any Company Subsidiary. </P>
<P align=justify style="text-indent: 10%">(f) All stock options granted by the Company and any Company
Subsidiary to any current or former employee or director have been granted with
a per share exercise or reference price at least equal to the fair market value
of the underlying stock on the date the option was granted, within the meaning
of Section 409A of the Code and associated Treasury Department guidance.</P>
<P align=justify style="text-indent: 10%">(g) No Benefit Plan is a &#147;Multiemployer Plan&#148; (as defined in
Section 4001(a)(3) of ERISA) and neither the Company, any Company Subsidiary nor
any member of their ERISA Affiliates has at any time sponsored or contributed
to, or has or had any liability or obligation in respect of, any Multiemployer
Plan that would reasonably be expected to have a Material Adverse Effect. </P>
<P align=justify style="text-indent: 10%">(h) Except as set forth in Schedule 4.14(h), neither the
Company nor any Company Subsidiary has or is reasonably expected to incur any
material liability under Subtitle C or D of Title IV of ERISA with respect to
any ongoing, frozen or terminated &#147;single-employer plan&#148; within the meaning of
Section 4001(a)(15) of ERISA, currently or formerly maintained by any of them or
any ERISA Affiliate. </P>
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31 </P>
<P align="justify" style="text-indent: 10%">
(i) Except as disclosed in Schedule 4.14(i), the Company and the Company Subsidiaries have no material unfunded liabilities with respect to any Pension Plan, non-qualified deferred compensation, supplemental or excess plans, or any post retirement
life, health or other welfare benefits. </P>
<P align="justify" style="text-indent: 10%">
(j) All material contributions, premiums, Taxes, expenses and benefit payments required to be made under or in connection with any Benefit Plan have been properly and timely made when due or are appropriately accrued in accordance with GAAP or, with
respect to Non-U.S. Benefit Plans, in accordance with local accounting standards. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 4.15.</U> <U>Environmental Matters</U>. Except as set forth on <U>Schedule 4.15</U>: </P>
<P align="justify" style="text-indent: 10%">
(a) The Company and each of the Company Subsidiaries possess all material permits, licenses and authorizations required by Environmental Laws for the conduct of its respective business (collectively, &ldquo;<U>Environmental Permits</U>&rdquo;), and
these Environmental Permits are in full force and effect and to the to the Knowledge of the Company there are no circumstances that would prevent reissuance of any Environmental Permit on substantially similar terms in the ordinary course. The
Company and each of the Company Subsidiaries are, and other than any failure to comply in the past that could not reasonably be expected to result in material liability to the Company or any Company Subsidiary, have been in material compliance with
all applicable Environmental Laws and Environmental Permits. There are no Actions pending or, to the Knowledge of the Company, threatened against the Company, the Company Subsidiaries or, to the Knowledge of the Company, any of their respective
predecessors in interest, alleging any violation of or liability under any Environmental Law, and the Company and Company Subsidiaries have not received any notice of any material violation of, material liability under, or material noncompliance
with any applicable Environmental Laws. </P>
<P align="justify" style="text-indent: 10%">
(b) There have been no Releases of any Hazardous Material by the Company or any Company Subsidiary, or to the Knowledge of the Company by any other party on or under any Parcel or Company Property or any property previously operated, leased or owned
by the Company, any Company Subsidiary or any of their respective predecessors in interest, nor, to the Knowledge of the Company, on any property where the Company, the Company Subsidiaries or any of their respective predecessors in interest have
sent waste for disposal, except for disposals or Releases that would not reasonably be expected to result in any material liability to the Company and the Company Subsidiaries. </P>
<P align="justify" style="text-indent: 10%">
(c) Except as set forth on <U>Schedule 4.15(c)</U>, to the Knowledge of the Company there are no underground storage tanks, active or abandoned, at any property now or previously owned, operated or leased by the Company, the Company Subsidiaries or
any of their respective predecessors in interest, which the Company, the Company Subsidiaries or any of their respective predecessors in interest is required to investigate, retrofit, abate, remediate or remove under Environmental Law. </P>
<P align="justify" style="text-indent: 10%">
(d) Neither the Company nor any Company Subsidiary is operating, or, to the Knowledge of the Company, is required to be operating or is subject to any obligations, under any consent or compliance order, decree or other order, settlement or agreement
issued or
entered into, under or pertaining to any Environmental Law (but excluding any Environmental Permit). </P>

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<P align="justify" style="text-indent: 10%">
(e) There are no material liabilities arising out of or related to Environmental Laws or Hazardous Materials that the Company or any Company Subsidiary has assumed or retained under contract or to the Knowledge of the Company, by operation of law.
</P>
<P align="justify" style="text-indent: 10%">
(f) The Company and the Company Subsidiaries have provided to Buyer all material environmental documents, studies and reports (including without limitation, Phase I and Phase II investigation reports) in their possession relating to: (i) any
facilities or real property ever owned, operated or leased by the Company, the Company Subsidiaries or any of their respective predecessors in interest; or (ii) any environmental liability of the Company, the Company Subsidiaries or any of their
respective predecessors in interest. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 4.16.</U> <U>Material Contracts</U>. </P>
<P align="justify" style="text-indent: 10%">
(a) Except as set forth on <U>Schedule 4.16(a)</U>, neither the Company nor any of the Company Subsidiaries nor, to the Knowledge of the Company, any other party, is in breach of, or in default under, any Material Contract or any Contract of a type
that would be required to be disclosed on <U>Schedule 4.16(b)</U>. Subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar Laws affecting creditors&rsquo; rights and remedies generally and subject, as to enforceability,
to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity), each such Contract is a valid and binding obligation of the Company (or a Company Subsidiary as the case may be) and, to the Knowledge
of the Company, the other parties thereto, enforceable against the Company (or a Company Subsidiary as the case may be) and, to the Knowledge of the Company, the other parties thereto, in accordance with its terms. </P>
<P align="justify" style="text-indent: 10%">
(b) Except as set forth on <U>Schedule 4.16(b)</U>, neither the Company nor any of the Company Subsidiaries is a party to any Material Contract, nor to any other Contract of the following kinds: (i) any employment agreement that requires the annual
payment of aggregate consideration in excess of &#36;100,000, (ii) any indebtedness for borrowed money, or commitment to incur indebtedness for borrowed money, of the Company or any of the Company Subsidiaries and any Contract pertaining to
Outstanding Debt, (iii) any Contract containing any covenant or provision currently in effect prohibiting the Company or any of the Company Subsidiaries from engaging in any line of business or competing with any Person in any geographic area, and
(iv) any partnership or joint venture agreement in which the Company or any of the Company Subsidiaries participates as a general partner or joint venturer. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 4.17.</U> <U>Related-Party Transactions</U>. Except as set forth on <U>Schedule 4.17</U> or contemplated by this Agreement, (a) no Affiliate of the Company or any of the Company Subsidiaries (other than the Company and the Company
Subsidiaries) has outstanding any indebtedness for borrowed money owed by it to the Company or any of the Company Subsidiaries and (b) neither the Company nor any of the Company Subsidiaries has outstanding any indebtedness for borrowed money owed
by it to any such Affiliate. Except as set forth on <U>Schedule 4.17</U> or contemplated by this Agreement, no such Affiliate is a party to any Contract with the Company or any of the Company Subsidiaries. Each Contract required to be listed on <U>Schedule 4.17</U> was entered into upon fair and reasonable
terms no less favorable to the Company or such Company Subsidiary, as the case
may be, than it would obtain in a comparable arm&#146;slength transaction with a
Person not an Affiliate. </P>

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<P align=justify style="text-indent: 10%"><U>Section 4.18.</U> <U>Real Property</U>. </P>
<P align=justify style="text-indent: 10%">(a) <U>Schedule 4.18(a</U>) sets forth a true and complete list
of all real property and interests in real property owned by each of the Company
and the Company Subsidiaries as of the date of this Agreement. With respect to
each real property (a &#147;<U>Parcel</U>&#148;) required to be listed on <U>Schedule
4.18(a</U>): </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(i) except as disclosed on <U>Schedule
4.18(a</U>), the entity owning such Parcel has good and marketable title to such
Parcel, free and clear of all Encumbrances other than Permitted Encumbrances.
</P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(ii) except as set forth on
<U>Schedule 4.18(a</U>), there are no subleases, licenses, concessions or other
written agreements granting to any party the right of use or occupancy of any
portion of any Parcel; no Parcel is subject to any governmental decree or order
to be sold or otherwise taken by any public authority, nor, to the Knowledge of
the Company, has any such condemnation, expropriation or taking been proposed;
and </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(iii) there are no parties (other than
the Company or any of the Company Subsidiaries) in possession of any Parcel.
</P>
<P align=justify style="text-indent: 10%">(b) <U>Schedule 4.18(b</U>) sets forth a true and complete list
of all real property and interests in real property leased, subleased, licensed,
(and except for the Parcels) used or otherwise occupied by the Company or one of
the Company Subsidiaries (individually as a &#147;<U>Company Property</U>&#148; and
collectively as the &#147;<U>Company Properties</U>&#148;). <U>Schedule 4.18(b)</U> sets
forth a true and complete list of each of the leases, subleases, licenses and
similar agreements in connection with the Company Property and any documents or
instruments affecting in any material respect the rights or obligations of any
of the parties thereto including all amendments, extensions, supplements and
related or collateral documentation (individually, a &#147;<U>Real Property</U>
<U>Lease</U>&#148;, and collectively, the &#147;<U>Real Property Leases</U>&#148;). The Company
and the Company Subsidiaries have provided to Buyer true and complete copies of
all of the Real Property Leases. Each of the Company and the Company
Subsidiaries, as applicable, are in compliance in all material respects with the
terms of all Real Property Leases to which it is a party. The Company or one of
the Company Subsidiaries has, and after the Closing the Company or one of the
Company Subsidiaries will continue to have, a valid and enforceable leasehold
interest under each of the Real Property Leases, subject to applicable
bankruptcy, insolvency, reorganization, moratorium and similar Laws affecting
creditors&#146; rights and remedies generally and subject, as to enforceability, to
general principles of equity (regardless of whether enforcement is sought in a
proceeding at law or in equity), and none of the Company and/or the Company
Subsidiaries has received any written notice of any material default or event,
which, with notice or lapse of time, or both, would constitute a material
default by the Company, such Company Subsidiary, or, to the Knowledge of the
Company, any other party under any of the Real Property Leases. All payments
required to have been made under the Real Property Leases have been made. Except
as set forth on <U>Schedule 4.18(b)</U>, neither the Company nor or any one of the Company Subsidiaries has exercised any option or right to terminate, renew or extend or otherwise affect the rights or obligations of the tenant under any Real
Property Lease.</P>
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  34 </P>
<P align="justify" style="text-indent: 10%">
(c) Except as set forth on <U>Schedule 4.18(c)</U>, the consummation of the transactions contemplated hereby without notice to, or consent or approval of, any party to the Real Property Leases will not constitute a breach of, or a violation or
default under, any of the Real Property Leases. </P>
<P align="justify" style="text-indent: 10%">
(d) None of the Company Property or any Parcel has suffered any material damage by fire or other casualty which has not heretofore been repaired and restored substantially to its original condition. </P>
<P align="justify" style="text-indent: 10%">
(e) With respect to each Company Property and the Parcels, all of the building, improvements and fixtures, including, without limitation, the roofs and structural elements of any buildings or structures, are in good working condition and order,
ordinary wear and tear excepted, and free from material structural or other material defects. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 4.19.</U> <U>Personal Property</U>. The Company and the Company Subsidiaries (a) own, lease or license from third parties all tangible personal property required to conduct its and their respective businesses in the ordinary and usual
course of business, (b) have good and valid title to all tangible personal property owned by it or them, free and clear of all Encumbrances except for Permitted Encumbrances, and (c) upon consummation of the transactions contemplated by this
Agreement, will be entitled to continue to use all material tangible personal property which is currently employed by it or them in the conduct of their respective businesses as presently conducted. Such tangible personal property is in reasonable
operating condition and reasonably fit for the particular purposes for which it is used (subject only to normal maintenance requirements and reasonable wear and tear). </P>
<P align="justify" style="text-indent: 10%">
<U>Section 4.20.</U> <U>Insurance</U>. <U>Schedule 4.20(a)</U> sets forth a true and complete list of all current property and liability insurance programs maintained by the Company and the Company Subsidiaries. <U>Schedule 4.20(b)</U> sets forth a
true and complete description of (i) all current and open or known claims relating to the Company Group under such policies and (ii) all claims made under any insurance policies with respect to any claims, individually, in excess of &#36;50,000
relating to any member of the Company Group with respect to its business during the preceding five (5) years. Each such insurance policy is in full force and effect and no member of the Company Group nor any other party to the policy is in material
breach or default (including with respect to the payment of premiums or the giving of notices), and no event has occurred which, with notice or the lapse of time, would constitute such a material breach or default, or permit termination,
modification, or acceleration, under the policy. Except as set forth on <U>Schedule 4.20(a)</U>, to the Knowledge of the Company there is no threatened termination of any such policies or arrangements. During the preceding five (5) years, the
Company has not settled any Action or claim for an amount in excess of insured limits. </P>

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<P align="justify" style="text-indent: 10%">
<U>Section 4.21.</U> <U>Employment Matters</U>. </P>
<P align="justify" style="text-indent: 10%">
(a) The Company and the Company Subsidiaries have paid or made provision for the payment of all salaries and wages accrued to or for the benefit of their employees. The Company and the Company Subsidiaries have made all payments and contributions
required to be made on behalf of their employees, including workers&rsquo; compensation and unemployment insurance. The Company and the Company Subsidiaries are and have been in material compliance with all applicable laws and regulations respecting
labor, employment, fair employment practices, terms and conditions of employment, and wages and hours. </P>
<P align="justify" style="text-indent: 10%">
(b) Except as set forth on <U>Schedule 4.21</U>, there is no unfair labor practice charge or complaint pending, or to the Knowledge of the Company, threatened relating to the business of Company or any Company Subsidiary. Except as set forth on
<U>Schedule 4.21</U>: (i) there is no material current, written, unresolved labor grievance and no material arbitration proceeding is pending or threatened and no claim therefor has been asserted; (ii) neither the Company nor any Company Subsidiary
is a party to or otherwise bound by any collective bargaining agreement, contract or other agreement or understanding with a labor union or labor organization, and to the Knowledge of the Company, no employee of the Company or any Company Subsidiary
is represented by a labor union or labor organization for purposes of bargaining with the Company; (iii) to the Knowledge of the Company, there is no organizing activity involving the Company or any Company Subsidiary pending or threatened by any
labor organization or group of employees; and (iv) there is no labor strike, slowdown, work stoppage or lockout in effect or, to the Knowledge of the Company, threatened against the Company or any Company Subsidiary nor has any such labor strike,
slowdown, work stoppage or lockout occurred within the past three (3) years. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 4.22.</U> <U>Bank Accounts</U>. <U>Schedule 4.22</U> sets forth, as of the date hereof, a true, complete and correct list of each of the bank accounts in the name of the Company or any Company Subsidiary, including the title and number of
the account, the individuals with signatory authority over such account and the financial institution at which such account is located. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 4.23.</U> <U>Customers and Suppliers</U>. </P>
<P align="justify" style="text-indent: 10%">
(a) <U>Schedule 4.23(a)</U> sets forth the top ten (10) customers of the Company Group (in terms of total recognized revenue) during the fiscal year ended December 31, 2010. As of the date of this Agreement, no customer listed in <U>Schedule
4.23(a)</U> has canceled or otherwise terminated, or, to the Knowledge of the Company, threatened to cancel or otherwise terminate, its relationship with the Company or any Company Subsidiary. As of the date of this Agreement, to the Knowledge of
the Company, neither the Company nor any Company Subsidiary has received notice that any such customer intends to cancel or otherwise materially and adversely modify its relationship (including, without limitation, by seeking to renegotiate
contractual terms) with the Company or any Company Subsidiary. </P>
<P align="justify" style="text-indent: 10%">
(b) <U>Schedule 4.23(b)</U> sets forth the top ten (10) suppliers to the Company Group (in terms of expenditures) during the fiscal year ended December 31, 2010. As of the date of this Agreement, no supplier listed on <U>Schedule 4.23(b)</U> has
canceled or otherwise terminated, or, to
the Knowledge of the Company, threatened to cancel or otherwise terminate, its relationship with the Company or any Company Subsidiary. As of the date of this Agreement, to the Knowledge of the Company, neither the Company nor any Company Subsidiary
has received notice that any such supplier intends to cancel or otherwise materially and adversely modify its relationship (including, without limitation, by seeking to renegotiate contractual terms) with the Company or any Company Subsidiary. </P>

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  36 </P>
<P align="justify" style="text-indent: 10%">
<U>Section 4.24.</U> <U>Transaction Related Expenses</U>. <U>Schedule 4.24</U> sets forth a good faith estimate of each line item that comprises the Transaction Related Expenses as of the date hereof, and the aggregate amount of the Transaction
Related Expenses will not differ from the aggregate Transaction Related Expenses that are shown on such schedule by more than 5%. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 4.25.</U> <U>Canofil and Procesos</U>. </P>
<P align="justify" style="text-indent: 10%">
(a) To the Knowledge of the Company, Canofil is a corporation duly formed and validly existing under the laws of Mexico and in good standing with all applicable Governmental Authorities. To the Knowledge of the Company, Canofil has the requisite
corporate power and authority to own or lease all of its properties and assets and to carry on its business as it is now being conducted and is duly licensed or qualified to do business in each jurisdiction in which it conducts business or in which
the properties and assets owned or leased by it requires such licensing or qualifications. To the Knowledge of the Company, except as would not, individually or in the aggregate, be material to the Company, the operations of Canofil are conducted in
compliance with all applicable Laws. To the Knowledge of the Company, except as set forth in Inversiones&rsquo; financial statements, Canofil has no indebtedness, obligations or liabilities of any kind (whether accrued, absolute, contingent or
otherwise, and whether due or to become due), which are required by GAAP to be reflected in a balance sheet and which are not accrued or reserved against in the balance sheet included in Inversiones&rsquo;  financial statements, other than
liabilities or obligations (i) otherwise specifically disclosed in this Agreement or in the Disclosure Schedule, (ii) incurred since December 31, 2010 in the ordinary course of Canofil&rsquo;s business or (iii) that are not, individually or in the
aggregate, material to the Company and the Company Subsidiaries, taken as a whole. </P>
<P align="justify" style="text-indent: 10%">
(b) To the Knowledge of the Company, Procesos is a corporation duly formed and validly existing under the laws of Mexico and in good standing with all applicable Governmental Authorities. To the Knowledge of the Company, Procesos has the requisite
corporate power and authority to own or lease all of its properties and assets and to carry on its business as it is now being conducted and is duly licensed or qualified to do business in each jurisdiction in which it conducts business or in which
the properties and assets owned or leased by it requires such licensing or qualifications. To the Knowledge of the Company, except as would not, individually or in the aggregate, be material to the Company, the operations of Procesos are conducted
in compliance with all applicable Laws. To the Knowledge of the Company, except as set forth in Inversiones&rsquo; financial statements, Procesos has no indebtedness, obligations or liabilities of any kind (whether accrued, absolute, contingent or
otherwise, and whether due or to become due), which are required by GAAP to be reflected in a balance sheet and which are not accrued or reserved against in the balance sheet included in Inversiones&rsquo; financial statements, other than
liabilities or obligations (i) otherwise specifically disclosed in this Agreement or in the Disclosure Schedule, (ii) incurred since December 31, 2010 in the ordinary course of Procesos&#146; business or (iii) that are not,
individually or in the aggregate, material to the Company and the Company
Subsidiaries, taken as a whole. </P>

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<P align=justify style="text-indent: 10%"><U>Section 4.26.</U> <U>No Other Representations or
Warranties</U>. Except for the representations and warranties of the Company
expressly set forth in this Article 4, neither the Company nor any other Person
makes any other express or implied representation or warranty on behalf of the
Company with respect to the Company or the transactions contemplated by this
Agreement. </P>
<P align=center><B>ARTICLE 5 </B></P>
<P align=center><B><U>REPRESENTATIONS AND WARRANTIES</U> </B><BR><B><U>OF
THE STOCKHOLDER REPRESENTATIVE</U> </B><BR></P>
<P align=justify style="text-indent: 10%">The Stockholder Representative represents and warrants to the
Company, Buyer and Merger Sub as follows: </P>
<P align=justify style="text-indent: 10%">Section 5.1. <U>Organization and Good Standing</U>. The
Stockholder Representative is duly organized, validly existing and in good
standing (where such status is recognized) under the Laws of the jurisdiction of
its organization, with all corporate power and authority to conduct its business
as it is now being conducted and to own, lease and operate its property and
assets. </P>
<P align=justify style="text-indent: 10%">Section 5.2. <U>Authority Relative to this Agreement, Etc</U>.
The Stockholder Representative has all requisite power, authority and legal
capacity to execute and deliver this Agreement for the purposes of Section
3.1(a)(iv), Article 5 and Sections 8.3(a), 8.3(e), 9.3(c), 9.7, 11.2 and 11.10,
only, and the Escrow Agreement and to consummate the transactions contemplated
hereby and thereby. The execution, delivery and performance of this Agreement
for the purposes of Section 3.1(a)(iv), Article 5 and Sections 8.3(a), 8.3(e),
9.3(c), 9.7, 11.2 and 11.10, only, and the Escrow Agreement and the consummation
of the transactions contemplated hereby and thereby, have been and will be, as
applicable, duly authorized and approved by all necessary action on the part of
such Stockholder Representative. This Agreement has been, and the Escrow
Agreement will be at or prior to Closing, duly and validly executed and
delivered by the Stockholder Representative, and, assuming due authorization,
execution and delivery by each of the other parties hereto and thereto, this
Agreement for the purposes of Section 3.1(a)(iv), Article 5 and Sections 8.3(a),
8.3(e), 9.3(c), 9.7, 11.2 and 11.10, only, constitutes and the Escrow Agreement
when so executed and delivered will constitute, a legal, valid and binding
obligations of the Stockholder Representative, enforceable against the
Stockholder Representative in accordance with its terms, in each case, subject
to applicable bankruptcy, insolvency, reorganization, moratorium and similar
Laws affecting creditors&#146; rights and remedies generally. </P>
<P align=justify style="text-indent: 10%">Section 5.3. <U>Consents and Approvals; No Violations</U>.
Except as set forth on Schedule 5.3, neither the execution, delivery and
performance of this Agreement or the Escrow Agreement by the Stockholder
Representative nor the consummation by the Stockholder Representative of the
transactions contemplated hereby and thereby will (a) conflict with or violate
any provision of the organizational documents of the Stockholder Representative,
(b) require any consent, waiver, approval, license, authorization or permit of,
or filing with or notification to, any Governmental Authority, except for
compliance with applicable antitrust Laws, (c) result in a violation or breach of, or constitute
(with or without notice or lapse of time or both) a default (or give rise to any
right of termination, cancellation, or acceleration of any obligation to repay)
under, or require any consent under any note, bond, mortgage or indenture,
contract, lease, sublease, license or other instrument to which the Stockholder
Representative is a party or by which any of such Stockholder Representative&#146;s
properties or assets may be bound, or (d) violate any Law applicable to the
Stockholder Representative or by which any of the Stockholder Representative&#146;s
properties or assets are bound. </P>
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<P align=justify style="text-indent: 10%">Section 5.4. <U>No Other Representations or Warranties</U>.
Except for the representations and warranties of the Stockholder Representative
expressly set forth in this Article 5, the Stockholder Representative makes no
express or implied representation or warranty on behalf of itself with respect
to the Stockholder Representative or the transactions contemplated by this
Agreement. </P>
<P align=center><B>ARTICLE 6 </B></P>
<P align=center><B><U>REPRESENTATIONS AND WARRANTIES</U> </B><BR><B><U>OF
BUYER AND MERGER SUB</U> </B><BR></P>
<P align=justify style="text-indent: 10%">Buyer and Merger Sub represent and warrant to the Company as
follows: </P>
<P align=justify style="text-indent: 10%"><U>Section 6.1.</U> <U>Organization, Etc. </U>Each of Buyer and
Merger Sub is duly organized, validly existing and in good standing (where such
status is recognized) under the Laws of the jurisdiction of its organization,
with all corporate power and authority to conduct its business as it is now
being conducted and to own, lease and operate its property and assets. </P>
<P align=justify style="text-indent: 10%"><U>Section 6.2.</U> <U>Authority Relative to this Agreement,
Etc. </U>Each of Buyer and Merger Sub has all requisite corporate power and
authority to execute and deliver this Agreement and to consummate the
transactions contemplated hereby. The execution and delivery by Buyer and Merger
Sub of this Agreement and the consummation of the transactions contemplated
hereby have been duly authorized by all requisite corporate action of Buyer and
Merger Sub. This Agreement has been duly and validly executed and delivered by
Buyer and Merger Sub and, assuming this Agreement has been duly authorized,
executed and delivered by the Company and the Stockholder Representative, this
Agreement constitutes a legal, valid and binding obligation of Buyer and Merger
Sub, enforceable against them in accordance with its respective terms, in each
case, subject to applicable bankruptcy, insolvency, reorganization, moratorium
and similar Laws affecting creditors&#146; rights and remedies generally. </P>
<P align=justify style="text-indent: 10%"><U>Section 6.3.</U> <U>Consents and Approvals; No
Violations</U>. Except as set forth on <U>Schedule 6.3</U>, neither the
execution, delivery and performance of this Agreement by Buyer and Merger Sub
nor the consummation by Buyer and Merger Sub of the transactions contemplated
hereby will (a) violate any provision of the certificate of incorporation or
by-laws of Buyer or Merger Sub, (b) require any consent, waiver, approval,
license, authorization or permit of, or filing with or notification to, any
Governmental Authority, except for (i) compliance with all applicable antitrust
Laws and (ii) such consents, waivers, approvals, licenses, authorizations,
permits, filings or notifications which, if not obtained or made, would not
have, in the aggregate, a Buyer Material Adverse Effect, (c) result in a
violation or breach of, or constitute (with or
without notice or lapse of time or both) a default (or give rise to any right of termination, cancellation or acceleration or any obligation to repay) under, or require any consent under, any material Contract to which Buyer or Merger Sub is a party
or by which any of its properties or assets may be bound, or (d) violate any Law applicable to Buyer or Merger Sub or by which any of their properties or assets are bound, except such violations under this clause (d) which are not reasonably likely
to have, in the aggregate, a Buyer Material Adverse Effect. </P>
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  39 </P>
<P align="justify" style="text-indent: 10%">
<U>Section 6.4.</U> <U>Compliance with Law; Permits</U>. Buyer and Merger Sub have been and are in compliance with all applicable Laws except for such instances of noncompliance which have not had, and are not reasonably likely to have, in the
aggregate, a Buyer Material Adverse Effect. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 6.5.</U> <U>Litigation</U>. Except as set forth on <U>Schedule 6.5</U>, as of the date hereof, there is no Action pending or, to the knowledge of Buyer or Merger Sub, threatened, against any of Buyer or Merger Sub or their subsidiaries
that (a) involves a claim which is reasonably likely to have a Buyer Material Adverse Effect or (b) seeks injunctive relief and which is reasonably likely to have a Buyer Material Adverse Effect. Except as set forth on <U>Schedule 6.5</U> there are
no outstanding writs, judgments, decrees, injunctions or similar orders of any Governmental Authority by which Buyer or Merger Sub or their subsidiaries or any of their assets or properties are bound that would reasonably be expected to have, in the
aggregate, a Buyer Material Adverse Effect. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 6.6.</U> <U>Brokers&rsquo; and Finders&rsquo; Fees</U>. Except for Bank of America Merrill Lynch and CIBC World Markets Inc., none of Buyer or Merger Sub or their subsidiaries or any of their respective directors or employees has employed
any investment banker, broker or finder or incurred any liability for any investment banking fees, brokerage fees, commissions or finders&rsquo; fees in connection with the transactions contemplated by this Agreement. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 6.7.</U> <U>Financing</U>. Buyer and its Affiliates will have at Closing sufficient funds for Buyer and Merger Sub to consummate the transactions contemplated by this Agreement. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 6.8.</U> <U>Investigation</U>. Buyer acknowledges that, except for the matters that are expressly covered by the provisions of this Agreement (including the representations and warranties made by the Company and the Stockholder
Representative in this Agreement), Buyer is relying on its own investigation and analysis in entering into the transactions contemplated hereby. Buyer is knowledgeable about the industries in which the Company and the Company Subsidiaries operate
and is capable of evaluating the merits and risks of the transactions contemplated by this Agreement. Buyer has been afforded full access to the books and records, facilities and personnel of the Company and the Company Subsidiaries for purposes of
conducting a due diligence investigation of the Company and the Company Subsidiaries. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 6.9.</U> <U>Merger Sub</U>. Merger Sub is a wholly-owned subsidiary of Buyer. Merger Sub was formed specifically to consummate the transactions contemplated by this Agreement and has conducted no operations and incurred no obligation
other than in connection with its formation and the transactions contemplated hereby. </P>

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<P align=justify style="text-indent: 10%"><U>Section 6.10.</U> <U>No Other Representations or
Warranties</U>. Except for the representations and warranties expressly set
forth in this Article 6, neither Buyer nor Merger Sub makes any other express or
implied representation or warranty on behalf of Buyer or Merger Sub with respect
to Buyer or Merger Sub or the transactions contemplated by this Agreement. </P>
<P align=center><B>ARTICLE 7 </B></P>
<P align=center><B><U>COVENANTS</U> </B></P>
<P align=justify style="text-indent: 10%"><U>Section 7.1.</U> <U>Conduct of Business</U>. </P>
<P align=justify style="text-indent: 10%">(a) From the date hereof to Closing, except as (i) contemplated
by this Agreement or (ii) required by applicable Law, the Company agrees, unless
otherwise consented to by Buyer in writing (which consent shall not be
unreasonably withheld), that it shall conduct its business, and shall cause each
Company Subsidiary to conduct their respective businesses, in the ordinary and
usual course consistent with past practice. From the date hereof to Closing, the
Company shall, and shall cause the Company Subsidiaries to, use reasonable best
efforts to maintain and preserve intact the businesses of the Company and the
Company Subsidiaries in all material respects and use reasonable best efforts to
maintain the ordinary and customary relationships of the Company and the Company
Subsidiaries with its and their respective suppliers, customers, key employees
and others having material business relationships with it and them. </P>
<P align=justify style="text-indent: 10%">(b) From the date hereof to Closing, except as (i) contemplated
by this Agreement or (ii) required by applicable Law, the Company shall not, and
shall cause the Company Subsidiaries not to (unless otherwise consented to by
Buyer in writing, such consent not to be unreasonably withheld): </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(i) declare, set aside, make or pay
any dividend or other distribution in respect of the capital stock of the
Company or any of the Company Subsidiaries (excluding dividends or distributions
to the Company by wholly owned Company Subsidiaries) or repurchase, redeem or
otherwise acquire any outstanding shares of the capital stock or other
securities of, or other ownership interests in the Company or the Company
Subsidiaries; </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(ii) transfer, issue, sell or dispose
of any shares of capital stock or other equity interests of the Company or any
of the Company Subsidiaries or grant options, warrants, calls, phantom stock,
profit participation, or other rights to purchase or otherwise acquire shares of
the capital stock or other equity interests of the Company or any of the Company
Subsidiaries; </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(iii) effect any recapitalization,
reclassification, stock split or like change in the capitalization of the
Company or any of the Company Subsidiaries; </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(iv) amend the certificate of
incorporation or by-laws (or other comparable organizational documents) of the
Company or any of the Company Subsidiaries; </P>
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<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(v) grant or take any other action
that will result in the imposition of any mortgage, pledge, lien or other
Encumbrance granted on any property or assets (whether tangible or intangible)
of any of the Company or the Company Subsidiaries (other than Permitted
Encumbrances); </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(vi) effect any increase in the wages,
salaries, compensation, pension or other benefits payable to current or former
directors, officers or executive employees of the Company or any Company
Subsidiary or effect any increase in the wages, salaries, compensation, pension
or other benefits payable by any of the Company or the Company Subsidiaries to
its employees other than (x) increases and adjustments in the ordinary course of
business consistent with past practice or (y) to the extent required by Law or
under any agreement, arrangement, plan, program or policy; </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(vii) become party to, establish,
amend, commence participation in, terminate or commit itself to the adoption of
any Benefit Plan or agreement, plan or arrangement which would have constituted
a Benefit Plan as of the date of this Agreement, or materially increase
obligations to employees generally under any existing agreement, to pay
pensions, retirement allowance or other employee benefits for the employees of
the Company or the Company Subsidiaries generally other than to the extent
required by any Benefit Plan; </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(viii) (a) institute any general
layoff of employees or implement any early retirement plan or announce the
planning of such a program, (b) terminate any employee other than for cause, or
(c) hire any employee other than to fill a vacancy; </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(ix) enter into any settlement,
consent order or other similar agreement, or any discussions with respect to any
such agreements, with the Pension Benefit Guaranty Corporation; </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(x) change the Company&#146;s or any
Company Subsidiary&#146;s methods of accounting, except as required by changes in
GAAP; </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(xi) purchase, sell, exchange or
otherwise dispose or acquire any property or assets or enter into any lease of
real property in any one transaction or series of transactions for which the
aggregate consideration paid or payable in any individual transaction or series
of transactions is in excess of $250,000;</P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(xii) intentionally accelerate the
collection of receivables or delay the payment of payables of the Company or any
Company Subsidiary; </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(xiii) enter into, amend or terminate
any Material Contract; </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(xiv) merge or consolidate with any
other Person, or acquire capital stock or assets of any other Person; </P>
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<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(xv) make or enter into any commitment
for any capital expenditures in excess of $150,000 for any individual commitment
or $300,000 for all commitments in the aggregate; </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(xvi) enter into any settlement,
decree, consent order or other similar agreement under Environmental Law; </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(xvii) incur any indebtedness for
borrowed money or guarantee any such indebtedness of another Person, issue or
sell any debt securities or warrants or other rights to acquire any debt
securities of the Company or any Company Subsidiary, guarantee any debt
securities of another Person, or enter into any arrangement having the economic
effect of any of the foregoing, except for working capital borrowings incurred
in the ordinary course of business consistent with past practice; </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(xviii) pay or agree to pay in
settlement or compromise of any suits or claims of liability against the Company
or any Company Subsidiary, net of insurance recoveries, more than $150,000 for
any such suit or claim or more than an aggregate of $300,000 for all such suits
and claims; </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(xix) cancel or terminate any
insurance policy or cause any of the coverage thereunder to lapse, unless
simultaneously with such termination, cancellation or lapse, replacement
policies providing coverage equal to or greater than the coverage under the
canceled, terminated or lapsed policies, for premiums at not more than current
market rates, are in full force and effect; </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(xx) (a) make or change any income Tax
election, (b) settle or compromise any Tax liability, or (c) file any amended
material Tax Return; or </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(xxi) agree or commit in writing to do
any of the foregoing. </P>
<P align=justify style="text-indent: 10%"><U>Section 7.2.</U> <U>Access to Information;
Confidentiality</U>. </P>
<P align=justify style="text-indent: 10%">(a) From the date of this Agreement until the Closing Date,
upon reasonable prior notice, and subject to such exceptions determined by the
Company in good faith to be appropriate to ensure compliance with any applicable
Laws and subject to any applicable privileges (including the attorney-client
privilege) and contractual confidentiality obligations, the Company shall, and
shall cause the Company Subsidiaries to, (i) afford Buyer and its
Representatives reasonable access, during normal business hours, to the offices,
personnel, properties, books and records of the Company Group and (ii) furnish
to Buyer and its Representatives such additional financial and operating data
and other information regarding the Company Group as Buyer may from time to time
reasonably request; <U>provided</U>, <U>however</U>, that such investigation or
request shall not interfere in any material respect with any of the businesses
or operations of the Company Group; and <U>provided</U>, <U>further</U>, that
the auditors and accountants of the Company Group shall not be obligated to make
any work papers available to any Person unless and until such Person has signed
a customary agreement relating to such access to work papers in form and
substance reasonably acceptable to such auditors or accountants. </P>
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<P align=right>43 </P>
<P align=justify style="text-indent: 10%">(b) Buyer and its subsidiaries and each of their respective
Representatives shall hold in confidence in accordance with the provisions of
the confidentiality agreement, dated February 17, 2010 (the &#147;<U>Confidentiality
Agreement</U>&#148;), between an Affiliate of Buyer and the Company any information
regarding the financial condition or business operations of the Company Group
that is received or obtained in connection with consummating the transactions
contemplated hereby, including during any due diligence. </P>
<P align=justify style="text-indent: 10%"><U>Section 7.3.</U> <U>Retention of Records</U>. Following the
Closing, the Surviving Corporation shall, and shall cause the Company
Subsidiaries to, (i) preserve and keep the records held by them at the Effective
Time relating to the businesses of the Company Group for so long as and to the
extent required by applicable Law and (ii) make such records and personnel
available to BCP as may be reasonably requested by BCP, including in connection
with any insurance claims by, legal proceedings against or investigations by any
Governmental Authority of, BCP or to enable BCP to comply with its obligations
under applicable Law and this Agreement. </P>
<P align=justify style="text-indent: 10%"><U>Section 7.4.</U> <U>Consents and Approvals; Conditions</U>.
Each of the parties hereto shall use (a) their reasonable best efforts, and
shall cooperate with each other and the Company, to obtain, prior to Closing,
all consents and approvals required to consummate the transactions contemplated
by this Agreement and the Escrow Agreement and (b) their reasonable best efforts
to cause the conditions precedent to the other party&#146;s obligations to effect the
Closing set forth in Article 8 to be satisfied and to consummate the
transactions contemplated herein. </P>
<P align=justify style="text-indent: 10%"><U>Section 7.5.</U> <U>Filings with Governmental
Authorities</U>. </P>
<P align=justify style="text-indent: 10%">(a) Each party hereto shall cooperate with respect to any
notices and filings to be made in connection with the consents, approvals,
waivers and authorizations under Law required prior to Closing in connection
with the transactions contemplated hereby. Each party hereto shall use
reasonable best efforts to effect any necessary notifications, registrations and
filings with any Governmental Authority in connection with transactions
contemplated by this Agreement, including any filings in respect of the Required
Consents, the other consents, waivers, approvals, licenses, authorizations,
permits, filings and notifications set forth on <U>Schedule 4.4</U> and the
submissions of information requested or required by any Governmental Authority
(including any such notifications, registrations or filings required
post-Closing). </P>
<P align=justify style="text-indent: 10%">(b) In furtherance and not in limitation of the foregoing, each
party hereto shall use its reasonable best efforts to take, or cause to be
taken, all action and to do, or cause to be done, all things necessary under
applicable antitrust Laws and regulations to consummate and make effective the
transactions contemplated by this Agreement, including (i) to comply promptly
with all legal requirements which may be imposed on it with respect to this
Agreement and the transactions contemplated hereby by any Governmental Authority
with regulatory jurisdiction over enforcement of any applicable antitrust Laws
(&#147;<U>Governmental Antitrust</U> <U>Authority</U>&#148;) (which actions shall include
furnishing all information required by applicable law in connection with
approvals of or filings with any Governmental Antitrust Authority), including
filing, or causing to be filed, as promptly as practicable, any required
notification and report forms (x) under the HSR Act with the FTC and the
Antitrust Division of the United States Department of Justice (the &#147;<U>Antitrust
Division</U>&#148;) or (y) under other applicable non-U.S. Laws
with the applicable non-U.S. Governmental Antitrust Authority, and (ii) to obtain any consent, authorization, order or approval of, or any exemption by, any Governmental Antitrust Authority required to be obtained or made by the Company and Buyer,
or any of their respective subsidiaries or affiliates in connection with the transaction contemplated by this Agreement or the taking of any action contemplated by this Agreement. </P>
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<P align="justify" style="text-indent: 10%">
(c) Without limiting the generality of the undertakings under subsections (b) and (d) of this Section 7.5 and subject to appropriate confidentiality protections, the Company and Buyer shall each furnish to the other such necessary information and
reasonable assistance as the other party may request in connection with the foregoing and shall consult with the other party in connection with respect to the filings to be made by such party with any Governmental Antitrust Authority. Each party
shall, subject to applicable Law, permit counsel for the other party to review in advance any proposed written communication to any Governmental Antitrust Authority. Upon the terms and subject to the conditions herein provided, in case at any time
after the Closing Date any further action is necessary or desirable to secure the approvals from any and all Governmental Antitrust Authorities necessary to carry out the purposes of this Agreement, the proper officers and/or directors of the
parties shall use their reasonable best efforts to take or cause to be taken all such necessary action. </P>
<P align="justify" style="text-indent: 10%">
(d) Without limiting the generality of the undertakings under subsections (b) and (c) of this Section 7.5, the Company and Buyer agree to take or cause to be taken the following actions: (i) provide as promptly as practicable information and
documents requested by any Governmental Antitrust Authority necessary, proper or advisable to permit consummation of the transactions contemplated by this Agreement, and (ii) without in any way limiting the provisions of (c) above, use its
reasonable best efforts to certify as soon as reasonably practicable its substantial compliance with any requests for additional information or documentary material that may be made under the HSR Act. The Company and Buyer agree to offer the other
party, if possible, a reasonable opportunity to participate in all telephonic calls and all meetings with a Governmental Antitrust Authority in which these matters are discussed. </P>
<P align="justify" style="text-indent: 10%">
(e) Any filing fees under the HSR Act or any foreign antitrust merger control Laws that are payable in connection with this Agreement shall be borne by Buyer. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 7.6.</U> <U>Directors&rsquo; and Officers&rsquo; Indemnification and Insurance</U>. </P>
<P align="justify" style="text-indent: 10%">
(a) The certificates of incorporation, by-laws and all other organizational documents of the Company and the Company Subsidiaries shall not be amended, repealed or otherwise modified for a period of six (6) years from the Closing Date in any manner
that would adversely affect the rights thereunder of individuals who at the Closing Date are or were directors, officers, agents or employees of the Company or any of the Company Subsidiaries or otherwise entitled to indemnification, advancement of
expenses or exculpation pursuant to the Company&rsquo;s or any of the Company Subsidiaries&rsquo; certificate of incorporation or by-laws (each a &ldquo;<U>Director and/or Officer Indemnified Party</U>&rdquo;). </P>

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(b) Without limiting any additional rights that any person may have under any employment agreement, any Buyer Plans or the Company&rsquo;s or the Surviving Corporation&rsquo;s organizational documents, but without duplication thereof, from the
Effective Time through the
sixth (6<SUP>th</SUP>) anniversary of the date on which the Effective Time occurs, the Surviving Corporation shall indemnify and hold harmless the Director and/or Officer Indemnified Parties against all losses incurred in connection with any Action,
whether civil, criminal, administrative or investigative, arising out of or pertaining to (i) the fact that the Director and/or Officer Indemnified Party is or was an officer, director, employee, fiduciary or agent, at or prior to the Effective
Time, of the Company or any of its subsidiaries, (ii) the Director and/or Officer Indemnified Party&rsquo;s service, at or prior to the Effective Time, at the request of, or to represent the interests of, the Company as a director, officer, partner,
member, trustee, fiduciary, employee or agent of another Person or (iii) matters existing or occurring at or prior to the Effective Time (including this Agreement and the transactions and actions contemplated hereby), whether asserted or claimed
prior to, at or after the Effective Time, to the fullest extent permitted under applicable Law. In the event of any such Action, in addition to any rights provided in the Surviving Corporation&rsquo;s organizational documents, (x) subject to
applicable Law, each Director and/or Officer Indemnified Party will be entitled to advancement of reasonable expenses (including attorneys&rsquo; fees and disbursements) incurred in the defense of any Action from the Surviving Corporation within ten
(10) Business Days of receipt by the Surviving Corporation from the Director and/or Officer Indemnified Party of a request therefor; <U>provided</U> that any Person to whom expenses are advanced provides an undertaking to repay such advances if it
is ultimately determined that such Person is not entitled to indemnification and (y) the Surviving Corporation shall not settle, compromise or consent to the entry of any judgment in any proceeding or threatened Action (and in which indemnification
could be sought by such Director and/or Officer Indemnified Party hereunder) unless such settlement, compromise or consent includes an unconditional release of such Director and/or Officer Indemnified Party from all liability arising out of such
Action or such Director and/or Officer Indemnified Party otherwise consents. </P>

<P align="justify" style="text-indent: 10%">
(c) The Surviving Corporation shall cause to be maintained in effect for six (6) years from the Closing Date the current policies of the directors&rsquo; and officers&rsquo; liability insurance maintained by the Company and the Company Subsidiaries
(<U>provided</U> the Surviving Corporation may substitute therefor policies of at least the same coverage containing other terms and conditions which are not less advantageous) with respect to matters occurring on or prior to the Closing Date to the
extent available; <U>provided</U>, <U>however</U>, that in no event shall the Surviving Corporation or a Company Subsidiary be required to expend more than an amount per year equal to 200% of the current annual premiums paid by the Company or any of
the Company Subsidiaries to maintain or procure insurance coverage pursuant hereto, as set forth in <U>Schedule</U> <U>4.20(a)</U>; <U>provided</U>, <U>further</U>, that if the annual premiums of such insurance coverage exceed such amount, the
Surviving Corporation shall be obligated to obtain policies with the greatest coverage available for a cost not exceeding such amount. </P>
<P align="justify" style="text-indent: 10%">
(d) Notwithstanding anything herein to the contrary, if any Action (whether arising before, at or after the Effective Time) is made against any Director and/or Officer Indemnified Party on or prior to the sixth (6<SUP>th</SUP>) anniversary of the
Effective Time, the provisions of this Section 7.6 shall continue in effect until the final disposition of such Action. </P>

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  46 </P>
<P align="justify" style="text-indent: 10%">
<U>Section 7.7.</U> <U>Employee Matters</U> </P>
<P align="justify" style="text-indent: 10%">
(a) Buyer agrees that, effective as of the Closing Date and for a one year period thereafter, the Surviving Corporation shall provide current Company Group Employees (as hereinafter defined) (i) with employee benefits that are no less favorable in
the aggregate to those provided to such Company Group Employees immediately prior to the Closing Date (other than with respect to any Benefit Plan that is a defined benefit plan) and (ii) with a base salary, incentive bonus opportunity and long-term
incentive opportunity (the &ldquo;<U>Compensation Package</U>&rdquo;), which, in the aggregate and with respect to each Company Group Employee, are no less favorable than the Compensation Package provided to a similarly situated employee of Buyer;
<U>provided</U>, <U>however</U>, that the foregoing shall not prevent the Surviving Corporation from making any modifications or substitutions of the employee benefits from time to time in the ordinary and usual course as long as such modifications
or substitutions do not breach the foregoing covenant. With respect to any employee benefits that are provided to Company Group Employees under the Surviving Corporation&rsquo;s employee benefits plans (&ldquo;<U>Buyer Plans</U>&rdquo;), service
accrued by Company Group Employees during employment with the Company or any of the Company Subsidiaries or predecessors prior to the Closing Date shall be recognized for all purposes. With respect to any medical, dental or other welfare benefits
that are provided at any time to Company Group Employees under Buyer Plans, Buyer will use its reasonable best efforts to cause any applicable pre-existing condition exclusions to be waived, and any expenses incurred before such time under the
comparable plan maintained or sponsored by the Company or any Company Subsidiary to be taken into account under such Buyer Plan for purposes of satisfying applicable deductible, coinsurance, maximum out-of-pocket and similar provisions. Subject to
compliance with Section 7.7(b) and any applicable obligations of the Company and the Company Subsidiaries, nothing in this Section 7.7(a) shall limit the right of the Surviving Corporation or any Company Subsidiary to terminate the employment of any
employee on or after the Closing Date. </P>
<P align="justify" style="text-indent: 10%">
(b) Buyer agrees to cause the Surviving Corporation (and each of the Company Subsidiaries, as applicable) to assume and honor all of the Company&rsquo;s (and each Company Subsidiary&rsquo;s) employment, severance, change-in-control, retention,
bonus, other incentive agreements and arrangements, and medical, dental and life insurance arrangements (each, an &ldquo;<U>Employee Arrangement</U>&rdquo;) for the benefit of any Company Group Employees, in each case consistent with the terms of
the applicable Employee Arrangement. For a one year period following the Closing Date, the Surviving Corporation shall provide severance benefits to Company Group Employees who are terminated during such period that are no less favorable to such
Company Group Employee than the severance benefits to which such Company Group Employee was entitled to receive immediately prior to the date hereof. </P>
<P align="justify" style="text-indent: 10%">
(c) The Surviving Corporation shall (i) maintain the 2011 Annual Bonus Plan (the &ldquo;<U>Annual Bonus Plan</U>&rdquo;) through September 30, 2011 and (ii) in accordance with the terms of the Annual Bonus Plan, make the payments required by the
Annual Bonus Plan to each Company Group Employee participating in such Annual Bonus Plan as set forth on <U>Schedule 7.7(c)(ii)</U> and who remains employed with the Surviving Corporation through September 30, 2011 or as otherwise provided under the
terms of the Annual Bonus Plan. </P>

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<P align="justify" style="text-indent: 10%">
(d) For purposes of this Section 7.7, the term &ldquo;<U>Company Group Employees</U>&rdquo; shall mean all current and former employees or officers of the Company and of each of the Company Subsidiaries immediately prior to the Closing Date,
including those on lay-off, retirement, disability or leave of absence, paid or unpaid, and their survivors, beneficiaries and dependents. </P>
<P align="justify" style="text-indent: 10%">
(e) The Surviving Corporation shall not, within sixty (60) days after the Closing Date, effectuate a &ldquo;plant closing&rdquo; or &ldquo;mass layoff&rdquo; as those terms are defined in WARN, affecting in whole or in part any site of employment,
facility, operating unit or Company Group Employee without complying with the notice requirements and other provisions of WARN which could cause any liability to the Surviving Corporation or any of the Company Subsidiaries with respect to the
Company Group Employees. </P>
<P align="justify" style="text-indent: 10%">
(f) Nothing in Section 7.7 shall be construed to limit the right of Buyer or the Surviving Corporation to amend or terminate any Benefit Plan or other employee benefit plan to the extent such amendment or termination is permitted by the terms of the
applicable plan, nor shall anything in this Section 7.7 be construed to require the Buyer or the Surviving Corporation to retain the employment of any particular Company Group Employee for any fixed period of time following the Closing Date. This
Section 7.7 shall inure exclusively to the benefit of, and is binding upon, the parties hereto and their respective successors, assigns, executors and legal representatives. Nothing in this Agreement, express or implied, is intended to confer on any
Person other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 7.8.</U> <U>Taxes</U>. </P>
<P align="justify" style="text-indent: 10%">
(a) Buyer shall be liable for and shall pay when due all sales (including, without limitation, bulk sales), use, value added, documentary, stamp, registration, transfer, conveyance, excise, recording, license and other similar fees or Taxes or
governmental charges, if any, as levied by any Tax Authority or Governmental Authority arising out of, in connection with or attributable to the transactions contemplated by the Agreement. Buyer hereby agrees to file all necessary documents
(including all Tax Returns) with respect to all such amounts in a timely manner. </P>
<P align="justify" style="text-indent: 10%">
(b) All material Tax Returns of the Company and the Company Subsidiaries not required to be filed on or before the date hereof will, to the extent required to be filed (taking into account all available extensions) on or before the Closing Date, be
timely filed by the Company and the Company Subsidiaries when due and be prepared in a manner consistent with the Company&rsquo;s past practice, except as otherwise required by applicable Law. </P>
<P align="justify" style="text-indent: 10%">
(c) All material Tax Returns of the Company and the Company Subsidiaries with respect to any Straddle Period shall be timely filed by the Company and the Company Subsidiaries when due and be prepared in a manner consistent with the Company&rsquo;s
past practice, except as otherwise required by applicable Law. </P>
<P align="justify" style="text-indent: 10%">
(d) The Company and the Company Subsidiaries shall timely pay the amount of Taxes shown as due on the Tax Returns that are filed pursuant to <U>Section 7.8(b)</U>. </P>

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  48 </P>
<P align="justify" style="text-indent: 10%">
(e) On the Closing Date, the Company shall deliver to Buyer a certificate pursuant to Treasury Regulations section 1.1445 -2(c)(3) stating that the Company is not nor has it been a U.S. real property holding corporation (as defined in section
897(c)(2) of the Code) during the applicable period specified in section 897(c) of the Code. </P>
<P align="justify" style="text-indent: 10%">
(f) Any tax allocation or sharing agreement or arrangement, whether or not written, that has been entered into by the Company or any Company Subsidiary shall be terminated as to the Company or Company Subsidiary as of the Closing Date, and no
payments which are owed by or to the Company or Company Subsidiary pursuant thereto shall be made thereunder. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 7.9.</U> <U>Further Assurances</U>. After the Closing, each party hereto shall from time to time, at the request of the other parties, execute and deliver such other instruments and documents and take such other actions as such other
party may reasonably request in order to consummate the transactions contemplated hereby. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 7.10.</U> <U>No Solicitation of Transactions</U>. </P>
<P align="justify" style="text-indent: 10%">
(a) The Company will immediately cease any existing discussions and negotiations with any third parties conducted prior to the date hereof with respect to any Acquisition Proposal (as defined below). The Company shall not, directly or indirectly,
through any Representative, agent, Affiliate or any of its subsidiaries or otherwise, (i) initiate, solicit or knowingly encourage any inquiries or the making of any proposal that constitutes an Acquisition Proposal, (ii) continue or engage in
negotiations or discussions concerning, or provide any information or data to any Person relating to, any Acquisition Proposal, or (iii) agree to, approve or recommend any Acquisition Proposal. </P>
<P align="justify" style="text-indent: 10%">
(b) For purposes of this Agreement, an &ldquo;<U>Acquisition Proposal</U>&rdquo; means any proposal or inquiry by any Person for or with respect to (i) the acquisition of over 20% of the common stock of the Company or any Company Subsidiary, (ii)
any merger, consolidation, dissolution, recapitalization, or similar transaction (or series of transactions) involving the Company or any Company Subsidiary, (iii) a transaction pursuant to which the Company or any Company Subsidiary issues or would
issue, or such Person acquires or would acquire, over 20% of the common stock of the Company or any Company Subsidiary, (iv) a transaction pursuant to which such Person acquires or would acquire in any manner, directly or indirectly, over 20% of the
consolidated total assets of the Company, or (v) any similar transaction that would adversely impact the transactions contemplated hereby, in each case, other than the transactions contemplated by this Agreement. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 7.11.</U> <U>Transaction and Monitoring Fee Agreement; Engagement Letter;</U> <U>Stockholders Agreements</U>. </P>
<P align="justify" style="text-indent: 10%">
(a) Upon the occurrence of the Closing, the Transaction and Monitoring Fee Agreement, dated as of October 30, 2006, between the Company and Blackstone Management Partners L.L.C. (the &ldquo;<U>Monitoring Agreement</U>&rdquo;) shall be automatically
terminated, without further action by any party thereto, and shall have no further force or effect, and all amounts due or which might be or otherwise become due thereunder (including (i) any and all unpaid
&ldquo;Monitoring Fees&rdquo; (including any &ldquo;Excess Amounts&rdquo;) for all periods prior to the Closing, (ii) any &ldquo;Contingent Fees&rdquo; pursuant to Section 4(b) thereof, (iii) any &ldquo;Lump Sum Payment&rdquo; pursuant to Section
4(c) thereof, (iv) all accrued and unpaid interest payable pursuant to Section 4(d) thereof and (v) all unpaid or unreimbursed &ldquo;Out-of-Pocket Expenses&rdquo; incurred by Blackstone (each as defined in the Monitoring Agreement)) or under any
other agreements that are in effect between the Company or any of the Company Subsidiaries and the Stockholder Representative or any of its Affiliates (except as provided in Section 7.11(c)) shall be deemed satisfied in full, and the Company and any
successor shall have no further liability or obligation (including, for the avoidance of doubt, any liabilities or obligations with respect to indemnification arrangements) with respect thereto. </P>

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  49 </P>
<P align="justify" style="text-indent: 10%">
(b) Upon the occurrence of the Closing, that certain letter agreement, dated as of February 18, 2010 (the &ldquo;<U>Engagement Letter</U>&rdquo;), by and between the Company and Blackstone Advisory Partners L.P. shall be automatically terminated,
without further action by any party thereto, and shall have no further force or effect, and all amounts due or which might be or otherwise become due thereunder shall be deemed satisfied in full, and the Company and any successor shall have no
further liability or obligation with respect thereto. </P>
<P align="justify" style="text-indent: 10%">
(c) The Stockholders Agreement dated as of October 30, 2006 by and among GTM Holdings, Inc. and the other Persons party thereto, and the Securityholders Agreement (the &ldquo;<U>Stockholders Agreements</U>&rdquo;) and any other stockholders
agreement governing the stockholders of the Company shall be terminated and of no further force or effect as of the Closing, including with respect to indemnification obligations of the Company thereunder.</P>
<P align="justify" style="text-indent: 10%">
<U>Section 7.12.</U> <U>Intellectual Property Rights Matters</U>. </P>
<P align="justify" style="text-indent: 10%">
(a) During the period commencing on the date hereof and ending on the Closing Date, the Company shall use reasonable best efforts consistent with past practice to preserve and protect its rights in and to the material Company Intellectual Property
and the material Company Licenses shall not (i) abandon or allow any registered Company Intellectual Property or pending application for registration of any Company Intellectual Property to lapse for failure to pay any registration, maintenance or
other fee, (ii) abandon or allow any other registered Company Intellectual Property or pending application for registration of any other Company Intellectual Property to lapse for failure to pay any registration, maintenance or other fee, except as
would not have a Material Adverse Effect, and (iii) sell, assign, transfer or otherwise dispose of any Company Intellectual Property. </P>
<P align="justify" style="text-indent: 10%">
(b) <U>Schedule 7.12(b</U>) sets forth a complete and accurate list of all actions necessary (including the filing of any documents or the payment of any fees) within 180 days after the Closing Date, and their respective due dates, (i) to maintain
or preserve the status of including enforceability or validity of, or to avoid the abandonment, cancellation, impairment or forfeiture of, any registered or applied for Company Intellectual Property in the United States or in any foreign
jurisdiction which Company Intellectual Property is registered or subject to an application for registration, (ii) to the Knowledge of the Company, to maintain or preserve the status of any other material registered or applied for Company
Intellectual Property anywhere in the world, or to meet any deadline imposed by a court, trademark office or other governmental body of competent jurisdiction concerning any claim anywhere in the world regarding any such
material registered or applied for Company Intellectual Property. </P>

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  50 </P>
<P align="justify" style="text-indent: 10%">
<U>Section 7.13.</U> <U>Transaction Related Expenses</U>. No later than two Business Days prior to the Closing Date, the Company shall provide to Buyer an itemized schedule containing a true and complete list of all Transaction Related Expenses.
Each of the service providers that will receive payment for their Transaction Related Expenses at Closing will, as a condition to receiving such payment, deliver pay-off letters to the Company in a form reasonably acceptable to Buyer </P>
<P align="justify" style="text-indent: 10%">
<U>Section 7.14.</U> <U>Notices; Release of Collateral</U>. Prior to Closing, and as a condition to, Buyer repaying or causing to repay the Outstanding Debt listed on <U>Schedule 3.1(b)</U> as contemplated by Section 3.1(b)(i) of this Agreement, the
Company and its officers shall, and if applicable, shall cause the Company Subsidiaries and its officers to, prepare all notices, certificates and other documentation (a) required or requested by the applicable lenders or administrative agent (or
similar party) in connection with the repayment of all amounts due under the Outstanding Debt and (b) required or requested by the applicable lenders or collateral agent (or similar party) to such Outstanding Debt in order to terminate the
agreements listed on <U>Schedule 7.14</U> and any other security, collateral, guaranty or similar arrangements associated therewith. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 7.15.</U> <U>Further Assurances</U>. The parties hereto shall, and shall cause their respective Affiliates to, cooperate reasonably with each other and their respective Representatives in connection with their respective obligations under
this Agreement, and, subject to applicable Law, shall furnish to each other such further information and documentation as the other parties may reasonably request for the purpose of carrying out the intent of this Agreement and the Escrow Agreement
and the transactions contemplated hereby or thereby. </P>
<P align="center">
<B>ARTICLE 8 </B></P>
<P align="center">
<B><U>CONDITIONS TO THE CLOSING</U> </B></P>
<P align="justify" style="text-indent: 10%">
<U>Section 8.1.</U> <U>Conditions to the Obligations of Each Party to Effect the Closing</U>. The obligations of the parties hereto to effect the Closing shall be subject to the fulfillment, or written waiver by Buyer and the Company at or prior to
the Closing, of each of the following conditions: </P>
<P align="justify" style="text-indent: 10%">
(a) <U>No Injunction or Proceeding</U>. No statute, rule, regulation, executive order, decree, preliminary or permanent injunction or restraining order shall have been enacted, entered, promulgated or enforced, by any Governmental Authority which
remains in effect and enjoins, prohibits, prevents or restricts the consummation of the transactions contemplated hereby. </P>
<P align="justify" style="text-indent: 10%">
(b) <U>Governmental Consents</U>. Any required waiting periods under the HSR Act, including any extension thereof, shall have expired or been terminated. </P>

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  51 </P>
<P align="justify" style="text-indent: 10%">
<U>Section 8.2.</U> <U>Conditions to the Obligations of the Company to Effect the</U> <U>Closing</U>. The obligation of the Company to effect the Closing shall be subject to the fulfillment, or written waiver by the Company at or prior to the
Closing, of each of the following conditions: </P>
<P align="justify" style="text-indent: 10%">
(a) <U>Accuracy of Representations and Warranties of Buyer and Merger Sub</U>. The representations and warranties of Buyer and Merger Sub contained in this Agreement shall be true and correct on the date hereof and as of the Closing Date as though
made on and as of that date (or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date), except for any failures to be true and correct (without giving effect to any
qualifications or limitations as to materiality or Buyer Material Adverse Effect) which do not, in the aggregate, have a Buyer Material Adverse Effect. </P>
<P align="justify" style="text-indent: 10%">
(b) <U>Performance by Buyer</U>. Buyer and Merger Sub shall have performed and complied in all material respects with all agreements and covenants contained in this Agreement required to be performed or complied with by it on or prior to the
Closing. </P>
<P align="justify" style="text-indent: 10%">
(c) <U>Certificate</U>. Buyer shall have furnished the Company with a certificate, dated as of the Closing Date, signed by an authorized officer of each of Buyer and Merger Sub to the effect that the conditions set forth in Sections 8.2(a) and
8.2(b) have been satisfied. </P>
<P align="justify" style="text-indent: 10%">
(d) <U>Escrow Agreement</U>. Buyer and the Escrow Agent shall have executed and delivered the Escrow Agreement. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 8.3.</U> <U>Conditions to the Obligations of Buyer and Merger Sub to Effect</U> <U>the Closing</U>. The obligations of Buyer and Merger Sub to effect the Closing shall be subject to the fulfillment, or written waiver by Buyer and Merger
Sub at or prior to the Closing, of each of the following conditions: </P>
<P align="justify" style="text-indent: 10%">
(a) <U>Accuracy of Representations and Warranties of the Company and</U> <U>Stockholder Representative</U>. The representations and warranties of the Company and the Stockholder Representative contained in this Agreement (i) other than those listed
in clause (ii) below, shall be true and correct on the date hereof and as of the Closing Date as though made on and as of that date (or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such
specific date), except for any failures to be true and correct (without giving effect to any qualifications or limitations as to materiality or Material Adverse Effect that are included in such representations and warranties) which do not,
individually or in the aggregate, have a Material Adverse Effect and (ii) that are set forth in Sections 4.1, 4.2, 4.3, 4.4, 5.1, 5.2 and 5.3 shall each be true and correct on the date hereof and as of the Closing Date as though made on and as of
that date. </P>
<P align="justify" style="text-indent: 10%">
(b) <U>Performance by the Company</U>. The Company shall have performed and complied in all material respects with all agreements and covenants contained in this Agreement required to be performed or complied with by it on or prior to the Closing.
</P>
<P align="justify" style="text-indent: 10%">
(c) <U>Material Adverse Effect</U>. No Material Adverse Effect shall have occurred since December 31, 2010. </P>

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<P align="justify" style="text-indent: 10%">
(d) <U>Certificate</U>. The Company shall have furnished Buyer and Merger Sub with a certificate, dated as of the Closing Date, signed by its Chief Executive Officer or Chief Financial Officer to the effect that the conditions set forth in Sections
8.3(a), 8.3(b) and 8.3(c) have been satisfied. </P>
<P align="justify" style="text-indent: 10%">
(e) <U>Consents</U>. The Consents set forth in Schedule 1.1(a) shall have been obtained and remain in full force and effect. </P>
<P align="justify" style="text-indent: 10%">
(f) <U>Escrow Agreement</U>. The Stockholder Representative and the Escrow Agent shall have executed and delivered the Escrow Agreement. </P>
<P align="center">
<B>ARTICLE 9 </B></P>
<P align="center">
<B><U>SURVIVAL OF REPRESENTATION AND WARRANTIES</U> </B></P>
<P align="justify" style="text-indent: 10%">
<U>Section 9.1.</U> <U>Survival Period</U>. </P>
<P align="justify" style="text-indent: 10%">
(a) The representations, warranties, agreements and covenants set forth in this Agreement and in any certificate delivered at the Closing in connection with this Agreement shall survive the Closing Date and the consummation of the transactions
contemplated hereby; <U>provided</U> that notwithstanding the foregoing, (i) the representations and warranties set forth in Articles 4, 5 and 6 hereof and in any certificate delivered at the Closing in connection with this Agreement, and agreements
and covenants which by their terms do not contemplate performance after the Closing, shall survive for twelve (12) months after the Closing Date, at which time they shall terminate; and (ii) agreements and covenants which by their terms contemplate
performance after the Closing Date shall survive the Closing for the term provided therein. The period for which a representation, warranty, agreement or covenant survives the Closing is referred to herein as the &ldquo;<U>Applicable Survival
Period</U>&rdquo;. </P>
<P align="justify" style="text-indent: 10%">
(b) In the event a valid notice of claim for indemnification under Section 9.2, 9.3 or 9.5 with respect to any representation, warranty, agreement or covenant is given within the Applicable Survival Period for such representation, warranty,
agreement or covenant, such claim shall survive with respect to such claim until such claim is finally resolved. None of Buyer, Merger Sub or the Holders shall have any liability or obligation of any nature with respect to any representation or
warranty contained in Articles 4, 5 and 6 hereof (or in any certificate delivered at the Closing in connection with this Agreement) unless a claim is made hereunder prior to the Applicable Survival Period for such representation, warranty, agreement
or covenant. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 9.2.</U> <U>Indemnification</U>. </P>
<P align="justify" style="text-indent: 10%">
(a) Subject to Sections 9.1 and 9.4 hereof, the Holders to the extent of the Escrow Funds shall indemnify and hold Buyer and Merger Sub and their respective directors, officers, Affiliates, successors and assigns (collectively, the &ldquo;<U>Buyer
Indemnified Parties</U>&rdquo;) harmless from and against, and pay, out of the Escrow Funds, to the applicable Buyer Indemnified Parties the amount of, any and all losses, liabilities, claims, obligations, deficiencies, demands, judgments, damages,
interest, fines, penalties, claims, suits, actions, causes of action, assessments, awards, costs and expenses (including costs of investigation and defense and attorneys&#146; and other professionals&#146; fees), whether or not
involving a third party claim (individually, a &#147;<U>Loss</U>&#148; and, collectively,
&#147;<U>Losses</U>&#148;): </P>

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<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(i) based upon, attributable to or
resulting from the failure of any of the representations or warranties made by
the Company or the Stockholder Representative in this Agreement to be true and
correct, without giving effect to any qualifications or limitations as to
materiality or Material Adverse Effect (or other similar materiality qualifiers)
therein (other than Sections 4.4 (clause (c) only), 4.6 (clause (d) only), 4.16
and 4.23), in all respects at and as of the date hereof and at and as of the
Closing Date;<SUP> </SUP></P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(ii) based upon, attributable to or
resulting from the breach of any covenant or other agreement on the part of the
Company under this Agreement; and </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(iii) arising from or related to any
fees, commissions, or like payments by any Person having acted or claiming to
have acted, directly or indirectly, as a broker, finder or financial advisor to
the Company or the Company Subsidiaries in connection with the transactions
contemplated by this Agreement. </P>
<P align=justify style="text-indent: 10%">(b) Subject to Sections 9.1 and 9.4, Buyer hereby agrees to
indemnify and hold the Holders and their respective Affiliates, successors and
permitted assigns (collectively, the &#147;<U>Stockholder Indemnified Parties</U>&#148;)
harmless from and against, and pay to the applicable Stockholder Indemnified
Parties the amount of any and all Losses: </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(i) based upon, attributable to or
resulting from the failure of any of the representations or warranties made by
Buyer or Merger Sub in this Agreement to be true and correct in all respects at
the date hereof and as of the Closing Date; and </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(ii) based upon, attributable to or
resulting from the breach of any covenant or other agreement on the part of
Buyer or Merger Sub under this Agreement. </P>
<P align=justify style="text-indent: 10%">(c) The right to indemnification or any other remedy based on
representations, warranties, covenants and agreements in this Agreement shall
not be affected by any investigation conducted at any time, or any knowledge
acquired (or capable of being acquired) at any time, whether before or after the
execution and delivery of this Agreement or the Closing Date, with respect to
the accuracy or inaccuracy of, or compliance with, any such representation,
warranty, covenant or agreement. The waiver of any condition based on the
accuracy of any such representation or warranty, or on the performance of or
compliance with any such covenant or agreements, will not affect the right to
indemnification or any other remedy based on such representations, warranties,
covenants and agreements. </P>
<P align=justify style="text-indent: 10%"><U>Section 9.3.</U> <U>Indemnification Procedures</U>. </P>
<P align=justify style="text-indent: 10%">(a) A claim for indemnification of Losses for any matter not
involving a third party claim may be asserted by notice, which provides any
known detail with respect to such claim, to the party from whom indemnification
is sought promptly after the incurrence of such
Losses; <U>provided</U>, <U>however</U>, that failure to so notify the indemnifying party shall not preclude the indemnified party from any indemnification which it may claim in accordance with this Article 9, except to the extent that the
indemnifying party is actually and materially prejudiced thereby. </P>
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<P align="justify" style="text-indent: 10%">
(b) In the event that any Action shall be instituted or that any claim or demand shall be asserted by any third party in respect of which indemnification may be sought under Section 9.2 hereof (regardless of the limitations set forth in Section 9.4)
(a &ldquo;<U>Third Party Claim</U>&rdquo;), the indemnified party shall promptly cause written notice of the assertion of any Third Party Claim of which it has knowledge which is covered by this indemnity to be forwarded to the indemnifying party.
The failure of the indemnified party to give reasonably prompt notice of any Third Party Claim shall not release, waive or otherwise affect the indemnifying party&rsquo;s obligations with respect thereto except to the extent that the indemnifying
party is actually and materially prejudiced thereby. Subject to the provisions of this Section 9.3, the indemnifying party shall have the right, at its sole expense, to be represented by counsel of its choice, which must be reasonably satisfactory
to the indemnified party, and to defend against, negotiate, settle or otherwise deal with any Third Party Claim which relates to any Losses indemnified against hereunder; <U>provided</U> that the indemnifying party shall have acknowledged in writing
to the indemnified party its unqualified obligation to indemnify the indemnified party as provided hereunder. If the indemnifying party elects to defend against, negotiate, settle or otherwise deal with any Third Party Claim which relates to any
Losses indemnified by it hereunder, it shall within thirty (30) days of the indemnified party&rsquo;s written notice of the assertion of such Third Party Claim (or sooner, if the nature of the Third Party Claim so requires) notify the indemnified
party of its intent to do so; <U>provided</U> that the indemnifying party must conduct the defense of the Third Party Claim actively and diligently thereafter in order to preserve its rights in this regard. If the indemnifying party elects not to
defend against, negotiate, settle or otherwise deal with any Third Party Claim which relates to any Losses indemnified against hereunder, fails to notify the indemnified party of its election as herein provided or contests its obligation to
indemnify the indemnified party for such Losses under this Agreement, the indemnified party may defend against, negotiate, settle or otherwise deal with such Third Party Claim. If the indemnified party defends any Third Party Claim, then the
indemnifying party shall reimburse the indemnified party for the reasonable expenses of defending such Third Party Claim upon submission of periodic bills. If the indemnifying party shall assume the defense of any Third Party Claim, the indemnified
party may participate, at his or its own expense, in the defense of such Third Party Claim. The parties hereto agree to provide reasonable access to the other to such documents and information as may be reasonably requested in connection with the
defense, negotiation or settlement of any such Third Party Claim. Notwithstanding anything in this Section 9.3 to the contrary, neither the indemnifying party nor the indemnified party shall, without the written consent of the other party, settle or
compromise any Third Party Claim or permit a default or consent to entry of any judgment unless the claimant or claimants and such party provide to such other party an unqualified release from all liability in respect of the Third Party Claim. If
the indemnifying party makes any payment on any Third Party Claim, the indemnifying party shall be subrogated, to the extent of such payment, to all rights and remedies of the indemnified party to any insurance benefits or other claims of the
indemnified party with respect to such Third Party Claim. </P>

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55</P>

<P align="justify" style="text-indent: 10%">
(c) Under all circumstances the Holders shall act solely through the Stockholder Representative and Stockholder Representative&rsquo;s determination with respect to all matters under this Article 9 (including a determination as to whether to seek
indemnity or not) shall be final and binding on each Holder. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 9.4.</U> <U>Limitations on Indemnification</U>. </P>
<P align="justify" style="text-indent: 10%">
(a) An indemnifying party shall not have any liability under Section 9.2(a)(i) or Section 9.2(b)(i) hereof unless the aggregate amount of Losses incurred by the indemnified parties and indemnifiable thereunder based upon, attributable to or
resulting from the failure of any of the representations or warranties to be true and correct exceeds &#36;500,000 (the &ldquo;<U>Deductible</U>&rdquo;) and, in such event, the indemnifying party shall be required to pay only the amount of such
indemnifiable Losses incurred in excess of the Deductible; <U>provided</U> that no claim for an indemnifiable Loss shall be indemnifiable to the extent such Loss does not exceed &#36;10,000; <U>provided</U> <U>further</U>, however, that the
limitations on indemnification in this Section 9.4(a) shall not apply to Losses based upon, attributable to or resulting from the failure of any of the representations and warranties contained in Sections 4.1, 4.2, 4.3, 4.4, 4.8, 5.1, 5.2, 5.3, 6.1,
6.2 and 6.3 of this Agreement to be true and correct, without giving effect to any qualifications or limitations as to materiality or Material Adverse Effect (or other similar materiality qualifiers) therein, in all respects at and as of the date
hereof and at and as of the Closing Date. </P>
<P align="justify" style="text-indent: 10%">
(b) In no event shall the Holders or Buyer be required to indemnify any Person under this Agreement in respect of Losses for an aggregate amount that exceeds the Escrow Funds in the case of indemnification by the Holders and &#36;8,500,000 in the
case of indemnification by Buyer (the &ldquo;<U>Cap</U>&rdquo;). The right of the Buyer to indemnification or any other payment pursuant to this Agreement shall be limited to the Escrow Funds then held in escrow pursuant to the Escrow Agreement and
not previously distributed pursuant to the terms of the Escrow Agreement and no indemnification or other payment shall be payable other than for the remaining Escrow Funds.</P>
<P align="justify" style="text-indent: 10%">
(c) Notwithstanding anything to the contrary contained in this Article 9, no indemnification shall be provided under this Agreement with respect to any Losses based on punitive, consequential or special damages; <U>provided</U> that indemnifiable
Losses may include punitive, consequential or special damages to the extent that they are actually adjudicated as due and actually paid by an indemnified party to a third party who is not a party (or a director, officer, Affiliate, successor or
assignee of a party) to this Agreement in connection with an indemnified Third Party Claim. </P>
<P align="justify" style="text-indent: 10%">
(d) For the avoidance of doubt, no indemnification shall be provided under this Agreement with respect to underfunding liabilities under the Gold Toe Retirement Plan-Cash Balance Plan. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 9.5.</U> <U>Tax Indemnification</U>. </P>

<P align="justify" style="text-indent: 10%">
(a) Subject to Sections 9.1 and 9.4 hereof, except to the extent treated as a Current Liability in the calculation of Adjusted Working Capital, the Holders, to the extent of and only out of the Escrow Funds, shall be liable for and indemnify the
Buyer Indemnified
Parties for all Taxes (other than Taxes resulting from a transaction (or actions of Buyer or its Affiliates) outside of the ordinary course of business that occurs on the Closing Date but after the Closing) imposed on the Company and each of the
Company Subsidiaries or for which the Company or any of the Company Subsidiaries may otherwise be liable for any taxable year or period that ends on or before the Closing Date and, with respect to any taxable year or period beginning before and
ending after the Closing Date (a &ldquo;<U>Straddle Period</U>&rdquo;), the portion of such taxable year ending on and including the Closing Date. Except to the extent treated as a Current Asset in the calculation of Adjusted Working Capital, the
Holders shall be entitled to any refund of Taxes that the Company or any Company Subsidiary receives for such periods. </P>

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<P align="justify" style="text-indent: 10%">
(b) For purposes of Section 9.5(a), whenever it is necessary to determine the liability for Taxes of the Company or any of the Company Subsidiaries for a Straddle Period, the determination of the Taxes of the Company or the Company Subsidiary for
the portion of the Straddle Period ending on, and the portion of the Straddle Period beginning after, the Closing Date shall be determined by assuming that the Company or Company Subsidiary had a taxable year or period which ended at the close of
the Closing Date; provided that, each of (i) exemptions, allowances or deductions that are calculated on an annual basis, such as the deduction for depreciation, and (ii) Taxes imposed on a periodic basis (such as property Taxes), shall be
apportioned on a time basis. </P>
<P align="justify" style="text-indent: 10%">
(c) Buyer shall promptly notify the Holders in writing upon receipt by Buyer, any of its Affiliates, the Company or Company Subsidiaries of notice of any pending or threatened federal, state, local or foreign income or franchise tax audits or
assessments which may materially affect the tax liabilities of the Company or Company Subsidiaries for which the Holders would be required to indemnify Buyer pursuant to Article IX (a &ldquo;Tax Claim&rdquo;); provided that failure to comply with
this provision shall not affect the Buyer Indemnified Parties&rsquo; right to indemnification hereunder unless the Holders are materially prejudiced as a result of such failure. </P>
<P align="justify" style="text-indent: 10%">
(d) The Holders shall have the right, at their own cost and expense, to control any Tax Claim; provided that, (i) Buyer may participate at its own cost and expense, and (ii) as to any Tax Claim with respect to a Straddle Period, the Holders and
Buyer shall jointly control such Tax Claim, each at their own cost and expense. Notwithstanding the foregoing, the Holders shall not be entitled to settle, either administratively or after the commencement of litigation, any Tax Claim without the
prior written consent of Buyer, such consent not to be unreasonably withheld. </P>
<P align="justify" style="text-indent: 10%">
(e) The indemnifications set forth in this Section 9.5 shall survive for twelve (12) months after the Closing Date, at which time they shall terminate. </P>

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<P align="justify" style="text-indent: 10%">
<U>Section 9.6.</U> <U>Losses Net of Insurance and Taxes</U>. The amount of any Loss for which indemnification is provided under Section 9.2 or 9.5, shall be net of (i) any amounts actually recovered by the indemnified party (net of any costs of
investigation of the underlying claim and of collection) pursuant to any indemnification by or indemnification agreement with any Person (other than this Agreement), (ii) any insurance proceeds (net of any costs of investigation of the underlying
claim and of collection and net of any increase premiums) received as an offset against such Loss and (iii) any amount equal to any Tax benefit arising from the incurrence or payment of any Loss to the party claiming such Loss or indemnification
(each course of recovery referred to in clauses (i) and (ii) a &ldquo;Collateral Source&rdquo;). If the amount to be netted hereunder in connection with a Collateral Source from any payment required under Section 9.2 or 9.5 is received after payment
by the indemnifying party of any amount otherwise required to be paid to an indemnified party pursuant to this Article 9, the indemnified party shall repay the indemnifying party, promptly after such receipt, any amount that the indemnifying party
would not have had to pay pursuant to this Article 9 had such receipt occurred at the time of such payment. Each indemnified party shall take commercially reasonable steps to mitigate any Losses as soon as reasonably practicable after such
indemnified party becomes aware of any event which does, or could reasonably be expect to, give rise to any such Losses.
</P>

<P align="justify" style="text-indent: 10%">
<U>Section 9.7.</U> <U>Indemnity Escrow</U>. On the Closing Date, Buyer shall, on behalf of the Holders and pursuant to the provisions of Section 3.2, pay to the Escrow Agent, as agent to Buyer and the Holders, the Escrow Funds, in accordance with
the terms of this Agreement and the Escrow Agreement, which will be executed at the Closing in a form to be agreed between Buyer and the Company promptly after the date of this Agreement, by and among Buyer, Stockholder Representative and the Escrow
Agent (the &ldquo;<U>Escrow Agreement</U>&rdquo;). The Escrow Agent shall hold the Escrow Funds in accordance with, and subject to, the terms and conditions of the Escrow Agreement, which shall, among other things, provide that, upon the first
anniversary of the Closing Date, the balance of the Escrow Funds (after taking into account the Post-Closing Adjustment), if any, will be released to the Holders pro-rata, with interest thereon, from the Closing Date through such date, paid at an
interest rate that is calculated on a 365-day basis for the actual number of days (including the first day but excluding the last day) occurring in the period for which interest is payable; <U>provided</U>, <U>however</U>, that no Escrow Funds shall
be released to the Holders to the extent that the then-remaining Escrow Funds may be required to satisfy any claim for indemnification pursuant to this Article 9 that has been brought as of such date and which has not been finally resolved. To the
extent Escrow Funds are distributed to the Holders, Stockholder Representative shall be entitled to be reimbursed solely from such distributed Escrow Funds for all out-of-pocket costs (including attorney&rsquo;s fees) for administering claims
relating to Losses.<B> </B></P>
<P align="justify" style="text-indent: 10%">
<U>Section 9.8.</U> <U>Purchase Price Adjustment</U>. All amounts paid from the Escrow Funds or otherwise pursuant to this Article 9, to the maximum extent permitted by Law, shall be treated as an adjustment to the Equity Consideration for all Tax
purposes. </P>
<P align="center">
<B>ARTICLE 10 </B></P>
<P align="center">
<B><U>TERMINATION AND ABANDONMENT</U> </B></P>
<P align="justify" style="text-indent: 10%">
<U>Section 10.1.</U> <U>Termination</U>. This Agreement may be terminated and the transactions contemplated hereby may be abandoned at any time prior to the Closing: </P>
<P align="justify" style="text-indent: 10%">
(a) by mutual written consent of Buyer and the Company; </P>
<P align="justify" style="text-indent: 10%">
(b) by either Buyer or the Company upon written notice to the other if the Closing shall not have occurred on or before July 1, 2011 (the &ldquo;<U>Outside Date</U>&rdquo;); <U>provided</U>, <U>however</U>, that the right to terminate this Agreement
pursuant to this Section 10.1(b) shall not be
available to a party if the failure of the Closing to occur prior to such date shall be primarily due to such party&rsquo;s failure to perform or comply with any of its obligations under this Agreement; </P>

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<P align="justify" style="text-indent: 10%">
(c) by either Buyer or the Company if any court of competent jurisdiction shall have issued an order, decree or ruling or taken any other action enjoining 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 align="justify" style="text-indent: 10%">
(d) by Buyer if there shall have been a breach of any representation, warranty, covenant or agreement on the part of the Company contained in this Agreement such that the conditions set forth in Sections 8.3(a) or 8.3(b) would not be satisfied and,
in either such case, such breach is not capable of being cured or, if capable of being cured, shall not have been cured prior to the earlier of (i) thirty (30) days following notice of such breach to the Company and (ii) the Outside Date;
<U>provided</U> that Buyer shall not have the right to terminate this Agreement pursuant to this Section 10.1(d) if Buyer is then in material breach of any of its covenants or agreements contained in this Agreement; or </P>
<P align="justify" style="text-indent: 10%">
(e) by the Company if there shall have been a breach of any representation, warranty, covenant or agreement on the part of Buyer or Merger Sub contained in this Agreement such that the conditions set forth in Sections 8.2(a) or 8.2(b) would not be
satisfied and, in either such case, such breach is not capable of being cured or, if capable of being cured, shall not have been cured prior to the earlier of (i) thirty (30) days following notice of such breach to Buyer and Merger Sub and (ii) the
Outside Date; <U>provided</U> that the Company shall not have the right to terminate this Agreement pursuant to this Section 10.1(e) if the Company is then in material breach of any of its covenants or agreements contained in this Agreement. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 10.2.</U> <U>Procedure and Effect of Termination</U>. If this Agreement is terminated and the transactions contemplated hereby are not consummated as provided in Section 10.1, then except as otherwise expressly set forth herein, no party
to this Agreement shall have any obligation hereunder to any other party hereto, except (i) for damages for any breach by such Person of any covenant or agreement of such Person set forth in this Agreement (it being understood that in calculating
damages for claims made by the Company the damages shall take into consideration damages to the Holders as a result of such breach), (ii) as provided in the Confidentiality Agreement or (iii) as provided in this Section 10.2 and in Article 11. </P>
<P align="center">
<B>ARTICLE 11 </B></P>
<P align="center">
<B><U>MISCELLANEOUS</U> </B></P>
<P align="justify" style="text-indent: 10%">
<U>Section 11.1.</U> <U>Amendment and Modifications</U>. This Agreement may be amended, modified or supplemented at any time by the parties hereto prior to the Effective Time; <U>provided</U> (i) such amendment, modification or supplement shall only
be made by an instrument in writing signed on behalf of the parties hereto and (ii) no such amendment shall be made which by Law requires the further approval of the Holders without such further approval. </P>

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<P align=justify style="text-indent: 10%"><U>Section 11.2.</U> <U>Stockholder Representative</U>. </P>
<P align=justify style="text-indent: 10%">(a) Pursuant to the Stockholder Consent, each Holder
irrevocably appointed BCP (the &#147;<U>Stockholder Representative</U>&#148;) as such
Stockholder&#146;s representative, attorney-in-fact and agent, with full power of
substitution to act in the name, place and stead of such Holder with respect to
this Agreement and the Escrow Agreement, and to act on behalf of such Holder in
any amendment of or litigation or arbitration involving this Agreement and the
Escrow Agreement and to do or refrain from doing all such further acts and
things, and to execute all such documents, as such Stockholder Representative
shall deem necessary or appropriate in conjunction with any of the transactions
contemplated by the Merger, this Agreement and the Escrow Agreement, including
the power: </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(i) to take all action necessary or
desirable in connection with the waiver of any condition to the obligations of
the Holders to consummate the transactions contemplated by this Agreement and
the Escrow Agreement; </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(ii) to negotiate, execute and deliver
all ancillary agreements, statements, certificates, statements, notices,
approvals, extensions, waivers, undertakings, amendments and other documents
required or permitted to be given in connection with the consummation of the
transactions contemplated by this Agreement and the Escrow Agreement (it being
understood that such Holder shall execute and deliver any such documents which
Stockholder Representative agrees to execute); </P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(iii) to give and receive all notices
and communications to be given or received under this Agreement and to receive
service of process in connection with the any claims under this Agreement and
the Escrow Agreement, including service of process in connection with
arbitration; and</P>
<P style="MARGIN-LEFT: 10%; text-indent:5%" align=justify>(iv) to take all actions which under
this Agreement and the Escrow Agreement may be taken by the Holders and to do or
refrain from doing any further act or deed on behalf of the Holder which
Stockholder Representative deems necessary or appropriate in its sole discretion
relating to the subject matter of this Agreement and the Escrow Agreement as
fully and completely as such Holder could do if personally present. </P>
<P align=justify style="text-indent: 10%">Notwithstanding the above, the Stockholder Representative may
not amend this Agreement or the Escrow Agreement to (i) create any personal
liability of any Holder hereunder or thereunder, (ii) to increase the maximum
aggregate indemnification obligation of the Holders beyond the Escrow Funds or
(iii) take any action pursuant hereto that could disproportionately affect any
Holder or group of the Holders without the prior consent of such affected Holder
or group of the Holders. </P>
<P align=justify style="text-indent: 10%">If BCP becomes unable to serve as Stockholder Representative
such other Person or Persons as may be designated by a majority of the Holders,
shall succeed as Stockholder Representative. </P>
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<P align=right>60 </P>
<P align=justify style="text-indent: 10%"><U>Section 11.3.</U> <U>Extension; Waiver</U>. At any time
prior to the Closing, the parties hereto entitled to the benefits of the
respective term or provision may (a) extend the time for the performance of any of the obligations or other acts of the
parties hereto, (b) waive any inaccuracies in the representations and warranties
contained herein or in any document, certificate or writing delivered pursuant
hereto or (c) subject to applicable Law, waive compliance with any obligation,
covenant, agreement or condition contained herein. Any agreement on the part of
a party to any such extension or waiver shall be valid only if set forth in an
instrument in writing signed on behalf of the party not entitled to the benefits
of such extended or waived term or provision. The waiver by any party hereto of
a breach of any provision of this Agreement shall not operate or be construed as
a further or continuing waiver of such breach or as a waiver of any other or
subsequent breach. No failure on the part of any party to exercise, and no delay
in exercising, any right, power or remedy hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of such right, power or remedy
by such party preclude any other or further exercise thereof or the exercise of
any other right, power or remedy. </P>
<P align=justify style="text-indent: 10%"><U>Section 11.4.</U> <U>Entire Agreement; Assignment</U>. This
Agreement and the Escrow Agreement (a) constitute the entire agreement among the
parties with respect to the subject matter hereof and supersede all other prior
agreements and understandings, both written and oral, among the parties with
respect to the subject matter hereof (other than the Confidentiality Agreement)
and (b) shall not be assigned by operation of law or otherwise without the prior
written consent of the parties hereto. </P>
<P align=justify style="text-indent: 10%"><U>Section 11.5.</U> <U>Validity</U>. The invalidity or
unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, each of
which shall remain in full force and effect, and the parties hereto shall use
commercially reasonable efforts to arrive at an accommodation which effectuates
to the greatest extent legally permissible the intent of the parties with
respect to the benefits and obligations of the invalid or unenforceable
provision. </P>
<P align=justify style="text-indent: 10%"><U>Section 11.6.</U> <U>Notices</U>. All notices, requests,
claims, demands and other communications hereunder shall be in writing and shall
be deemed to have been duly given if delivered personally, telecopied (which is
confirmed) or sent by commercial overnight courier to the parties at the
following addresses: </P>
<P style="MARGIN-LEFT: 10%" align=justify>If to Buyer or the Surviving
Corporation, to: </P>
<P style="MARGIN-LEFT: 15%" align=justify>Gildan Activewear Inc. <BR>600 de
Maisonneuve Boulevard West, 33rd Floor <BR>Montr&#233;al, Quebec H3A 3J2
<BR>Telephone: (514) 340-8790 <BR>Facsimile: (514) 734-8379 <BR>Attn: Lindsay
Matthews <BR></P>
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<P align=right>61 </P>
<P style="MARGIN-LEFT: 10%" align=justify>With a copy to: </P>
<P style="MARGIN-LEFT: 15%" align=justify>Sullivan &amp; Cromwell LLP <BR>125
Broad Street <BR>New York, New York 10004 <BR>Telephone: (212) 558-4801
<BR>Facsimile: (212) 291-9067 <BR>Attn: Brian E. Hamilton, Esq. <BR></P>
<P style="MARGIN-LEFT: 10%" align=justify>If to the Company, to: </P>
<P style="MARGIN-LEFT: 15%" align=justify>Gold Toe Moretz Holdings Corp. <BR>514
West 21st Street <BR>Post Office Box 580 <BR>Newton, NC 28658 <BR>Telephone:
(828) 464-0751 <BR>Facsimile: (828) 464-1635 <BR>Attn: John M. Moretz <BR>Cc:
General Counsel <BR></P>
<P style="MARGIN-LEFT: 10%" align=justify>With a copy to: </P>
<P style="MARGIN-LEFT: 15%" align=justify>The Blackstone Group <BR>345 Park
Avenue <BR>New York, NY 10154 <BR>Telephone: (212) 583-5534 <BR>Facsimile: (212)
583-5266 <BR>Attn: Ben Jenkins <BR>David Tolley <BR></P>
<P style="MARGIN-LEFT: 10%" align=justify>and </P>
<P style="MARGIN-LEFT: 15%" align=justify>Simpson Thacher &amp; Bartlett LLP
<BR>425 Lexington Avenue <BR>New York, NY 10017 <BR>Telephone: (212) 445-2000
<BR>Facsimile: (212) 455-2502 <BR>Attn: Edward Chung, Esq. <BR></P>
<P align=justify>or to such other address as the Person to whom notice is given
may have previously furnished to the others in writing in the manner set forth
above (<U>provided</U> that notice of any change of address shall be effective
only upon receipt thereof). </P>
<P align=justify style="text-indent: 10%"><U>Section 11.7.</U> <U>Mutual Drafting</U>. The parties hereto
are sophisticated and have been represented by attorneys throughout the
transactions contemplated by this Agreement who have carefully negotiated the
provisions hereof. As a consequence, the parties do not intend that the
presumptions of laws or rules relating to the interpretation of contracts
against the drafter of
any particular clause should be applied to this Agreement or any agreement or instrument executed in connection herewith, and therefore waive their effects. </P>
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<P align="right">
  62 </P>
<P align="justify" style="text-indent: 10%">
<U>Section 11.8.</U> <U>Waiver of Jury Trial</U>. EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION AGAINST ANY OTHER PARTY HERETO
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 11.9.</U> <U>Specific Performance</U>. The parties hereto agree that if any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached, irreparable damage would occur, no
adequate remedy at law would exist and damages would be difficult to determine, and that the parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy at law or equity. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 11.10.</U>  <U>Publicity</U>. None of the parties and their respective Representatives shall issue any news release or make any public announcement concerning this Agreement or any of the transactions contemplated hereby without the
advance approval thereof by each of Buyer, the Company and Stockholder Representative; <U>provided</U>, <U>however</U>, that any party (or its respective Representatives) may make any public disclosure that it reasonably believes, upon advice of its
outside counsel, is required by applicable Laws or stock exchange requirements, in which case the disclosing party shall use its reasonable best efforts to advise the other party or parties (including Stockholder Representative) of such disclosure
as soon as practicable and, in any event, at least concurrently with making such disclosure; <U>provided</U>, <U>further</U> that after the Closing any party (or its respective Representatives) may issue a news release or make a public announcement
concerning this Agreement or the consummation of the Merger after providing the other party or parties (including Stockholder Representative) with reasonable prior notice thereof and a reasonable opportunity to comment thereon. Subject to the prior
sentence, each of Buyer, the Company and Stockholder Representative shall cooperate with each other in the development and distribution of all news releases and other public announcements that are to be issued on or prior to the Business Day
immediately following the Closing Date with respect to this Agreement or any of the transactions contemplated hereby. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 11.11.</U> <U>Alternative Dispute Resolution</U>. The parties or relevant third party beneficiaries, as the case may be, shall attempt in good faith to resolve any dispute arising out of or relating to this Agreement promptly by
negotiations between executives who have authority to settle the controversy. Any Person may give the other relevant Persons written notice of any dispute not resolved in the normal course of business. Within twenty (20) days after delivery of said
notice, executives of all relevant Persons shall meet at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary, to exchange relevant information and to attempt to resolve the dispute. If the matter has not
been resolved within thirty (30) days of the disputing Person&rsquo;s original notice, or if the relevant Persons fail to meet within twenty (20) days, any party or affected third party beneficiary may initiate legal proceedings to resolve the
controversy or claim. If a Person&rsquo;s negotiator intends to be accompanied at a meeting by an attorney or is an attorney, the other negotiators shall be given at least three (3) working days&rsquo; notice of such intention and may be accompanied
by an attorney. All negotiations pursuant to
this clause are confidential and shall be treated as compromise and settlement negotiations for purposes of the Federal Rules of Evidence and state rules of evidence. </P>

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<P align="right">
  63 </P>
<P align="justify" style="text-indent: 10%">
<U>Section 11.12.</U> <U>Governing Law; Submission to Jurisdiction; Waivers</U>. This Agreement shall be governed by, and construed in accordance with, the Laws of the State of Delaware. Each of the parties agrees that if any dispute is not resolved
pursuant to Section 11.11, such dispute shall be resolved only in the Court of Chancery of the State of Delaware or any court of the United States located in the State of Delaware. In that context, and without limiting the generality of the
foregoing, each of the parties irrevocably and unconditionally (a) submits for itself and its property in any Action relating to this Agreement, or for recognition and enforcement of any judgment in respect thereof, to the exclusive jurisdiction of
the Court of Chancery of the State of Delaware or any court of the United States located in the State of Delaware, and agrees that all claims in respect of any such Action shall be heard and determined in such Court of Chancery of the State of
Delaware or any court of the United States located in the State of Delaware; (b) consents that any such Action may and shall be brought in such courts and waives any objection that it may now or thereafter have to the venue or jurisdiction of any
such Action in any such court or that such Action was brought in an inconvenient court and agrees not to plead or claim the same; (c) waives all right to trial by jury in any Action (whether based on contract, tort or otherwise) arising out of or
relating to this Agreement, or its performance under or the enforcement of this Agreement; (d) agrees that service of process in any such Action may be effected by mailing a copy of such process by registered or certified mail (or any substantially
similar form of mail), postage prepaid, to such party at its address as provided in Section 11.6; and (e) agrees that nothing in this Agreement shall affect the right to effect service of process in any other manner permitted by the Laws of the
State of Delaware. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 11.13.</U> <U>Descriptive Headings</U>. The descriptive headings herein are inserted for convenience of reference only and are not intended to be part of or to affect the meaning or interpretation of this Agreement. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 11.14.</U> <U>Severability</U>. It is the desire and intent of the parties that the provisions of this Agreement be enforced to the fullest extent permissible under the Laws and public policies applied in each jurisdiction in which
enforcement is sought. Accordingly, if any particular provision of this Agreement shall be adjudicated by a court of competent jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, shall be
ineffective, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. Notwithstanding the
foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this
Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 11.15.</U> <U>Counterparts</U>. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. </P>

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  64 </P>
<P align="justify" style="text-indent: 10%">
<U>Section 11.16.</U> <U>Expenses</U>. Whether or not the transactions contemplated by this Agreement are consummated, and except as otherwise expressly set forth herein, all legal and other costs and expenses incurred in connection with the
transactions contemplated by this Agreement shall be paid by the Person incurring such expenses. </P>
<P align="justify" style="text-indent: 10%">
<U>Section 11.17.</U> <U>Parties in Interest</U>. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns. Nothing in this Agreement, express or implied, is intended
to confer upon any Person other than the parties hereto or their successors or permitted assigns, any rights or remedies under or by reason of this Agreement; <U>provided</U>, <U>however</U>, that the foregoing shall not limit the right of each of
the current and former directors, officers, agents and employees of the Company and the Company Subsidiaries from being a direct and irrevocable third party beneficiary of the agreement and covenant contained in Section 7.6 with the right to enforce
such agreement and covenant as fully as if such director or officer was a party hereto. </P>
<P align="center">
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<P align=justify style="text-indent: 10%">IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the date first above written. </P>
<P style="MARGIN-LEFT: 50%" align=justify>GOLD TOE MORETZ HOLDINGS CORP. </P>
<P style="MARGIN-LEFT: 50%"
align=justify>By:______________________________________<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:
<BR>&nbsp;&nbsp;&nbsp; &nbsp; Title:&nbsp; </P>
<P style="MARGIN-LEFT: 50%" align=justify><BR>&nbsp;</P>
<P align=center>[Signature Page to GTM Merger Agreement] </P>
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<P style="MARGIN-LEFT: 50%" align=justify>GILDAN USA INC. </P>
<P style="MARGIN-LEFT: 50%"
align=justify>By:______________________________________<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Name: <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Title: <BR></P>
<P style="MARGIN-LEFT: 50%" align=justify>MIDAS ACQUISITION CORP. </P>
<P style="MARGIN-LEFT: 50%"
align=justify>By:______________________________________<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Name: <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Title: </P>
<P style="MARGIN-LEFT: 50%" align=justify><BR>&nbsp;</P>
<P align=center>[Signature Page to GTM Merger Agreement] </P>
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<P style="MARGIN-LEFT: 50%" align=justify>BLACKSTONE CAPITAL PARTNERS V L.P.,
solely for the purposes of Section 3.1(a)(iv), Article 5 and Sections 8.3(a),
8.3(e), 9.3(c), 9.7, 11.2 and 11.10 </P>
<P style="MARGIN-LEFT: 50%" align=justify>By: Blackstone Management Associates V
L.L.C., its General Partner </P>
<P style="MARGIN-LEFT: 50%" align=justify>By: BMA V L.L.C., its sole member </P>
<P style="MARGIN-LEFT: 50%" align=justify>By:
______________________________________<BR>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; Name:
<BR>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; Title: </P>
<P style="MARGIN-LEFT: 50%" align=justify><BR>&nbsp;</P>
<P align=center>[Signature Page to GTM Merger Agreement] </P>
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</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>exhibit99-2.htm
<DESCRIPTION>MATERIAL CHANGE REPORT DATED APRIL 11, 2011
<TEXT>
<HTML>
<HEAD>
   <TITLE>Gildan Activewear Inc.: Exhibit 99.2 - Filed by newsfilecorp.com</TITLE>
</HEAD>

<BODY style="font-size:10pt;">

<HR noshade align="center" width=100% size=3 color="black">
<!--$$/page=--><A name=page_1></A>
<P align=center><B>FORM 51-102F3 </B></P>
<P align=center><B>MATERIAL CHANGE REPORT </B></P>
<P align=center><B>GILDAN ACTIVEWEAR INC.</B> </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>1.</B> </TD>
    <TD>
      <P align=justify><B>Name and Address of Company</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Gildan Activewear Inc. (&#147;<B>Gildan</B>&#148;)</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>600 de Maisonneuve Boulevard West, 33<SUP>rd </SUP>Floor </TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Montr&#233;al, Qc H3A 3J2</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD>
      <P align=justify><B>Date of Material Change</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>April 11, 2011</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>3.</B> </TD>
    <TD>
      <P align=justify><B>News Release</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>On April 11, 2011, Gildan issued a news release
      indicating the material change, which was disseminated through Marketwire.
      A copy of such news release is attached hereto as <B>Schedule
  A</B>.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>4.</B> </TD>
    <TD>
      <P align=justify><B>Summary of Material Change</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>On April 11, 2011, Gildan announced that it had signed a
      definitive agreement to acquire 100% of the common shares of Gold Toe
      Moretz Holdings Corp. (&#147;<B>Gold Toe Moretz</B>&#148;) for a total purchase
      price of approximately U.S. $350 million. As announced by press release
      dated April 15, 2011, the acquisition closed on April 15, 2011.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>5.</B> </TD>
    <TD>
      <P align=justify><B>Full Description of Material Change</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>On April 11, 2011, Gildan announced that it had signed a
      definitive agreement to acquire 100% of the common shares of Gold Toe
      Moretz for a total purchase price of approximately U.S. $350 million. As
      announced by press release dated April 15, 2011, the acquisition closed on
      April 15, 2011. Gildan did not assume any of Gold Toe Moretz&#146;s currently
      outstanding indebtedness.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Gold Toe Moretz is a leading supplier of high-quality
      branded athletic, casual and dress socks for mass-market retailers,
      national chains, price clubs, department stores and specialty sporting
      goods stores in the U.S. Gold Toe Moretz&#146;s company-owned brands include
      the iconic Gold Toe<B>&#174; </B>brand, as well as the Silver Toe<B>&#174;</B>,
      GT<B>&#174;</B>, Auro<B>&#174;</B>, PowerSox&#174; and All Pro<B>&#174; </B>brands. Gold Toe
      Moretz is also the exclusive U.S. licensee for Under Armour<B>&#174; </B>and
      New Balance<B>&#174; </B>branded socks. The majority of the purchase price was
      represented by intangible assets, including the value of these
    brands.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Gold Toe Moretz&#146;s senior management team, including John
      Moretz, Chairman and Chief Innovation Officer, and Steve Lineberger,
      President and CEO, have committed to continue their careers with
      Gildan.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The acquisition will more than double Gildan&#146;s current
      revenues from the sale of socks and will significantly expand and
      diversify its customer base and channels of distribution within the U.S.
      retail market. Revenues reported by Gold Toe Moretz for the year
    ended December 31, 2010 amounted to over U.S. $280 million, and
      adjusted EBITDA<SUP>(1) </SUP>for the same period amounted to U.S. $48.6
      million.</P></TD></TR></TABLE><BR>
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<P align=center>- 2 - </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Gildan believes that the combination of the competitive
      strengths of the two companies, and Gildan&#146;s support for the further
      development of Gold Toe Moretz&#146;s owned and licensed brands, will create a
      strong platform for further organic sales growth in socks and other retail
      product categories. In addition, Gildan currently expects to be able to
      achieve U.S. $10-$15 million of annualized cost synergies, which would be
      gradually realized over the next 24 months.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>As announced by press release dated April 15, 2011, the
      acquisition closed on April 15, 2011. The acquisition was financed out of
      Gildan&#146;s cash balances and the utilization of its revolving bank credit
      facility.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>A copy of the agreement entered into with Gold Toe Moretz
      was filed on SEDAR and is available at www.sedar.com.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>6.</B> </TD>
    <TD>
      <P align=justify><B>Reliance on subsection 7.1(2) of National Instrument
      51-102</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Not applicable.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>7.</B> </TD>
    <TD>
      <P align=justify><B>Omitted Information</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Not applicable.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>8.</B> </TD>
    <TD>
      <P align=justify><B>Executive Officer</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Further information regarding the matters described in
      this report may be obtained from Laurence G. Sellyn, Executive
      Vice-President, Chief Financial and Administrative Officer of
    Gildan.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>9.</B> </TD>
    <TD>
      <P align=justify><B>Date of Report</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>April 20, 2011.</P></TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<!--$$/page=--><A name=page_3></A>
<P align=center><B>SCHEDULE A </B></P>
<P align=center><B>NEWS RELEASE </B><BR><B>(April 11, 2011)</B><B> </B><BR></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left width="50%">
    <img border="0" src="gildanlogo.jpg" width="291" height="80"></TD>
    <TD align=left width="50%" valign="middle">
    <p align="right"><font size="6">News Release </font> </TD></TR></TABLE>
<P align=justify><B>For immediate release </B></P>
<P align=center><B><U>Gildan Announces Agreement to Acquire Gold Toe Moretz for
Approximately U.S. $350 million</U></B><B> </B><BR><B>&#150; Acquisition Includes
Gold Toe&#174; Sock Brand and Exclusive U.S. Sock Licenses for Under
</B><BR><B>Armour &#174; and New Balance&#174; Brands &#150; </B><BR><B>&#150; Analyst Conference
Call and Webcast Scheduled Today at 5:00 PM EST &#150;</B><BR></P>
<P align=justify><B>Montr&#233;al, Monday, April 11, 2011</B> &#150; Gildan Activewear
Inc. (GIL; TSX and NYSE) today announced that it had signed a definitive
agreement to acquire 100% of the common shares of Gold Toe Moretz Holdings Corp.
(Gold Toe Moretz) for a total purchase price of approximately U.S. $350 million.
Gildan will not assume any of Gold Toe Moretz&#146;s currently outstanding
indebtedness.</P>
<P align=justify>Gold Toe Moretz is a leading supplier of high-quality branded
athletic, casual and dress socks for mass-market retailers, national chains,
price clubs, department stores and specialty sporting goods stores in the U.S.
Gold Toe Moretz&#146;s company-owned brands include the iconic Gold Toe<B>&#174;</B>
brand, as well as the Silver Toe<B>&#174;</B>, GT<B>&#174;</B>, Auro<B>&#174;</B>, PowerSox&#174;
and All Pro<B>&#174; </B>brands. Gold Toe Moretz is also the exclusive U.S. licensee
for Under Armour<B>&#174;</B> and New Balance<B>&#174;</B> branded socks. The majority of
the purchase price will be represented by intangible assets, including the value
of these brands. </P>
<P align=justify>&#147;The acquisition of Gold Toe Moretz represents an important and
exciting step in Gildan&#146;s ongoing strategic development&#148;, said Glenn J.
Chamandy, President and Chief Executive Officer of Gildan Activewear. &#147;In
addition to the introduction of leading consumer brands, the acquisition
provides Gildan with enhanced brand management experience and expertise,
best-in-class merchandising and strong technical innovation and design
capabilities to complement Gildan&#146;s existing competitive strengths for retail.
These capabilities can also be utilized to further the development of our own
Gildan brand.&#148; </P>
<P align=justify>Gold Toe Moretz&#146;s senior management team, including John
Moretz, Chairman and Chief Innovation Officer, and Steve Lineberger, President
and CEO, have committed to continue their careers with Gildan. </P>
<P align=justify>The acquisition will more than double Gildan&#146;s current revenues
from the sale of socks and will significantly expand and diversify its customer
base and channels of distribution within the U.S. retail market. Revenues
reported by Gold Toe Moretz for the year ended December 31, 2010 amounted
to over U.S. $280 million, and adjusted EBITDA<SUP>(1)</SUP> for the same period
amounted to U.S. $48.6 million.</P>
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<P align=center>- 2 - </P>
<P align=justify>Gildan believes that the combination of the competitive
strengths of the two companies, and Gildan&#146;s support for the further development
of Gold Toe Moretz&#146;s owned and licensed brands, will create a strong platform
for further organic sales growth in socks and other retail product categories.
In addition, Gildan currently expects to be able to achieve U.S. $10-$15 million
of annualized cost synergies, which would be gradually realized over the next 24
months. </P>
<P align=justify>There are no material conditions precedent to the closing of
the transaction and the acquisition by Gildan of Gold Toe Moretz is expected to
close imminently. The acquisition will be financed out of Gildan&#146;s cash balances
and the utilization of its revolving bank credit facility. </P>
<P align=justify>&#147;Our management and Board of Directors believe that the
acquisition by Gildan of Gold Toe Moretz represents an attractive use of our
capital as it is expected to generate a return on investment in excess of our
risk-adjusted cost of capital and be immediately accretive to EPS&#148;, said
Laurence G. Sellyn, Gildan&#146;s Executive Vice President, Chief Financial and
Administrative Officer. Gildan will update its financial outlook for fiscal
2011, including the impact of the acquisition of Gold Toe Moretz, when it
reports its results for its second fiscal quarter on May 11, 2011.</P>
<P align=justify><U>Information for Shareholders</U> </P>
<P align=justify>Gildan Activewear Inc. will hold a conference call to discuss
this announcement today at 5:00 PM EST. The conference call can be accessed by
dialing 800-261-3417 (Canada &amp; U.S.) or 617-614-3673 (international) and
entering passcode 68975570, or by live audio webcast on Gildan's Internet site
("Investor Relations" section) at the following address: <U><FONT
color=#f2873e>http://gildan.com/corporate/IR/webcastPresentations.cfm</FONT></U>.
If you are unable to participate in the conference call, a replay will be
available starting that same day at 8:00 PM EST by dialing 888-286-8010 (Canada
&amp; U.S.) or 617-801-6888 (international) and entering passcode 96136246,
until April 18, 2011 at midnight, or by audio webcast on Gildan's Internet site
for 30 days.</P>
<P align=justify><U>Profile</U></P>
<P align=justify>Gildan is a vertically-integrated marketer and manufacturer of
quality branded basic apparel. Gildan is the leading brand in the screenprint
market in the U.S. and Canada and is also establishing a growing presence in
Europe, Mexico and the Asia-Pacific region. The Company sells T-shirts, sport
shirts and fleece as undecorated &#147;blanks&#148;, which are subsequently decorated by
screenprinters with designs and logos. Gildan is also a leading supplier of
socks sold to mass-market and other retailers in North America, and is
increasingly becoming a significant supplier of underwear and undecorated
activewear products to this market as well. With over 28,000 employees
worldwide, Gildan owns and operates highly efficient, large-scale,
environmentally and socially responsible facilities in Central America and the
Caribbean Basin and has begun development of a manufacturing hub in Bangladesh
to support its planned growth in Asia and Europe. More information on the
Company can be found on Gildan&#146;s website at www.gildan.com. </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=center>- 3 - </P>
<P align=justify><I><U>Forward-Looking Statements</U></I><I> </I></P>
<P align=justify><I>Certain statements included in this press release constitute
&#147;forward-looking statements&#148; within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 and Canadian securities legislation and
regulations, and are subject to important risks, uncertainties and assumptions.
This forward-looking information includes, amongst others, information with
respect to our objectives and the strategies to achieve these objectives, as
well as information with respect to our beliefs, plans, expectations,
anticipations, estimates and intentions, including, without limitation, our
expectation with regards to unit volume growth, sales revenue, cost reductions
and efficiencies, gross margins, selling, general and administrative expenses,
capital expenditures, cost synergies from the integration of acquisitions,
including the acquisition of Gold Toe Moretz and the impact of non-recurring
items. Forward-looking statements generally can be identified by the use of
conditional or forward-looking terminology such as &#147;may&#148;, &#147;will&#148;, &#147;expect&#148;,
&#147;intend&#148;, &#147;estimate&#148;, &#147;project&#148;, &#147;assume&#148;, &#147;anticipate&#148;, &#147;plan&#148;, &#147;foresee&#148;,
&#147;believe&#148; or &#147;continue&#148; or the negatives of these terms or variations of them or
similar terminology. We refer you to the Company&#146;s filings with the Canadian
securities regulatory authorities and the U.S. Securities and Exchange
Commission, as well as the &#147;Risks and Uncertainties&#148; section and the risks
described under the section &#147;Financial Risk Management&#148; in our most recent
Management&#146;s Discussion and Analysis for a discussion of the various factors
that may affect the Company&#146;s future results. Material factors and assumptions
that were applied in drawing a conclusion or making a forecast or projection are
also set out throughout this document. </I></P>
<P align=justify><I>Forward-looking information is inherently uncertain and the
results or events predicted in such forward-looking information may differ
materially from actual results or events. Material factors, which could cause
actual results or events to differ materially from a conclusion, forecast or
projection in such forward-looking information, include, but are not limited to:
</I></P>
<UL style="TEXT-ALIGN: justify">
  <LI><I>our ability to implement our growth strategies and plans, including
  achieving market share gains,</I> <I>implementing cost reduction initiatives
  and completing and successfully integrating acquisitions;</I>
  <LI><I>the intensity of competitive activity and our ability to compete
  effectively;</I>
  <LI><I>adverse changes in general economic and financial conditions globally
  or in one or more of the markets we</I> <I>serve;</I>
  <LI><I>our reliance on a small number of significant customers;</I>
  <LI><I>the fact that our customers do not commit contractually to minimum
  quantity purchases;</I>
  <LI><I>our ability to anticipate changes in consumer preferences and
  trends;</I>
  <LI><I>our ability to manage production and inventory levels effectively in
  relation to changes in customer</I> <I>demand;</I>
  <LI><I>fluctuations and volatility in the price of raw materials used to
  manufacture our products, such as cotton</I> <I>and polyester fibres;</I>
  <LI><I>our dependence on key suppliers and our ability to maintain an
  uninterrupted supply of raw materials;</I>
  <LI><I>the impact of climate, political, social and economic risks in the
  countries in which we operate;</I>
  <LI><I>disruption to manufacturing and distribution activities due to labour
  disruptions, political instability, bad</I> <I>weather, natural disasters,
  pandemics and other unforeseen adverse events;</I>
  <LI><I>changes to international trade legislation that the Company is
  currently relying on in conducting its</I> <I>manufacturing operations or the
  application of safeguards thereunder;</I>
  <LI><I>factors or circumstances that could increase our effective income tax
  rate, including the outcome of any tax</I> <I>audits or changes to applicable
  tax laws or treaties;</I>
  <LI><I>compliance with applicable environmental, tax, trade, employment,
  health and safety, and other laws and</I> <I>regulations in the jurisdictions
  in which we operate;</I> </LI></UL>
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noShade SIZE=5>
<!--$$/page=--><A name=page_6></A>
<P align=center>- 4 - </P>
<UL style="TEXT-ALIGN: justify">
  <LI><I>our significant reliance on computerized information systems for our
  business operations;</I>
  <LI><I>changes in our relationship with our employees or changes to domestic
  and foreign employment laws and</I> <I>regulations;</I>
  <LI><I>negative publicity as a result of violation of local labour laws or
  international labour standards, or</I> <I>unethical labour or other business
  practices by the Company or one of its third-party contractors;</I>
  <LI><I>our dependence on key management and our ability to attract and/or
  retain key personnel;</I>
  <LI><I>changes to and failure to comply with consumer product safety laws and
  regulations;</I>
  <LI><I>changes in accounting policies and estimates; and</I>
  <LI><I>exposure to risks arising from financial instruments, including credit
  risk, liquidity risk, foreign currency</I> <I>risk and interest rate risk, as
  well as risks arising from commodity prices.</I> </LI></UL>
<P align=justify><I>These factors may cause the Company&#146;s actual performance and
financial results in future periods to differ materially from any estimates or
projections of future performance or results expressed or implied by such
forward-looking statements. Forward-looking statements do not take into account
the effect that transactions or non-recurring or other special items announced
or occurring after the statements are made, may have on the Company&#146;s business.
For example, they do not include the effect of business dispositions,
acquisitions, other business transactions, asset write-downs or other charges
announced or occurring after forward-looking statements are made. The financial
impact of such transactions and non-recurring and other special items can be
complex and necessarily depends on the facts particular to each of them.
</I></P>
<P align=justify><I>We believe that the expectations represented by our
forward-looking statements are reasonable, yet there can be no assurance that
such expectations will prove to be correct. The purpose of the forward-looking
statements is to provide the reader with a description of management&#146;s
expectations regarding the Company&#146;s fiscal 2011 financial performance and may
not be appropriate for other purposes. Furthermore, unless otherwise stated, the
forward-looking statements contained in this press release are made as of the
date of this press release, and we do not undertake any obligation to update
publicly or to revise any of the included forward-looking statements, whether as
a result of new information, future events or otherwise unless required by
applicable legislation or regulation. The forward-looking statements contained
in this press release are expressly qualified by this cautionary statement.
</I></P>
<P align=justify><I><U>(1) Adjusted EBITDA</U></I><I> </I></P>
<P align=justify><I>This press release includes reference to the Adjusted EBITDA
for Gold Toe Moretz&#146;s year ended December 31, 2010, which is based on financial
information provided by Gold Toe Moretz. Adjusted EBITDA is a non-GAAP financial
measure and does not have any standardized meaning prescribed by Canadian GAAP
or U.S. GAAP and is therefore unlikely to be comparable to similar measures
presented by other companies. Accordingly, it should not be considered in
isolation. Adjusted EBITDA is a key financial measure that was used by the
Company in valuing the business of Gold Toe Moretz, and is calculated as
earnings before interest expense, taxes and depreciation and amortization and
excludes the impact of restructuring expense, impairment of long-lived assets,
defined benefit pension expense, related party administration fees and related
costs, transaction expenses and certain other expenses. Excluding these items
does not imply they are necessarily non-recurring. A reconciliation of Adjusted
EBITDA to the most directly comparable U.S. GAAP measure as presented in the
financial information provided by Gold Toe Moretz is as follows. </I></P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=center>- 5 - </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 2px solid"
    align=left><I>(Unaudited - in US$ millions)</I> </TD>
    <TD style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 2px solid"
    align=left width="15%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net earnings </TD>
    <TD align=right width="15%" bgColor=#e6efff>2.3 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Interest expense </TD>
    <TD align=right width="15%">32.4 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Depreciation and amortization </TD>
    <TD align=right width="15%" bgColor=#e6efff>3.5 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Impairment of long-lived assets </TD>
    <TD align=right width="15%">0.6 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Income and other taxes </TD>
    <TD align=right width="15%" bgColor=#e6efff>0.3 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Restructuring expense </TD>
    <TD align=right width="15%">1.6 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Defined benefit pension expense </TD>
    <TD align=right width="15%" bgColor=#e6efff>3.3 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Related party administration fees and related costs </TD>
    <TD align=right width="15%">1.3 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Transaction expenses </TD>
    <TD align=right width="15%" bgColor=#e6efff>1.4 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Other </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="15%">1.9
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Adjusted EBITDA </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="15%"
    bgColor=#e6efff>48.6 </TD></TR></TABLE>
<P align=justify><B>CONTACTS: </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Investor Relations</B> </TD>
    <TD align=left width="33%">&nbsp; </TD>
    <TD align=left width="33%"><B>Media Relations</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Laurence G. Sellyn, </TD>
    <TD align=left width="33%">Sophie Argiriou, </TD>
    <TD align=left width="33%">Genevi&#232;ve Gosselin<B>,</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Executive Vice-President, </TD>
    <TD align=left width="33%">Director, </TD>
    <TD align=left width="33%">Director, </TD></TR>
  <TR vAlign=top>
    <TD align=left>Chief Financial and Administrative </TD>
    <TD align=left width="33%">Investor Communications </TD>
    <TD align=left width="33%">Corporate Communications </TD></TR>
  <TR vAlign=top>
    <TD align=left>Officer </TD>
    <TD align=left width="33%">Tel: (514) 343-8815 </TD>
    <TD align=left width="33%">Tel: (514) 343-8814 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Tel: (514) 343-8805 </TD>
    <TD align=left width="33%">Email: <U><FONT
      color=#0000ff>sargiriou@gildan.com</FONT></U> </TD>
    <TD align=left width="33%">Email: <U><FONT
      color=#0000ff>ggosselin@gildan.com</FONT></U> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Email: <U><FONT color=#0000ff>lsellyn@gildan.com</FONT></U>
    </TD>
    <TD align=left width="33%">&nbsp; </TD>
    <TD align=left width="33%">&nbsp; </TD></TR></TABLE>
<P align=center>- 30 - </P>
<HR align=center width="100%" color=black noShade SIZE=5>

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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
