<SUBMISSION>
<ACCESSION-NUMBER>0000936392-08-000656
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>5
<PERIOD>20081013
<ITEMS>1.01
<ITEMS>9.01
<FILING-DATE>20081014
<DATE-OF-FILING-DATE-CHANGE>20081014
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ASHWORTH INC
<CIK>0000820774
<ASSIGNED-SIC>2320
<IRS-NUMBER>841052000
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1031
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-14547
<FILM-NUMBER>081122032
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2765 LOKER AVE WEST
<CITY>CARLSBAD
<STATE>CA
<ZIP>92008
<PHONE>7604386610
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>2765 LOKER AVENUE WEST
<CITY>CARLSBAD
<STATE>CA
<ZIP>92008
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>CHARTER GOLF INC
<DATE-CHANGED>19920703
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a50088e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
PURSUANT TO SECTION 13 or 15(d) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of report (Date of earliest event reported): October&nbsp;13, 2008</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>ASHWORTH, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact Name of Registrant as Specified in Its Charter)</DIV>


<DIV align="center">
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    <TD align="center" valign="top">Delaware<BR>
(State or Other Jurisdiction of <BR>
Incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">001-14547<BR>
(Commission<BR>
File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">84-1052000<BR>
(IRS Employer<BR>
Identification No.)</TD>
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<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD align="center" valign="top">2765 Loker Avenue West <BR>
Carlsbad, California<BR>
(Address of Principal Executive Offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">92008<BR>
(Zip Code)</TD>
</TR>
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</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Registrant&#146;s Telephone Number, Including Area Code: (760)&nbsp;438-6610</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">N/A<BR>
(Former Name or Former Address, if Changed Since Last Report)</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
</DIV>


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<TR><TD></TD><TD colspan="8"><A HREF="#000">Item&nbsp;1.01 Entry into a Material Definitive Agreement.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001">Item&nbsp;9.01 Financial Statements and Exhibits.</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">EXHIBIT INDEX</A></TD></TR>
<TR><TD colspan="9"><A HREF="a50088exv2w1.htm">EX-2.1</A></TD></TR>
<TR><TD colspan="9"><A HREF="a50088exv99w1.htm">EX-99.1</A></TD></TR>
<TR><TD colspan="9"><A HREF="a50088exv99w2.htm">EX-99.2</A></TD></TR>
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<!-- link2 "Item&nbsp;1.01 Entry into a Material Definitive Agreement." -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1.01 Entry into a Material Definitive Agreement.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;13, 2008, Taylor Made Golf Company, a Delaware corporation (&#147;TaylorMade&#148;), PHX
Acquisition Corp., a Delaware corporation and wholly owned subsidiary of TaylorMade (&#147;Merger Sub&#148;),
and Ashworth, Inc., a Delaware corporation (&#147;Ashworth&#148;), entered into an Agreement and Plan of
Merger (the &#147;Merger Agreement&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Merger Agreement provides that, on and subject to the terms thereof, Merger Sub will
commence a tender offer (the &#147;Offer&#148;) by October&nbsp;20, 2008 to purchase all of the outstanding shares
of Ashworth common stock, $0.001 par value (the &#147;Shares&#148;), for $1.90 in cash per Share, subject to
adjustment as described below (the &#147;Offer Price&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following a successful consummation of the Offer, Ashworth will take all needed steps to cause
Merger Sub to merge with and into Ashworth, with Ashworth surviving as a wholly owned subsidiary of
TaylorMade (the &#147;Merger&#148;). In the Merger, each outstanding Share that is not tendered and accepted
pursuant to the Offer (other than Shares held in treasury by Ashworth or owned by TaylorMade,
Merger Sub or any subsidiary of TaylorMade or Ashworth, and other than the Shares as to which
appraisal rights have been perfected in accordance with applicable law) will be cancelled and
converted into the right to receive the Offer Price, on the terms and conditions set forth in the
Merger Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the effective time of the Merger, (i)&nbsp;each outstanding option under Ashworth&#146;s equity
plans, whether vested or unvested, will be cancelled, and in exchange Ashworth will pay each former
holder thereof an amount in cash equal to the excess (if any) of the Offer Price over the exercise
price per Share, multiplied by the number of Shares subject to the option, and (ii)&nbsp;all unvested
restricted stock grants or portions thereof will vest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consummation of the Offer is subject to customary conditions, including, but not limited to,
(i)&nbsp;at least a majority of outstanding Shares on a fully diluted basis being tendered into the
Offer, (ii)&nbsp;the expiration or termination of any waiting periods under applicable antitrust laws
and (iii)&nbsp;the absence of any Material Adverse Effect (as defined in the Merger Agreement). The
Offer is not subject to a financing condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Offer will expire at midnight, New York City time, on the 20th business day after the
commencement thereof, unless extended in accordance with the terms of the Offer and the Merger
Agreement and the applicable rules and regulations of the Securities and Exchange Commission (the
&#147;SEC&#148;). Subject to conditions in the Merger Agreement, the Offer is required to be extended for up
to 120&nbsp;days after commencement of the Offer to seek a majority of the Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consummation of the Merger is also subject to customary conditions, including, if required
under Delaware law, approval of the Merger Agreement by Ashworth&#146;s stockholders. The parties have
agreed that, if after the purchase of Shares pursuant to the Offer and any subsequent offering
period, and after giving effect to any Shares purchased pursuant to the Top-Up Option described in
the next paragraph, Merger Sub owns at least 90% of the outstanding Shares, then once the other
conditions of the Merger are satisfied or waived, Merger Sub will merge into Ashworth in a
&#147;short-form&#148; merger pursuant to the applicable provisions of Delaware law, which will not require a
vote of Ashworth&#146;s stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the Merger Agreement, Ashworth has granted to Merger Sub an option (the &#147;Top-Up Option&#148;) to
purchase, at a price per share equal to the Offer Price, a number of newly issued Shares equal to
the lowest number of Shares that, when added to the number of Shares owned by TaylorMade or Merger
Sub at the time of exercise of the Top-Up Option, constitutes one Share more than 90% of the fully
diluted Shares (after giving effect to the issuance of all Shares subject to the Top-Up Option).
Merger Sub may exercise the Top-Up Option during the 20 business day period following the
consummation of the Offer.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, pursuant to the terms of the Merger Agreement, effective upon the purchase of
Shares pursuant to the Offer, TaylorMade will be entitled to designate a number of directors,
rounded up to the next whole number, on Ashworth&#146;s Board of Directors and committees thereof equal
to the product of
(i)&nbsp;the total number of directors on Ashworth&#146;s Board of Directors or a committee thereof, as
applicable, and (ii)&nbsp;the percentage that the number of Shares beneficially owned by TaylorMade
and/or Merger Sub bears to the number of Shares then outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Merger Agreement contains customary representations and warranties by TaylorMade, Merger
Sub and Ashworth. The Merger Agreement also contains customary covenants and agreements, including
with respect to the operation of the business of Ashworth and its subsidiaries between signing and
closing, solicitation of alternative acquisition proposals by Ashworth, governmental filings and
approvals, and other matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Merger Agreement and the Offer may be terminated in certain customary circumstances by
TaylorMade and/or Ashworth, including if the Offer is not consummated on or before the date that is
120&nbsp;days after the commencement thereof (the &#147;Outside Date&#148;), and further provides for a
termination fee of $2&nbsp;million, payable by Ashworth to TaylorMade, if the Merger Agreement is
terminated under certain circumstances. The Board of Directors of each of TaylorMade, Merger Sub
and Ashworth has approved the Merger Agreement and the transactions contemplated thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, at a scheduled expiration date of the Offer, the Outstanding Liabilities (as defined in
the Merger Agreement) of Ashworth (on a consolidated basis) exceeds a threshold, which shall
initially be $85&nbsp;million, then Merger Sub may elect to adjust the Offer Price downward and extend
the Offer for an additional period of 10 business days (provided that the end of such 10 business
day period is before the Outside Date). If Merger Sub so elects, the Offer Price will be reduced
from $1.90 per share, on a <I>pro rata </I>basis, by the amount by which the Outstanding Liabilities
exceed $85&nbsp;million. After any such adjustment, the new threshold for purposes of triggering a
future adjustment right will be equal to the Outstanding Liabilities at the time of such
adjustment, plus an additional $5&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ashworth was advised that members of the Knightspoint Partners stockholder group who
collectively own over 16% of Ashworth&#146;s outstanding Shares have entered into an agreement and proxy
with TaylorMade (the &#147;Tender Agreement&#148;) whereby such stockholders have agreed to tender their
Shares, subject to certain terms and conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing description of the Merger Agreement and Tender Agreement are qualified in their
entirety by reference to the full texts thereof, which are attached hereto as Exhibit&nbsp;2.1 and
Exhibit&nbsp;99.2, respectively, and incorporated herein by reference. The Merger Agreement and Tender
Agreement have been included to provide stockholders with information regarding their terms. They
are not intended to provide any other factual information about TaylorMade, Merger Sub, Ashworth or
any stockholders of Ashworth. The press release announcing the transaction is attached hereto as
Exhibit&nbsp;99.1 and incorporated herein by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Additional Information</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Offer, TaylorMade intends to file a Schedule&nbsp;TO with the SEC and
Ashworth intends to file a Solicitation/Recommendation Statement on Schedule&nbsp;14D-9. Such documents
are not currently available. When these documents become available, they will contain important
information about the transaction and should be read carefully before any decision is made with
respect to the Offer. Investors will be able to obtain free copies of the Schedule&nbsp;TO and Schedule
14D-9, as well as other filings containing information about TaylorMade and Ashworth, without
charge, at the SEC&#146;s website (http://www.sec.gov) once such documents are filed with the SEC. A
free copy of the Offer materials, when they become available, may also be obtained from TaylorMade
or Ashworth.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Safe Harbor for Forward-Looking Statements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Current Report on Form 8-K contains forward-looking statements related to Ashworth&#146;s
market position, finances, operating results, marketing and business plans and strategies within
the meaning of Section&nbsp;27A of the Securities Act, as amended, and Section&nbsp;21E of the Securities
Exchange Act of 1934, as amended. These forward-looking statements may contain the words
&#147;believes,&#148; &#147;anticipates,&#148; &#147;expects,&#148; &#147;predicts,&#148; &#147;estimates,&#148; &#147;projects,&#148; &#147;will be,&#148; &#147;will
continue,&#148; &#147;will likely result,&#148; or other similar words and phrases. Readers are cautioned not to
place undue reliance on these forward-looking statements, which speak only as of the date hereof.
Ashworth undertakes no obligation to update any forward-looking statements, whether as a result of
new information, changed circumstances or unanticipated events unless required by law. These
statements involve risks and uncertainties that could cause actual results to differ materially
from those projected. These risks include the consummation of the recently announced proposed
acquisition of Ashworth by Taylor Made Golf Company, the uncertainties associated with a potential
liquidity shortfall in the first half of fiscal 2009, implementing a successful transition in
executive leadership, successful resolution of the current dispute with Callaway Golf Company, the
evaluation of strategic alternatives that may be presented, timely development and acceptance of
new products, as well as strategic alliances, the impact of competitive products and pricing, the
success of the Sun Ice&#174; and Callaway Golf apparel product lines, the preliminary nature of bookings
information, the ongoing risk of excess or obsolete inventory, the potential inadequacy of booked
reserves, the successful operation of the distribution facility in Oceanside, CA, the successful
implementation of Ashworth&#146;s ERP system, and other risks described in Ashworth&#146;s SEC reports,
including the Annual Report on Form 10-K for the year ended October&nbsp;31, 2007, quarterly reports on
Form 10-Q filed thereafter and amendments to any of the foregoing reports, including the Form
10-K/A for the year ended October&nbsp;31, 2007.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01 Financial Statements and Exhibits.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(d)&nbsp;Exhibits:</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="91%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Exhibit No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Description of Exhibit</TD>
</TR>

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<TR valign="bottom"><!-- Blank Space -->
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agreement and Plan of Merger, dated as of October&nbsp;13, 2008, by and
among Taylor Made Golf Company, Inc., PHX Acquisition Corp. and Ashworth, Inc.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release, dated as of October&nbsp;13, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stockholder Tender Agreement and Irrevocable Proxy, dated as of October
13, 2008, by and between Taylor Made Golf Company, Inc., on the one hand<I>, </I>and
David M. Meyer, Michael S. Koeneke, Knightspoint Partners II, L.P.,
Knightspoint Capital Management II LLC, Knightspoint Partners, LLC, Ramius
Value and Opportunity Master Fund Ltd (f/k/a Starboard Value &#038; Opportunity
Master Fund, Ltd) and Parche, LLC, on the other hand.</TD>
</TR>
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</TABLE>
</DIV>


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<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>

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    <TD width="48%">&nbsp;</TD>
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</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">ASHWORTH, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: October 14, 2008&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Greg W. Slack
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Greg W. Slack&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</B>
</DIV>

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    <TD width="2%">&nbsp;</TD>
    <TD width="91%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Exhibit No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Description of Exhibit</TD>
</TR>

<!-- End Table Head -->
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<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agreement and Plan of Merger, dated as of October&nbsp;13, 2008, by and
among Taylor Made Golf Company, Inc., PHX Acquisition Corp. and Ashworth, Inc.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release, dated as of October&nbsp;13, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stockholder Tender Agreement and Irrevocable Proxy, dated as of October
13, 2008, by and between Taylor Made Golf Company, Inc., on the one hand<I>, </I>and
David M. Meyer, Michael S. Koeneke, Knightspoint Partners II, L.P.,
Knightspoint Capital Management II LLC, Knightspoint Partners, LLC, Ramius
Value and Opportunity Master Fund Ltd (f/k/a Starboard Value &#038; Opportunity
Master Fund, Ltd) and Parche, LLC, on the other hand.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2.1
<SEQUENCE>2
<FILENAME>a50088exv2w1.htm
<DESCRIPTION>EX-2.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv2w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT 2.1</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 6pt"><B>EXECUTION COPY</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AGREEMENT AND PLAN OF MERGER</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>among</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>TAYLOR MADE GOLF COMPANY, INC.,</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PHX ACQUISITION CORP.</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>and</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ASHWORTH, INC.</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Dated as of October&nbsp;13, 2008</B>

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>TABLE OF CONTENTS</U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="81%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE I THE OFFER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Offer</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Offer Documents</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Company Actions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Directors</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Top-Up Option</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE II THE MERGER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Merger</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Closing</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Effective Time</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Effects of the Merger</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certificate of Incorporation; Bylaws</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Directors</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Officers</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE III EFFECT ON THE CAPITAL STOCK OF THE CONSTITUENT CORPORATIONS; EXCHANGE OF CERTIFICATES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conversion of Capital Stock</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Treatment of Options and Restricted Stock</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exchange and Payment</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Withholding Rights</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dissenting Shares</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Organization, Standing and Power</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Capital Stock</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Authority</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-i-<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="81%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Conflict; Consents and Approvals</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">SEC Reports; Financial Statements</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Undisclosed Liabilities</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certain Information</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Absence of Certain Changes or Events</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Litigation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Compliance with Laws</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Benefit Plans</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Labor Matters</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Environmental Matters</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.14</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Taxes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.15</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Contracts</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.16</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Insurance</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.17</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Properties</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.18</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Intellectual Property</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.19</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rights Plan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.20</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Brokers</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.21</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certain Practices</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.22</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Takeover Statutes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.23</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fairness Opinion</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.24</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Complete Copies</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.25</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exclusivity of Representations or Warranties</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE V REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Organization, Standing and Power</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Authority</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Conflict; Consents and Approvals</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-ii-<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="81%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certain Information</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Litigation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ownership and Operations of Merger Sub</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financing</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vote/Approval Required</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ownership of Shares</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Brokers</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Other Representations or Warranties</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Access to Information</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE VI COVENANTS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conduct of Business of the Company</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conduct of Business of Parent and Merger Sub Pending the Merger</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Control of Other Party&#146;s Business</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Acquisition Proposals</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preparation of Proxy Statement; Stockholders&#146; Meeting</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Access to Information; Confidentiality</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Further Action; Efforts</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment and Employee Benefits Matters; Other Plans</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notification of Certain Matters</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indemnification, Exculpation and Insurance</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rule 16b-3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Anti-Takeover Statute</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Public Announcements</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.14</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tax Covenants</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE VII CONDITIONS PRECEDENT</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;7.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conditions to Each Party&#146;s Obligation to Effect the Merger</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-iii-<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="81%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE VIII TERMINATION, AMENDMENT AND WAIVER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Termination</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Effect of Termination</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fees and Expenses</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amendment or Supplement</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Extension of Time; Waiver</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE IX GENERAL PROVISIONS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Nonsurvival of Representations and Warranties</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notices</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certain Definitions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Interpretation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Entire Agreement</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Parties in Interest</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Governing Law</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Submission to Jurisdiction</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Assignment; Successors</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Enforcement</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Currency</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Severability</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Waiver of Jury Trial</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.14</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Counterparts</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.15</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Facsimile Signature</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.16</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Presumption Against Drafting Party</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.17</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Parent Guarantee</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-iv-<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INDEX OF DEFINED TERMS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="27%"></TD>
    <TD width="45%"></TD>
    <TD width="27%"></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Definition</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Location</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">$</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">9.11</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">409A Plan
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.11(j)</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="left" valign="top">Acceptable Confidentiality Agreement
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">6.4(f)(i)
</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Acquired Companies
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.1(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Acquired Company
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.1(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Acquired Company Contract
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.15(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Acquisition Proposal <BR>
Action
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">8.3(c)(i), 6.4(f)(ii)<BR>
4.9</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Adjustment Date
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">1.1(d)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Adverse Recommendation Change
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">6.4(d)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Affiliate
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">9.3(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Agreement <BR>
Alternative Acquisition Agreement
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Preamble<BR>
6.4(d)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Antitrust Law
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">6.7(f)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Book-Entry Shares
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">3.3(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Business Day
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">9.3(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Callaway License Agreement
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.1(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Certificate of Merger
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">2.3</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Certificates
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">3.3(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Closing
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">2.2</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Closing Date
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">2.2</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Code
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">3.4</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Company <BR>
Company Board <BR>
Company Constituent Documents
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Preamble<BR>
Recitals<BR>
4.1(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Company Disclosure Letter <BR>
Company Employee
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Article&nbsp;IV<BR>
6.8(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Company Equity Plans
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">3.2(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Company Financial Statements
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.5(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Company IP
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.18(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Company Option Plans
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.2(c)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Company Options
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.2(c)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Company Plans
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.11(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Company SEC Documents
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.5(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Company Stock Option
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">3.2(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Company Stockholder Approval
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.3</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Company Stockholders Meeting
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">6.5(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Confidentiality Agreement
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">6.6(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Contract
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.4(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">control
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">9.3(c)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">controlled
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">9.3(c)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">controlled by
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">9.3(c)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Costs
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">6.10(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">DGCL
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">2.1</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Dissenting Shares
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">3.5</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">DOJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">6.7(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">dollars
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">9.11</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Effective Time
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">2.3</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Environmental Laws <BR>
Environmental Permits <BR>
ERISA
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.13(c)(i)<BR>
4.13(c)(ii)<BR>
4.11(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">ERISA Affiliate
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.11(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Excess Liabilities <BR>
Exchange Act
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">1.1(d)(z)<BR>
1.1(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Foreign Antitrust Laws
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.4(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">FTC
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">6.7(b)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-v-<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="27%"></TD>
    <TD width="45%"></TD>
    <TD width="27%"></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Definition</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Location</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">GAAP
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.5(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Governmental Entity
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.4(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">HSR Act
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.4(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Indemnified Parties
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">6.10(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Independent Directors
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">1.4(c)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Intellectual Property
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.18(c)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">IRS
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.11(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">knowledge
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">9.3(d)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">KSA
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">1.3(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Law
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.4(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Liabilities Threshold <BR>
Liens
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">1.1(d)(x)<BR>
4.2(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Material Adverse Effect
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.1(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Material Contract
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.15(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Materials of Environmental Concern <BR>
Merger <BR>
Merger Consideration
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.13(c)(iii)<BR>
Recitals<BR>
3.1(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Merger Sub <BR>
Offer <BR>
Offer Conditions
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Preamble<BR>
Recitals<BR>
1.1(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Offer Documents
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">1.2</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Offer Price <BR>
Offer to Purchase
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Recitals<BR>
1.2</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Outside Date
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">1.1(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Outstanding Liabilities <BR>
Parent <BR>
Parent Disclosure Letter <BR>
Parent Material Adverse Effect
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">1.1(d)(y)<BR>
Preamble<BR>
Article&nbsp;V<BR>
5.1(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Paying Agent
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">3.3(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Payment Fund
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">3.3(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Permits
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.10</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Permitted Liens
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.17(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Person
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">9.3(e)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Personnel
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.11(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Proxy Statement
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.7</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Real Property Leases
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.17(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Representatives
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">6.4(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Rights Agreement <BR>
Schedule&nbsp;14D-9
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Recitals<BR>
1.3(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Schedule&nbsp;TO
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">1.2</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SEC
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">1.1(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Securities Act
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.5(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Shares <BR>
SOX
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Recitals<BR>
4.5(d)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Stockholder Tender Agreements <BR>
Subsequent Offering Period
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Recitals<BR>
1.1(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Subsidiary
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">9.3(f)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Superior Proposal <BR>
Surviving Corporation
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">6.4(f)(iii)<BR>
2.1</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Tax Returns <BR>
Taxes <BR>
Termination Fee <BR>
Top-Up Closing
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">4.14(r)(ii)<BR>
4.14(r)(i)<BR>
8.3(c)(ii)<BR>
1.5(c)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Top-Up Option
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">1.5(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Top-Up Shares
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">1.5(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">under common control with
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">9.3(c)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Unvested Restricted Stock Grant
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">3.2(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">US$</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">9.11</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->-vi-<!-- /Folio -->
</DIV>



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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AGREEMENT AND PLAN OF MERGER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS AGREEMENT AND PLAN OF MERGER (this &#147;<U>Agreement</U>&#148;), dated as of October&nbsp;13, 2008, is
by and among TAYLOR MADE GOLF COMPANY, INC., a Delaware corporation (&#147;<U>Parent</U>&#148;), PHX
ACQUISITION CORP., a Delaware corporation and a wholly owned Subsidiary of Parent (&#147;<U>Merger
Sub</U>&#148;), and ASHWORTH, INC., a Delaware corporation (the &#147;<U>Company</U>&#148;).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RECITALS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, it is proposed that Merger Sub shall commence a tender offer (the &#147;<U>Offer</U>&#148;) to
purchase all of the outstanding shares of common stock, par value $0.001 per share, of the Company
(&#147;<U>Shares</U>&#148;), at a price per Share of one dollar and ninety cents ($1.90) net to the selling
Company stockholders in cash, as may be adjusted pursuant to <U>Section&nbsp;1.1(b)</U> and <U>Section
1.1(d)</U> (such amount or any greater amount per Share as may be paid pursuant to the Offer, the
&#147;<U>Offer Price</U>&#148;), on the terms and subject to the conditions set forth herein;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the parties intend that, following the consummation of the Offer, Merger Sub shall be
merged with and into the Company, with the Company surviving that merger, on the terms and subject
to the conditions set forth herein (the &#147;<U>Merger</U>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Boards of Directors of Parent and Merger Sub have each unanimously approved this
Agreement and declared it advisable for Parent and Merger Sub, respectively, to enter into this
Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Board of Directors of the Company (the &#147;<U>Company Board</U>&#148;) has, subject to
the terms and conditions of this Agreement, (i)&nbsp;determined that it is in the best interests of the
Company and its stockholders, and declared it advisable, to enter into this Agreement, (ii)
approved the execution, delivery and performance by the Company of this Agreement and the
consummation of the transactions contemplated hereby, including the Offer and the Merger and (iii)
resolved and agreed to recommend that the Company&#146;s stockholders accept the Offer, tender their
Shares pursuant to the Offer and adopt this Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, to induce Parent and Merger Sub to enter into this Agreement, and as a condition to
their doing so, Parent is simultaneously entering into stockholder tender agreements (collectively,
the &#147;<U>Stockholder Tender Agreements</U>&#148;) with certain of the Company&#146;s directors and executive
officers legally or beneficially owning Shares, and certain investment funds that own Shares,
pursuant to which such stockholders are, among other things, agreeing to (i)&nbsp;tender all of such
stockholders&#146; Shares in the Offer upon the conditions and terms specified therein, and (ii)&nbsp;certain
restrictive covenants; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Parent, Merger Sub and the Company desire to make certain representations,
warranties, covenants and agreements in connection with the Offer and the Merger and also to
prescribe certain conditions to the Offer and the Merger as specified herein.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the premises, and of the representations, warranties,
covenants and agreements contained herein, and intending to be legally bound hereby, Parent, Merger
Sub and the Company hereby agree as follows:
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE I<BR>
THE OFFER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1.1 <U>The Offer</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Provided</U>, that this Agreement shall not have been terminated in accordance with
<U>Article&nbsp;VIII</U> and none of the conditions in paragraphs (c)&nbsp;through (e)&nbsp;of <U>Exhibit&nbsp;A</U>
is existing, as promptly as reasonably practicable after the date hereof, and in any event within
five (5)&nbsp;Business Days after such date, Merger Sub shall, and Parent shall cause Merger Sub to,
commence (within the meaning of Rule&nbsp;14d-2 under the Securities Exchange Act of 1934, as amended
(including the rules and regulations promulgated thereunder, the &#147;<U>Exchange Act</U>&#148;)) an offer
to purchase all outstanding Shares at the Offer Price. The obligations of Merger Sub, and of
Parent to cause Merger Sub, to accept for payment and pay for any Shares tendered pursuant to the
Offer shall be subject to the satisfaction or waiver by Merger Sub of the conditions set forth in
<U>Exhibit&nbsp;A</U> hereto (the &#147;<U>Offer Conditions</U>&#148;) and the terms and conditions hereof.
Merger Sub may, in its sole discretion, waive any Offer Condition or modify the terms of the Offer
consistent with the terms of this Agreement, except that, without the prior written consent of the
Company, Merger Sub shall not (i)&nbsp;reduce the Offer Price, (ii)&nbsp;change the form of consideration
payable in the Offer (other than by adding consideration), (iii)&nbsp;reduce the number of Shares
subject to the Offer, (iv)&nbsp;waive or change the Minimum Condition (as defined in <U>Exhibit&nbsp;A</U>)
or the condition set forth in clause (d)&nbsp;of <U>Exhibit&nbsp;A</U>, (v)&nbsp;add to the Offer Conditions or
modify them in a manner adverse to the holders of Shares, (vi)&nbsp;extend the expiration of the Offer
except as required or permitted by <U>Section&nbsp;1.1(b)</U> or (vii)&nbsp;modify any Offer Condition or
any term of the Offer set forth in this Agreement in a manner adverse to the holders of Shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Offer shall expire at 12:00 midnight, New York City time, at the end of the date that
is twenty (20)&nbsp;business days (for purposes of this <U>Section&nbsp;1.1(b)</U>, business days shall be
calculated in accordance with Section&nbsp;14d-1(g)(3) under the Exchange Act) after the commencement of
the Offer, except as may otherwise be required by applicable Law (as defined in <U>Section
4.4(a)</U> hereof); <U>provided</U>, <U>however</U>, that if at any scheduled expiration date of
the Offer (including any extension thereof), (i)&nbsp;the Offer Conditions have not been satisfied or
waived, then until such time as the Offer Conditions have been satisfied or waived, Merger Sub
shall extend the Offer for one or (as needed) more additional consecutive periods of ten (10)
business days or (ii)&nbsp;the Outstanding Liabilities (as defined in <U>Section&nbsp;1.1(d)</U> hereof) of
the Company exceeds the then-applicable Liabilities Threshold (as defined in <U>Section&nbsp;1.1(d)</U>
hereof), then, at the election of Merger Sub (which election shall be made no later than 9:00 a.m.
New York City time on such scheduled expiration date of the Offer), (x)&nbsp;the Offer Price shall be
adjusted, on such scheduled expiration date of the Offer, pursuant to <U>Section&nbsp;1.1(d)</U>
hereof, (y)&nbsp;Merger Sub shall, on such scheduled expiration date of the Offer, provide notice of
such adjustment to the Company&#146;s stockholders pursuant to and in compliance with Rule&nbsp;14e-1(b)
under the Exchange Act and any other applicable rules or regulations of the SEC or other applicable
Law and (z)&nbsp;Merger Sub shall extend the Offer for an additional period of ten (10)&nbsp;business days,
but, notwithstanding clauses (i)&nbsp;and (ii)&nbsp;of this paragraph, in no event shall the Offer remain
open after 120&nbsp;days from commencement thereof (the &#147;<U>Outside Date</U>&#148;); <U>provided</U>,
<U>further</U>, that Merger Sub shall also extend the Offer for any additional period required by
any rule, regulation, interpretation or position of the Securities and Exchange Commission (the
&#147;<U>SEC</U>&#148;) or the staff thereof or the rules of the Nasdaq Stock Market applicable to the
Offer; <U>provided</U>, <U>further</U>, that Merger Sub may, in its sole discretion, provide a
subsequent offering period (a &#147;<U>Subsequent Offering Period</U>&#148;) after the expiration of the
Offer, in accordance with Rule&nbsp;14d-11 under the Exchange Act.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Subject to the terms of the Offer and this Agreement and the satisfaction of all of the
Offer Conditions, Merger Sub will accept for payment and pay for all Shares validly tendered and
not validly withdrawn pursuant to the Offer as soon as practicable after the expiration date
thereof (as the same may be extended or required to be extended) or (in the case of any Shares
tendered during any Subsequent Offering Period) as soon as practicable following the valid tender
thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;In the event of an adjustment pursuant to <U>Section&nbsp;1.1(b)(ii)(x)</U> on a scheduled
expiration date of the Offer (each, an &#147;<U>Adjustment Date</U>&#148;), (i)&nbsp;the Offer Price for purposes
of this Agreement shall thereafter be equal to $1.90 net to the selling Company stockholders in
cash <I>less </I>an amount equal to the quotient of (A)&nbsp;the excess of the Outstanding Liabilities on the
Adjustment Date over $85,000,000 <I>divided by </I>(B)&nbsp;the sum of the number of issued and outstanding
Shares (including for this purpose any vested or unvested restricted stock) on the Adjustment Date
<I>plus </I>the number of Shares issuable pursuant to Company derivatives (whether or not vested) that
would be in-the-money based on the new Offer Price calculated pursuant to this clause (i), and (ii)
the Liabilities Threshold for purposes of this Agreement shall be thereafter be equal to the
Liabilities Threshold as of such Adjustment Date <I>plus </I>the amount of Excess Liabilities as of such
Adjustment Date <I>plus </I>$5,000,000. For purposes of this Agreement:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) &#147;<U>Liabilities Threshold</U>&#148; shall initially mean $85,000,000 and shall be
increased pursuant to <U>Section&nbsp;1.1(d)(ii)</U>;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) &#147;<U>Outstanding Liabilities</U>&#148; shall mean, with respect to all Acquired Companies
in the aggregate on the applicable measurement date, all liabilities that would be required
under GAAP to be set forth on the face of an audited consolidated balance sheet of the Company;
and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) &#147;<U>Excess Liabilities</U>&#148; shall mean the amount by which the Outstanding
Liabilities exceeds the Liabilities Threshold on the applicable measurement date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1.2 <U>Offer Documents</U>. As promptly as reasonably practicable on the date of
commencement of the Offer, Parent and Merger Sub shall (a)&nbsp;file a Schedule&nbsp;TO (together with all
amendments and supplements thereto, the &#147;<U>Schedule&nbsp;TO</U>&#148;) with respect to the Offer, which
shall contain or shall incorporate by reference an offer to purchase (the &#147;<U>Offer to
Purchase</U>&#148;) and forms of the related letter of transmittal and form of summary advertisement, if
any (the Schedule&nbsp;TO, the Offer to Purchase and such other documents, together with all amendments
and supplements thereto, the &#147;<U>Offer Documents</U>&#148;), and (b)&nbsp;cause the Offer Documents to be
disseminated to the Company&#146;s stockholders, in each case as and to the extent required by
applicable Law. The Company shall promptly supply Parent and Merger Sub in writing, for inclusion
in the Offer Documents, all information concerning the Company required under all applicable Law or
reasonably requested to be included in the Offer Documents. Each of Parent, Merger Sub and the
Company agrees promptly to correct any information provided by it for use in the Offer Documents if
and to the extent that such information becomes false or misleading in any material respect, and
each of Parent and Merger Sub further agrees to take all steps necessary to cause the Offer
Documents as so corrected to be filed with the SEC and to be disseminated to the Company&#146;s
stockholders, in each case as and to the extent required by applicable Law. The Company and its
counsel shall be given a reasonable opportunity to review and comment on the Offer Documents and
any amendments thereto prior to the filing thereof with the SEC, and Parent shall give due
consideration to all reasonable additions, deletions or changes suggested thereto by the Company
and its counsel. In addition, Parent agrees to provide to the Company and its counsel any
comments, whether written or oral, that Parent may receive
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">from the SEC or its staff with respect
to the Offer Documents promptly after the receipt of such comments, and any written or oral
responses thereto. The Company and its counsel shall be given a reasonable opportunity to review
and comment upon such responses, and Parent shall give due consideration to all reasonable
additions, deletions or changes suggested thereto by the Company and its counsel.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1.3 <U>Company Actions</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Subject to <U>Section&nbsp;6.4</U>, the Company hereby consents to the Offer and to the
inclusion in the Offer Documents of the recommendation of the Company Board described in
<U>Section&nbsp;4.3</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;As promptly as reasonably practicable on or after the date of filing by Parent and Merger
Sub of the Offer Documents, the Company shall file with the SEC and mail to the Company&#146;s
stockholders a Solicitation/Recommendation Statement on Schedule&nbsp;14D-9 (such Schedule&nbsp;14D-9,
together with any amendments or supplements thereto, the &#147;<U>Schedule&nbsp;14D-9</U>&#148;) containing the
recommendation of the Company Board described in <U>Section&nbsp;4.3</U> (subject to <U>Section
6.4</U>) and the fairness opinion of Kurt Salmon Associates Capital Advisors, Inc. (&#147;<U>KSA</U>&#148;)
referenced in <U>Section&nbsp;4.23</U>, and the Company shall cause the Schedule&nbsp;14D-9 to be
disseminated to the Company&#146;s stockholders (<U>provided</U> that Merger Sub will cause the
Schedule&nbsp;14D-9 to be disseminated concurrently with and in the same mailing envelope as the Offer
Documents, if requested by the Company) as required by Rule&nbsp;14d-9 under the Exchange Act. Each of
the Company, Parent and Merger Sub agrees promptly to correct any information provided by it for
use in the Schedule&nbsp;14D-9 if and to the extent that such information becomes false or misleading in
any material respect, and the Company further agrees to take all steps necessary to cause the
Schedule&nbsp;14D-9 as so corrected to be filed with the SEC and to be disseminated to the Company&#146;s
stockholders, in each case, as and to the extent required by applicable Law. Parent, Merger Sub
and their counsel shall be given a reasonable opportunity to review and comment on the Schedule
14D-9 and any amendments thereto prior to the filing thereof with the SEC, and the Company shall
give due consideration to all reasonable additions, deletions or changes suggested thereto by
Parent, Merger Sub and their counsel. In addition, the Company agrees to provide Parent, Merger
Sub and their counsel any comments, whether written or oral, that the Company or its counsel may
receive from the SEC or its staff with respect to the Schedule&nbsp;14D-9 promptly after the receipt of
such comments, and any written or oral responses thereto. Parent, Merger Sub and their counsel
shall be given a reasonable opportunity to review and comment upon such responses, and the Company
shall give due consideration to all reasonable additions, deletions or changes suggested thereto by
Parent, Merger Sub and their counsel.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;In connection with the Offer, the Company shall cause its transfer agent promptly to
furnish Parent and Merger Sub with mailing labels, security position listings, any non-objecting
beneficial owner lists and any available listings or computer files containing the names and
addresses of the record holders of Shares as of the most recent practicable date and shall furnish
Parent and Merger Sub with such additional available information (including periodic updates of
such information) and such other assistance as Parent, Merger Sub or their agents or
Representatives (as defined in <U>Section&nbsp;6.4(b)</U> hereof) may reasonably request in
communicating the Offer to the record and beneficial holders of Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1.4 <U>Directors</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to compliance with applicable Law and the Company
Constituent Documents, promptly upon the payment by Merger Sub for Shares pursuant to the Offer
representing at least such number of Shares as shall satisfy the Minimum Condition, and from time
to time thereafter, Parent shall be entitled to designate such number of directors on the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Company Board (&#147;<U>Directors</U>&#148;), rounded up to the next whole number, on the Company Board as is equal
to the product of the total number of Directors (determined after giving effect to the Directors
elected pursuant to this sentence) multiplied by the percentage that the aggregate number of Shares
beneficially owned by Parent or its Affiliates (as defined in <U>Section&nbsp;9.3(a)</U> hereof) at
such time (including Shares so accepted for payment) bears to the total number of Shares then
outstanding. In furtherance thereof, the Company shall, upon request of Parent, subject to
compliance with applicable Law and the Company Constituent Documents, promptly take all actions
necessary to cause Parent&#146;s designees to be so elected or appointed, including increasing the size
of the Company Board and/or seeking the resignations of one or more incumbent Directors. At such
time, the Company shall, upon request of Parent, also promptly, subject to compliance with
applicable Law and the Company Constituent Documents, take all actions necessary to cause
individuals designated by Parent to constitute at least the same percentage (rounded up to the next
whole number) as is on the Company Board of (i)&nbsp;each committee of the Company Board, (ii)&nbsp;each
board of directors (or similar body) of each Subsidiary of the Company and (iii)&nbsp;each committee (or
similar body) of each such board.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company&#146;s obligations to appoint Parent&#146;s designees to the Company Board shall be
subject to Section 14(f) of the Exchange Act and Rule&nbsp;14f-1 thereunder. The Company shall promptly
take all actions required pursuant to Section 14(f) of the Exchange Act and Rule&nbsp;14f-1 in order to
fulfill its obligations under this <U>Section&nbsp;1.4</U>, including mailing to stockholders together
with the Schedule&nbsp;14D-9 the information required under Section 14(f) of the Exchange Act and Rule
14f-1 as is necessary to enable Parent&#146;s designees to be elected or appointed to the Company Board.
Parent shall supply to the Company any information with respect to itself and its officers,
Directors and Affiliates to the extent required by Section 14(f) of the Exchange Act and Rule
14f-1. The provisions of this <U>Section&nbsp;1.4</U> are in addition to and shall not limit any
rights that Parent, Merger Sub or any of their Affiliates may have as a holder or beneficial owner
of Shares as a matter of applicable Law with respect to the election of Directors or otherwise.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;In the event that Parent&#146;s designees are elected or appointed to the Company Board
pursuant to this <U>Section&nbsp;1.4</U>, then, until the Effective Time (as defined in <U>Section
2.3</U> hereof), the Company shall use commercially reasonable efforts to cause the Company Board
to maintain at least three (3)&nbsp;Directors who are members of the Company Board on the date of this
Agreement and who are independent for purposes of Rule&nbsp;10A-3 under the Exchange Act (the
&#147;<U>Independent Directors</U>&#148;); <U>provided</U>, <U>however</U>, that if the number of
Independent Directors is reduced below three (3)&nbsp;for any reason, then the remaining Independent
Director(s) shall be entitled to nominate an individual or individuals to fill such vacancy who
shall be deemed to be Independent Directors for purposes of this Agreement or, if no Independent
Directors then remain, the other Directors shall designate three (3)&nbsp;individuals to fill such
vacancies who are independent for purposes of Rule&nbsp;10A-3 under the Exchange Act, and such
individuals shall be deemed to be Independent Directors for purposes of this Agreement. The
Company and the Company Board shall promptly take all action as may be necessary to comply with
their obligations under this <U>Section&nbsp;1.4(c)</U>. Notwithstanding anything in this Agreement to
the contrary, from and after the time, if any, that Parent&#146;s designees pursuant to this <U>Section&nbsp;1.4</U> constitute a majority of the Company Board and prior to the Effective
Time, subject to the terms hereof, any amendment or termination of this Agreement by the Company,
any extension by the Company of the time for the performance of any of the obligations or other
acts of Parent or Merger Sub or waiver of any of the Company&#146;s rights hereunder, will require the
concurrence of a majority of the Independent Directors if such amendment, termination,
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">extension or
waiver would reasonably be expected to have an adverse effect on any holders of Shares other than
Parent or Merger Sub.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1.5 <U>The Top-Up Option</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Immediately after Parent&#146;s or Merger Sub&#146;s acceptance for payment of Shares pursuant to
the Offer (at which time, for the avoidance of doubt, the Minimum Condition will have been
satisfied), the Company shall grant to Merger Sub an irrevocable option (the &#147;<U>Top-Up
Option</U>&#148;) to purchase that number of Shares (the &#147;<U>Top-Up Shares</U>&#148;) equal to the lowest
number of Shares that, when added to the number of Shares held by Parent and Merger Sub at the time
of exercise, would constitute one share more than ninety percent (90%) of the total Shares then
outstanding (determined on a fully diluted basis and including the issuance of the Top-Up Shares),
at a price per Share equal to the Offer Price.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Top-Up Option shall be exercisable once in whole and not in part during the twenty
(20)&nbsp;Business Day period immediately following Parent&#146;s or Merger Sub&#146;s acceptance for payment of
Shares pursuant to the Offer (which includes, for the avoidance of doubt, any Subsequent Offering
Period); <U>provided</U>, <U>however</U>, that in no event shall the Top-Up Option be exercisable
(i)&nbsp;for a number of Shares in excess of the number of authorized but unissued Shares (which shall
include, for purposes of this <U>Section&nbsp;1.5</U>, any Shares held in the treasury of the Company),
or (ii)&nbsp;if the grant of the Top-Up Option or the issuance of the Top-Up Shares would violate
applicable Law or require the approval of the Company&#146;s stockholders under applicable Law
(including Nasdaq Stock Market rules and regulations, including Nasdaq Marketplace Rule&nbsp;4350); and
<U>provided</U>, <U>further</U>, that the Top-Up Option shall terminate upon the earlier to occur
of (i)&nbsp;the Effective Time and (ii)&nbsp;the termination of this Agreement in accordance with its terms.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;In the event that Merger Sub wishes to exercise the Top-Up Option, Merger Sub shall so
notify the Company in writing, and shall set forth in such notice (i)&nbsp;the number of Shares that
will be owned by Parent and Merger Sub immediately preceding the purchase of the Top-Up Shares and
(ii)&nbsp;the place and time for the closing of the purchase of the Top-Up Shares (the &#147;<U>Top-Up
Closing</U>&#148;). The Company shall, as soon as practicable following receipt of such notice, notify
Parent and Merger Sub in writing of the number of Shares then outstanding and the number of Top-Up
Shares. At the Top-Up Closing, Merger Sub shall pay the Company the aggregate price required to be
paid for the Top-Up Shares, at Merger Sub&#146;s election, (A)&nbsp;entirely in cash or (B)&nbsp;through the
issuance of a full recourse promissory note (and the delivery of an executed, unconditional
continuing guarantee thereof by Parent, in a form acceptable to the Company), bearing simple
interest at five percent (5%) per annum and due on the first anniversary of the Top Up Closing for
the purchase price of such Top-Up Shares, and the Company shall cause to be issued to Merger Sub a
certificate representing the Top-Up Shares, which certificate may include any legends required by
applicable securities laws.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE II<BR>
THE MERGER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.1 <U>The Merger</U>. Upon the terms and subject to the conditions set forth in this Agreement and in accordance with
the General Corporation Law of the State of Delaware (the &#147;<U>DGCL</U>&#148;), at the Effective Time,
Merger Sub shall be merged with and into the Company. Following the Merger, the separate corporate
existence of Merger Sub shall cease, and the Company shall continue as the surviving corporation in
the Merger (the &#147;<U>Surviving Corporation</U>&#148;) and a wholly owned subsidiary of Parent.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.2 <U>Closing</U>. The closing of the Merger (the &#147;<U>Closing</U>&#148;) shall take place at
10:00&nbsp;a.m. local time, as soon as practicable but in no event later than the second Business Day
following the satisfaction or, to the extent permitted by applicable Law, waiver of the conditions
set forth in <U>Article&nbsp;VII</U> (other than those conditions that by their terms are to be
satisfied at the Closing, but subject to the satisfaction or, to the extent permitted by applicable
Law, waiver of those conditions), at the offices of Gibson, Dunn &#038; Crutcher LLP, 3161 Michelson
Drive, Irvine, California 92612, unless another date, time or place is agreed to in writing by
Parent and the Company. The date on which the Closing occurs is referred to in this Agreement as
the &#147;<U>Closing Date</U>.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.3 <U>Effective Time</U>. Upon the terms and subject to the provisions of this
Agreement, as soon as practicable on the Closing Date, the parties shall file a certificate of
merger or, if applicable, a certificate of ownership and merger (in either case, the
&#147;<U>Certificate of Merger</U>&#148;) with the Secretary of State of the State of Delaware, executed in
accordance with the relevant provisions of the DGCL, and, as soon as practicable on or after the
Closing Date, shall make any and all other filings or recordings required under the DGCL. The
Merger shall become effective at such time as the Certificate of Merger is duly filed with the
Secretary of State of the State of Delaware or at such other date or time as Parent and the Company
may agree in writing and specify in the Certificate of Merger (the time the Merger becomes
effective being the &#147;<U>Effective Time</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.4 <U>Effects of the Merger</U>. The Merger shall have the effects set forth in this
Agreement and in the relevant provisions of the DGCL. Without limiting the generality of the
foregoing, and subject thereto, at the Effective Time, all the property, rights, privileges, powers
and franchises of the Company and Merger Sub shall vest in the Surviving Corporation, and all
debts, liabilities and duties of the Company and Merger Sub shall become the debts, liabilities and
duties of the Surviving Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.5 <U>Certificate of Incorporation; Bylaws</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The certificate of incorporation of Merger Sub, as in effect immediately prior to the
Effective Time, shall be the certificate of incorporation of the Surviving Corporation until
thereafter amended in accordance with the provisions thereof and applicable Law, except that
<U>Article&nbsp;I</U> thereof shall be amended in its entirety to read as follows: &#147;The name of the
Corporation is Ashworth, Inc.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Bylaws of Merger Sub, as in effect immediately prior to the Effective Time, shall be
the Bylaws of the Surviving Corporation until thereafter amended in accordance with the provisions
thereof and applicable Law, except that such Bylaws shall be amended to reflect that the name of
Surviving Corporation shall be Ashworth, Inc.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.6 <U>Directors</U>. The directors of Merger Sub immediately prior to the Effective Time
shall be the directors of the Surviving Corporation until the earlier of their resignation or
removal or until their respective successors are duly elected and qualified.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.7 <U>Officers</U>. The officers of Merger Sub immediately prior to the Effective Time
shall be the officers of the Surviving Corporation until the earlier of their resignation or
removal or until their respective successors are duly elected and qualified.
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE III<BR>
EFFECT ON THE CAPITAL STOCK OF THE<BR>
CONSTITUENT CORPORATIONS; EXCHANGE OF CERTIFICATES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.1 <U>Conversion of Capital Stock</U>. At the Effective Time, by virtue of the Merger
and without any action on the part of the Company, Parent, Merger Sub or the holders of any shares
of capital stock of the Company, Parent or Merger Sub:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Each Share issued and outstanding immediately prior to the Effective Time (other than
Shares to be cancelled in accordance with <U>Section&nbsp;3.1(b)</U> and any Dissenting Shares, as
defined in <U>Section&nbsp;3.5</U> hereof) shall thereupon be converted automatically into and shall
thereafter represent the right to receive the Offer Price in cash, without interest, and subject to
deduction for any required withholding Taxes (as defined in <U>Section&nbsp;4.14(r)(i)</U> hereof) (the
&#147;<U>Merger Consideration</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each Share held in the treasury of the Company or owned, directly or indirectly, by Parent
or Merger Sub immediately prior to the Effective Time shall automatically be cancelled and retired
and shall cease to exist, and no consideration shall be delivered in exchange therefor.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Each share of common stock, par value $0.001 per share, of Merger Sub issued and
outstanding immediately prior to the Effective Time shall be converted into and become one (1)
validly issued, fully paid and non-assessable share of common stock, par value $0.001 per share, of
the Surviving Corporation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;If at any time during the period between the date of this Agreement and the Effective
Time, any change in the outstanding shares of capital stock of the Company, or securities
convertible into or exchangeable into or exercisable for shares of such capital stock, occurs as a
result of any (i)&nbsp;reclassification, recapitalization, stock split (including a reverse stock split)
or subdivision, (ii)&nbsp;combination, exchange or readjustment of shares, (iii)&nbsp;any stock dividend or
stock distribution with a record date during such period, or (iv)&nbsp;merger or other similar
transaction, then the Merger Consideration shall be equitably adjusted, without duplication, to
reflect such change; <U>provided</U>, that nothing in this <U>Section&nbsp;3.1(d)</U> shall be
construed to permit the Company to take any action with respect to its securities that is
prohibited by the terms of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.2 <U>Treatment of Options and Restricted Stock</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;At the Effective Time, each option or similar right (each, a &#147;<U>Company Stock
Option</U>&#148;) to purchase Shares granted under any employee or Director stock option, stock purchase
or equity compensation plan, arrangement or agreement of the Company (the &#147;<U>Company Equity
Plans</U>&#148;), whether vested or unvested, that is outstanding immediately prior to the Effective
Time shall be cancelled and, in exchange therefor (and full satisfaction thereof), the Surviving
Corporation shall pay, and Parent shall cause the Surviving Corporation to pay, to each former
holder of any such cancelled Company Stock Option as soon as practicable following the Effective
Time an amount in cash (without interest, and subject to deduction for any required withholding
Taxes) equal to the product of (i)&nbsp;the excess (if any) of the Merger Consideration over the
exercise price per Share under such Company Stock Option and (ii)&nbsp;the number of Shares subject to
such Company Stock Option; <U>provided</U>, that if the exercise price per Share of any such
Company Stock Option is equal to or greater than the Merger Consideration,
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">then such Company Stock
Option shall be cancelled without any cash payment being made in respect thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Immediately prior to the Effective Time, all unvested restricted stock grants or portions
thereof (each, an &#147;<U>Unvested Restricted Stock Grant</U>&#148;) made under the Company Equity Plans
outstanding immediately prior to the Effective Time shall vest and, along with all other vested
restricted stock grants, shall be entitled to the Merger Consideration pursuant to <U>Section
3.1(a)</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Prior to the Effective Time, the Company shall deliver all required notices to each holder
of Company Stock Options and/or Unvested Restricted Stock Grants setting forth each holder&#146;s rights
pursuant to the respective Company Equity Plan, stating that such Company Stock Options and
Unvested Restricted Stock Grants shall be treated in the manner set forth in this <U>Section
3.2</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Company shall take all actions necessary to ensure that, as of the Effective Time, (i)
the Company Equity Plans shall terminate and (ii)&nbsp;no holder of a Company Stock Option or Unvested
Restricted Stock Grant, or any participant in any Company Equity Plan or any other employee
incentive or benefit plan, program or arrangement or any non-employee Director plan maintained by
the Company, shall have any rights to acquire, or other rights in respect of, the capital stock of
the Company, the Surviving Corporation or any of their Subsidiaries, except the right to receive
the payment contemplated by <U>Section&nbsp;3.2(a)</U> in cancellation and settlement thereof (with
respect to Company Stock Options) and the right to receive the Merger Consideration (with respect
to Unvested Restricted Stock Grants).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.3 <U>Exchange and Payment</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;At or prior to the Effective Time, Parent shall deposit (or cause to be deposited) with a
bank or trust company designated by Parent and reasonably acceptable to the Company (the
&#147;<U>Paying Agent</U>&#148;) cash in an amount sufficient to pay the aggregate Merger Consideration in
accordance with <U>Section&nbsp;3.1(a)</U> (such cash being hereinafter referred to as the &#147;<U>Payment
Fund</U>&#148;). The Payment Fund shall not be used for any purpose other than to fund payments due
pursuant to <U>Section&nbsp;3.1(a)</U>, except as provided in this Agreement. Parent and the Surviving
Corporation shall pay all charges and expenses, including those of the Paying Agent, incurred by
them in connection with the exchange of Shares for the Merger Consideration and other amounts
contemplated by this <U>Article&nbsp;III</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;As soon as reasonably practicable after the Effective Time, the Surviving Corporation
shall cause the Paying Agent to mail to each holder of record of (i)&nbsp;an outstanding certificate or
outstanding certificates (&#147;<U>Certificates</U>&#148;) that immediately prior to the Effective Time
represented outstanding Shares or (ii)&nbsp;uncertificated Shares represented by book-entry
(&#147;<U>Book-Entry Shares</U>&#148;) which, in each case, were converted into the right to receive the
Merger Consideration with respect thereto pursuant to <U>Section&nbsp;3.1(a)</U>, (A)&nbsp;a form of letter
of transmittal (which shall specify that delivery shall be effected, and risk of loss and title to
the Certificates or Book-Entry Shares held by such Person (as defined in <U>Section&nbsp;9.3(e)</U>
hereof) shall pass, only upon proper delivery of the Certificates to the Paying Agent or, in the
case of Book-Entry Shares, upon adherence to the procedures set forth in the letter of transmittal,
as applicable, and shall be in customary form and contain such other provisions as Parent, the
Paying Agent or the Company may reasonably specify) and (B)&nbsp;customary instructions for use in
effecting the surrender of Certificates or Book-Entry Shares in exchange for the Merger
Consideration payable with respect thereto pursuant to <U>Section&nbsp;3.1(a)</U> and customary
instructions consistent
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">with <U>Section&nbsp;3.3(f)</U> for use in effecting payment for lost, stolen
or destroyed Certificates. Upon surrender of a Certificate or Book-Entry Share to the Paying
Agent, together with such letter of transmittal, duly completed and validly executed, and such
other documents as the Paying Agent may reasonably require, the holder of such Certificate or
Book-Entry Share shall be entitled to receive in exchange therefor the Merger Consideration for
each Share formerly represented by such Certificate or Book-Entry Share (subject to deduction for
any required withholding Taxes), and such Certificate or Book-Entry Share shall forthwith be
cancelled. No interest shall be paid or shall accrue on any cash payable upon surrender of any
Certificate or Book-Entry Share. In the event that the Merger Consideration is to be paid to a
Person other than the Person in whose name any Certificate is registered, it shall be a condition
of payment that the Certificate so surrendered shall be properly endorsed or otherwise in proper
form for transfer, that the signatures on such Certificate or any related stock power shall be
properly guaranteed and that the Person requesting such payment shall pay any transfer or other
Taxes required by reason of such payment to a Person other than the registered holder of such
Certificate or establish to the satisfaction of Parent and the Paying Agent that such Taxes have
been paid or are not applicable. Until surrendered as contemplated by this <U>Section&nbsp;3.3</U>,
each Certificate or Book-Entry Share shall be deemed at any time after the Effective Time to
represent only the right to receive upon such surrender or transfer the Merger Consideration
payable in respect of Shares theretofore represented by such Certificate or Book-Entry Shares, as
applicable, pursuant to <U>Section&nbsp;3.1(a)</U>, without any interest thereon.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;All cash paid upon the surrender for exchange of Certificates or Book-Entry Shares in
accordance with the terms of this <U>Article&nbsp;III</U> shall be deemed to have been paid in full
satisfaction of all rights pertaining to Shares formerly represented by such Certificates or
Book-Entry Shares. At the Effective Time, the stock transfer books of the Company shall be closed
and there shall be no further registration of transfers on the stock transfer books of the
Surviving Corporation of Shares that were outstanding immediately prior to the Effective Time. If,
after the Effective Time, Certificates are presented to the Surviving Corporation or the Paying
Agent for transfer or transfer is sought for Book-Entry Shares, such Certificates or Book-Entry
Shares shall be cancelled and exchanged as provided in this <U>Article&nbsp;III</U>, subject to
applicable Law in the case of Dissenting Shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Paying Agent may invest any cash included in the Payment Fund as directed by Parent,
on a daily basis; <U>provided</U>, <U>however</U>, that any investment of such cash shall in all
events be limited to direct short-term obligations of, or short-term obligations fully guaranteed
as to principal and interest by, the U.S. government, with maturity dates no longer
than appropriate to make timely payments of the Merger Consideration. Any interest or other
income resulting from such investments shall be paid to Parent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Any portion of the principal of the Payment Fund (excluding any interest or other income
earned thereon) that remains undistributed to the holders of Certificates or Book-Entry Shares nine
(9)&nbsp;months after the Effective Time shall be delivered to the Surviving Corporation, upon demand by
Parent to the Paying Agent, and any holders of Certificates or Book-Entry Shares who have not
theretofore complied with this <U>Article&nbsp;III</U> shall thereafter look only to the Surviving
Corporation, as general creditors thereof, for payment of the Merger Consideration with respect to
Shares formerly represented by such Certificate or Book-Entry Share, without interest. None of
Parent, Merger Sub, the Company or the Paying Agent shall be liable to any Person in respect of any
Merger Consideration that is properly delivered to a public official pursuant to any applicable
abandoned property, escheat or similar Law.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;If any Certificate has been lost, stolen or destroyed, upon the making of an affidavit, in
form and substance reasonably acceptable to Parent, of that fact by the Person claiming such
Certificate to be lost, stolen or destroyed and, if required by Parent or the Paying Agent, the
posting by such Person of a bond in such amount as Parent or the Paying Agent may determine is
reasonably necessary as indemnity against any claim that may be made against it or the Surviving
Corporation with respect to such Certificate, the Paying Agent will deliver in exchange for such
lost, stolen or destroyed Certificate the Merger Consideration payable in respect thereof pursuant
to this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.4 <U>Withholding Rights</U>. Parent, the Surviving Corporation and the Paying Agent
shall be entitled to deduct and withhold from the consideration otherwise payable to any holder of
Shares, Company Stock Options or otherwise pursuant to this Agreement such amounts as Parent, the
Surviving Corporation or the Paying Agent is required to deduct and withhold with respect to the
making of such payment under the Internal Revenue Code of 1986, as amended (the &#147;<U>Code</U>&#148;), or
any provision of state, local or foreign tax Law. To the extent that amounts are so withheld and
paid over to the appropriate taxing authority by Parent, the Surviving Corporation or the Paying
Agent, such withheld amounts shall be treated for all purposes of this Agreement as having been
paid to the Person in respect of which such deduction and withholding was made.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.5 <U>Dissenting Shares</U>. Notwithstanding anything in this Agreement to the contrary,
Shares issued and outstanding immediately prior to the Effective Time that are held by any holder
who has not voted in favor of the Merger and who is entitled to demand and properly demands
appraisal of such Shares pursuant to Section&nbsp;262 of the DGCL (&#147;<U>Dissenting Shares</U>&#148;) shall
not be converted into the right to receive the Merger Consideration, unless and until such holder
shall have failed to perfect, or shall have effectively withdrawn or lost, such holder&#146;s right to
appraisal under the DGCL. Dissenting Shares shall be treated in accordance with Section&nbsp;262 of the
DGCL. If any such holder fails to perfect or withdraws or loses (including by a determination of a
court of competent jurisdiction) any such right to appraisal, then each such Share of such holder
shall thereupon be converted into and become exchangeable only for the right to receive, as of the
later of the Effective Time and the time that such right to appraisal has been irrevocably lost,
withdrawn or expired, the Merger Consideration in accordance with <U>Section&nbsp;3.1(a)</U>. Prior to
the Effective Time, the Company shall promptly notify Parent of any demands for appraisal of any
Shares, attempted withdrawals of such notices or demands and any other instruments received by
the Company relating to rights to appraisal, and Parent shall have the right to reasonably
participate in and reasonably direct all negotiations and proceedings with respect to such demands.
The Company shall not, without the prior written consent of Parent, make any payment with respect
to, settle or offer to settle, or approve any withdrawal of any such demands.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE IV<BR>
REPRESENTATIONS AND WARRANTIES OF THE COMPANY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except (a)&nbsp;as disclosed or reflected in the Company SEC Documents (as defined in <U>Section
4.5(a)</U> hereof) filed on or after January&nbsp;1, 2008 (but excluding any disclosures set forth in
any section thereof entitled &#147;Risk Factors&#148; or &#147;Forward-Looking Statements&#148; and any other
disclosures included in such filing to the extent that such disclosures are predictive or
forward-looking in nature) or (b)&nbsp;set forth in the disclosure letter delivered by the Company to
Parent prior to the execution and delivery of this Agreement (the &#147;<U>Company Disclosure
Letter</U>&#148;) (it being agreed that disclosure of any information in a particular section or subsection of the Company Disclosure Letter shall be
deemed disclosure with respect to any other
section or
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">subsection of this Agreement to which the relevance of such information is reasonably
apparent on its face), the Company represents and warrants to Parent and Merger Sub as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.1 <U>Organization, Standing and Power</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Section&nbsp;4.1 of the Company Disclosure Letter contains a complete and accurate list, for
the Company and each of its Subsidiaries, of its name, its jurisdiction of organization, where such
entity is qualified to conduct business and where such entity conducts business. Each of the
Company and its Subsidiaries (as defined in <U>Section&nbsp;9.3(f)</U> hereof) (each of the Company and
its Subsidiaries is referred to herein as an &#147;<U>Acquired Company</U>&#148; and collectively, the
&#147;<U>Acquired Companies</U>&#148;) (i)&nbsp;is an entity duly organized, validly existing and in good
standing (with respect to jurisdictions that recognize such concept) under the Laws of the
jurisdiction of its organization, (ii)&nbsp;has all requisite corporate or similar power and authority
to own, lease and operate its properties and to carry on its business as now being conducted and
(iii)&nbsp;is duly qualified or licensed to do business and is in good standing (with respect to
jurisdictions that recognize such concept) in each jurisdiction in which the nature of its business
or the ownership, leasing or operation of its properties makes such qualification or licensing
necessary, except for any such failures that would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. For purposes of this Agreement,
&#147;<U>Material Adverse Effect</U>&#148; means any event, change, circumstance, effect or state of facts
that is materially adverse to (A)&nbsp;the business, financial condition or results of operations of
the Company and its Subsidiaries, taken as a whole, or (B)&nbsp;the ability of the Company to perform,
in all material respects, its obligations under this Agreement or to consummate the transactions
contemplated hereby; <U>provided</U>, <U>however</U>, that &#147;<U>Material Adverse Effect</U>&#148;
shall not include the effect of any event, change, circumstance, effect or state of facts arising
out of or attributable to any of the following, either alone or in combination: (1)&nbsp;general
changes, trends or developments in any of the industries in which the Company or any of its
Subsidiaries operates, (2)&nbsp;changes in global, national or regional political conditions (including
the outbreak of war or acts of terrorism) or in general economic, business, regulatory, political
or market conditions or in national or global financial markets (except to the extent that such
changes affect the Company and its Subsidiaries, taken as a whole, in a materially disproportionate
manner as compared to other participants in the industries in which the Company and its
Subsidiaries conduct their business), (3)&nbsp;international calamity directly or indirectly involving
the United States, national calamity, an act of war (whether or not declared), sabotage, terrorism,
military actions or the escalation thereof, an act of God or other force majeure events (except, in each of the
foregoing cases, to the extent that such changes affect the Company and its Subsidiaries, taken as
a whole, in a materially disproportionate manner as compared to other participants in the
industries in which the Company and its Subsidiaries conduct their business), (4)&nbsp;changes in
exchange or interest rates, (5)&nbsp;any actions required under this Agreement to obtain any approval or
authorization under applicable Laws for the consummation of the Merger, (6)&nbsp;changes in any
applicable Laws or applicable accounting regulations or principles or interpretations thereof, (7)
changes in the price or trading volume of the Company&#146;s stock, (8)&nbsp;any failure by the Company or
any Subsidiary to meet any estimates or expectations of the Company&#146;s or such Subsidiary&#146;s revenue,
earnings or other financial performance or results of operations for any period (including the
failure to meet any published analyst estimates or the failure to perform at
a level on par with
the Company&#146;s or such Subsidiary&#146;s competitors), or any failure by the Company or any of its
Subsidiaries to meet its internal or published projections, budgets, plans or forecasts of its
revenues, earnings, cash flows or other financial performance or results of operations, (9)&nbsp;any
inventory write-downs, delayed or deferred trade payables or any reduction in sales, operating
profit, net income or any other financial metric compared with any prior period,
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(10)&nbsp;that certain
License Agreement dated as of May&nbsp;14, 2001 between Callaway Golf Company and the Company, as
amended to date and may be amended from time to time (the &#147;<U>Callaway License Agreement</U>&#148;),
including any litigation in connection therewith (including any adverse judgment or arbitration
award) or the modification or termination thereof, (11)&nbsp;the announcement or pendency of this
Agreement and the transactions contemplated hereby, including the initiation of litigation, or the
failure to give any consent, by any Person (including Bank of America and any other provider of
credit) with respect to this Agreement, and including any termination of, reduction in or similar
negative impact on relationships, contractual or otherwise, with any customers, suppliers,
licensors, distributors, partners, consultants or employees of the Company and its Subsidiaries
(including Callaway Golf Company) due to the announcement and performance of this Agreement or the
identity of the parties to this Agreement, or the performance of this Agreement and the
transactions contemplated hereby, including compliance with the covenants set forth herein, (12)
the termination or resignation of any director, executive officer, other employee or consultant of
the Company or any of its Subsidiaries, (13)&nbsp;any action taken by the Company, or which the Company
causes to be taken by any of its Subsidiaries, in each case which is required by or resulting from
or arising in connection with this Agreement, (14)&nbsp;any actions taken (or omitted to be taken) at
the written request of, or consented to by (including any debt financing permitted under Section
6.1), Parent, Merger Sub or their Affiliates or Representatives (as defined in <U>Section
6.4(b)</U> hereof), or (15)&nbsp;any increase in the cost or availability of financing to Parent or
Merger Sub.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company has delivered or made available to Parent true, correct and complete copies of
(i)&nbsp;the certificate of incorporation, bylaws and other charter or organizational documents of each
of the Acquired Companies, including all amendments thereto and (ii)&nbsp;except as set forth on Section
4.1(b)(ii) of the Company Disclosure Letter, the minutes and other records of the meetings and
other proceedings (including any actions taken by written consent or otherwise without a meeting)
of the equity holders of each of the Acquired Companies, the board of directors or managers of each
of the Acquired Companies and all committees of the board of directors or managers of each of the
Acquired Companies (the items described in clauses (i)&nbsp;and (ii)&nbsp;above, collectively, the
&#147;<U>Company Constituent Documents</U>&#148;). The Company Constituent Documents are in full force and
effect on the date hereof. The Company has no Subsidiaries, except for the entities identified in
Section&nbsp;4.1 of the Company Disclosure Letter. None of the Acquired Companies has any equity
interest or similar interest in, or any interest convertible into or exchangeable or exercisable
for any equity or similar interest in, any entity, other than those set forth on Section&nbsp;4.1 of the Company Disclosure Letter. None of the Acquired Companies
has, at any time, been a general partner of, or has otherwise been liable for any of the debts or
other obligations of, any unaffiliated general partnership, unaffiliated limited partnership or
other unaffiliated entity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.2 <U>Capital Stock</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The authorized capital stock of each Acquired Company and the issued and outstanding
capital stock of each Acquired Company as of the date hereof are set forth on Section&nbsp;4.2(a) of the
Company Disclosure Letter. Except as set forth in Section&nbsp;4.2(a) of the Company Disclosure Letter,
each of the outstanding shares of capital stock of each Acquired Company is duly authorized,
validly issued, fully paid and nonassessable. All shares or other equity interests of the
Subsidiaries of the Company are owned by the Company or another wholly owned Subsidiary of the
Company free and clear of all security interests, liens, claims, pledges, agreements, limitations
in voting rights, charges or other encumbrances (collectively, &#147;<U>Liens</U>&#148;) of any nature
whatsoever, except for Permitted Liens (as defined in <U>Section&nbsp;4.17</U>
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">hereof). All
outstanding equity interests and convertible securities of any Acquired Company have been issued
and granted in material compliance with (i)&nbsp;all applicable Laws and (ii)&nbsp;all applicable
requirements set forth in applicable Contracts. No Shares are held in treasury by any Acquired
Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as set forth in Section&nbsp;4.2(b) of the Company Disclosure Letter, each of the
outstanding shares of capital stock of each Acquired Company is free of (i)&nbsp;any preemptive right,
right of participation, right of maintenance or any similar right or subject to any right of first
refusal, (ii)&nbsp;any voting registration requirement, and (iii)&nbsp;any restriction against any Person
from purchasing, selling, pledging or otherwise disposing of (or granting any option or similar
right with respect to) such capital stock. Except as set forth in Section&nbsp;4.2(b) of the Company
Disclosure Letter, as of the date of this Agreement, (A)&nbsp;there are not outstanding or authorized
(1)&nbsp;any securities of any Acquired Company convertible into or exchangeable for shares of capital
stock or voting securities of any Acquired Company or (2)&nbsp;options, calls, warrants or other rights,
rights agreements, stockholder rights plans, agreements, arrangements or commitments of any
character relating to the issued or unissued capital stock, voting securities or securities
convertible into or exchangeable for capital stock or voting securities of any Acquired Company,
(B)&nbsp;there are no outstanding obligations of any Acquired Company to repurchase, redeem or otherwise
acquire any capital stock, voting securities or securities convertible into or exchangeable for
capital stock or voting securities of any Acquired Company, and (C)&nbsp;there is no condition or
circumstance that may give rise to or provide a basis for the assertion of a claim by any Person to
the effect that such Person is entitled to acquire or receive any shares of capital stock or other
securities of any of the Acquired Companies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;As of the date hereof: 1,033,991 shares of Company common stock are subject to issuance
pursuant to stock options (the &#147;<U>Company Options</U>&#148;) granted and outstanding under the stock
option plans of the Acquired Companies (the &#147;<U>Company Option Plans</U>&#148;). Section&nbsp;4.2(c) of the
Company Disclosure Letter sets forth the following information with respect to each Company Option
outstanding as of the date of this Agreement: (i)&nbsp;the Company Option Plan pursuant to which such
Company Option was granted; (ii)&nbsp;the name of the holder of such Company Option; (iii)&nbsp;the number of
shares of Company common stock subject to such Company Option; (iv)&nbsp;the exercise price of such
Company Option; (v)&nbsp;the date on which such Company Option was granted; (vi)&nbsp;the extent to which
such Company Option is vested and exercisable as of the date of this Agreement; and (vii)&nbsp;the date
on which such Company Option expires. The Company has delivered or made available to Parent
accurate and complete copies of all stock option plans pursuant to which the Company has granted Company Options, and the
forms of all stock option agreements evidencing such options. The Company Option Plans and the
stock option agreements thereunder constitute all plans, rights, agreements and convertible
securities pursuant to which the Company has granted rights to purchase shares of Company Common
Stock. The payment to be made to the holders of Company Options pursuant to the terms of this
Agreement complies in all respects with the terms of the stock option agreement and Company Option
Plan pursuant to which such holder (or such holder&#146;s predecessor) acquired such Company Options.
Upon payment of such amounts to such holders, the Company shall have no further liability or
obligation of any kind to any such holders in respect of any Company Options.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.3 <U>Authority</U>. The Company has all necessary corporate power and authority to
execute and deliver this Agreement, to perform its obligations hereunder and, subject to the
adoption and approval of this Agreement and the Merger by the holders of at least a majority in
combined voting power of the outstanding Shares (the &#147;<U>Company Stockholder Approval</U>&#148;), to
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">consummate the transactions contemplated hereby. The execution, delivery and performance of this
Agreement by the Company and the consummation by the Company of the transactions contemplated
hereby have been duly authorized by all necessary corporate action on the part of the Company and
no other corporate proceedings on the part of the Company are necessary to approve this Agreement
or to consummate the transactions contemplated hereby, subject, in the case of the consummation of
the Merger, to obtaining the Company Stockholder Approval and to the filing of the Certificate of
Merger with the Secretary of State of the State of Delaware as required by the DGCL. This
Agreement has been duly executed and delivered by the Company and, assuming the due authorization,
execution and delivery by Parent and Merger Sub, constitutes a valid and binding obligation of the
Company, enforceable against the Company in accordance with its terms (except to the extent that
enforceability may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or
similar Laws affecting the enforcement of creditors&#146; rights generally or by general principles of
equity). As of the date hereof, the Company Board has duly approved and declared advisable this
Agreement and the transactions contemplated hereby and, subject to <U>Section&nbsp;6.4</U>, has
resolved to recommend that the Company&#146;s stockholders approve this Agreement and the transactions
contemplated hereby.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.4 <U>No Conflict; Consents and Approvals</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The execution, delivery and performance of this Agreement by the Company, and the
consummation by the Company of the transactions contemplated hereby, do not and will not (i)
conflict with or violate the Company Constituent Documents or any resolution adopted by the equity
holders, directors or any governing body of any of the Acquired Companies, (ii)&nbsp;assuming that all
consents, approvals and authorizations contemplated by clauses (i)&nbsp;through (v)&nbsp;of subsection (b)
below have been obtained and all filings described in such clauses have been made, conflict with or
violate any law, rule, regulation, order, judgment or decree (collectively, &#147;<U>Law</U>&#148;)
applicable to the Company or any of its Subsidiaries or by which any of their respective properties
are bound or (iii)&nbsp;except as set forth in Section&nbsp;4.4 of the Company Disclosure Letter, result in
any breach or violation of, or constitute a default (or an event which with notice or lapse of time
or both would become a default), or result in the loss of a benefit under, or give rise to any
right of termination, cancellation, amendment or acceleration of, any note, bond, mortgage,
indenture, contract, agreement, lease, license, permit, governmental authorization or other
instrument or obligation (each, a &#147;<U>Contract</U>&#148;) to which the Company or any of its
Subsidiaries is a party or beneficiary or by which the Company or any of
its Subsidiaries or any of their respective properties are bound and that is also a Material
Contract, except, in the case of clauses (ii)&nbsp;and (iii)&nbsp;of this paragraph, for any such conflict,
breach, violation, default, loss, right or other occurrence that would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The execution, delivery and performance of this Agreement by the Company, and the
consummation by the Company of the transactions contemplated hereby, do not and will not require
any consent, approval, authorization or permit of, action by, filing with or notification to, any
governmental or regulatory (including stock exchange) authority, agency, court commission, court,
arbitrator or other governmental body (each, a &#147;<U>Governmental Entity</U>&#148;), except for (i)&nbsp;such
filings as required under applicable requirements of the Exchange Act and the rules and regulations
promulgated thereunder, and under state securities and &#147;blue sky&#148; laws, (ii)&nbsp;the filings required
under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the &#147;<U>HSR Act</U>&#148;)
and any filings required under the applicable requirements of antitrust or other competition laws
of jurisdictions other than the United States or investment laws relating to foreign ownership
(&#147;<U>Foreign Antitrust Laws</U>&#148;), (iii)&nbsp;such filings as necessary to
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">comply with the applicable
requirements of the Nasdaq Stock Market, (iv)&nbsp;the filing with the Secretary of State of the State
of Delaware of the Certificate of Merger as required by the DGCL and (v)&nbsp;any such consent,
approval, authorization, permit, action, filing or notification the failure of which to make or
obtain would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.5 <U>SEC Reports; Financial Statements</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company has filed or otherwise transmitted all forms, reports, statements,
certifications, communications and other documents (including all exhibits, amendments and
supplements thereto) required to be filed by it with the SEC since January&nbsp;1, 2003 (all such forms,
reports, statements, certificates and other documents filed since January&nbsp;1, 2003 and prior to the
date hereof, collectively, the &#147;<U>Company SEC Documents</U>&#148;). The financial statements filed or
required to be filed with the Company SEC Documents are referred to herein as the &#147;<U>Company
Financial Statements</U>&#148;. As of their respective dates, or, if amended, as of the date of the
last such amendment, each of the Company SEC Documents complied as to form in all material respects
with the applicable requirements of the Securities Act of 1933, as amended (the &#147;<U>Securities
Act</U>&#148;) and the Exchange Act, and the applicable rules and regulations promulgated thereunder, as
the case may be, each as in effect on the date so filed. Except to the extent that information in
any Company SEC Document has been revised or superseded by a subsequently filed Company SEC
Document, none of the Company SEC Documents contains any untrue statement of a material fact or
omits to state a material fact required to be stated or incorporated by reference therein or
necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading. The Company has made available to Parent a copy of all
communications with the SEC by the Company or any of its Subsidiaries.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The audited consolidated financial statements of the Company (including any related notes
thereto) that are included in the Company&#146;s Annual Report on Form 10-K for the fiscal year ended
October&nbsp;31, 2007 filed with the SEC (i)&nbsp;have been prepared in accordance with United States
generally accepted accounting principles (as used in the United States, &#147;<U>GAAP</U>&#148;) applied on
a consistent basis throughout the periods involved (except as may be indicated in the notes
thereto) and (ii)&nbsp;fairly present in all material respects the consolidated financial position of
the Company and its Subsidiaries at the respective dates thereof and the results of their
operations and cash flows for the periods indicated. The unaudited consolidated
financial statements of the Company (including any related notes thereto) that are included in
the Company&#146;s Quarterly Reports on Form 10-Q filed with the SEC since October&nbsp;31, 2007 (A)&nbsp;have
been prepared in accordance with GAAP applied on a consistent basis throughout the periods involved
(except as may be indicated in the notes thereto or may be permitted by the SEC under the Exchange
Act) and (B)&nbsp;fairly present in all material respects the consolidated financial position of the
Company and its Subsidiaries as of the respective dates thereof and the results of their operations
and cash flows for the periods indicated (subject to normal period-end adjustments that are not
reasonably expected to be material).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Company (i)&nbsp;has in place the &#147;disclosure controls and procedures&#148; (as defined in Rules
13a-14(c) and 15d-14(c) of the Exchange Act) required for the Chief Executive Officer and Chief
Financial Officer of the Company to engage in the review and evaluation process mandated by the
Exchange Act, and (ii)&nbsp;has disclosed, based on its most recent evaluation prior to the date hereof,
to the Company&#146;s outside auditors and the audit committee of the Company Board (A)&nbsp;any significant
deficiencies and material weaknesses in the design or operation of internal controls over financial
reporting (as defined in Rule&nbsp;13a-15(f) of the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Exchange Act) which are reasonably likely to
adversely affect in any material respect the Company&#146;s ability to record, process, summarize and
report financial information and (B)&nbsp;any fraud, whether or not material, that involves management
or other employees who have a significant role in the Company&#146;s internal controls over financial
reporting. The Company&#146;s &#147;disclosure controls and procedures&#148; are reasonably designed to ensure
that all material information (both financial and non-financial) required to be disclosed by the
Company in the reports that it files or furnishes under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the rules and forms of the SEC, and
that all such information is accumulated and communicated to the Company&#146;s management as
appropriate to allow timely decisions regarding required disclosure and to make the certifications
of the Chief Executive Officer and Chief Financial Officer of the Company required under the
Exchange Act with respect to such reports. None of the Acquired Companies is a party to any
off-balance sheet arrangements (as defined in Item 303(c) of Regulation&nbsp;S-K of the SEC).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The then-acting Chief Executive Officer and the Chief Financial Officer of the Company
have signed, and the Company has furnished to the SEC, all certifications required by Section&nbsp;906
of the Sarbanes-Oxley Act of 2002 (&#147;<U>SOX</U>&#148;); such certifications contain no qualifications or
exceptions to the matters certified therein and have not been modified or withdrawn; and neither
the Company nor any of its officers has received notice from any Governmental Entity questioning or
challenging the accuracy, completeness, form or manner of filing or submission of such
certifications. The Company made available to Parent complete and correct copies of all
certifications filed with the SEC pursuant to Sections&nbsp;302 and 906 of SOX.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Except as set forth on Section&nbsp;4.5 of the Company Disclosure Letter, none of the Acquired
Companies has, since December&nbsp;31, 2003, extended or maintained credit, arranged for the extension
of credit, or renewed an extension of credit, in the form of a personal loan to or for any Director
or individual employed by the Company that is at a vice president (or equivalent) level and above,
including consultants with substantially equivalent duties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.6 <U>No Undisclosed Liabilities</U>. Except as set forth on Section&nbsp;4.6 of the Company
Disclosure Letter, neither the Company nor any of its Subsidiaries has any liabilities or
obligations of any nature, whether or not accrued, contingent or otherwise, except for liabilities
and obligations (a)&nbsp;reflected or reserved against in the consolidated balance sheet of the Company
dated as of July&nbsp;31, 2008 (or the notes thereto)
included in the Company SEC Documents, (b)&nbsp;incurred in the ordinary course of business since July
31, 2008 consistent with past practice, (c)&nbsp;incurred pursuant to the transactions contemplated by
this Agreement or (d)&nbsp;that would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.7 <U>Certain Information</U>. If approval of the Company&#146;s stockholders is required by
applicable Law to consummate the Merger, then none of the information supplied or to be supplied by
the Company prior to the consummation of the Offer for inclusion or incorporation by reference in
the proxy statement to be sent to the stockholders of the Company in connection with the Company
Stockholders Meeting (such proxy statement, as amended or supplemented, the &#147;<U>Proxy
Statement</U>&#148;) will, at the date that it is first mailed to the stockholders of the Company and at
the time of the Company Stockholders Meeting, contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they are made, not misleading. Notwithstanding
the foregoing, the Company makes no representation or warranty with respect to any information
supplied by Parent or Merger Sub or any of their respective Representatives for inclusion or
incorporation by reference in the Proxy Statement.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">None of the information supplied or to be
supplied by any Acquired Company for inclusion in, or incorporation by reference into, the Schedule
14D-9 will, at the respective times they are first published, sent or given to the Company&#146;s
stockholders, contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they are made, not misleading. The individuals set forth on Schedule
9.3(d)(i) receive reasonably regular and comprehensive updates of information from the heads of the
functional units of the Acquired Companies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.8 <U>Absence of Certain Changes or Events</U>. Since July&nbsp;31, 2008 through the date of
this Agreement, except as set forth on Section&nbsp;4.8 of the Company Disclosure Letter and except as
otherwise contemplated by this Agreement or consented to by Parent or Merger Sub in writing:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;each of the Acquired Companies has operated its respective business in the ordinary course
and consistent with past practices;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;no fact, event, circumstance or condition exists or has occurred that has had, or would
reasonably be expected to have, a Material Adverse Effect;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;none of the Acquired Companies has (i)&nbsp;declared, accrued, set aside or paid any dividend
or made any other distribution in respect of any equity interests or other securities; (ii)
repurchased, redeemed or otherwise reacquired any shares of capital stock or other securities;
(iii)&nbsp;sold, issued or granted, or authorized the issuance of, (A)&nbsp;any capital stock or other
security (except for Shares issued upon the valid exercise of outstanding Company Options), (B)&nbsp;any
option, warrant or right to acquire any capital stock or any other security (except for Company
Options described in Section&nbsp;4.8 of the Company Disclosure Letter), or (C)&nbsp;any instrument
convertible into or exchangeable for any capital stock or other security; (iv)&nbsp;made any capital
expenditure which, when added to all other capital expenditures made on behalf of the Acquired
Companies since July&nbsp;31, 2008 exceeds $100,000 in the aggregate; (v)&nbsp;changed any of its methods of
accounting or accounting practices, except as required by GAAP; (vi)&nbsp;made any material Tax
election; or (vii)&nbsp;commenced or settled any material Action;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;none of the Acquired Companies has (i)&nbsp;amended or waived any of its material rights under,
or permitted the acceleration of vesting under, any provision of any of the Company Employee Plans
or any material provision of any agreement evidencing any outstanding Company Option; (ii)
established or adopted any Company employee benefit plan; (iii)&nbsp;caused or permitted any Company
employee benefit plan to be amended in any material respect; or (iv)&nbsp;paid any bonus or made any
profit-sharing or similar payment to, or materially increased the amount of the wages, salary,
commissions, fringe benefits or other compensation or remuneration payable to, any of its
directors, officers or employees;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;made any loan to, or entered into any other transaction with, any of its directors,
officers, consultants or employees outside of the ordinary course of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;there has been no amendment to any Company Constituent Document of any of the Acquired
Companies, and none of the Acquired Companies has effected or been a party to any merger,
consolidation, share exchange, business combination, recapitalization, reclassification of shares,
stock split, reverse stock split or similar transaction;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;except in the ordinary course of business and consistent with past practice, none of the
Acquired Companies has (i)&nbsp;entered into or permitted any of the assets owned or
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">used by it which
are material to the Acquired Companies to become bound by any Material Contract, or (ii)&nbsp;amended or
terminated, or waived any right or remedy under, any Material Contract;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;except in the ordinary course of business and consistent with past practices, none of the
Acquired Companies has (i)&nbsp;sold or otherwise disposed of, or acquired, leased, licensed, waived or
relinquished, any right which is material to the Acquired Companies or other asset which is
material to the Acquired Companies to, from or for the benefit of, any other Person; or (ii)&nbsp;made
any pledge of any of its assets or otherwise permitted any of its assets to become subject to any
Lien;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;none of the Acquired Companies has revalued any of its assets in any material respect;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;there has been no change in the accounting policies or practices of any Acquired Company
and there has been no increase of (other than increases resulting from the calculation of reserves
in the ordinary course of business consistent with past practice) or change in the assumptions
underlying, or methods of calculating, any reserves for bad debt, any accruals, any contingency, or
other reserves;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;there has been no payment, discharge or satisfaction of any claims, encumbrances,
liabilities or obligations (whether absolute, accrued, contingent or otherwise and whether due or
to become due), other than the payment, discharge or satisfaction in the ordinary course of
business consistent with past practices of (i)&nbsp;liabilities and obligations arising in the ordinary
course of business consistent with past practices, or (ii)&nbsp;liabilities reflected or reserved
against in the Company Financial Statements;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;there has been no material damage, destruction or loss, whether covered by insurance or
not, of any material asset of any of the Acquired Companies;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;there has been no material change in pricing or investment practices or policies of any of
the Acquired Companies;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;there has been no waiver or release of any right or claim of any Acquired Company,
including any write-off or other compromise of any account receivable of the Company, exceeding
$100,000 in the aggregate;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;there has been no resignation of any officer, executive employee or any other employee,
the absence of whom would reasonably be expected to have a Material Adverse Effect; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;there has been no agreement by any Acquired Company or by any of their officers or
employees to do any of the things described in the preceding clauses (a)&nbsp;through (o) (other than
negotiations with Parent and its Representatives regarding the transactions contemplated by this
Agreement).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.9 <U>Litigation</U>. Except as set forth on Section&nbsp;4.9 of the Company Disclosure
Letter, (a)&nbsp;there is no suit, claim, action, proceeding, arbitration, mediation or investigation
(each, an &#147;<U>Action</U>&#148;) pending or, to the knowledge of the Company, threatened against the
Company or any of its Subsidiaries or any of their respective properties (including by or before
any Governmental Entity) and (b)&nbsp;neither the Company nor any of its Subsidiaries nor any of
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">their
respective properties is or are subject to any judgment, order, injunction, ruling or decree of any
Governmental Entity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.10 <U>Compliance with Laws</U>. Except with respect to ERISA (as defined in <U>Section
4.11(a)</U> hereof), Environmental Laws (as defined in <U>Section&nbsp;4.13(c)(i)</U> hereof) and
Taxes, which are the subject of <U>Sections&nbsp;4.11</U>, <U>4.13</U> and <U>4.14</U>, respectively,
and except as set forth on Section&nbsp;4.10 of the Company Disclosure Letter, the Company and each of
its Subsidiaries are in compliance with all Laws applicable to them or by which any of their
respective properties are bound, except where any non-compliance would not, individually or the
aggregate, reasonably be expected to have a Material Adverse Effect. Except with respect to
Environmental Laws (which are the subject of <U>Section&nbsp;4.13</U>), the Company and its
Subsidiaries have in effect all permits, licenses, exemptions, authorizations, franchises, orders
and approvals of all Governmental Entities (collectively, &#147;<U>Permits</U>&#148;) necessary for them to
own, lease or operate their properties and to carry on their businesses as now conducted, except
for any Permits the absence of which would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. All Permits are in full force and effect, except where
the failure to be in full force and effect would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect. Since December&nbsp;31, 2003, none of the Acquired
Companies has received any written notice or other written communication from any Governmental
Entity regarding any actual or threatened revocation, withdrawal, suspension, cancellation,
termination or modification of any material Permit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.11 <U>Benefit Plans</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Section&nbsp;4.11(a) of the Company Disclosure Letter contains a complete and accurate list of
each material &#147;employee benefit plan&#148; (within the meaning of Section&nbsp;3(3) of the Employee
Retirement Income Security Act of 1974, as amended (&#147;<U>ERISA</U>&#148;)), including any &#147;multiemployer plan&#148; (within the meaning of ERISA Section&nbsp;3(37)), and all material stock
purchase, stock option, restricted stock, stock appreciation right, phantom stock, severance,
salary continuation, change-in-control, fringe benefit, bonus, incentive, deferred compensation,
welfare, medical, health, Code Section&nbsp;125, disability, life insurance, pension, retirement,
profit-sharing, thrift, savings, vacation, paid time off, leave of absence, employee assistance,
expense reimbursement and all other employee benefit plans, agreements, programs, policies or other
arrangements, whether or not subject to ERISA (including any funding mechanism therefor now in
effect or required in the future as a result of the transactions contemplated by this Agreement or
otherwise), whether formal or informal, written, legally binding or not, under which any Personnel
has any present or future right to benefits and compensation or the Company or its ERISA Affiliates
has had or has any current or future liability. &#147;<U>Personnel</U>&#148; means current or former (i)
employees, (ii)&nbsp;Directors and (iii)&nbsp;consultants of the Company or its ERISA Affiliates. All such
plans, agreements, programs, policies and arrangements shall be collectively referred to as the
&#147;<U>Company Plans</U>.&#148; For purposes of this Agreement, &#147;<U>ERISA Affiliate</U>&#148; means each
business or entity (whether or not incorporated) which is a member of a &#147;controlled group of
corporations,&#148; under &#147;common control&#148; or an &#147;affiliated service group&#148; with the Company within the
meaning of Sections&nbsp;414(b), (c)&nbsp;or (m)&nbsp;of the Code, or required to be aggregated with the Company
or any of its Subsidiaries under Section 414(o) of the Code, or is under &#147;common control&#148; with the
Company or any of its Subsidiaries, within the meaning of Section&nbsp;4001(a)(14) of ERISA.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;With respect to each Company Plan, the Company has furnished or made available to Parent a
current, accurate and complete copy thereof and, to the extent applicable: (i)&nbsp;any related trust
agreement, insurance contract/policy or other funding instrument, (ii)&nbsp;the
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">most recent
determination letter of the U.S. Internal Revenue Service (the &#147;<U>IRS</U>&#148;), (iii)&nbsp;the three most
recently filed Form&nbsp;5500 series annual returns and all schedules, attachments and independent
auditor&#146;s reports thereto, (iv)&nbsp;any summary plan description and other equivalent written
communications by the Company or its Subsidiaries to their employees concerning the extent of the
benefits provided under a Company Plan, including written descriptions of any unwritten Company
Plans, (v)&nbsp;the three (3)&nbsp;most recent annual nondiscrimination test results and the most recent
actuarial report or valuation of related plan assets, and (vi)&nbsp;all material correspondence to or
from any Governmental Entity, including any filings under the IRS&#146; Employee Plans Compliance
Resolution System or the Department of Labor&#146;s Delinquent Filer Voluntary Compliance Program or
Voluntary Fiduciary Correction Program.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except as set forth on Section&nbsp;4.11(c) of the Company Disclosure Letter, with respect to
each Company Plan: (i)&nbsp;such Company Plan has been maintained in all material respects in
accordance with its terms, and conforms to, and its administration is in compliance in all material
respects with, applicable provisions of ERISA, the Code and all other applicable Law; and (ii)&nbsp;to
the knowledge of the Company, no breaches of fiduciary duty (as determined under ERISA) in
connection with the administration or investment of the assets of such Company Plan in connection
with which the Company or a fiduciary could reasonably be expected to incur a material liability.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Except as set forth on Section&nbsp;4.11(d) of the Company Disclosure Letter, no non-exempt
&#147;prohibited transaction&#148;, as described in Section&nbsp;406 of ERISA or Section&nbsp;4975 of the Code, or
&#147;accumulated funding deficiency&#148;, as defined in Section&nbsp;302 of ERISA and 412 of the Code, has
occurred with respect to any Company Plan, and all contributions required to be made under the
terms of any Company Plan have been timely made, including timely deposits of
employee salary deferral contributions and participant loan repayments in accordance with the
regulations issued by the Department of Labor.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Each Company Plan intended to be qualified under Section 401(a) of the Code has received a
favorable determination, advisory and/or opinion letter, as applicable, from the IRS that it is so
qualified (or the deadline for obtaining such a letter has not expired as of the date of this
Agreement) and nothing has occurred since the date of such letter that would reasonably be expected
to cause the loss of such qualified status of such Company Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;There is no Action (including any investigation, audit or other administrative proceeding)
by the Department of Labor, the Pension Benefit Guaranty Corporation, the IRS or any other
Governmental Entity or by any plan participant or beneficiary pending, or to the knowledge of the
Company, threatened, relating to the Company Plans, any fiduciaries thereof with respect to their
duties to the Company Plans or the assets of any of the trusts under any of the Company Plans
(other than routine claims for benefits) nor are there facts or circumstances that exist that would
reasonably be expected to give rise to any such Actions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Neither the Company nor any of its ERISA Affiliates has ever maintained, established,
sponsored, participated in or contributed to or had any obligation to contribute to any: (i)
&#147;pension plan&#148; (within the meaning of Section&nbsp;3(2) of ERISA) that is subject to Title IV of ERISA
or Section&nbsp;412 of the Code, (ii) &#147;multiemployer plan&#148; (within the meaning of Section&nbsp;3(37) of
ERISA), (iii) &#147;multiple employer plan&#148; (within the meaning of Section 413(c) of the Code), or (iv)
&#147;funded welfare plan&#148; (within the meaning of Section&nbsp;419 of the Code).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Except as set forth on Section&nbsp;4.11(h) of the Company Disclosure Letter, neither the
execution and delivery of this Agreement nor the consummation of the transactions
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">contemplated hereby will: (i)&nbsp;result in any payment becoming due to any Personnel; (ii)&nbsp;increase any benefits
otherwise payable under any Company Plan; (iii)&nbsp;result in the acceleration of the time of payment
or vesting of any rights with respect to any such benefits under any Company Plan; (iv)&nbsp;require any
contributions or payments to fund, or any security to secure, any obligations under any Company
Plan; (v)&nbsp;result in forgiveness in whole or in part of any outstanding loans made by the Company or
its Subsidiaries to any Personnel; or (vi)&nbsp;result in the payment of any amount for which a
deduction would be disallowed under Section 162(m) or Section&nbsp;404 of the Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Except as set forth on Section&nbsp;4.11(i) of the Company Disclosure Letter, no Acquired
Company has any obligation to provide health, accident, disability, life insurance or death
benefits with respect to any Personnel of any Acquired Company, or the spouses, dependents or
beneficiaries of any of Personnel, beyond the termination of employment or service of any such
Personnel, whether under a Company Plan or otherwise, other than continuation coverage as may be
required under Section&nbsp;4980B of the Code, Part&nbsp;6 of Title I of ERISA or any similar state or local
Law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;Each Acquired Company has timely filed all requisite governmental reports, documents and
notices (which were true, correct and complete in all material respects as of the date filed) with
respect to each Company Plan, including any required audit reports, and has properly and timely
filed and distributed or posted all notices and reports to employees required to be filed,
distributed or posted with respect to each Company Plan, in accordance with all applicable Laws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;Except as set forth in Section&nbsp;4.11(k) of the Company Disclosure Letter, each Acquired
Company has previously administered and shall continue to administer all of its &#147;nonqualified
deferred compensation plans&#148; (within the meaning of Code Section&nbsp;409A) (each, a &#147;409A Plan&#148;) to be
in compliance in all material respects with the requirements of Code Section&nbsp;409A and the
regulations and guidance promulgated thereunder, to the extent applicable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;Except as would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect, no individual who has been classified by the Company or any of its
Subsidiaries as a non-employee (such as an independent contractor, leased employee or consultant)
could reasonably be expected to have a claim against the Company or its Subsidiaries, as
applicable, for eligibility to participate in any Company Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;Except as set forth on Section&nbsp;4.11(m) of the Company Disclosure Letter, to the knowledge
of the Company, no Company Plan is subject to the laws of any jurisdiction outside of the United
States or provides compensation or benefits to any Personnel (or any dependent thereof) that are
subject to the laws of any jurisdiction outside of the United States.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.12 <U>Labor Matters</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company has made available to Parent a list of the name of each officer, employee and
consultant of each Acquired Company (organized by Acquired Company) together with each such
person&#146;s position or function, annual current rate of compensation, and any entitlement to bonus,
commission, severance or other additional compensation. The Company has made available to Parent
complete and accurate copies of each written employment, consulting, compensation or similar
agreement to which the Company is a party.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;All employment manuals and employment handbooks that are applicable to the employees of
any Acquired Company are listed in Section&nbsp;4.12(b) of the Company Disclosure Letter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Neither the Company nor any of its Subsidiaries is a party to, or is bound by, any
collective bargaining agreement with any labor union or labor organization. To the knowledge of
the Company, there is no application for certification of a collective bargaining agent. There is
no labor dispute, strike, work stoppage or lockout, or, to the knowledge of the Company, threat
thereof, by or with respect to any employees of the Company or any of its Subsidiaries.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Company has complied in all material respects with all Laws applicable to it relating
to the hiring of employees and the employment of labor, including provisions thereof relating to
wages, hours, equal opportunity, collective bargaining and the payment of social security and other
Taxes, and each independent contractor of an Acquired Company is properly classified as an
independent contractor in accordance with all Laws, with immaterial exceptions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Except as would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect, (i)&nbsp;no Acquired Company is delinquent in payments to any of its employees
for any wages, salaries, commissions, bonuses or other direct compensation, and (ii)&nbsp;there is no
unfair labor practice complaint against Company pending before the National Labor Relations Board
or any other Governmental Entity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;To the knowledge of the Company, no Acquired Company&#146;s employees is bound by any agreement
with any other Person that is violated by such employee performing the services he or she is
currently performing for any Acquired Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.13 <U>Environmental Matters</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except as set forth in the environmental assessments disclosed on Section&nbsp;4.13 of the
Company Disclosure Letter: (i)&nbsp;the Company and each of its Subsidiaries are in compliance with all
applicable Environmental Laws, and possess and are in compliance with all applicable Environmental
Permits required under such Environmental Laws to operate as they currently operate; (ii)&nbsp;to the
knowledge of the Company, there are no Materials of Environmental Concern (as defined in
<U>Section&nbsp;4.13(b)</U> hereof) at any property owned or operated by the Company or any of its
Subsidiaries, except under circumstances that are not reasonably likely to result in liability of
the Company or any of its Subsidiaries under any applicable Environmental Laws (as defined in
<U>Section&nbsp;4.13(c)(i)</U> hereof); (iii)&nbsp;neither the Company nor any of its Subsidiaries has
received any written notification alleging that it is liable for, or request for information
pursuant to Section 104(e) of the Comprehensive Environmental Response, Compensation and Liability
Act or similar state statute, concerning any release or threatened release of Materials of
Environmental Concern at any location; (iv)&nbsp;to the knowledge of the Company, no facts or
circumstances exist which would reasonably be expected to give rise to liabilities with respect to
a release or threatened release of Materials of Environmental Concern; and (v)&nbsp;neither the Company
nor any of its Subsidiaries has received any written notice, claim or complaint, or is currently
subject to any proceeding, relating to noncompliance with Environmental Laws or any other
liabilities pursuant to Environmental Laws, and to the knowledge of the Company, no such matter has
been threatened in writing. No Acquired Company (excluding for this purpose any Subsidiaries of
the Company prior to the time owned by the Company) has installed any underground storage tanks at
any premises used by it, nor has
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">any Acquired Company (excluding for this purpose any Subsidiaries
of the Company prior to the time owned by the Company) used any underground storage tanks thereat
and, to the Company&#146;s knowledge, there are no underground storage tanks located thereat. There
have been no environmental investigations, site assessments, studies, audits, tests, reviews or
other analyses conducted by, or that are in the possession of, any Acquired Company in relation to
any site or facility now or previously owned, operated or leased by any Acquired Company which have
not been delivered or made available to Parent prior to the execution of this Agreement, all of
which are listed on Section&nbsp;4.13 of the Company Disclosure Letter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Notwithstanding any other representations and warranties in this Agreement, the
representations and warranties in this <U>Section&nbsp;4.13</U> are the only representations and
warranties in this Agreement with respect to Environmental Laws or Materials of Environmental
Concern.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;For purposes of this Agreement, the following terms shall have the meanings assigned
below:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&#147;<U>Environmental Laws</U>&#148; means any Law relating to (A)&nbsp;pollution or protection of
human health or the environment (including ambient air, surface water, ground water, land surface
or subsurface strata), including any Law relating to emissions, discharges, releases, threatened
releases, containment, removal, remediation, response, cleanup or abatement of Materials of
Environmental Concern or otherwise relating to the manufacture, processing, distribution, use,
treatment, storage, disposal, transport, handling of or exposure of any individual to Materials of
Environmental Concern and (B)&nbsp;occupational safety or health matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&#147;<U>Environmental Permits</U>&#148; means all permits, licenses, registrations and other
authorizations currently required under applicable Environmental Laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&#147;<U>Materials of Environmental Concern</U>&#148; means all chemicals, pollutants,
contaminants, wastes, toxic substances, petroleum and petroleum products and any other substance
that is currently regulated by any Environmental Law or that is otherwise a danger to health,
reproduction or the environment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.14 <U>Taxes</U>. Except as set forth on Section&nbsp;4.14 of the Company Disclosure Letter:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;all Tax Returns (as defined in <U>Section&nbsp;4.14(r)(ii)</U> hereof) required by applicable
Law to be filed by or on behalf of the Company or any of its Subsidiaries have been duly and timely
filed in accordance with all applicable Laws (after giving effect to any extensions of time in
which to make such filings), and all such Tax Returns were, at the time of filing, true, correct,
and complete in all material respects;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;true and complete copies of all federal, state, local and foreign Tax Returns of the
Company or any of its Subsidiaries for taxable periods ended on or after December&nbsp;31, 2004 have
been made available to Parent prior to the date hereof. Since July&nbsp;31, 2008, neither the Company
nor any of its Subsidiaries has incurred any liability for Taxes not in the ordinary course of
business that would result in a material decrease in the net worth of the Company or any such
Subsidiary;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;all material Taxes for which the Company or any of its Subsidiaries is or may be liable in
respect of taxable periods (or portions thereof) ending on or before the Closing
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Date, whether or
not shown (or required to be shown) on a Tax Return have been or will be timely paid, or in the
case of material Taxes not yet due and payable, sufficient reserve for the payment of all such
material Taxes (without regard to deferred tax assets and deferred tax liabilities) is provided on
the Company Financial Statements;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;without duplication of <U>Section&nbsp;4.14(c)</U>, the Company and each of its Subsidiaries
has duly and timely withheld, collected, paid and reported to the proper Governmental Entity all
material Taxes required to have been withheld, collected, paid or reported;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;no Liens for Taxes exist with respect to any assets or properties of the Company or any of
its Subsidiaries, except for statutory Liens for Taxes not yet due and payable;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;no material deficiencies for Taxes have been claimed, proposed or assessed against the
Company or any of its Subsidiaries by any Taxing or other Governmental Entity, and none of the
Company or any of its Subsidiaries has received any notice, or otherwise has any knowledge, of any
potential material claim, proposal or assessment against the Company or any of its Subsidiaries for
any such deficiency for Taxes. There are no pending or, to the knowledge of the Company,
threatened audits, investigations or claims for or relating to any material liability of the
Company or any of its Subsidiaries in respect of Taxes, and there are no matters under discussion
between the Company or any of its Subsidiaries on the one hand and any Governmental Entity on the
other hand with respect to material Taxes. None of the Tax Returns of the Company or any of its
Subsidiaries has been or is currently being examined by the IRS or relevant state, local or foreign Taxing authorities. None of the Company or any of its
Subsidiaries has entered into a closing agreement pursuant to Section&nbsp;7121 of the Code;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;to the knowledge of the Company, as of the date hereof, no claim has ever been made by any
Taxing authority with respect to the Company or any of its Subsidiaries in a jurisdiction where the
Company or such Subsidiary does not file Tax Returns that the Company or such Subsidiary is or may
be subject to taxation by that jurisdiction;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;neither the Company nor any of its Subsidiaries has waived any statute of limitations in
respect of Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency.
No power of attorney that is currently in force has been granted by the Company or any of its
Subsidiaries with respect to any matters relating to Taxes;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;neither the Company nor any of its Subsidiaries has (i)&nbsp;been a member of an affiliated
group (within the meaning of Section&nbsp;1504 of the Code) or an affiliated, combined, consolidated,
unitary, or similar group for state or local Tax purposes, other than the group of which the
Company is the common parent or (ii)&nbsp;any liability for the Taxes of another Person (other than the
Company or any of its Subsidiaries) under Treas. Reg. Section&nbsp;1.1502-6 (or any similar provision of
state, local or foreign law), as a transferee or successor, by contract or otherwise;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;there is no contract, plan or arrangement (written or otherwise) covering any Personnel
that, individually or in the aggregate, could give rise to the payment of any amount that will not
be deductible by the Company or any of its Subsidiaries under Section&nbsp;280G of the Code;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;neither the Company nor any of its Subsidiaries has agreed or is required to include in
income any material adjustment under either Section 481(a) or Section&nbsp;482 of the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Code (or an
analogous provision of state, local, or foreign law) by reason of a change in accounting method or
otherwise;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;neither the Company nor any of its Subsidiaries is a party to any contract, agreement,
plan or arrangement relating to allocating or sharing the payment of, indemnity for, or liability
for, Taxes with respect to any taxable period;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;neither the Company nor any of its Subsidiaries has constituted either a &#147;distributing
corporation&#148; or a &#147;controlled corporation&#148; in a distribution of stock qualifying for tax-free
treatment under Section&nbsp;355 of the Code (x)&nbsp;in the two years prior to the date of this Agreement or
(y)&nbsp;in a distribution which could otherwise constitute part of a &#147;plan&#148; or &#147;series of related
transactions&#148; (within the meaning of Section 355(e) of the Code) in conjunction with the Merger;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;neither the Company nor any of its Subsidiaries has any deferred income reportable for a
period ending after the Closing Date but that is attributable to a transaction (<I>e.g.</I>, an
installment sale) occurring in, or resulting from a change of accounting method for, a period
ending on or prior to the Closing Date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;none of the indebtedness of the Company or any of its Subsidiaries constitutes (i)
&#147;corporate acquisition indebtedness&#148; (as defined in Section 279(b) of the Code) with respect to
which any interest deductions may be disallowed under Section&nbsp;279 of the Code or (ii)&nbsp;an
&#147;applicable high yield discount obligation&#148; under Section 163(i) of the Code;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;the Company is not, and has not been, a &#147;United States real property holding corporation&#148;
within the meaning of Section&nbsp;897(c)(2) of the Code during the applicable period specified in
Section&nbsp;897(c)(1)(A)(ii) of the Code; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;neither the Company nor any of its Subsidiaries has engaged in any &#147;listed transaction&#148;
within the meaning of Treasury Regulation &#167;1.6011-4(b)(2).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;As used in this Agreement:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&#147;<U>Taxes</U>&#148; means any and all federal, state, provincial, local or foreign taxes,
assessments, impositions, levies and liabilities, of whatever kind or nature imposed by a
Governmental Entity, including taxes that are or are based upon or measured by gross receipts,
income, profits, sales, use and occupation, and value added, ad valorem, transfer, gains,
franchise, withholding, payroll, recapture, employment, excise, unemployment, insurance, social
security, business license, occupation, business organization, stamp, environmental and property
taxes, together with all interest, penalties and additions imposed with respect to such amounts.
For purposes of this Agreement, Taxes also includes any obligations under any agreements or
arrangements with any Person with respect to the liability for, or sharing of, Taxes (including
pursuant to Treas. Reg. &#167; 1.1502-6 or comparable provisions of state, local or foreign tax law) and
including any liability for Taxes as a transferee or successor, by contract or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &#147;<U>Tax Returns</U>&#148; means any foreign or domestic (whether national, federal, state,
provincial, local or otherwise) return, declaration, statement, report, schedule, information
return or other form or document relating to and filed or required to be filed with a Taxing
authority in connection with any Tax (including estimated Taxes), and shall include any amendment
to any of the foregoing.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.15 <U>Contracts</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Section&nbsp;4.15(a) of the Company Disclosure Letter identifies each Acquired Company Contract
that, as of the date hereof, constitutes a Material Contract. &#147;<U>Acquired Company Contract</U>&#148;
shall mean any Contract: (a)&nbsp;to which any of the Acquired Companies is a party; (b)&nbsp;by which any
of the Acquired Companies or any asset of any of the Acquired Companies is bound or under which any
of the Acquired Companies has any obligation; or (c)&nbsp;under which any of the Acquired Companies has
any right or interest. For purposes of this Agreement, each of the following shall be deemed to
constitute a &#147;<U>Material Contract</U>&#148;:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;any Acquired Company Contract that would be required to be filed by the Company as a
&#147;material contract&#148; pursuant to Item&nbsp;601(b)(10) of Regulation&nbsp;S-K under the Securities Act;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;any Acquired Company Contract relating to the acquisition, transfer, development, sharing
or license of any material Intellectual Property of any Acquired Company (except for Intellectual
Property that is licensed to the Acquired Companies under any third party software license
generally available to the public at a cost of no more than $25,000, or any Intellectual Property
that is licensed by any of the Acquired Companies to any Person on a non-exclusive basis);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;any Acquired Company Contract imposing any restriction on the right or ability of any
Acquired Company to (A)&nbsp;compete with any other Person, (B)&nbsp;acquire any material product or other material asset or any services from any other Person, sell any
material product or other material asset to or perform any services for any other Person or
transact business or deal in any other manner with any other Person, (C)&nbsp;develop or distribute any
material Intellectual Property, (D)&nbsp;make, use or sell any current products or products under
development, or (E)&nbsp;acquire any capital stock or other security of any Person;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;any agreement (or group of related agreements) under which any Acquired Company has
created, incurred, or guaranteed any indebtedness for borrowed money, or any capitalized lease
obligation or under which it has imposed an Lien on any of its assets, tangible or intangible;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;any Acquired Company Contract with respect to the sale, transfer or divestiture of all or
any material portion of the assets or equity interests of any Acquired Company; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;any Acquired Company Contract relating to the employment of any individual employed by
the Company that is at a vice president (or equivalent) level and above, including consultants with
substantially equivalent duties, and any Acquired Company Contract pursuant to which any of the
Acquired Companies is or may become obligated to make any severance, termination, bonus or
relocation payment or any other payment (other than payments in respect of salary), to any
Personnel or any Acquired Company Contract which provides for the acceleration of vesting of any
options or acceleration of other rights to acquire Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each Material Contract is valid and in full force and effect, and is enforceable in
accordance with its terms against the Company or one of its Subsidiaries and, to the knowledge of
the Company, against the other party thereto. Except as set forth on Section
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.16(b) of the
Company Disclosure Letter, the Company has delivered or made available to Parent an accurate and
complete copy of each Material Contract.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except as set forth on Section&nbsp;4.16(c) of the Company Disclosure Letter, to the Company&#146;s
knowledge, it has not received written notice of any breach of any Material Contract.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.16 <U>Insurance</U>. Section&nbsp;4.16 of the Company Disclosure Letter identifies each
insurance policy of the Acquired Companies. Except as would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, (a)&nbsp;all material insurance policies of
the Company and its Subsidiaries are in full force and effect and provide insurance in such amounts
and against such risks as management has determined to be prudent in accordance with industry
practices and (b)&nbsp;neither the Company nor any of its Subsidiaries is in material breach or default,
and neither the Company nor any of its Subsidiaries has taken any action or failed to take any
action which, with notice, the lapse of time or both, would constitute such a material breach or
default, or permit termination or modification of, any of such insurance policies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.17 <U>Properties</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company or one of its Subsidiaries has good title to all the properties and assets
reflected in the unaudited balance sheet of the Company as at July&nbsp;31, 2008 included in the Company
SEC Documents as being owned by the Company or one of its Subsidiaries or acquired after the date thereof that are material to the Company&#146;s business on a consolidated
basis (except properties sold or otherwise disposed of since the date thereof in the ordinary
course of business), free and clear of all Liens, except (i)&nbsp;statutory Liens securing payments not
yet due or the amount or validity of which is being contested in good faith by appropriate
proceedings, (ii)&nbsp;Liens arising under worker&#146;s compensation, unemployment insurance, social
security, retirement and similar legislation, (iii)&nbsp;Liens permissible under any applicable loan
agreements and indentures and (iv)&nbsp;such imperfections or irregularities or title, easements, rights
of way and other Liens, whether or not of record, that do not materially affect the use of the
properties or assets subject thereto for the purposes for which they are currently being used (the
Liens in the immediately preceding clauses (i)&nbsp;through (iv), collectively, &#147;<U>Permitted
Liens</U>&#148;). The Company or one of its Subsidiaries is the lessee of all leasehold estates
reflected in the unaudited balance sheet of the Company as at July&nbsp;31, 2008 included in the Company
SEC Documents or acquired after the date thereof that are material to the Company&#146;s business on a
consolidated basis (except for leases that have expired by their terms since the date thereof or
been assigned, terminated or otherwise disposed of in the ordinary course of business consistent
with past practice) and is in possession of the properties purported to be leased thereunder, and
each such lease is valid without material default thereunder by the lessee or, to the Company&#146;s
knowledge, the lessor.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Section&nbsp;4.17(b) of the Company Disclosure Letter sets forth a true, correct and complete
list of all leases, subleases and other agreements under which any Acquired Company uses or
occupies or has the right to use or occupy, now or in the future, any real property (the &#147;<U>Real
Property Leases</U>&#148;). The Company has provided or made available to Parent true, correct and
complete copies of all Real Property Leases (including all modifications, amendments, supplements,
waivers and side letters thereto). Each Real Property Lease is valid, binding and in full force
and effect, and all rent and other sums and charges payable by any Acquired Company as tenants
thereunder are current in all material respects. No termination event or condition or uncured
default of a material nature on the party of any Acquired Company
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">or, to the Company&#146;s knowledge,
the landlord thereunder exists under any Real Property Lease. Each Acquired Company has a good and
valid leasehold interest in each parcel of real property leased by it free and clear of all Liens,
except Permitted Liens.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.18 <U>Intellectual Property</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Section&nbsp;4.18(a) of the Company Disclosure Letter sets forth a true and complete list of
all trademarks, trademark applications, material common law marks, service marks or tradenames,
patents, patent applications, material copyrights, applications to register copyright and domain
names owned by the Company or any of its Subsidiaries on the date hereof and that are material to
the businesses of the Company and its Subsidiaries, taken as a whole (collectively, &#147;<U>Company
IP</U>&#148;). Except as set forth in Section&nbsp;4.18(a) of the Company Disclosure Letter, all Company IP
is owned by the Company or one of its Subsidiaries free and clear of all Liens, except Permitted
Liens. Except as set forth in Section&nbsp;4.18(a) of the Company Disclosure Letter, neither the
Company nor any of its Subsidiaries has received any written notice or claim in the year prior to
the date hereof challenging the validity or enforceability of any Company IP that remains pending
or unresolved.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each of the Company and its Subsidiaries has taken commercially reasonable steps to
maintain the confidentiality of all information of the Company or its Subsidiaries that derives
material economic value (actual or potential) from not being generally known to other persons who
can obtain economic value from its disclosure or use, including taking commercially reasonable steps to safeguard any such information that is accessible
through computer systems or networks.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except as set forth in Section&nbsp;4.18(c) of the Company Disclosure Letter, to the knowledge
of the Company, (i)&nbsp;the Company and its Subsidiaries are not infringing upon or misappropriating
any patents, copyrights, trademarks, trade secrets or other intellectual property
(&#147;<U>Intellectual Property</U>&#148;) of any third party in connection with the conduct of their
respective businesses, and neither the Company nor any of its Subsidiaries has received in the year
prior to the date hereof any written notice or claim asserting that any such infringement or
misappropriation is occurring, (ii)&nbsp;except as would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, no third party is misappropriating or
infringing any Intellectual Property owned by the Company or any of its Subsidiaries and (iii)&nbsp;to
the knowledge of the Company, no Intellectual Property owned by the Company or any of its
Subsidiaries is subject to any outstanding order, judgment, decree or stipulation restricting or
limiting in any material respect the use or licensing thereof by the Company or any of its
Subsidiaries.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.19 <U>Rights Plan</U>. The rights under the Amended and Restated Rights Agreement,
dated as of February&nbsp;22, 2000, between the Company and Computershare Trust Company, N.A., as
rights agent, expired as of October&nbsp;5, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.20 <U>Brokers</U>. Other than KSA, and except as set forth on Section&nbsp;4.20 of the
Company Disclosure Letter, no broker, investment banker, financial advisor or other Person is
entitled to any broker&#146;s, finder&#146;s, financial advisor&#146;s or other similar fee or commission in
connection with the transactions contemplated by this Agreement based upon arrangements made by or
on behalf of the Company or any of its Subsidiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.21 <U>Certain Practices</U>. None of the Acquired Companies, or any director, officer,
employee or agent of any Acquired Company, has, (a)&nbsp;used any corporate funds for any
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">unlawful
contribution, gift, entertainment or other unlawful expense relating to political activity, (b)
established or maintained any unlawful or unrecorded funds in violation of Section&nbsp;30A of the
Exchange Act or accepted or received any unlawful contributions, payments, gifts or expenditures,
(c)&nbsp;made any direct or indirect unlawful payment to any U.S. or non-U.S. government official or
employee from corporate funds or to any U.S. or non-U.S. political parties or campaigns, (d)
violated or is in violation of any applicable export control, money laundering or anti-terrorism
Law, or any provision of the Foreign Corrupt Practices Act of 1977, as amended, or any applicable
Law of similar effect, or (e)&nbsp;made any bribe, rebate, payoff, influence payment, kickback or other
unlawful payment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.22 <U>Takeover Statutes</U>. Assuming the accuracy of the representations and
warranties of Parent and Merger Sub set forth in <U>Section&nbsp;5.9</U>, the Company Board has taken
or will take all actions necessary to exempt the Offer, the Merger, this Agreement and the
transactions contemplated hereby under Section&nbsp;203 of the DGCL.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.23 <U>Fairness Opinion</U>. The Company Board has received the opinion of KSA,
financial advisor to the Company, to the effect that, as of the date of such opinion, the Offer
Price is fair, from a financial point of view, to the Company&#146;s stockholders (other than as may be
set forth in such opinion). The Company will furnish an accurate and complete copy of such opinion
to Parent solely for informational purposes on the date hereof or the day after.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.24 <U>Complete Copies</U>. Except as set forth on Section&nbsp;4.24 of the Company
Disclosure Letter, the Company has delivered or made available true and complete copies of each
document (or summaries of same) that have been requested by Parent, Merger Sub or its counsel and
all documents listed on the Company Disclosure Letter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.25 <U>Exclusivity of Representations or Warranties</U>. Neither the Company nor any of
its Affiliates or Representatives is making any representation or warranty on behalf of the Company
of any kind or nature whatsoever, oral or written, express or implied (including, but not limited
to, any relating to financial condition, results of operations, assets or liabilities of the
Company and its Subsidiaries), except as expressly set forth in this Agreement (as qualified by the
introductory paragraph to <U>Article&nbsp;IV</U> and the Company Disclosure Letter), and the Company
hereby disclaims any such other representations and warranties. Without limiting the express
representations and warranties in this <U>Article&nbsp;IV</U>, and without limiting the broad nature of
the disclaimer set forth in the prior sentence, no representation or warranty is being made as a
result of the Company making available to Parent and Merger Sub any management presentations,
information, documents, projections, forecasts and other material in a &#147;data room&#148; or otherwise.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE V<BR>
REPRESENTATIONS AND WARRANTIES OF<BR>
PARENT AND MERGER SUB</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in the Disclosure Letter delivered by Parent to the Company prior to the
execution and delivery of this Agreement (the &#147;<U>Parent Disclosure Letter</U>&#148;) (it being agreed
that disclosure of any information in a particular section or subsection of the Parent Disclosure
Letter shall be deemed disclosure with respect to any other section or subsection of this Agreement
to which the relevance of such information is reasonably apparent on its face), Parent and Merger
Sub jointly and severally represent and warrant to the Company as follows:
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.1 <U>Organization, Standing and Power</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Each of Parent and Merger Sub (i)&nbsp;is a corporation duly formed, validly existing and in
good standing under the Laws of the jurisdiction of its incorporation, (ii)&nbsp;has all requisite
corporate power and authority to own, lease and operate its properties and to carry on its business
as now being conducted and (iii)&nbsp;is duly qualified or licensed to do business and is in good
standing in each jurisdiction in which the nature of its business or the ownership, leasing or
operation of its properties makes such qualification or licensing necessary, except for any such
failures that would not, individually or in the aggregate, reasonably be expected to have a Parent
Material Adverse Effect. For purposes of this Agreement, &#147;<U>Parent Material Adverse Effect</U>&#148;
means any event, change, occurrence, effect or state of facts that would prevent, materially delay
or materially impede the performance by Parent or Merger Sub of its obligations under this
Agreement or the consummation of the Offer, the Merger and the other transactions contemplated
hereby.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Parent has previously furnished to the Company a true and complete copy of the certificate
of incorporation and bylaws (or comparable charter documents) of each of Parent and Merger Sub, in
each case as amended to the date of this Agreement, and each as so delivered is in full force and
effect. Neither Parent nor Merger Sub is in violation of any provision of its certificate of
incorporation or bylaws (or comparable charter documents) in any material respect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.2 <U>Authority</U>. Each of Parent and Merger Sub has all necessary corporate power and
authority to execute and deliver this Agreement, to perform its obligations hereunder and to
consummate the transactions contemplated hereby. The execution, delivery and performance of this
Agreement by Parent and Merger Sub and the consummation by Parent and Merger Sub of the
transactions contemplated hereby have been duly authorized by the boards of directors of Parent and
Merger Sub, and no other corporate proceedings on the part of Parent or Merger Sub are necessary to
approve this Agreement or to consummate the transactions contemplated hereby, subject in the case
of the consummation of the Merger, to the filing of the Certificate of Merger with the Secretary of
State of the State of Delaware as required by the DGCL. This Agreement has been duly executed and
delivered by Parent and Merger Sub and, assuming the due authorization, execution and delivery by
the Company, constitutes a valid and binding obligation of the Parent and Merger Sub, enforceable
against each of them in accordance with its terms (except to the extent that enforceability may be
limited by applicable bankruptcy, insolvency, moratorium, reorganization or similar Laws affecting
the enforcement of creditors&#146; rights generally or by general principles of equity).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.3 <U>No Conflict; Consents and Approvals</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The execution, delivery and performance of this Agreement by Parent and Merger Sub, and
the consummation by Parent and Merger Sub of the transactions contemplated hereby, do not and will
not (i)&nbsp;conflict with or violate the certificate of incorporation or bylaws (or comparable charter
documents) of Parent or Merger Sub, (ii)&nbsp;assuming that all consents, approvals and authorizations
contemplated by clauses (i)&nbsp;through (v)&nbsp;of subsection (b)&nbsp;below have been obtained and all filings
described in such clauses have been made, conflict with or violate any Law applicable to Parent or
Merger Sub or by which any of their respective properties are bound or (iii)&nbsp;result in any breach
or violation of, or constitute a default (or an event which with notice or lapse of time or both
would become a default), or result in the loss of a benefit under, or give rise to any right of
termination, cancellation, amendment or acceleration of, any Contract to which Parent or Merger Sub
is a party or by which Parent or Merger Sub or
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">any of their respective properties are bound,
except, in the case of clauses (ii)&nbsp;and (iii)&nbsp;of this paragraph, for any such conflict, breach,
violation, default, loss, right or other occurrence that would not, individually or in the
aggregate, reasonably be expected to have a Parent Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The execution, delivery and performance of this Agreement by Parent and Merger Sub, and
the consummation by Parent and Merger Sub of the transactions contemplated hereby, do not and will
not require any consent, approval, authorization or permit of, action by, filing with or
notification to, any Governmental Entity, except for (i)&nbsp;such filings as required
under applicable requirements of the Exchange Act and the rules and regulations promulgated
thereunder, and under state securities and &#147;blue sky&#148; laws, (ii)&nbsp;the filings required under the HSR
Act and any filings required under Foreign Antitrust Laws, (iii)&nbsp;such filings as may be necessary
to comply with the applicable requirements of the exchange on which Parent&#146;s ultimate parent entity
is traded or under the laws governing such entity, (iv)&nbsp;the filing with the Secretary of State of
the State of Delaware of the Certificate of Merger as required by the DGCL and (v)&nbsp;any such
consent, approval, authorization, permit, action, filing or notification the failure of which to
make or obtain would not, individually or in the aggregate, reasonably be expected to have a Parent
Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.4 <U>Certain Information</U>. The Offer Documents will not, at the respective times
that they are first filed with the SEC, amended or supplemented or first published, sent or given
to the Company&#146;s stockholders, contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements therein, in light
of the circumstances under which they are made, not misleading. The Offer Documents will comply as
to form in all material respects with the provisions of the Exchange Act. Notwithstanding anything
to the contrary herein, no representation or warranty is made by Parent or Merger Sub with respect
to information supplied by any Acquired Company or its Representatives for inclusion therein. None
of the information supplied or to be supplied by Parent or Merger Sub for inclusion in, or
incorporation by reference into, the Schedule&nbsp;14D-9 or the Proxy Statement will, at the respective
times they are first published, sent or given to the Company&#146;s stockholders and, in the case of the
Proxy Statement, at the time of the Company Stockholders Meeting, contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they are made, not misleading.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.5 <U>Litigation</U>. Except as would not, individually or in the aggregate, reasonably
be expected to have a Parent Material Adverse Effect, (a)&nbsp;there is no Action pending or, to the
knowledge of Parent, threatened against Parent or any of its Subsidiaries or any of their
respective properties by or before any Governmental Entity and (b)&nbsp;neither Parent nor any of its
Subsidiaries nor any of their respective properties is or are subject to any judgment, order,
injunction, rule or decree of any Governmental Entity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.6 <U>Ownership and Operations of Merger Sub</U>. Merger Sub has been formed solely for
the purpose of engaging in the transactions contemplated hereby and prior to the Effective Time
will have engaged in no other business activities and will have incurred no liabilities or
obligations other than as contemplated herein. The authorized capital stock of Merger Sub consists
of 1,000 shares of common stock, par value $0.001 per share, all of which are validly issued and
outstanding. All of the issued and outstanding capital stock of Merger Sub is, and at the
Effective Time will be, owned directly or indirectly by Parent.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.7 <U>Financing</U>. Parent has, and will have as of the respective dates of
consummation of the Offer, the Merger and the other transactions contemplated hereby, sufficient
funds to consummate the Offer, the Merger and the other transactions contemplated hereby on the
terms and subject to the conditions set forth herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.8 <U>Vote/Approval Required</U>. No vote or consent of the holders of any class or
series of capital stock of Parent is necessary to approve this Agreement or the Merger or the other
transactions contemplated hereby. The vote or consent of Parent as the sole stockholder of Merger
Sub (which shall have occurred prior to the Effective Time) is the only vote or consent of the
holders of any class or series of capital stock of Merger Sub necessary to approve this Agreement
or the Merger or the other transactions contemplated hereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.9 <U>Ownership of Shares</U>. Neither Parent nor Merger Sub nor any of Parent&#146;s
Affiliates owns (directly or indirectly, beneficially or of record) any Shares or holds any rights
to acquire or vote any Shares except pursuant to this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.10 <U>Brokers</U>. No broker, investment banker, financial advisor or other Person is
entitled to any broker&#146;s, finder&#146;s, financial advisor&#146;s or other similar fee or commission in
connection with the transactions contemplated by this Agreement based upon arrangements made by or
on behalf of Parent or Merger Sub, which fee or commission or portion thereof may become an
obligation of one or more of the Acquired Companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.11 <U>No Other Representations or Warranties</U>. Parent and Merger Sub each
acknowledges and agrees that neither the Company nor any other Person is making any representation
or warranty of any kind or nature whatsoever, oral or written, express or implied, relating to the
Company or any of its Subsidiaries, except as expressly set forth in <U>Article&nbsp;IV</U>, and that
the Company hereby specifically disclaims any such other representations or warranties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.12 <U>Access to Information</U>. Parent and Merger Sub each acknowledges and agrees
that it (a)&nbsp;has had an opportunity to discuss and ask questions regarding the business of the
Company and its Subsidiaries with the management of the Company, (b)&nbsp;has had access to the books
and records of the Company and such other information as it has desired or requested to review and
(c)&nbsp;has conducted its own independent investigation of the Company and its Subsidiaries and the
transactions contemplated hereby, and has not relied on an representation or warranty by any Person
regarding the Company and its Subsidiaries, except as expressly set forth in <U>Article&nbsp;IV</U>.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VI<BR>
COVENANTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.1 <U>Conduct of Business of the Company</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company covenants and agrees that, during the period from the date hereof until the
Effective Time, except (i)&nbsp;as contemplated or permitted by this Agreement, (ii)&nbsp;as disclosed in
Section&nbsp;6.1 of the Company Disclosure Letter, (iii)&nbsp;as required by applicable Law or (iv)&nbsp;if Parent
otherwise consents in writing (which consent shall not be unreasonably withheld, conditioned or
delayed), the Company shall, and shall cause each of its Subsidiaries to use, commercially
reasonable efforts to conduct its business in the ordinary course of business, to be in compliance
with the terms of all Material Contracts, insurance policies and applicable Laws, to preserve
substantially intact its business organization and to preserve its current relationships (and
goodwill) with customers, suppliers, lessors, creditors, employees, consultants,
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Directors and other Persons with which it has material business relations; <U>provided</U>, <U>however</U>,
that no action by the Company or its Subsidiaries with respect to matters specifically addressed by
any provision of <U>Section&nbsp;6.1(b)</U> shall be deemed a breach of this sentence unless such
action constitutes a breach of such provision of <U>Section&nbsp;6.1(b)</U>; <U>provided, further</U>,
that if the Company Board reasonably determines that it is advisable for liquidity purposes, then
the Company may issue debt securities, enter into a loan agreement or otherwise incur indebtedness
for borrowed money (A)&nbsp;under the Company&#146;s credit facilities as of the date hereof and (B)&nbsp;to the
extent that the availability under such credit facilities are insufficient, to, with or from third
parties provided that Parent shall have the right of first refusal with respect thereto pursuant to
<U>Section&nbsp;6.1(c)</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Between the date of this Agreement and the Effective Time, except
(i)&nbsp;as contemplated or permitted by this Agreement, (ii)&nbsp;as disclosed in Section&nbsp;6.1 of the
Company Disclosure Letter, (iii)&nbsp;as required by applicable Law, or (iv)&nbsp;if Parent otherwise
consents in writing (which consent shall not be unreasonably withheld, conditioned or delayed),
neither the Company nor any of its Subsidiaries shall:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;amend or permit the adoption of any amendment to any of the Company Constituent Documents
of any Acquired Company;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;issue, deliver, sell, pledge, dispose of or encumber any shares of capital stock, or
grant to any Person any right or security to acquire any shares of its capital stock, except
pursuant to the exercise of Company Stock Options or the vesting of Unvested Restricted Stock
Grants in accordance with their terms;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;declare, set aside, make or pay any dividend or other distribution, payable in cash,
stock, property or otherwise, with respect to any of its capital stock (except for any dividend or
distribution by a Subsidiary of the Company to the Company or to other Subsidiaries);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;adjust, split, combine, redeem, repurchase or otherwise acquire any shares of capital
stock of the Company (except in connection with the cashless exercises or similar transactions
pursuant to the exercise of Company Stock Options or settlement of Unvested Restricted Stock Grants
or other awards or obligations outstanding as of the date hereof or permitted to be granted after
the date hereof), or reclassify, combine, split, subdivide or otherwise amend the terms of its
capital stock;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;except as contemplated by <U>Section&nbsp;3.2</U> and except with respect to the acceleration
of Company Stock Options or Unvested Restricted Stock Grants by the Company, amend or waive any of
its rights under any provision of any Company Option Plans, any provision of any agreement
evidencing any outstanding stock option or any restricted stock purchase agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) (A)&nbsp;acquire (whether by merger, consolidation or acquisition of stock or assets or
otherwise) any corporation, partnership or other business organization or division thereof or any
material assets, other than purchases of inventory and other assets in the ordinary course of
business or pursuant to existing Contracts, or (B)&nbsp;sell or otherwise dispose of (whether by merger,
consolidation or acquisition of stock or assets or otherwise) any corporation, partnership or other
business organization or division thereof or any material assets, other than
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">sales or dispositions
of inventory and other assets in the ordinary course of business or pursuant to existing Contracts;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;other than in the ordinary course of business consistent with past practice, other than
would not reasonably be expected to increase the net expenses or lower the net revenues of the
Acquired Companies by more than $100,000 in the aggregate per annum and other than Contracts
entered into pursuant to <U>Section&nbsp;6.1(c)</U>, enter into, materially amend or terminate any
Material Contract;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;make any capital expenditure outside the ordinary course of business or make any single
capital expenditure in excess of $75,000; <U>provided</U>, <U>however</U>, that the maximum
amount of all capital expenditures made on behalf of the Acquired Companies from the date hereof
until the Effective Time shall not exceed $300,000 in the aggregate;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;acquire, lease or license any right or other asset from any other Person or sell or
otherwise dispose of, or lease or license, any right or other asset to any other Person (except in
each case for assets acquired, leased, licensed or disposed of by any Acquired Company in the
ordinary course of business and not having a value, or not requiring payments to be made or
received, in excess of $75,000 individually, or $300,000 in the aggregate), or waive or relinquish
any material right;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;(A)&nbsp;make any loans, advances or capital contributions to, or investments in, any other
Person (other than a Subsidiary of the Company), or (B)&nbsp;assume, guarantee, endorse or otherwise
become liable or responsible for the indebtedness or other obligations of another Person (other
than a guaranty by the Company on behalf of its Subsidiaries), in each case, (1)&nbsp;in excess of
$50,000 individually or $250,000 in the aggregate, (2)&nbsp;other than in the ordinary course of
business consistent with past practice, (3)&nbsp;other than pursuant to loan agreements to which the
Company or any of its Subsidiaries is a party as of the date hereof and (4)&nbsp;other than pursuant to
Contracts entered into pursuant to <U>Section&nbsp;6.1(c)</U>;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)&nbsp;except to the extent required by applicable Law (including Section&nbsp;409A of the Code), as
contemplated by <U>Section&nbsp;6.8</U> or as consistent with past practice: (A)&nbsp;increase the
compensation or benefits of any Director or individual employed by the Company that is at a vice
president (or equivalent) level and above, including consultants with substantially equivalent
duties or (B)&nbsp;amend or adopt any compensation or benefit plan including any pension, retirement,
profit-sharing, bonus or other employee benefit or welfare benefit plan (other than any such
adoption or amendment that does not increase the cost to the Company or any of its Subsidiaries of
maintaining the applicable compensation or benefit plan) with or for the benefit or its employees
or Directors; <U>provided</U>, <U>however</U>, that the Acquired Companies may make
regularly scheduled bonus payments and increase the amount of wages paid to employees in the
ordinary course of business and consistent with past practices so long as (1)&nbsp;the total bonuses
(excluding payments under the Company&#146;s Management Change in Control Plan) for all employees and
consultants do not exceed $250,000, (2)&nbsp;the total base pay increase for all employees and
consultants does not exceed $250,000, and (3)&nbsp;no individual receives a base pay increase in excess
of 15%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii)&nbsp;hire any employee or consultant receiving annual compensation in excess of $100,000;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) make or change any election, change an annual accounting period, adopt or change any
accounting method, file any amended Tax Return, enter into any closing
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">agreement, settle any Tax
claim or assessment relating to any Acquired Company, surrender any right to claim a refund of
Taxes, consent to any extension or waiver of the limitation period applicable to any Tax claim or
assessment relating to any Acquired Company, or take any other similar action relating to the
filing of any Tax Return or the payment of any Tax, if such election, adoption, change, amendment,
agreement, settlement, surrender, consent or other action could have the effect of materially
increasing the Tax liability of any Acquired Company for any period ending after July&nbsp;31, 2008 or
decreasing any Tax attribute of any Acquired Company existing on July&nbsp;31, 2008;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv)&nbsp;implement or adopt any material change in its methods of accounting, except as may be
appropriate to conform to changes in statutory or regulatory accounting rules or GAAP or regulatory
requirements with respect thereto;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv)&nbsp;other than Contracts entered into pursuant to <U>Section&nbsp;6.1(c)</U>, enter into any
material transaction or take any other material action outside the ordinary course of business and
inconsistent with past practices;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi)&nbsp;compromise, settle or agree to settle any Action (including any Action relating to this
Agreement or the transactions contemplated hereby), or consent to the same, other than compromises,
settlements or agreements in the ordinary course of business consistent with past practice that
involve only the payment of money damages (A)&nbsp;not in excess of $50,000 individually or $250,000 in
the aggregate or (B)&nbsp;consistent with the reserves reflected in the Company&#146;s balance sheet at July
31, 2008; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii)&nbsp;agree to take any of the actions described in <U>Sections&nbsp;6.1(b)(i)</U> through
<U>6.1(b)(xvi)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If, prior to the Effective Time, the Company Board proposes to enter into a definitive
agreement with a third party for a transaction described in the second proviso of <U>Section
6.1(a)</U>, then the Company shall provide written notice thereof to Parent, which notice shall
include the material terms of such proposed transaction. During the five (5)&nbsp;Business Day period
thereafter, Parent shall have the right to require the Company to instead enter into a definitive
agreement with Parent on terms substantially identical to those described in such written notice.
If the Company and Parent have not entered into such a definitive agreement by the end of such five
(5)&nbsp;Business Day period (other than as a result of a breach by the Company of its obligations
pursuant to the prior sentence), then the Company shall have the right to enter into a definitive
agreement with such third party within the ensuing five (5)&nbsp;Business Days, on terms substantially
identical to those described in the written notice provided by the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.2 <U>Conduct of Business of Parent and Merger Sub Pending the Merger</U>. From and
after the date hereof and prior to the Effective Time, and except as may otherwise be required by
applicable Law, each of Parent and Merger Sub agrees that it shall not, directly or indirectly,
take any action that is intended to or that would reasonably be expected to (a)&nbsp;materially
adversely affect or materially delay the ability of Parent or Merger Sub to obtain any necessary
approvals of any Governmental Entity necessary for the consummation of the transactions
contemplated hereby or to perform its covenants or agreements set forth herein, (b)&nbsp;cause its
representations and warranties set forth in <U>Article&nbsp;V</U> to be untrue in any material respect
or (c)&nbsp;otherwise, individually or in the aggregate, have a Parent Material Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.3 <U>No Control of Other Party&#146;s Business</U>. Nothing contained in this Agreement
shall give Parent or Merger Sub, directly or indirectly, the right to control or direct
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Company&#146;s or its Subsidiaries&#146; operations prior to the Effective Time, and nothing contained in
this Agreement shall give the Company, directly or indirectly, the right to control or direct
Parent&#146;s or its Subsidiaries&#146; operations prior to the Effective Time. Prior to the Effective Time,
each of the Company and Parent shall exercise, consistent with the terms and conditions of this
Agreement, complete control and supervision over its and its Subsidiaries&#146; respective operations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.4 <U>Acquisition Proposals</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Following the date hereof, each Acquired Company shall (i)&nbsp;immediately cease and cause to
be terminated all existing discussions or negotiations with any Person conducted heretofore with
respect to any Acquisition Proposal, (ii)&nbsp;request the prompt return or destruction of all
confidential information previously furnished and (iii)&nbsp;not terminate, waive, amend, release or
modify any provision of any confidentiality or standstill agreement to which any Acquired Company
or any of its Affiliates or Representatives is a party with respect to any Acquisition Proposal,
and shall use commercially reasonable efforts to enforce the provisions of any such agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;No Acquired Company, nor any director, officer, employee, investment banker, financial
advisor, attorney, accountant or other advisor, agent or representative (collectively,
&#147;<U>Representatives</U>&#148;) of any Acquired Company, shall directly or indirectly, (i)&nbsp;solicit,
initiate, or knowingly encourage or knowingly induce the making, submission or announcement of any
inquiries or the making of any proposal or offer related to an Acquisition Proposal, (ii)&nbsp;furnish
any information regarding any of the Acquired Companies to any Person in connection with or in
response to an Acquisition Proposal or an inquiry or indication of interest that would reasonably
be expected to lead to an Acquisition Proposal, (iii)&nbsp;engage in discussions or negotiations with
any Person with respect to any Acquisition Proposal (other than to state that they currently are
not permitted to have discussions), (iv)&nbsp;approve, endorse or recommend any Acquisition Proposal,
(v)&nbsp;make or authorize any statement, recommendation or solicitation in support of any Acquisition
Proposal or (vi)&nbsp;enter into any letter of intent or similar document or any Contract having a
primary purpose of effectuating, or which would reasonably be expected to effect, any Acquisition
Proposal.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Notwithstanding anything to the contrary in <U>Section&nbsp;6.4</U>, if at any time following
the date of this Agreement and prior to consummation of the Offer, (i)&nbsp;the Company receives a
written Acquisition Proposal that the Company Board believes in good faith to be
bona fide, (ii)&nbsp;such Acquisition Proposal was unsolicited and did not otherwise result from a
breach of this <U>Section&nbsp;6.4</U>, (iii)&nbsp;the Company Board determines in good faith (after
consultation with outside counsel and its financial advisor) that such Acquisition Proposal
constitutes or is reasonably likely to lead to a Superior Proposal (as defined in <U>Section
6.4(f)(iii)</U> hereof) and (iv)&nbsp;the Company Board determines in good faith (after consultation
with outside counsel) that the failure to take the actions referred to in clause (x)&nbsp;or (y)&nbsp;of this
<U>Section&nbsp;6.4(c)</U> would constitute a breach of its fiduciary duties to the stockholders of the
Company under applicable Law, then the Company may (x)&nbsp;furnish and make available information with
respect to the Company and its Subsidiaries to the Person making such Acquisition Proposal pursuant
to an Acceptable Confidentiality Agreement; <U>provided</U>, that any non-public information
provided or made available to any Person given such access shall have been previously provided or
made available to Parent or shall be provided or made available to Parent prior to or substantially
concurrently with the time it is provided or made available to such Person (and in any event within
one (1)&nbsp;Business Day of being provided or made available to such Person), and (y)&nbsp;participate in
discussions or negotiations with the Person making such Acquisition Proposal regarding such
Acquisition Proposal. The Company shall promptly (and in no event later than
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">one (1)&nbsp;Business Day
after receipt by the Company) advise Parent in writing of any inquiry or proposal or offer related
to an Acquisition Proposal or any request for nonpublic information relating to any of the Acquired
Companies other than requests not reasonably expected to be related to an Acquisition Proposal
(including the identity of the Person making or submitting such Acquisition Proposal or request,
and the terms thereof) that is made or submitted by any Person prior to the Effective Time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Neither the Company Board nor any committee thereof shall (i) (A)&nbsp;withdraw (including by
taking a neutral stance) the approval, recommendation or declaration of advisability by the Company
Board or any such committee of this Agreement, the Merger or any of the other transactions
contemplated hereby, (B)&nbsp;adopt, approve, recommend, endorse or otherwise declare advisable the
adoption of any Acquisition Proposal or (C)&nbsp;resolve, agree or propose to take any such actions
(each such action set forth in this <U>Section&nbsp;6.4(d)</U> being referred to herein as an
&#147;<U>Adverse Recommendation Change</U>&#148;), (ii)&nbsp;cause or permit the Company to enter into any letter
of intent, memorandum of understanding, agreement in principle, acquisition agreement, merger
agreement, option agreement, joint venture agreement, partnership agreement or other agreement
related to an Acquisition Proposal (each, an &#147;<U>Alternative Acquisition Agreement</U>&#148;) or (iii)
resolve, agree or propose to take any such actions. Notwithstanding the foregoing, at any time
prior to consummation of the Offer, if the Company Board determines in good faith (after
consultation with outside counsel) that the failure to do so would result in a breach of its
fiduciary duties to the stockholders of the Company under applicable Law, then the Company Board
may (x)&nbsp;make an Adverse Recommendation Change or (y)&nbsp;solely in response to a Superior Proposal
received after the date hereof that did not otherwise result from a breach of this <U>Section
6.4</U>, cause the Company to terminate this Agreement pursuant to <U>Section&nbsp;8.1(d)(ii)</U>
(including payment of the Termination Fee, as defined in <U>Section&nbsp;8.3(c)(ii)</U> hereof) and
substantially concurrently enter into a binding Alternative Acquisition Agreement with respect to
such Superior Proposal.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Nothing contained in this <U>Section&nbsp;6.4</U> shall prohibit the Company from taking and
disclosing a position contemplated by Rule&nbsp;14e-2(a) and 14d-9 under the Exchange Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;For purposes of this Agreement:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&#147;<U>Acceptable Confidentiality Agreement</U>&#148; means a customary confidentiality agreement
containing terms substantially similar to, and no less favorable to the Company than, those set
forth in the Confidentiality Agreement (as defined in <U>Section&nbsp;6.6(b)</U> hereof);
<U>provided</U>, that such confidentiality agreement shall not prohibit compliance with any of the
provisions of this <U>Section&nbsp;6.4</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&#147;<U>Acquisition Proposal</U>&#148; means any inquiry, proposal or offer from any Person or
group of Persons (other than Parent and its Affiliates) relating to, or that is reasonably likely
to lead to, any direct or indirect acquisition or purchase, in one transaction or a series of
transactions, including any merger, reorganization, consolidation, tender offer, self-tender,
exchange offer, stock acquisition, asset acquisition, binding share exchange, business combination,
recapitalization, liquidation, dissolution, joint venture or similar transaction, (A)&nbsp;of assets or
businesses of the Company and its Subsidiaries that generate fifteen percent (15%) or more of the
net revenues or net income or that represent fifteen percent (15%) or more of the total assets
(based on fair market value), of the Company and its Subsidiaries, taken as a whole, immediately
prior to such transaction, (B)&nbsp;of fifteen percent (15%) or more of any class of capital stock,
other equity security or voting power of the Company or any resulting parent
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">company of the Company
or (C)&nbsp;involving the Company or any of its Subsidiaries, individually or taken together, whose
businesses constitute fifteen percent (15%) or more of the net revenues, net income or total assets
(based on fair market value) of the Company and its Subsidiaries, taken as a whole, immediately
prior to such transaction, in each case other than the transactions contemplated by this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&#147;<U>Superior Proposal</U>&#148; means any unsolicited bona fide binding written Acquisition
Proposal for at least 80% of the outstanding equity interests in the Company or more than 80% of
the consolidated assets of the Company and its Subsidiaries, in either case, that the Company Board
determines in good faith (after consultation with outside counsel and its financial advisor),
taking into account all legal, financial, regulatory and other aspects of the proposal and the
Person making the proposal, including the financing terms thereof, (A)&nbsp;is more favorable to the
stockholders of the Company from a financial point of view than the transactions contemplated by
this Agreement and (B)&nbsp;is reasonably likely of being completed on the terms proposed on a timely
basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.5 <U>Preparation of Proxy Statement; Stockholders&#146; Meeting</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If approval of the Company&#146;s stockholders is required by applicable Law to consummate the
Merger, then as promptly as practicable following the purchase of Shares pursuant to the Offer (but
in any event within fifteen (15)&nbsp;Business Days after the date thereof, the Company shall file a
Proxy Statement with the SEC in preliminary form as required by the Exchange Act, and shall use all
commercially reasonable efforts to have the Proxy Statement cleared by the SEC. The Company shall
obtain and furnish the information required to be included in the Proxy Statement, shall provide
Parent and Merger Sub with any comments that may be received from the SEC or its staff with respect
thereto, shall respond promptly to any such comments made by the SEC or its staff with respect to
the Proxy Statement, and shall cause the Proxy Statement in definitive form to be mailed to the
Company&#146;s stockholders at the earliest practicable date. If at any time prior to obtaining the
Company Stockholder Approval, the Company or Parent discovers that any information relating to the
Offer, the Merger, the Company, Parent, Merger Sub or any of their respective Affiliates, directors
or officers should be set forth in an amendment or supplement to the Proxy Statement so that such document would not
contain any misstatement of a material fact or omit to state any material fact necessary to make
the statements therein, in light of the circumstances under which they are made, not misleading,
then (i)&nbsp;the party that discovers such information shall promptly notify the other parties hereto,
(ii)&nbsp;the Company shall promptly file with the SEC an appropriate amendment or supplement describing
such information, and (iii)&nbsp;the Company, to the extent required by applicable Law, shall
disseminate such amendment or supplement to the stockholders of the Company. Notwithstanding the
foregoing, prior to filing or mailing the Proxy Statement (or any amendment or supplement thereto)
or responding to any comments of the SEC with respect thereto, the Company shall give Parent,
Merger Sub and their counsel a reasonable opportunity to review and comment on such document or
response and shall give due consideration to all reasonable additions, deletions or changes
suggested thereto by Parent, Merger Sub and their counsel.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If approval of the Company&#146;s stockholders is required by applicable Law to consummate the
Merger, then as promptly as practicable following the consummation of the Offer, except in the case
of an Adverse Recommendation Change permitted by <U>Section&nbsp;6.4(d)</U>, the Company shall
establish a record date for, duly call, give notice of, convene and hold a special meeting of its
stockholders (the &#147;<U>Company Stockholders Meeting</U>&#148;) solely for the purpose of obtaining the
Company Stockholder Approval. Except in the case of an Adverse
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Recommendation Change permitted by
<U>Section&nbsp;6.4(d)</U>, the Company, through the Company Board, shall (i)&nbsp;recommend to its
stockholders that they adopt this Agreement and the transactions contemplated hereby, (ii)&nbsp;include
such recommendation in the Proxy Statement,
(iii)&nbsp;cause the Company to use its commercially reasonable efforts to solicit from
stockholders of the Company proxies in favor of the Merger, and (iv)&nbsp;take all other action
necessary or, in the reasonable opinion of Parent, advisable to secure any vote of stockholders
required by the DGCL to effect the Merger. Each of Parent and Merger Sub shall vote all Shares
acquired in the Offer (and all Shares otherwise beneficially owned by them or any of their
Affiliates as of the applicable record date) in favor of the adoption of this Agreement and the
Merger in accordance with applicable Law at the Company Stockholders Meeting. Parent shall vote,
or cause to be voted, all of the shares of capital stock of Merger Sub in favor of the adoption of
this Agreement and the Merger in accordance with applicable Law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Notwithstanding the foregoing clauses (a)&nbsp;and (b), if following the expiration of the
Offer (including any Subsequent Offering Period) or the exercise of the Top-Up Option, Parent,
Merger Sub or any other direct or indirect Subsidiary of Parent collectively hold at least ninety
percent (90%) of the outstanding Shares, then each of Parent, Merger Sub and the Company shall
(subject to <U>Section&nbsp;7.1</U>) take all necessary and appropriate action to cause the Merger to
become effective as soon as practicable after the consummation of the purchase of Shares without a
meeting of stockholders of the Company, in accordance with Section&nbsp;253 of the DGCL.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.6 <U>Access to Information; Confidentiality</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;From the date hereof to the Effective Time or the earlier termination of this Agreement,
upon reasonable prior written notice, the Company shall, and shall use its commercially reasonable
efforts to cause its Subsidiaries, officers, Directors and Representatives to, afford to Parent
reasonable access during normal business hours, consistent with applicable Law, to its officers,
employees, properties, offices, other facilities and books, records, Tax Returns and work papers,
and shall furnish Parent with all financial, operating and other data and
information as Parent shall reasonably request. Notwithstanding the foregoing, any such
investigation or consultation shall not include any intrusive testing or environmental sampling of
any kind (other than at the Company&#146;s facilities in Oceanside, California and any other Phase I
analyses that Parent believes is necessary) and shall be conducted in such a manner as not to
interfere unreasonably with the business or operations of the Company or its Subsidiaries or
otherwise result in any significant interference with the prompt and timely discharge by the
employees of the Company or its Subsidiaries of their normal duties. Neither the Company nor any
of its Subsidiaries shall be required to provide access to or to disclose information where such
access or disclosure would (i)&nbsp;breach any agreement with any third party, (ii)&nbsp;constitute a waiver
of the attorney-client or other privilege held by the Company or (iii)&nbsp;otherwise violate any
applicable Law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each of Parent and Merger Sub will hold and treat and will cause its Representatives to
hold and treat in confidence all documents and information concerning the Company and its
Subsidiaries furnished to Parent or Merger Sub in connection with the transactions contemplated by
this Agreement in accordance with the Confidentiality Agreement between the Company and Taylor Made
Golf Company, Inc. dated as of April&nbsp;30, 2008 (the &#147;<U>Confidentiality Agreement</U>&#148;), which
Confidentiality Agreement shall remain in full force and effect in accordance with its terms.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.7 <U>Further Action; Efforts</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Subject to the terms and conditions of this Agreement, each party will use its
commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to
be done, all things necessary, proper or advisable under applicable Law to consummate the
transactions contemplated by this Agreement, and no party hereto shall take or cause to be taken
any action that would reasonably be expected to prevent, impede or delay the consummation of the
transactions contemplated hereby. In furtherance and not in limitation of the foregoing, each
party hereto agrees to make, if required, appropriate filings under any Antitrust Law (as defined
in <U>Section&nbsp;6.7(e)</U> hereof), including an appropriate filing of a Notification and Report
Form pursuant to the HSR Act with respect to the transactions contemplated hereby as promptly as
practicable and in any event within seven (7)&nbsp;Business Days of the date hereof and to supply as
promptly as reasonably practicable any additional information and documentary material that may be
requested pursuant to the HSR Act and to take all other actions necessary, proper or advisable to
cause the expiration or termination of the applicable waiting periods under the HSR Act as soon as
practicable, including by requesting early termination of the waiting period provided for in the
HSR Act. Parent shall pay all filing fees and other charges for the filings required under the HSR
Act by the Company and Parent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each of Parent and Merger Sub, on the one hand, and the Company, on the other hand, shall,
in connection with the efforts referenced in <U>Section&nbsp;6.7(a)</U> to obtain all requisite
approvals and authorizations for the transactions contemplated by this Agreement under the HSR Act
or any other Antitrust Law, use its commercially reasonable efforts to (i)&nbsp;cooperate in all
respects with each other in connection with any filing or submission and in connection with any
investigation or other inquiry, including any proceeding initiated by a private party, (ii)&nbsp;keep
the other party reasonably informed of any communication received by such party from, or given by
such party to, the Federal Trade Commission (the &#147;<U>FTC</U>&#148;), the Antitrust Division of the
Department of Justice (the &#147;<U>DOJ</U>&#148;) or any other U.S. or foreign Governmental Entity and of
any communication received or given in connection with any proceeding by a private party, in each
case regarding any of the transactions contemplated hereby and (iii)&nbsp;permit the other party to
review any communication given by it to,
and consult with each other in advance of any meeting or conference with, the FTC, the DOJ or
any other Governmental Entity or, in connection with any proceeding by a private party, with any
other Person, and to the extent permitted by the FTC, the DOJ or such other applicable Governmental
Entity or other Person, give the other party the opportunity to attend and participate in such
meetings and conferences. Notwithstanding the foregoing, the Company and Parent may, as each deems
advisable and necessary, reasonably designate any competitively sensitive material provided to the
other side under this <U>Section&nbsp;6.7(b)</U> as &#147;Antitrust Counsel Only Material.&#148; Such materials
and the information contained therein shall be given only to the outside counsel regarding
Antitrust Law of the recipient and will not be disclosed by outside counsel to employees, officers,
directors or consultants of the recipient or any of its Affiliates unless express permission is
obtained in advance from the source of the materials (the Company or Parent, as the case may be) or
its legal counsel. Each of the Company and Parent shall cause its respective counsel regarding
Antitrust Law to comply with this <U>Section&nbsp;6.7(b)</U>. Notwithstanding anything to the contrary
in this <U>Section&nbsp;6.7(b)</U>, materials provided to the other party or its counsel may be
redacted to remove references concerning the valuation of the Company and privileged
communications.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;In furtherance and not in limitation of the covenants of the parties contained in
<U>Sections&nbsp;6.7(a)</U> and <U>(b)</U>, if any objections are asserted with respect to the
transactions contemplated hereby under any Antitrust Law or if any suit is instituted (or
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">threatened to be instituted) by the FTC, the DOJ or any other applicable Governmental Entity or any
private party challenging any of the transactions contemplated hereby as violative of any Antitrust
Law or which would otherwise prevent, materially impede or materially delay the consummation of the
transactions contemplated hereby, each of Parent, Merger Sub and the Company shall use its
commercially reasonable efforts to resolve any such objections or suits so as to permit
consummation of the transactions contemplated by this Agreement, including (i)&nbsp;proposing,
negotiating, committing to and effecting, by consent decree, hold separate order or otherwise, the
sale, divestiture or disposition of any non-material assets or business of Parent or its
Subsidiaries or the Company or its Subsidiaries (including in order to alleviate any requirement to
make a required filing under applicable Antitrust Laws of a foreign jurisdiction if the
transactions contemplated by this Agreement would be materially delayed otherwise) and (ii)
otherwise taking or committing to take any actions that after the Closing would not materially
limit the freedom of Parent or its Subsidiaries&#146; (including the Surviving Corporation&#146;s) freedom of
action with respect to, or its ability to retain, one or more of its or its Subsidiaries&#146;
(including the Surviving Corporation&#146;s) businesses, product lines or assets, in each case as may be
required in order to resolve such objections or suits; <U>provided</U>, <U>however</U>, that
neither the Company nor any of its Subsidiaries nor Parent nor any of its Subsidiaries or
Affiliates shall be obligated to, become subject to, or consent or agree to or otherwise take any
action with respect to, any requirement, condition, understanding, agreement or order of a
Governmental Entity to sell, hold separate, dispose of any assets or conduct or change its business
unless such requirement, condition, understanding, agreement or order is binding on the Company or
any of its Subsidiaries or on Parent or any of its Subsidiaries or Affiliates, as the case may be,
only in the event the Closing occurs.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Subject to the obligations under <U>Section&nbsp;6.7(c)</U>, in the event that any
administrative or judicial Action is instituted (or threatened to be instituted) by a Governmental
Entity or private party challenging the Merger or any other transaction contemplated by this
Agreement, or any other agreement contemplated hereby, (i)&nbsp;each of Parent, Merger Sub and the
Company shall cooperate in a commercially reasonable manner with each other and use its respective
commercially reasonable efforts to contest and resist any such Action and to have
vacated, lifted, reversed or overturned any decree, judgment, injunction or other order,
whether temporary, preliminary or permanent, that is in effect and that prohibits, prevents or
restricts consummation of the transactions contemplated by this Agreement and (ii)&nbsp;Parent and
Merger Sub shall defend, at their cost and expense, any Action or Actions, whether judicial or
administrative, that seeks to prohibit, prevent or restrict the consummation of the transactions
contemplated by this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;For purposes of this Agreement, &#147;<U>Antitrust Law</U>&#148; means the Sherman Act, as amended,
the Clayton Act, as amended, the HSR Act, the Federal Trade Commission Act, as amended, Foreign
Antitrust Laws and all other Laws that are designed or intended to prohibit, restrict or regulate
actions having the purpose or effect of monopolization or restraint of trade or lessening of
competition through merger or acquisition.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.8 <U>Employment and Employee Benefits Matters; Other Plans</U>. Without limiting any
additional rights that any current or former employee of the Company or any of its Subsidiaries
(each, a &#147;<U>Company Employee</U>&#148;) may have under any Company Plan that has been disclosed or
made available to Parent as of the date hereof, Parent shall cause the Surviving Corporation and
each of its Subsidiaries, to comply with all applicable Laws related to employee benefits.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.9 <U>Notification of Certain Matters</U>. The Company and Parent shall promptly notify
each other of the discovery of any fact or circumstance that, or the occurrence or non-occurrence
of any event the occurrence or non-occurrence of which, would cause or is reasonably likely to
result in any of the Offer Conditions or the conditions to the Merger set forth in <U>Article
VII</U> not being satisfied or satisfaction of those conditions being materially delayed in
violation of any provision of this Agreement; <U>provided</U>, <U>however</U>, that the delivery
of any notice pursuant to this <U>Section&nbsp;6.9</U> shall not (i)&nbsp;cure any breach of, or
non-compliance with, any other provision of this Agreement or (ii)&nbsp;limit the remedies available to
the party receiving such notice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.10 <U>Indemnification, Exculpation and Insurance</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Without limiting any additional rights that any employee may have under any agreement or
Company Plan that has been disclosed or made available to Parent as of the date hereof, from the
Effective Time through the sixth anniversary of the date on which the Effective Time occurs, Parent
shall, or shall cause the Surviving Corporation to, indemnify and hold harmless each current (as of
the Effective Time) and former officer, director or employee of the Company and its Subsidiaries
(the &#147;<U>Indemnified Parties</U>&#148;), against all claims, losses, liabilities, damages, judgments,
inquiries, fines and fees, costs and expenses, including actual attorneys&#146; fees and disbursements
(collectively, &#147;<U>Costs</U>&#148;), incurred in connection with any Action, whether civil, criminal,
administrative or investigative, arising out of or pertaining to (i)&nbsp;the fact that the Indemnified
Party is or was an officer, director, employee, fiduciary or agent of the Company or any of its
Subsidiaries or (ii)&nbsp;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 and
the Company Charter and Company Bylaws as at the date hereof. In the event of any such Action,
each Indemnified Party shall be entitled to advancement of expenses incurred in the defense of any
Action from Parent or the Surviving Corporation to the fullest extent permitted
under applicable Law and the Company Charter and Company Bylaws as at the date hereof within
ten (10)&nbsp;Business Days of receipt by Parent or the Surviving Corporation from the Indemnified Party
of a request therefor. Notwithstanding anything to the contrary herein (but subject to any
superior rights contained in the Company Charter, Company Bylaws or applicable indemnification
agreements to which any Acquired Company is a party), prior to making any payment or advance in
respect of the indemnification obligations set forth in this <U>Section&nbsp;6.10</U>, the Person that
is requesting such indemnification or advance shall agree to repay such payments or advances if it
is ultimately determined that such Person is not entitled to indemnification.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as may be required by applicable Law, Parent and the Company agree that for a
period of six (6)&nbsp;years from the Effective Time, all rights to indemnification and exculpation
from liabilities for acts or omissions occurring at or prior to the Effective Time and rights to
advancement of expenses relating thereto now existing in favor of any Indemnified Party as provided
in the certificate of incorporation or bylaws (or comparable organizational documents) of the
Company and its Subsidiaries or in any indemnification agreement between such Indemnified Party and
the Company or any of its Subsidiaries shall survive the Merger and continue in full force and
effect, and for a period of six (6)&nbsp;years from the Effective Time shall not be amended, repealed or
otherwise modified in any manner that would adversely affect any right thereunder of any such
Indemnified Party.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Prior to the Effective Time, Parent shall pay for and cause to be obtained, and to be
effective at the Effective Time, one or more prepaid &#147;tail&#148; insurance policies with a claims period
of at least six (6)&nbsp;years from the Effective Time with terms and conditions
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(including scope and coverage amounts) that are, taken as a whole, at least as favorable as the Company&#146;s and its
Subsidiaries&#146; directors&#146; and officers&#146; liability insurance and fiduciary liability insurance
policies as of the date hereof, for claims arising from facts or events that occurred on or prior
to the Effective Time, covering without limitation the transactions contemplated hereby;
<U>provided</U>, that the maximum amount of the one-time premium for such tail policies that
Parent shall be required to expend shall not exceed three hundred percent (300%) of the annual
premium for such policies for the Company&#146;s current fiscal year; and if such amount is not
sufficient to purchase insurance in such maximum amount, then Parent shall purchase such amount of
insurance as can be purchased for such amount that is equal to three hundred percent (300%) of the
annual premium for such policies for the Company&#146;s current fiscal year. Parent shall cause the
Surviving Corporation to comply with its obligations under such policies for the full term of at
least six (6)&nbsp;years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Notwithstanding anything herein to the contrary, if any Action (whether arising before, at
or after the Effective Time) with respect to which an Indemnified Party is entitled to
indemnification is instituted against any Indemnified Party on or prior to the sixth anniversary of
the Effective Time, then the provisions of this <U>Section&nbsp;6.10</U> shall continue in effect until
the final disposition of such Action.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The indemnification provided for herein shall not be deemed exclusive of any other rights
to which an Indemnified Party is entitled, whether pursuant to Law, Contract or otherwise. The
provisions of this <U>Section&nbsp;6.10</U> shall survive the consummation of the Merger and,
notwithstanding any other provision of this Agreement that may be to the contrary, expressly are
intended to benefit, and shall be enforceable by, each of the Indemnified Parties and their
respective heirs and legal representatives.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;In the event that the Surviving Corporation or Parent or any of their respective
successors or assigns (i)&nbsp;consolidates with or merges into any other Person and is not
the continuing or surviving corporation or entity of such consolidation or merger or (ii)
transfers or conveys all or a majority of its properties and assets to any Person, then, and in
each such case, proper provision shall be made so that the successors and assigns of the Surviving
Corporation or Parent, as the case may be, shall succeed to the obligations set forth in this
<U>Section&nbsp;6.10</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.11 <U>Rule&nbsp;16b-3</U>. Prior to the Effective Time, the Company shall use commercially
reasonable efforts to take such steps as may be reasonably necessary or advisable hereto to cause
dispositions of Company equity securities (including derivative securities) pursuant to the
transactions contemplated by this Agreement by each individual who is a Director or officer of the
Company to be exempt under Rule&nbsp;16b-3 promulgated under the Exchange Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.12 <U>Anti-Takeover Statute</U>. If any anti-takeover statute is or may become
applicable to this Agreement (including the Merger and the other transactions contemplated hereby),
each of the Company, Parent and Merger Sub and their respective boards of directors shall grant all
such approvals and take all such actions as are reasonably necessary so that such transactions may
be consummated as promptly as practicable hereafter on the terms contemplated hereby, and otherwise
act reasonably to eliminate or minimize the effects of such statute or regulation on such
transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.13 <U>Public Announcements</U>. Each of Parent and Merger Sub, on the one hand, and the
Company, on the other hand, shall, to the extent reasonably practicable, consult with
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">each other before issuing, and give each other a reasonable opportunity to review and comment upon, any press
release or other public statements with respect to this Agreement, the Merger and the other
transactions contemplated hereby and shall not issue any such press release or make any public
announcement without the prior consent of the other party (which consent shall not be unreasonably
withheld, conditioned or delayed), except as may be required by applicable Law, court process or by
obligations pursuant to any listing agreement with any national securities exchange or national
securities quotation system.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.14 <U>Tax Covenants</U>. The Company shall prepare and file or cause to be prepared and
filed in a manner consistent with past practice all Tax Returns (whether separate or consolidated,
combined, group or unitary Tax Returns that include the Company or any of its Subsidiaries) that
are required to be filed (with extensions) on or before the Closing Date; <U>provided</U>,
<U>however</U>, that Parent shall have a reasonable opportunity, beginning at least fifteen (15)
days prior to the due date thereof, to review and comment on the form and substance of such Tax
Return.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VII<BR>
CONDITIONS PRECEDENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7.1 <U>Conditions to Each Party&#146;s Obligation to Effect the Merger</U>. The obligation of
each party to effect the Merger is subject to the satisfaction at or prior to the Effective Time of
the following conditions:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Stockholder Approval</U>. The Company Stockholder Approval (if required by applicable
Law) shall have been obtained.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>HSR Act; Antitrust</U>. Any waiting period (and any extension thereof) applicable to
the Merger under the HSR Act and any other applicable Antitrust Law shall have expired or been
terminated without any limitation, restriction or condition that, individually or in the aggregate,
would reasonably be expected to have a Material Adverse Effect (after giving effect to the Merger
and the other transactions contemplated by this Agreement).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>No Injunctions or Legal Restraints; Illegality</U>. No temporary restraining order,
preliminary or permanent injunction or other judgment, order or decree issued by any court of
competent jurisdiction or other legal restraint or prohibition shall be in effect, and no Law shall
have been enacted, entered, promulgated, enforced or deemed applicable by any Governmental Entity
that, in any case, prohibits, restrains or makes illegal the consummation of the Merger.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Purchase of Shares in the Offer</U>. Merger Sub shall have purchased all Shares
validly tendered (and not withdrawn) pursuant to the Offer.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VIII<BR>
TERMINATION, AMENDMENT AND WAIVER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8.1 <U>Termination</U>. This Agreement may be terminated and the Offer and the Merger may
be abandoned at any time prior to the Effective Time, notwithstanding approval thereof by the
stockholders of the Company (with any termination by Parent also being an effective termination by
Merger Sub):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;by mutual written consent of Parent and the Company;
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;by either Parent or the Company:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;if any court of competent jurisdiction or other Governmental Entity has issued a judgment,
order, injunction, rule or decree, or taken any other action restraining, enjoining or otherwise
prohibiting any of the transactions contemplated by this Agreement and such judgment, order,
injunction, rule, decree or other action shall have become final and nonappealable;
<U>provided</U>, that the party seeking to terminate this Agreement pursuant to this <U>Section
8.1(b)(i)</U> shall have used its commercially reasonable efforts to contest, appeal and remove
such judgment, order, injunction, rule, decree, ruling or other action in accordance with
<U>Section&nbsp;6.7</U>; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;if (A)&nbsp;Merger Sub has not accepted for payment and paid for Shares pursuant to the Offer
on or before the Outside Date, (B)&nbsp;the Offer has expired or been terminated in accordance with its
terms without Merger Sub having purchased any Shares pursuant thereto or (C)&nbsp;Merger Sub failed to
commence the Offer within five (5)&nbsp;Business Days after the date hereof; <U>provided</U>, that a
party shall not have the right to terminate this Agreement pursuant to this <U>Section
8.1(b)(ii)</U> if such failure to accept for payment and pay for Shares, to purchase Shares or to
commence the Offer is due to such party&#146;s (or an Affiliate&#146;s) material breach of this Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;by Parent, at any time prior to the purchase of Shares pursuant to the Offer:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;if the Company breached or failed to perform any of its covenants or agreements set forth
in this Agreement (other than with respect to a breach of <U>Section&nbsp;6.4</U> or <U>6.5(b)</U>, as
to which <U>Section&nbsp;8.1(c)(ii)</U> will apply), or if any representation or warranty of the
Company was untrue as of the date hereof, which breach or failure to perform or to be true,
individually or in the aggregate (A)&nbsp;would result in the failure of an Offer Condition or of any of
the conditions set forth in <U>Article&nbsp;VII</U> and (B)&nbsp;cannot be or has not been cured within
fifteen (15)&nbsp;calendar days after the Parent gave written notice to the Company of such breach or
failure; <U>provided</U>, that Parent shall not have the right to terminate this Agreement
pursuant to this <U>Section&nbsp;8.1(c)(i)</U> if Parent or Merger Sub is then in material breach of
any of its covenants or agreements set forth in this Agreement; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;if (A)&nbsp;the Company Board effects an Adverse Recommendation Change, (B)&nbsp;the Company or the
Company Board (or any committee thereof) (1)&nbsp;approves, adopts, endorses or recommends any
Acquisition Proposal or (2)&nbsp;approves, adopts, endorses or recommends, or enters into or allows the
Company or any of its Subsidiaries to enter into, an Alternative Acquisition Agreement, (C)&nbsp;the
Company materially breached any of its obligations under <U>Section&nbsp;6.4</U> or <U>6.5(b)</U> or
(D)&nbsp;the Company or the Company Board (or any committee thereof) publicly proposes any of the
foregoing;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;by the Company, at any time prior to the purchase of Shares pursuant to the Offer:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if Parent or Merger Sub breached or failed to perform any of its covenants or agreements
set forth in this Agreement, or if any representation or warranty of Parent or Merger Sub is
untrue, which breach or failure to perform or to be true, individually or in the aggregate (A)&nbsp;has
had or would reasonably be expected to have a Parent Material Adverse Effect and (B)&nbsp;cannot be or
has not been cured by fifteen (15)&nbsp;calendar days after the Company gave written notice to Parent of
such breach or failure; <U>provided</U>, that the Company shall not
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">have the right to terminate
this Agreement pursuant to this <U>Section&nbsp;8.1(d)(i)</U> if it is then in material breach of any
of its covenants or agreements set forth in this Agreement; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;in accordance with and subject to the terms and conditions of <U>Section&nbsp;6.4(d)</U>;
<U>provided</U>, that the Company shall have substantially concurrently with such termination
entered into the Alternative Acquisition Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8.2 <U>Effect of Termination</U>. In the event of termination of the Agreement, this
Agreement shall forthwith become void and have no effect, without any liability or obligation on
the part of Parent, Merger Sub or the Company, except that the Confidentiality Agreement and the
provisions of <U>Section&nbsp;4.20</U> and <U>5.10</U> (Brokers), <U>Section&nbsp;6.13</U> (Public
Announcements), this <U>Section&nbsp;8.2</U>, <U>Section&nbsp;8.3</U> (Fees and Expenses), <U>Section
8.4</U> (Amendment or Supplement), <U>Section&nbsp;8.5</U> (Extension of Time; Waiver) and <U>Article
IX</U> (General Provisions) of this Agreement shall survive the termination hereof;
<U>provided</U>, <U>however</U>, that nothing in this <U>Section&nbsp;8.2</U> shall relieve any party
from liability for any willful and material breach of any covenant or agreement of such party
contained in this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8.3 <U>Fees and Expenses</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except as otherwise provided in this <U>Section&nbsp;8.3</U>, all fees and expenses incurred
in connection with this Agreement, the Offer, the Merger and the other transactions
contemplated hereby shall be borne and timely paid by the party incurring such fees or
expenses, whether or not the Offer or the Merger is consummated, except that the expenses incurred
in connection with the filing, printing and mailing of the Offer Documents, the Schedule&nbsp;14D-9 and
the Proxy Statement, and all filing and other fees paid to the SEC or in respect of the HSR Act or
foreign antirust filings, in each case in connection with the Offer, the Merger and the other
transactions contemplated hereby (other than attorneys&#146; fees, accountants&#146; fees and their
respective disbursements), shall be borne and timely paid by Parent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In the event that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;(A)&nbsp;an Acquisition Proposal or intention to make an Acquisition Proposal is made directly
to the Company&#146;s stockholders, otherwise publicly disclosed or otherwise communicated to senior
management of the Company or the Company Board, (B)&nbsp;this Agreement is thereafter terminated by the
Company or Parent pursuant to <U>Section&nbsp;8.1(b)(ii)</U> as a result of the failure (at a time when
all other Offer Conditions have been satisfied) of the Minimum Condition to be satisfied after 120
days have elapsed since the commencement of the Offer, or by Parent pursuant to <U>Section
8.1(c)(i)</U>, and (C)&nbsp;within twelve (12)&nbsp;months after the date of such termination, a transaction
in respect of an Acquisition Proposal referenced in clause (A)&nbsp;is consummated;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;this Agreement is terminated by Parent pursuant to <U>Section&nbsp;8.1(c)(ii)</U>; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;this Agreement is terminated by the Company pursuant to <U>Section&nbsp;8.1(d)(ii)</U>;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">then, in any such event, the Company shall pay to Parent the Termination Fee, it being understood
that in no event shall the Company be required to pay the Termination Fee on more than one occasion
and that the Termination Fee shall by the exclusive remedy of Parent and Merger Sub with respect to
a termination of this Agreement described in <U>Sections&nbsp;8.3(b)(i)-(iii)</U>.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;For purposes of this <U>Section&nbsp;8.3</U>,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&#147;<U>Acquisition Proposal</U>&#148; shall have the meaning ascribed thereto in <U>Section
6.4(f)(ii)</U> except that references in <U>Section&nbsp;6.4(f)(ii)</U> to &#147;15%&#148; shall be replaced by
&#147;50%&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&#147;<U>Termination Fee</U>&#148; means an amount equal to $2,000,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Payment of the Termination Fee shall be made by wire transfer of same day funds to the
account or accounts designated by Parent (i)&nbsp;on the date of consummation of any transaction
contemplated by an Acquisition Proposal in the case of a Termination Fee payable pursuant to
<U>Section&nbsp;8.3(b)(i)</U>, (ii)&nbsp;as promptly as reasonably practicable after termination (and, in
any event, within five (5)&nbsp;Business Days thereof), in the case of termination by Parent pursuant to
<U>Section&nbsp;8.1(c)(ii)</U> or (iii)&nbsp;concurrently with termination, in the case of a termination by
the Company pursuant to <U>Section&nbsp;8.1(d)(ii)</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;In the event that the Company terminates this Agreement pursuant to <U>Section
8.1(d)(i)</U>, then Parent shall pay to the Company an amount equal to the aggregate amount of all
fees and out-of-pocket expenses (including all attorneys&#146; fees, accountants&#146; fees, financial
advisory fees and filing fees of any kind) that have been paid or that may become payable on
behalf of the Company in connection with the preparation and negotiation of this Agreement and any
related agreements or other documents in connection with the Offer, the Merger or any of the other
transactions contemplated by this Agreement. Such fees and expenses shall be paid as promptly as
reasonably practicable after termination (and, in any event, within five (5)&nbsp;Business Days
thereof).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8.4 <U>Amendment or Supplement</U>. This Agreement may be amended, modified or
supplemented by the parties by action taken or authorized by their respective boards of directors
at any time prior to the Effective Time, whether before of after the Company Stockholder Approval
has been obtained; <U>provided</U>, <U>however</U>, that (a)&nbsp;after Merger Sub has accepted for
payment and paid for Shares pursuant to the Offer, no amendment shall be made which decreases the
Merger Consideration and (b)&nbsp;after the Company Stockholder Approval has been obtained, no amendment
shall be made that pursuant to applicable Law requires further approval or adoption by the
stockholders of the Company without such further approval or adoption. This Agreement may not be
amended, modified or supplemented in any manner, whether by course of conduct or otherwise, except
by an instrument in writing specifically designated as an amendment hereto, signed on behalf of
each of the parties in interest at the time of the amendment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8.5 <U>Extension of Time; Waiver</U>. At any time prior to the Effective Time, the
parties may, by action taken or authorized by their respective boards of directors, to the extent
permitted by applicable Law, (a)&nbsp;extend the time for the performance of any of the obligations or
acts of the other parties, (b)&nbsp;waive any inaccuracies in the representations and warranties of the
other parties set forth in this Agreement or any document delivered pursuant hereto or (c)&nbsp;subject
to applicable Law, waive compliance with any of the agreements or conditions of the other parties
contained herein; <U>provided</U>, <U>however</U>, that after the Company Stockholder Approval
has been obtained, no waiver may be made that pursuant to applicable Law requires further approval
or adoption by the stockholders of the Company without such further approval or adoption. Any
agreement on the part of a party to any such waiver shall be valid only if set forth in a written
instrument executed and delivered by a duly authorized officer on behalf of such party. No failure
or delay of any party in exercising any right or remedy hereunder shall operate as a
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such right or power, or any course of conduct, preclude any
other or further exercise thereof or the exercise of any other right or power. The rights and
remedies of the parties hereunder are cumulative and are not exclusive of any rights or remedies
which they would otherwise have hereunder.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE IX<BR>
GENERAL PROVISIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.1 <U>Nonsurvival of Representations and Warranties</U>. None of the representations,
warranties, covenants or agreements in this Agreement or in any instrument delivered pursuant to
this Agreement shall survive the Effective Time, other than those covenants or agreements of the
parties which by their terms apply, or are to be performed in whole or in part, after the Effective
Time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.2 <U>Notices</U>. All notices and other communications hereunder shall be in writing
and shall be deemed duly given (a)&nbsp;on the date of delivery if delivered personally, or if by
facsimile, upon written confirmation of receipt by facsimile, (b)&nbsp;on the first (1st) Business Day
following the date of dispatch if delivered utilizing a next-day service by a recognized next-day
courier or (c)&nbsp;on the earlier of confirmed receipt or the fifth (5th) Business Day following the
date of mailing if delivered by registered or certified mail, return receipt requested, postage
prepaid. All notices hereunder shall be delivered to the addresses set forth below, or pursuant to
such other instructions as may be designated in writing by the party to receive such notice:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="89%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">(i)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">if to Parent, Merger Sub or the Surviving Corporation, to:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">TaylorMade-adidas Golf Company</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5545 Fermi Court</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Carlsbad, CA 92008</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: William S. Reimus, SVP &#038; GC</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Facsimile: (760)&nbsp;918-6008</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">with a copy (which shall not constitute notice) to:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sheppard, Mullin, Richter &#038; Hampton, LLP</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">650 Town Center Drive, Fourth Floor</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Costa Mesa, CA 92626</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Ethan D. Feffer, Esq.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Facsimile: (714)&nbsp;428-5984</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-49-<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="89%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">(ii)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">if to the Company, to:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ashworth, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2765 Loker Avenue West</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Carlsbad, California 92008</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Allan Fletcher, Chief Executive Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Facsimile: (760)&nbsp;929-4697</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">with a copy (which shall not constitute notice) to:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Gibson, Dunn &#038; Crutcher LLP</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3161 Michelson Drive, Suite&nbsp;1200</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Irvine, California 92612</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Mark W. Shurtleff, Esq.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Facsimile: (949)&nbsp;451-4220</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.3 <u>Certain Definitions</u>. For purposes of this Agreement:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &#147;<U>Affiliate</U>&#148; of any Person means any other Person that directly or indirectly,
through one or more intermediaries, controls, is controlled by, or is under common control with,
such first Person;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &#147;<U>Business Day</U>&#148; means any day other than a Saturday, a Sunday or a day on which
banks in New York City, New York are authorized by Law or executed order to be closed;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &#147;<U>control</U>&#148; (including the terms &#147;<U>controlled</U>,&#148; &#147;<U>controlled by</U>&#148; and
&#147;<U>under common control with</U>&#148;) means the possession, directly or indirectly or as trustee or
executor, of the power to direct or cause the direction of the management policies of a Person,
whether through the ownership of stock, as trustee or executor, by contract or credit arrangement
or otherwise;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &#147;<U>knowledge</U>,&#148; (i)&nbsp;with respect to the Company, means the actual knowledge of the
persons set forth on Schedule&nbsp;9.3(d)(i), together with such knowledge as would be imputed to such
persons after the exercise of reasonable inquiry, and, (ii)&nbsp;with respect to Parent and Merger Sub,
means the actual knowledge of the persons set forth on Schedule&nbsp;9.3(d)(ii), together with such
knowledge as would be imputed to such persons after the exercise of reasonable inquiry;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &#147;<U>Person</U>&#148; means an individual, corporation, partnership, limited liability company,
association, trust or other entity or organization, including any Governmental Entity; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) &#147;<U>Subsidiary</U>&#148; means, with respect to any Person, any other Person of which stock or
other equity interests having ordinary voting power to elect more than fifty percent (50%) of the
board of directors or other governing body are owned, directly or indirectly, by: (i)&nbsp;such first
Person, (ii)&nbsp;such first Person and one or more of its Subsidiaries, or (iii)&nbsp;one or more
Subsidiaries of such first Person. Subsidiaries of the Company include each Subsidiary of a
Subsidiary of the Company and so on all the way down to the lowest tier entity in the consolidated
group of entities of which the Company is the ultimate parent.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-50-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.4 <U>Interpretation</U>. When a reference is made in this Agreement to a Section,
Article or Exhibit such reference shall be to a Section, Article or Exhibit of this Agreement
unless otherwise indicated. The table of contents and headings contained in this Agreement or in
any Exhibit are for convenience of reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement. All words used in this Agreement will be construed to
be of such gender or number as the circumstances require. Any capitalized terms used in any
Exhibit but not otherwise defined therein shall have the meaning set forth in this Agreement. All
Exhibits annexed hereto or referred to herein are hereby incorporated in and made a part of this
Agreement as if set forth herein. The word &#147;including&#148; and words of similar import when used in
this Agreement will mean &#147;including, without limitation,&#148; unless otherwise specified.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.5 <U>Entire Agreement</U>. This Agreement (including the Exhibits hereto), the Company
Disclosure Letter, the Parent Disclosure Letter and the Confidentiality Agreement constitute the
entire agreement, and supersede all prior written agreements, arrangements, communications and
understandings and all prior and contemporaneous oral agreements, arrangements, communications and
understandings among the parties with respect to the subject matter hereof and thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.6 <U>Parties in Interest</U>. Nothing in this Agreement, express or implied, is
intended to or shall confer upon any Person other than the parties and their respective successors
and permitted assigns any legal or equitable right, benefit or remedy of any nature under or by
reason of this Agreement, other than (a)&nbsp;with respect to the provisions of <U>Section&nbsp;6.10</U>
which shall inure to the benefit of the Persons benefiting therefrom who are intended to be
third-party beneficiaries thereof, (b)&nbsp;at and after the Effective Time, the rights of the holders
of Shares to receive the Merger Consideration in accordance with the terms and conditions of this
Agreement, (c)&nbsp;at and after the Effective Time, the rights of the holders of Company Stock Options
to receive the payments contemplated by the applicable provisions of <U>Section&nbsp;3.2</U> in
accordance with the terms and conditions of this Agreement and (d)&nbsp;the right of the Company, on
behalf of its stockholders and in its sole and absolute discretion, to pursue damages pursuant to
<U>Section&nbsp;8.2</U> and other relief, including equitable relief, in the event of Parent&#146;s or
Merger Sub&#146;s breach of this Agreement, which rights are hereby acknowledged and agreed by Parent,
Merger Sub and the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.7 <U>Governing Law</U>. This Agreement and all disputes or controversies arising out of
or relating to this Agreement or the transactions contemplated hereby shall be governed by, and
construed in accordance with, the internal laws of the State of Delaware, without regard to the
laws of any other jurisdiction that might be applied because of the conflicts of laws principles of
the State of Delaware.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.8 <U>Submission to Jurisdiction</U>. Each of the parties irrevocably agrees that any
legal action or proceeding arising out of or relating to this Agreement brought by any other party
or its successors or assigns shall be brought and determined in the Delaware Court of Chancery and
any state appellate court therefrom within the State of Delaware (unless the Delaware Court of
Chancery shall decline to accept jurisdiction over a particular matter, in which case, in any
Delaware state or federal court within the State of Delaware), and each of the parties hereby
irrevocably submits to the exclusive jurisdiction of the aforesaid courts for itself and with
respect to its property, generally and unconditionally, with regard to any such action or
proceeding arising out of or relating to this Agreement and the transactions contemplated hereby.
Each of the parties agrees not to commence any action, suit or proceeding relating thereto except
in the courts described above in Delaware, other than actions in any court of competent
jurisdiction to
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-51-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">enforce any judgment, decree or award rendered by any such court in Delaware as
described herein. Each of the parties further agrees that notice as provided herein shall
constitute sufficient service of process and the parties further waive any argument that such
service is insufficient. Each of the parties hereby irrevocably and unconditionally waives, and
agrees not to assert, by way of motion or as a defense, counterclaim or otherwise, in any action or
proceeding arising out of or relating to this Agreement or the transactions contemplated hereby,
(a)&nbsp;any claim that it is not personally subject to the jurisdiction of the courts in Delaware as
described herein for any reason, (b)&nbsp;that it or its property is exempt or immune from jurisdiction
of any such court or from any legal process commenced in such courts (whether through service of
notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of
judgment or otherwise) and (c)&nbsp;that (i)&nbsp;the suit, action or proceeding in any such court is brought
in an inconvenient forum, (ii)&nbsp;the venue of such suit, action or proceeding is improper or (iii)
this Agreement, or the subject matter hereof, may not be enforced in or by such courts.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.9 <U>Assignment; Successors</U>. Neither this Agreement nor any of the rights, interests or obligations under this Agreement may
be assigned or delegated, in whole or in part, by operation of law or otherwise, by any party
without the prior written consent of the other parties, and any such assignment without such prior
written consent shall be null and void; <U>provided</U>, <U>however</U>, that Merger Sub may
assign any or all of its rights, interests and obligations under this Agreement to any direct or
indirect wholly owned Subsidiary of Parent, but no such assignment shall relieve Merger Sub of its
obligations hereunder. Subject to the preceding sentence, this Agreement will be binding upon,
inure to the benefit of, and be enforceable by, the parties and their respective successors and
assigns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.10 <U>Enforcement</U>. The parties agree that irreparable damage would occur in the
event that any of the provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached. Accordingly, each of the Company (on behalf of itself
and on behalf of the holders of Shares as third party beneficiaries under clause (d)&nbsp;of <U>Section
9.6</U>), Parent and Merger Sub shall be entitled to seek specific performance of the terms hereof,
including an injunction or injunctions to prevent breaches of this Agreement and to enforce
specifically the terms and provisions of this Agreement in the Delaware Court of Chancery and any
state appellate court therefrom within the State of Delaware (unless the Delaware Court of Chancery
shall decline to accept jurisdiction over a particular matter, in which case, in any Delaware state
or federal court within the State of Delaware), this being in addition to any other remedy to which
such party is entitled at law or in equity. Each of the parties hereby further waives (a)&nbsp;any
defense in any action for specific performance that a remedy at law would be adequate and (b)&nbsp;any
requirement under any law to post security as a prerequisite to obtaining equitable relief.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.11 <U>Currency</U>. All references to &#147;<U>dollars</U>&#148; or &#147;<U>$</U>&#148; or &#147;<U>US$</U>&#148;
in this Agreement refer to United States dollars, which is the currency used for all purposes in
this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.12 <U>Severability</U>. Whenever possible, each provision or portion of any provision
of this Agreement shall be interpreted in such manner as to be effective and valid under applicable
Law, but if any provision or portion of any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable Law or rule in any jurisdiction, such
invalidity, illegality or unenforceability shall not affect any other provision or portion of any
provision in such jurisdiction, and this Agreement shall be reformed, construed and enforced in
such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any
provision had never been contained herein.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-52-<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.13 <U>Waiver of Jury Trial</U>. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.14 <U>Counterparts</U>. This Agreement may be executed in two or more counterparts, all of which shall be considered one
and the same instrument and shall become effective when one or more counterparts have been signed
by each of the parties and delivered to the other party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.15 <U>Facsimile Signature</U>. This Agreement may be executed by facsimile signature or
electronically scanned signature and such signatures shall constitute an original for all purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.16 <U>No Presumption Against Drafting Party</U>. Each of Parent, Merger Sub and the
Company acknowledges that each party to this Agreement has been represented by counsel in
connection with this Agreement and the transactions contemplated by this Agreement. Accordingly,
any rule of law or any legal decision that would require interpretation of any claimed ambiguities
in this Agreement against the drafting party has no application and is expressly waived.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.17 <U>Parent Guarantee</U>. Parent agrees to take all action necessary to cause Merger
Sub or the Surviving Corporation, as applicable, to perform all of its respective agreements,
covenants and obligations under this Agreement. Parent unconditionally guarantees to the Company
the full and complete performance by Merger Sub or the Surviving Corporation, as applicable, of its
respective obligations under this Agreement and shall be liable for any breach of any
representation, warranty, covenant or obligation of Merger Sub or the Surviving Corporation, as
applicable, under this Agreement. This is a guarantee of payment and performance and not of
collectibility. Parent hereby waives diligence, presentment, demand of performance, filing of any
claim, any right to require any proceeding first against Merger Sub or the Surviving Corporation,
as applicable, protest, notice and all demands whatsoever in connection with the performance of its
obligations set forth in this <U>Section&nbsp;9.17</U>.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;<I>Signature page follows</I>.&#093;
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first
written above by their respective officers thereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">TAYLOR MADE GOLF COMPANY, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Mark King</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Mark King</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President &amp; Chief Executive Officer</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ William Reimus</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">William Reimus</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Sr. Vice President &amp; General Counsel</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">PHX ACQUISITION CORP.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Frank Dassler</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Frank Dassler&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Authorized Signatory&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Klaus Flock&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Klaus Flock&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">ASHWORTH, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Eddie J. Fadel&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Eddie J. Fadel&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT A<BR>
CONDITIONS TO THE OFFER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalized terms used in this <U>Exhibit&nbsp;A</U> and not otherwise defined shall have the
respective meanings assigned thereto in the Agreement and Plan of Merger to which this <U>Exhibit
A</U> is attached (the &#147;<U>Merger Agreement</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary in the Offer Documents, but subject to the terms of
the Merger Agreement (including <U>Section&nbsp;1.1(a)</U> thereof), Merger Sub (i)&nbsp;shall not be
required (A)&nbsp;to accept for payment or (B)&nbsp;subject to any applicable rules and regulations of the
SEC, including Rule&nbsp;14e-1(c) under the Exchange Act (relating to Merger Sub&#146;s obligation to pay for
or return tendered Shares promptly after the termination or withdrawal of the Offer), to pay for
any Shares tendered pursuant to the Offer and (ii)&nbsp;may delay the acceptance for payment of or
payment for Shares or may terminate or amend the Offer, if:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;immediately prior to the expiration of the Offer (for the avoidance of doubt, as the same
may be extended pursuant to the terms of the Merger Agreement), there shall not have been validly
tendered and not withdrawn a number of Shares that, together with all Shares, if any, then owned by
Parent or any of its Subsidiaries, would represent at least a majority of the outstanding Shares on
a fully diluted basis on the date of purchase (which means, as of any time, the number of Shares
outstanding, together with all Shares that the Company would be required to issue pursuant to the
conversion or exercise of all options, rights and securities convertible into or exercisable for
Shares or otherwise, including after giving effect to <U>Section&nbsp;3.2(a)</U>, other than potential
dilution attributable to the unexercised portion of the Top-Up Option) (the &#147;<U>Minimum
Condition</U>&#148;);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;immediately prior to the expiration of the Offer (for the avoidance of doubt, as the same
may be extended pursuant to the terms of the Merger Agreement), the applicable waiting period under
the HSR Act or other applicable Antitrust Law in respect of the transactions contemplated by the
Merger Agreement shall not have expired or been terminated;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;prior to the expiration of the Offer (for the avoidance of doubt, as the same may be
extended pursuant to the terms of the Merger Agreement), any of the events described in <U>Section
8.1(c)(ii)</U> have occurred;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;prior to the expiration of the Offer (for the avoidance of doubt, as the same may be
extended pursuant to the terms of the Merger Agreement), the Merger Agreement shall have been
terminated in accordance with its terms; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;prior to the expiration of the Offer (for the avoidance of doubt, as the same may be
extended pursuant to the terms of the Merger Agreement), any of the following conditions exist:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;any court of competent jurisdiction or other Governmental Entity has issued a judgment,
order, injunction, rule or decree, or taken any other action restraining, enjoining or otherwise
prohibiting any of the transactions contemplated by the Merger Agreement (which includes any
requirement by a Governmental Entity to dispose of any material portion of the business or assets
of the Company, other than business or assets of the Company relating to the Callaway License
Agreement, or Parent) and such judgment, order, injunction, rule, decree or other action shall have
become final and nonappealable; <U>provided</U>, that the party seeking to terminate the Offer
pursuant to this paragraph shall have used its
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">commercially reasonable efforts to contest, appeal and remove such judgment, order,
injunction, rule, decree, ruling or other action in accordance with <U>Section&nbsp;6.7</U> of the
Merger Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;there shall have been any Law enacted, enforced, promulgated, amended or issued by any
Governmental Entity that makes illegal or otherwise prohibits the consummation of the Offer or the
Merger;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;since the date of the Merger Agreement, there occurred a Material Adverse Effect; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;(A)&nbsp;the Company failed to comply in any material respect with any of its obligations,
covenants or agreements under the Merger Agreement, which failures would reasonably be expected to
have a Material Adverse Effect or (B)&nbsp;any representation or warranty of the Company set forth in
the Merger Agreement is not true and correct as of the date of the Merger Agreement (except to the
extent such representations and warranties expressly relate to an earlier date, in which case as of
such earlier date), except for inaccuracies of representations or warranties the circumstances
giving rise to which, individually or in the aggregate, would not reasonably be expected to have a
Material Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject in each case to the terms of the Merger Agreement and the applicable rules and
regulations of the SEC, the foregoing conditions (except for the Minimum Condition and the
condition set forth in clause (d)&nbsp;above) are for the sole benefit of Merger Sub and Parent and may
be asserted by Merger Sub or Parent, at the applicable times specified above, regardless of the
circumstances giving rise to such condition, or may be waived by Merger Sub and Parent in whole or
in part at any time and from time to time in their reasonable discretion. The failure by Parent or
Merger Sub at any time to exercise any of the foregoing rights shall not be deemed a waiver of any
such right; the waiver of any such right with respect to particular facts and circumstances shall
not be deemed a waiver with respect to any other facts and circumstances; and each such right shall
be deemed an ongoing right that may be asserted at any time and from time to time, at the
applicable times specified above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything contained in this <U>Exhibit&nbsp;A</U>, neither Parent nor Merger Sub
may rely on the failure of any condition set forth herein to be satisfied if such failure was
caused by the breach of the Merger Agreement by Parent or Merger Sub, or the failure by Parent or
Merger Sub to fulfill any of their respective obligations thereunder.
</DIV>


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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>a50088exv99w1.htm
<DESCRIPTION>EX-99.1
<TEXT>
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<HEAD>
<TITLE>exv99w1</TITLE>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT 99.1</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Contacts:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Ashworth, Inc.</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>TaylorMade-adidas Golf</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Allan H. Fletcher, CEO
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Scott Leightman, Director of Public Relations</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Eddie Fadel, President
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(760) 476-5748</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Greg W. Slack, CFO</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(760) 929-6100</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="a50088a5008801.gif" alt="(ASHWORTH LOGO)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>FOR IMMEDIATE RELEASE</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TaylorMade-adidas Golf Company to acquire Ashworth, Inc.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Herzogenaurach / Carlsbad, California, </B>October&nbsp;13, 2008 &#151; Ashworth, Inc. (NASDAQ: ASHW) and the
adidas Group announced today that the TaylorMade-adidas Golf business segment has entered into a
definitive agreement to acquire all of the outstanding shares of Ashworth, Inc. for $1.90 per share
in cash. The transaction value is $72.8&nbsp;million (<FONT face="'Times New Roman',times,serif">&#128;</FONT>54.1&nbsp;million), which includes the assumption of
$46.3&nbsp;million (<FONT face="'Times New Roman',times,serif">&#128;</FONT>34.4&nbsp;million) of Ashworth debt based on Ashworth, Inc.&#146;s 10-Q for the period ended
July&nbsp;31, 2008. <SUP style="font-size: 85%; vertical-align: text-top">1</SUP> The transaction will be effected through a tender offer to be launched
shortly by a subsidiary of Taylor Made Golf Company, Inc. (&#147;TaylorMade-adidas Golf&#148;) for all
outstanding Ashworth shares. The tender offer will be subject to, among other things, the condition
that at least a majority of the outstanding Ashworth shares are tendered.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Through the acquisition of Ashworth, TaylorMade-adidas Golf becomes the leading and most balanced
golf apparel company with a complete apparel offering for golfers globally. The transaction enables
TaylorMade-adidas Golf to widen its product range, to further strengthen its distribution platform
and to extend its marketing presence.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Ashworth is a well-established, authentic golf apparel brand with a strong heritage and represents
an excellent addition to TaylorMade and adidas Golf,&#148; said adidas AG Chairman and CEO Herbert
Hainer. &#147;This acquisition underscores our commitment to continued growth in the golf category.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;We are excited to bring Ashworth alongside our industry-leading TaylorMade and adidas Golf brands.
TaylorMade-adidas Golf&#146;s mission is to be the best performance golf company in the world and adding
Ashworth is another important step in achieving that goal<B>,</B>&#148; commented Mark King, President and CEO
of TaylorMade-adidas Golf.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;This deal provides exciting prospects for our colleagues, partners and customers around the world.
The Ashworth<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> brand fits perfectly into TaylorMade-adidas Golf&#146;s line-up of brands and together we
will be able to increase efficiency and drive the golf apparel business going forward, leveraging a
broad set of resources,&#148; said Allan Fletcher, CEO of Ashworth, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board of Directors of Ashworth has approved the transaction. In addition, members of the
Knightspoint Partners group who collectively own over 16% of Ashworth&#146;s outstanding shares have
entered into an agreement whereby they have agreed to tender their shares. The Knightspoint
Partners group represents the largest reporting shareholder group of Ashworth.
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Figures based on <FONT face="'Times New Roman',times,serif">&#128;</FONT>/$ exchange rate of 1.3461.</TD>
</TR>

</TABLE>


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<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The adidas Group plans to finance the acquisition with cash on hand or through existing credit
lines. The transaction is subject to customary closing conditions and is expected to close in the
fourth quarter 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In connection with the transaction, Barclays Capital is acting as financial advisor to the adidas
Group. Kurt Salmon Associates Capital Advisors, Inc. is acting as financial advisor to Ashworth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>About Ashworth, Inc.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ashworth, Inc. (NASDAQ: ASHW) is a leading designer of men&#146;s and women&#146;s golf-inspired lifestyle
sportswear distributed domestically and internationally in golf pro shops, resorts, upscale
department and specialty stores and to corporate customers under the Ashworth&#174; brand. Ashworth is
also an Official Apparel Licensee of Callaway Golf Company. Ashworth is also a leading designer,
producer and distributor of headwear and apparel under The Game&#174; and Kudzu&#174; brands. The Game is a
leading headwear brand in collegiate bookstores and Kudzu products are sold into the NASCAR/racing
markets and through outdoors sports distribution channels, including fishing and hunting. Ashworth
is also the exclusive on-site event merchandiser for the Kentucky Derby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For more information, please visit the Company&#146;s Web site at <U>www.ashworthinc.com</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>About the adidas Group</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The adidas Group is one of the global leaders within the sporting goods industry, offering a broad
range of products around three core segments adidas, Reebok and TaylorMade-adidas Golf.
Headquartered in Herzogenaurach, Germany, the Group has more than 34,000 employees and generated
sales of <FONT face="'Times New Roman',times,serif">&#128;</FONT>10.3&nbsp;billion in 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>About TaylorMade-adidas Golf</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Headquartered in Carlsbad, California, TaylorMade-adidas Golf sells golf clubs and balls under the
TaylorMade brand and adidas Golf footwear and apparel. TaylorMade-adidas Golf posted 2007 sales of
<FONT face="'Times New Roman',times,serif">&#128;</FONT>804&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This announcement does not constitute an offer to purchase or a solicitation of an offer to sell
any securities. The tender offer for the outstanding shares of common stock of Ashworth described
in this announcement has not commenced. Any offers to purchase or solicitation of offers to sell
will be made only pursuant to a tender offer statement on Schedule&nbsp;TO filed by a subsidiary of
Taylor Made Golf Company, Inc. with the U.S. Securities and Exchange Commission (SEC)&nbsp;and a
solicitation/recommendation statement on Schedule&nbsp;14D-9 filed by Ashworth with the SEC. The tender
offer statement (including an offer to purchase, a letter of transmittal and other offer documents)
and the solicitation/recommendation statement will contain important information and should be read
carefully before any decision is made with respect to the tender offer. Those materials will be
made available to stockholders of Ashworth at no expense to them. In addition, all of those
materials (and all other offer documents filed with the SEC) will be available at no charge on the
SEC&#146;s website (<u>http://www.sec.gov/</u>).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Forward-Looking Statements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This press release contains forward-looking statements related to Ashworth, Inc.&#146;s (the
&#147;Company&#146;s&#148;) market position, finances, operating results, marketing and business plans and
strategies within the meaning of Section&nbsp;27A of the Securities Act, as amended, and Section&nbsp;21E of
the Securities Exchange Act of 1934, as amended. These forward-looking statements may contain the
words &#147;believes,&#148; &#147;anticipates,&#148; &#147;expects,&#148; &#147;predicts,&#148; &#147;estimates,&#148; &#147;projects,&#148; &#147;will be,&#148; &#147;will
continue,&#148; &#147;will likely result,&#148; or other similar words and phrases. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">speak only as
of the date hereof. The Company undertakes no obligation to update any forward-looking statements,
whether as a result of new information, changed circumstances or unanticipated events unless
required by law. These statements involve risks and uncertainties that could cause actual results
to differ materially from those projected. These risks include the consummation of the recently
announced proposed acquisition of the Company by TaylorMade-adidas Golf, the uncertainties
associated with a potential liquidity shortfall in the first half of fiscal 2009, implementing a
successful transition in executive leadership, successful resolution of the current dispute with
Callaway Golf, the evaluation of strategic alternatives that may be presented, timely development
and acceptance of new products, as well as strategic alliances, the impact of competitive products
and pricing, the success of the Sun Ice&#174; and Callaway Golf apparel product lines, the preliminary
nature of bookings information, the ongoing risk of excess or obsolete inventory, the potential
inadequacy of booked reserves, the successful operation of the distribution facility in Oceanside,
CA, the successful implementation of the Company&#146;s ERP system, and other risks described in
Ashworth, Inc.&#146;s SEC reports, including the Annual Report on Form 10-K for the year ended October
31, 2007, quarterly reports on Form 10-Q filed thereafter and amendments to any of the foregoing
reports, including the Form 10-K/A for the year ended October&nbsp;31, 2007.
</DIV>


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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT 99.2</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>STOCKHOLDER TENDER AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS STOCKHOLDER TENDER AGREEMENT </B>(this &#147;<U>Agreement</U>&#148;) is entered into as of October&nbsp;13,
2008, by and between <B>Taylor Made Golf Company, Inc.</B>, a Delaware corporation (&#147;<U>Parent</U>&#148;), on
the one hand<I>, </I>and <B>David M. Meyer, Michael S. Koeneke, Knightspoint Partners II, L.P., Knightspoint
Capital Management II LLC, Knightspoint Partners, LLC, Ramius Value and Opportunity Master Fund
Ltd (f/k/a Starboard Value &#038; Opportunity Master Fund, Ltd) and Parche, LLC </B>(each a
&#147;<U>Stockholder</U>&#148; and collectively, the &#147;<U>Stockholders</U>&#148;), on the other hand<I>.</I>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RECITALS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, Parent, PHX Acquisition Corp., a Delaware corporation and a wholly owned subsidiary
of Parent (&#147;<U>Merger Sub</U>&#148;), and Ashworth, Inc., a Delaware corporation (the
&#147;<U>Company</U>&#148;), are concurrently entering into an Agreement and Plan of Merger dated as of even
date herewith (the &#147;<U>Merger Agreement</U>&#148;) which provides (subject to the conditions set forth
therein), among other things, for the offer by Merger Sub to purchase all outstanding shares of the
Company common stock (&#147;<U>Shares</U>&#148;) and the subsequent merger of Merger Sub with and into the
Company (the &#147;<U>Merger</U>&#148;). Certain capitalized terms used herein are defined in <U>Section
5</U> of this Agreement and, if not otherwise defined herein, capitalized terms shall have the
meanings given to them in the Merger Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, to induce Parent and Merger Sub to enter into the Merger Agreement, the Stockholders,
solely in their capacity as stockholders of the Company (and, to the extent applicable, not in
their capacity as directors of the Company) are entering into this Agreement.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW</B>, <B>THEREFORE</B>, in consideration of the foregoing and the respective representations,
warranties, covenants and agreements set forth in this Agreement, and intending to be legally bound
hereby, the parties hereto hereby agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>SECTION 1. TENDER AND VOTING OF SHARES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B> 1.1 Agreement to Tender.</B> Provided that this Agreement has not been terminated pursuant to
<U>Section&nbsp;4.18</U> (Fiduciary Termination Right), each Stockholder hereby agrees to tender (or
cause the record owner of such shares to validly tender), pursuant to and in accordance with the
terms of the Offer, such Stockholder&#146;s Owned Shares, and agree that, prior to the Outside Time,
they will not withdraw or permit the withdrawal of the tender of their Owned Shares (provided that
this Agreement has not been terminated pursuant to <U>Section&nbsp;4.18</U> (Fiduciary Termination
Right)) in response to the Offer as the Offer may be amended from time to time pursuant to and in
accordance with the terms of the Merger Agreement. Within nineteen (19)&nbsp;Business Days after
commencement of the Offer, each Stockholder shall, as applicable, (a)&nbsp;deliver to the Paying Agent
designated in the Offer (i)&nbsp;a letter of transmittal with respect to the Owned Shares complying with
the terms of the Offer, (ii)
certificates representing the Owned Shares and (iii)&nbsp;all other documents or instruments
required to be delivered pursuant to the terms of the Offer, or (b)&nbsp;instruct such Stockholder&#146;s
broker or other Person who is the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">holder of record of such Stockholder&#146;s Owned Shares to promptly
tender such Owned Shares in the Offer pursuant to the terms and conditions of the Offer. Provided
that the conditions to the Offer are satisfied or waived by Parent and/or Merger Sub pursuant to
the terms of the Merger Agreement, Parent shall cause Merger Sub to purchase the Owned Shares in
accordance with the terms of the Offer. Notwithstanding the foregoing, a Stockholder may withdraw
such Stockholder&#146;s Owned Shares tendered pursuant to this Section&nbsp;1.1 if the Agreement is
terminated pursuant to Section&nbsp;4.19 hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.2 Voting.</B> Subject to the Irrevocable Proxy and Agreement dated July&nbsp;3, 2007 previously
entered into with the Company, and provided that this Agreement has not been terminated pursuant to
<U>Section&nbsp;4.18</U> (Fiduciary Termination Right), each Stockholder agrees that, during the period
from the date of this Agreement through the Outside Time, at any meeting of stockholders of the
Company, however called, and in any action by written consent of the stockholders of the Company,
such Stockholder shall, unless otherwise directed in writing by Parent, vote such Stockholder&#146;s
Owned Shares or cause such Owned Shares to be voted (to the extent such securities are entitled to
be voted and are not voted by Parent as proxy in accordance with the Proxy granted herein) in such
Stockholder&#146;s sole capacity as a stockholder:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) against any action or agreement that would reasonably be expected to result in a
breach of any representation, warranty, covenant or obligation of the Company contained in
the Merger Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) against any action or agreement that would reasonably be expected to cause any
condition contained in <U>Section&nbsp;7.1</U> or <U>Exhibit&nbsp;A</U> of the Merger Agreement not
to be satisfied; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) against the following actions (other than the Offer, the Merger and the
transactions contemplated by the Merger Agreement): (i)&nbsp;any Acquisition Proposal; (ii)&nbsp;any
change in a majority of the members of the board of directors of the Company, other than any
change contemplated by <U>Section&nbsp;1.4</U> of the Merger Agreement; or (iii)&nbsp;any other
action that would reasonably be expected to impede, interfere with, delay, postpone,
discourage or adversely affect the consummation of the Offer, the Merger or any of the other
transactions contemplated by the Merger Agreement or this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.3 Proxy; Further Assurances.</B> Without in any way limiting the Stockholder&#146;s right to vote its
Owned Shares in its sole discretion on any matters other than the matters set forth in Section&nbsp;1.2
that may be submitted to a stockholder vote, consent or other approval, contemporaneously with the
execution of this Agreement, each Stockholder shall execute and deliver to Parent a proxy in the
form attached to this Agreement as <U>Exhibit&nbsp;A</U><I>, </I>which shall, subject to <U>Section&nbsp;4.18</U>
(Fiduciary Termination Right), be irrevocable to the fullest extent permitted by applicable law,
with respect to the Owned Shares, but solely with respect to any item set forth in <U>Section
1.2</U> hereof (the &#147;<U>Proxy</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>SECTION 2. TRANSFER OF OWNED SHARES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.1 Transferee of Owned Shares to be Bound by this Agreement.</B> Each Stockholder agrees that,
during the period from the date of this Agreement through the Outside
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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Time, such Stockholder shall not (a)&nbsp;cause or permit any Transfer of any of the Owned Shares (other than pursuant to the Offer);
(b)&nbsp;tender any of the Owned Shares to any Person other than Merger Sub or Parent or (c)&nbsp;create or
permit to exist any encumbrance with respect to any Owned Shares; <U>provided, however,</U> that,
prior to the tender of any Owned Shares pursuant to Section&nbsp;1.1, nothing herein shall limit the
ability of any Stockholder to transfer any Owned Shares of the Company to any affiliate of such
Stockholder who agrees to be bound by the terms and provisions of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.2 Transfer of Voting Rights.</B> Each Stockholder agrees that, during the period from the date of
this Agreement through the Outside Time, such Stockholder shall ensure that: (a)&nbsp;none of the Owned
Shares are deposited into a voting trust and (b)&nbsp;no proxy is granted, and no voting agreement or
similar agreement is entered into, with respect to any of the Owned Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>SECTION 3. REPRESENTATIONS AND WARRANTIES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Stockholder hereby severally and not jointly represents and warrants to Parent as
follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.1 Authorization, etc. </B>Such Stockholder has the absolute and unrestricted right, power,
authority and capacity to execute and deliver this Agreement and the Proxy and to perform its
obligations hereunder and thereunder. This Agreement and the Proxy have been duly executed and
delivered by such Stockholder and (assuming that this Agreement constitutes a legal, valid and
binding obligation of Parent) constitute legal, valid and binding obligations of such Stockholder,
enforceable against such Stockholder in accordance with their terms, subject to laws of general
application relating to bankruptcy, insolvency, creditors&#146; rights and the relief of debtors, and
general principles of equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.2 Conflicts or Consents.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The execution and delivery of this Agreement and the Proxy by such Stockholder do
not, and the performance of this Agreement and the Proxy by such Stockholder will not: (i)
materially conflict with or violate any law, rule, regulation, order, decree or judgment
applicable to such Stockholder or by which such Stockholder or any of such Stockholder&#146;s
properties is bound or affected; or (ii)&nbsp;result in or constitute (with or without notice or
lapse of time) any material breach of or material default under, or give to any third party
(with or without notice or lapse of time) any material right of termination, amendment,
acceleration or cancellation of, or result (with or without notice or lapse of time) in the
creation of any encumbrance or restriction on any of the Owned
Shares pursuant to, any contract to which such Stockholder is a party or by which such
Stockholder or any of its affiliates or properties is bound or affected.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The execution and delivery of this Agreement and the Proxy by such Stockholder do
not, and the performance of this Agreement and the Proxy by such Stockholder will not,
require any consent or approval of any Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.3 Title to Owned Shares.</B> As of the date of this Agreement: (a)&nbsp;such Stockholder holds of
record or beneficially (free and clear of any encumbrances or restrictions) the number
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of outstanding Shares set forth under the heading &#147;Shares Owned&#148; on the signature page hereof; and (b)
such Stockholder holds (free and clear of any encumbrances) the options, warrants and other rights
to acquire Shares set forth under the heading &#147;Options Held&#148; on the signature page hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parent hereby represents and warrants to each Stockholder as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.4 Authorization, etc.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of Parent and Merger Sub has taken all necessary corporate action to approve this
Agreement and the performance of its obligations hereunder. This Agreement has been duly and
validly executed and delivered by each of Parent and Merger Sub and constitutes a valid, legal and
binding agreement of each of Parent and Merger Sub, respectively, enforceable against each of
Parent and Merger Sub in accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and similar laws
of general applicability relating to or affecting creditors&#146; rights or by general equity
principles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.4 Conflicts.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the execution nor delivery of this Agreement by Parent or Merger Sub. nor Parent&#146;s or
Merger Sub&#146;s consummation of the transactions contemplated hereby will conflict with, result in any
violation of, or constitute a default under, the Certificate or Articles of Incorporation or Bylaws
of Parent or Merger Sub or any agreement, mortgage, indenture, license, permit, lease or other
instrument material to Parent and its subsidiaries taken as a whole or any judgment, decree, order,
or any material law or regulation of any governmental agency or authority in the United States by
which Parent or any of its subsidiaries is bound.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>SECTION 4. MISCELLANEOUS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.1 Survival of Representations, Warranties and Agreements.</B> All representations, warranties,
covenants and agreements made by the Stockholders in this Agreement shall survive until the Outside
Time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.2 Expenses. </B>All costs and expenses incurred in connection with the transactions contemplated by this
Agreement shall be paid solely by the party incurring such costs and expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.3 Notices.</B> Any notice or other communication required or permitted to be delivered to any
party under this Agreement shall be in writing and shall be deemed properly given (a)&nbsp;on the day of
delivery if delivered by hand or by facsimile (in each case, with confirmation of delivery) or (b)
on the second business day after being sent by registered overnight mail, return receipt requested,
by overnight courier or overnight express delivery service, in each of foregoing cases of (a)&nbsp;and
(b), to the address or facsimile telephone number set forth beneath the name of such party below
(or to such other address or facsimile telephone number as such party shall have specified in a
written notice given to the other parties hereto):
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-left: 9%; margin-top: 6pt"><B>if to Parent:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 9%; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS">Taylormade-adidas Golf Company</FONT><BR>
<FONT style="font-variant: SMALL-CAPS">5545 Fermi Court</FONT><BR>
<FONT style="font-variant: SMALL-CAPS">Carlsbad, CA 92008</FONT><BR>
<FONT style="font-variant: SMALL-CAPS">Attn: William S. Reimus, SVP &#038; GC</FONT><BR>
<FONT style="font-variant: SMALL-CAPS">Fax: (760)&nbsp;918-6008 </FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 9%; margin-top: 6pt"><B>with a copy (which shall not constitute notice) to:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 9%; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS">Sheppard, Mullin, Richter &#038; Hampton LLP</FONT><BR>
<FONT style="font-variant: SMALL-CAPS">650 Town Center Drive, 4<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Floor</FONT><BR>
<FONT style="font-variant: SMALL-CAPS">Costa Mesa, CA 92626</FONT><BR>
<FONT style="font-variant: SMALL-CAPS">Attn: Ethan D. Feffer, Esq.</FONT><BR>
<FONT style="font-variant: SMALL-CAPS">Fax: (714)&nbsp;428-5984</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 9%; margin-top: 6pt"><B>if to Stockholders:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 9%; margin-top: 6pt">at the address set forth below each Stockholder&#146;s signature
on the signature page hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B> 4.4 Waiver of Appraisal Rights. </B>Provided that the Merger is consummated in compliance with
the terms of the Merger Agreement and that this Agreement has not been terminated pursuant to
<U>Section&nbsp;4.18</U> (Fiduciary Termination Right) or <U>Section&nbsp;4.19</U>, each Stockholder hereby
irrevocably and unconditionally waives, and agrees to cause to be waived and to prevent the
exercise of, any rights of appraisal, any dissenters&#146; rights (including under Section&nbsp;262 of the
DGCL) and any similar rights relating to the Merger.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.5 No Solicitation.</B> Subject to <U>Section&nbsp;4.16</U> hereof, each Stockholder agrees that,
during the period from the date of this Agreement through the Outside Time, such Stockholder shall
not, and shall not authorize or permit any Representative to, directly or indirectly: (a)&nbsp;solicit, initiate, or
encourage or induce the making, submission or announcement of any Acquisition Proposal or take any
action (other than informing Persons of the provisions of <U>Section&nbsp;6.4</U> of the Merger
Agreement) that could reasonably be expected to lead to an Acquisition Proposal; (b)&nbsp;other than
informing Persons of the provisions of <U>Section&nbsp;6.4</U> of the Merger Agreement, furnish any
information regarding any of the Acquired Companies to any Person in connection with or in response
to an acquisition proposal; or (c)&nbsp;other than informing Persons of the provisions of <U>Section
6.4</U> of the Merger Agreement, engage in discussions or negotiations with any Person with respect
to any Acquisition Proposal. Each Stockholder shall immediately cease and discontinue, and each
Stockholder shall ensure that their Representatives immediately cease and discontinue, any existing
discussions with any Person that relate to any Acquisition Proposal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.6 Severability.</B> If any provision of this Agreement or any part of any such provision is held
under any circumstances to be invalid or unenforceable in any jurisdiction, then (a)&nbsp;such provision
or part thereof shall, with respect to such circumstances and in such jurisdiction, be deemed
amended to conform to applicable laws so as to be valid and enforceable to the fullest
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">possible extent, (b)&nbsp;the invalidity or unenforceability of such provision or part thereof under such
circumstances and in such jurisdiction shall not affect the validity or enforceability of such
provision or part thereof under any other circumstances or in any other jurisdiction, and (c)&nbsp;the
invalidity or unenforceability of such provision or part thereof shall not affect the validity or
enforceability of the remainder of such provision or the validity or enforceability of any other
provision of this Agreement. Each provision of this Agreement is separable from every other
provision of this Agreement, and each part of each provision of this Agreement is separable from
every other part of such provision.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.7 Entire Agreement.</B> This Agreement and the Proxy constitute the entire agreement between the
parties with respect to the subject matter hereof and thereof and supersede all prior agreements
and understandings between the parties with respect thereto. No addition to or modification of any
provision of this Agreement shall be binding upon any party unless made in writing and signed by
all parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.8 Assignment; Binding Effect.</B> Except as provided herein, neither this Agreement nor any of
the interests or obligations hereunder may be assigned or delegated by the Stockholders or Parent
without the prior written consent of the non-assigning parties, and any attempted or purported
assignment or delegation of any of such interests or obligations shall be void. Subject to the
preceding sentence, this Agreement shall be binding upon, and inure to the benefit of, the
Stockholders and their heirs, estate, executors, personal representatives, successors and assigns
(as the case may be), and shall be binding upon, and inure to the benefit of, Parent and its
successors and assigns. Without limiting any of the restrictions set forth in this Agreement, this
Agreement shall be binding upon any Person to whom any Owned Shares are Transferred. Nothing in
this Agreement is intended
to confer on any Person (other than Parent and its successors and assigns) any rights or
remedies of any nature.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.9 Specific Performance.</B> The parties agree that irreparable damage would occur in the event
that any provision of this Agreement or the Proxy were not performed in accordance with its
specific terms or were otherwise breached. Parent and each Stockholder agree that, in the event of
any breach or threatened breach by any Stockholder of any covenant or obligation contained in this
Agreement or in the Proxy, Parent shall give written notice thereof to such Stockholder and, if
such breach or threatened breach is not cured by such Stockholder within one (1)&nbsp;business day after
such written notice is given, Parent shall be entitled to seek (a)&nbsp;a decree or order of specific
performance to enforce the observance and performance of such covenant or obligation and (b)&nbsp;an
ex-parte temporary restraining order, preliminary injunction and permanent injunction restraining
such breach or threatened breach. Each Stockholder further agrees that neither Parent nor any
other Person shall be required to prove the inadequacy of monetary damages (for the avoidance of
doubt, no monetary damages are available to Parent under this Agreement) or obtain, furnish or post
any bond or similar instrument in connection with or as a condition to obtaining the remedy
referred to in this <U>Section&nbsp;4.9</U>, and each Stockholder irrevocably waives any right such
Stockholder may have to require the obtaining, furnishing or posting of any such bond or similar
instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.10 Exclusive Remedy.</B> The remedy of Parent under <U>Section&nbsp;4.9</U> of this Agreement shall
be the exclusive remedy for a breach of this Agreement or the Proxy by any Stockholder. Parent
shall have no other rights, remedies or claim for damages under this Agreement or the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Proxy, whether at law, in equity, by contract or otherwise, all of which are hereby waived by Parent.
However, nothing in this Agreement shall limit any Stockholder&#146;s obligations, or the rights or
remedies of Parent, under any other agreement between Parent and such Stockholder; and nothing in
any such other agreement shall limit any Stockholder&#146;s obligations, or the remedy of Parent under
<U>Section&nbsp;4.9</U> of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.11 Governing Law; Venue.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement and the Proxy shall be construed in accordance with, and governed in
all respects by, the laws of the State of Delaware, regardless of the laws that might
otherwise govern under applicable principles of conflicts of laws thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any legal action or other legal proceeding relating to this Agreement or the Proxy
or the enforcement of any provision of this Agreement or the Proxy shall only be brought or
otherwise commenced in any state or federal court located in the State of Delaware. Each
Stockholder and Parent:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) expressly and irrevocably consent and submit to the exclusive jurisdiction of each
state and federal court located in the State of Delaware (and each appellate court located
in the State of Delaware), in connection with any such legal proceeding;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) agree that service of any process, summons, notice or document by U.S. first class
certified mail, return receipt requested, addressed to such Person at the address set forth
in <U>Section&nbsp;4.3</U> hereof shall constitute effective service of such process, summons,
notice or document for purposes of any such legal proceeding;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) agree that each state and federal court located in the State of Delaware shall be
deemed to be a convenient forum; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) agrees not to assert (by way of motion, as a defense or otherwise) in any such
legal proceeding commenced in any state or federal court located in the State of Delaware
any claim that such Stockholder or Parent is not subject personally to the jurisdiction of
such court, that such legal proceeding has been brought in an inconvenient forum, that the
venue of such proceeding is improper or that this Agreement or the subject matter of this
Agreement may not be enforced in or by such court.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) EACH STOCKHOLDER AND PARENT IRREVOCABLY WAIVE THE RIGHT TO A JURY TRIAL IN
CONNECTION WITH ANY LEGAL PROCEEDING RELATING TO THIS AGREEMENT OR THE PROXY OR THE
ENFORCEMENT OF ANY PROVISION OF THIS AGREEMENT OR THE PROXY.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.12 Counterparts.</B> This Agreement may be executed by the parties in separate counterparts, each
of which when so executed and delivered shall be an original, but all such counterparts shall
together constitute one and the same instrument.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.13 Captions.</B> The captions contained in this Agreement are for convenience of reference only,
shall not be deemed to be a part of this Agreement and shall not be referred to in connection with
the construction or interpretation of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.14 Waiver.</B> No failure on the part of Parent to exercise any power, right, privilege or remedy
under this Agreement, and no delay on the part of Parent in exercising any power, right, privilege
or remedy under this Agreement, shall operate as a waiver of such power, right, privilege or
remedy; and no single or partial exercise of any such power, right, privilege or remedy shall
preclude any other or further exercise thereof or of any other power, right, privilege or remedy.
Parent shall not be deemed to have waived any claim available to Parent arising out of this
Agreement, or any power, right, privilege or remedy of Parent under this Agreement, unless the
waiver of such claim, power, right, privilege or remedy is expressly set forth in a written
instrument duly executed and delivered on behalf of Parent; and any such waiver shall not be
applicable or have any effect except in the specific instance in which it is given.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.15 Construction.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The parties have been represented by counsel of their own choosing and agree that any rule of
construction to the effect that ambiguities are to be resolved against the drafting party shall not
be applied in the construction or interpretation of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As used in this Agreement, the word &#147;including&#148; shall not be deemed to be a term of
limitation, but rather shall be deemed to be followed by the words &#147;without limitation.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise indicated, all references in this Agreement to &#147;Sections&#148; and
&#147;Exhibits&#148; are intended to refer to Sections of this Agreement and Exhibits to this
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.16 Stockholder Capacity.</B> No person executing this Agreement who is a director or officer of
the Company makes any agreement or understanding herein in his capacity as a director or officer.
Without limiting the generality of the foregoing, each Stockholder executes this Agreement solely
in such Stockholder&#146;s capacity as a stockholder of the Company and nothing herein shall limit or
affect any actions taken by such Stockholder in its capacity as officer or director of the Company,
in exercising the Company&#146;s rights under the Merger Agreement or in performing such Stockholder&#146;s
fiduciary obligations in his capacity as a director or officer of the Company; <I>provided</I>, that no
obligation of a Stockholder to the Company as an officer or director of the Company shall affect,
impair or impede such Stockholder&#146;s obligations under this Agreement including the obligation to
vote the Owned Shares in accordance with <U>Section&nbsp;1.2</U> hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.17 Stockholder Obligations Several and Not Joint.</B> The obligations of each Stockholder
hereunder are several and not joint, and no Stockholder shall be liable under any circumstances for
any breach of the terms of this Agreement or the Proxy by any other Stockholder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.18 Fiduciary Termination Right.</B> Notwithstanding anything to the contrary herein, this
Agreement and the Proxy shall automatically be deemed terminated, null and void with
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">respect to any Stockholder, and such Stockholder shall have no liability hereunder, from and after the existence
of a bona fide proposal, not solicited by such Stockholder, to purchase such Stockholder&#146;s Owned
Shares that such Stockholder determines in good faith, taking into account all legal, financial,
regulatory and other aspects of the proposal and the Person making the proposal, including the
financing terms thereof, (i)&nbsp;is more favorable to such Stockholder from a financial point of view
than the transactions contemplated by the Merger Agreement and (ii)&nbsp;is reasonably likely of being
completed on the terms proposed on a timely basis.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.19 Termination</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement, and all rights and obligations of the parties hereunder shall terminate upon
the earliest of: (i)&nbsp;the Effective Time of the Merger, (ii)&nbsp;as to the rights and obligations
associated with any Owned Shares, the acceptance for payment of such Owned Shares by Parent
or Merger Sub in the Offer, (iii)&nbsp;the termination or expiration of the Offer without Merger
Sub purchasing all shares validly tendered in the Offer and not withdrawn, (iv)&nbsp;the termination of
the Merger Agreement without the Merger having been consummated and (v)&nbsp;six months from the date
hereof. Notwithstanding the foregoing, this Agreement may be terminated by any Stockholder at such
Stockholder&#146;s option, upon written notice by the Stockholder to the Parent from and after any
material amendment, waiver or modification to the terms of the Merger Agreement or Offer, or any
amendment, waiver or modification to the terms of the Merger Agreement or Offer that changes the
form of or decreases the amount of payment from what is set forth in the Merger Agreement and
Offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>SECTION 5. CERTAIN DEFINITIONS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this Agreement:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.1 </B>&#147;<U>Outside Time</U>&#148; shall, with respect to each Stockholder, mean the earliest to occur
of (a)&nbsp;the time at which the Merger Agreement is terminated and (b)&nbsp;the time at which Merger Sub
has accepted Shares for payment pursuant to the Offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.2 </B>&#147;<U>Owned Shares</U>&#148; shall mean all Shares as to which a Stockholder as of the date of
this Agreement has voting and dispositive power and all additional Shares as to which a Stockholder
acquires voting and dispositive power during the period from the date of this Agreement through the
Outside Time, including as the result of the exercise of options by such Stockholder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.3 </B>A Person shall be deemed to have effected a &#147;<U>Transfer</U>&#148; of a security if such
Person directly or indirectly: (i)&nbsp;sells, pledges, encumbers, grants an option with respect to,
transfers or disposes of such security or any interest in such security or (ii)&nbsp;enters into an
agreement or commitment providing for the sale of, pledge of, encumbrance of, grant of an option
with respect to, transfer of or disposition of such security or any interest therein.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;SIGNATURE PAGE FOLLOWS&#093;</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF, </B>Parent and Stockholders have caused this Agreement to be executed as of
the date first written above.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>TAYLOR MADE GOLF COMPANY, INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Mark King&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Mark King&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President &amp; Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ William Reimus&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">William Reimus&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Sr. Vice President &amp; General Counsel&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>DAVID M. MEYER</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David M. Meyer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Address:&nbsp;&nbsp;</TD>
    <TD align="left">c/o Knightspoint Partners LLC&nbsp;<BR>
1325 Avenue of the Americas, 27th Flr.<BR>
New York, New York 10019</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Fax:&nbsp;&nbsp;</TD>
    <TD align="left">212-786-6040&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="54%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="100%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Shares Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Options Held</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top"><B>34,000</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>125,641</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>MICHAEL S. KOENEKE</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Michael S. Koeneke&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Address:&nbsp;&nbsp;</TD>
    <TD align="left">c/o Knightspoint Partners LLC&nbsp;<BR>
1325 Avenue of the Americas, 27th Flr.<BR>
New York, New York 10019</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Fax:&nbsp;&nbsp;</TD>
    <TD align="left">212-786-6040&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="54%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="100%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Shares Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Options Held</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top"><B>17,200</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>13,813</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>KNIGHTSPOINT PARTNERS II, L.P.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David M. Meyer</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Address:&nbsp;&nbsp;</TD>
    <TD align="left">c/o Knightspoint Partners LLC&nbsp;<BR>
1325 Avenue of the Americas, 27th Flr.<BR>
New York, New York 10019</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Fax:&nbsp;&nbsp;</TD>
    <TD align="left">212-786-6040&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="100%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="100%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Shares Owned</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>200</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>KNIGHTSPOINT CAPITAL MANAGEMENT II LLC</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David M. Meyer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Address:&nbsp;&nbsp;</TD>
    <TD align="left">c/o Knightspoint Partners LLC&nbsp;<BR>
1325 Avenue of the Americas, 27th Flr.<BR>
New York, New York 10019</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Fax:&nbsp;&nbsp;</TD>
    <TD align="left">212-786-6040&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="100%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="100%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Shares Owned</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>0</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>KNIGHTSPOINT PARTNERS, LLC</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David M. Meyer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Address:&nbsp;&nbsp;</TD>
    <TD align="left">c/o Knightspoint Partners LLC&nbsp;<BR>
1325 Avenue of the Americas, 27th Flr.<BR>
New York, New York 10019</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Fax:&nbsp;&nbsp;</TD>
    <TD align="left">212-786-6040&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="100%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="100%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Shares Owned</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>0</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>Ramius Value and Opportunity Master Fund Ltd.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Owen Littman&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Owen Littman&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Authorized Signatory</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Address:&nbsp;&nbsp;</TD>
    <TD align="left">599 Lexington Avenue, 20<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>
Floor<BR> New York, New York 10022
</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Fax:&nbsp;</TD>
    <TD align="left">(212) 845-7986&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="100%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="100%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Shares Owned</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>1,941,215</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>Parche, LLC</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Owen Littman&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Owen Littman&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Authorized Signatory</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Address:&nbsp;&nbsp;</TD>
    <TD align="left">599 Lexington Avenue, 20<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>
Floor<BR> New York, New York 10022
</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Fax:&nbsp;</TD>
    <TD align="left">(212) 845-7986&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="100%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="100%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Shares Owned</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>369,824</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT A</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>FORM OF IRREVOCABLE PROXY</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">October&nbsp;13, 2008

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the Irrevocable Proxy and Agreements dated July&nbsp;3, 2007 previously entered into
with the Company (the &#147;<U>Existing Proxies</U>&#148;), the undersigned stockholders of <B>ASHWORTH, Inc.,</B>
a Delaware corporation (the &#147;<U>Company</U>"<I>), </I>hereby irrevocably (to the fullest extent permitted
by law) appoints <B>William Reimus and Mark King, </B>and each of them, the attorneys and proxies of the
undersigned with full power of substitution and resubstitution, to vote and exercise all voting and
related rights (to the full extent of the undersigneds&#146; rights) with respect to the undersigneds&#146;
Owned Shares, as defined in the Agreement. Upon the execution hereof, all prior proxies given by
the undersigned with respect to any of the Shares (except the Existing Proxies) are hereby revoked,
and the undersigned agrees that no subsequent proxies will be given with respect to any of the
Shares until after the Outside Time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This proxy is irrevocable to the fullest extent permitted by law, is coupled with an interest
and is granted under the Stockholder Tender Agreement, dated as of the date hereof, between Parent
and the undersigned (the &#147;<U>Agreement</U>&#148;), in consideration of Parent entering into the
Agreement and Plan of Merger, dated as of the date hereof, among Parent, PHX Acquisition Corp., a
Delaware corporation and a wholly owned subsidiary of Parent, and the Company (the &#147;<U>Merger
Agreement</U>&#148;). Capitalized terms used herein and not otherwise defined shall have the meanings
given to such terms in the Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The proxies named above will be empowered, and may exercise this proxy, to the full extent of
the undersigned&#146;s rights, to vote the Owned Shares at any meeting of the stockholders of the
Company, however called, and in any action by written consent of the stockholders of the Company at
any time prior to the Outside Time as provided in the Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The proxies may not exercise this proxy on any other matter. The undersigned may vote the
Owned Shares on all other matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This proxy shall be binding upon the heirs, estate, executors, personal representatives,
successors and assigns of the undersigned (including any transferee of any of the Owned Shares).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any provision of this proxy or any part of any such provision is held under any
circumstances to be invalid or unenforceable in any jurisdiction, then (a)&nbsp;such provision or part
thereof shall, with respect to such circumstances and in such jurisdiction, be deemed amended to
conform to applicable laws so as to be valid and enforceable to the fullest possible extent, (b)
the invalidity or unenforceability of such provision or part thereof under such circumstances and
in such jurisdiction shall not affect the validity or enforceability of such provision or part
thereof under any other circumstances or in any other jurisdiction, and (c)&nbsp;the invalidity or
unenforceability of such provision or part thereof shall not affect the validity or enforceability
of the remainder of such provision or the validity or enforceability of any other provision of this
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">proxy. Each provision of this proxy is separable from every other provision of this proxy,
and each part of each provision of this proxy is separable from every other part of such provision.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This proxy shall terminate, and be of no further force and effect, automatically upon the
earlier of the Outside Time and the termination of the Agreement.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>DAVID M. MEYER</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David M. Meyer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Address:&nbsp;&nbsp;</TD>
    <TD align="left">c/o Knightspoint Partners LLC&nbsp;<BR>
1325 Avenue of the Americas, 27th Flr.<BR>
New York, New York 10019</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Fax:&nbsp;&nbsp;</TD>
    <TD align="left">212-786-6040&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="54%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="100%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Shares Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Options Held</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top"><B>34,000</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>125,641</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>MICHAEL S. KOENEKE</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Michael S. Koeneke&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Address:&nbsp;&nbsp;</TD>
    <TD align="left">c/o Knightspoint Partners LLC&nbsp;<BR>
1325 Avenue of the Americas, 27th Flr.<BR>
New York, New York 10019</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Fax:&nbsp;&nbsp;</TD>
    <TD align="left">212-786-6040&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="54%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="100%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Shares Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Options Held</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top"><B>17,200</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>13,813</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>KNIGHTSPOINT PARTNERS II, L.P.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David M. Meyer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Address:&nbsp;&nbsp;</TD>
    <TD align="left">c/o Knightspoint Partners LLC&nbsp;<BR>
1325 Avenue of the Americas, 27th Flr.<BR>
New York, New York 10019</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Fax:&nbsp;&nbsp;</TD>
    <TD align="left">212-786-6040&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="100%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="100%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Shares Owned</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>200</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>KNIGHTSPOINT CAPITAL MANAGEMENT II LLC</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David M. Meyer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Address:&nbsp;&nbsp;</TD>
    <TD align="left">c/o Knightspoint Partners LLC&nbsp;<BR>
1325 Avenue of the Americas, 27th Flr.<BR>
New York, New York 10019</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Fax:&nbsp;&nbsp;</TD>
    <TD align="left">212-786-6040&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="100%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="100%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Shares Owned</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>0</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>KNIGHTSPOINT PARTNERS, LLC</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David M. Meyer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Address:&nbsp;&nbsp;</TD>
    <TD align="left">c/o Knightspoint Partners LLC&nbsp;<BR>
1325 Avenue of the Americas, 27th Flr.<BR>
New York, New York 10019</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Fax:&nbsp;&nbsp;</TD>
    <TD align="left">212-786-6040&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="100%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="100%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Shares Owned</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>0</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>Ramius Value and Opportunity Master Fund Ltd.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Owen Littman&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Owen Littman&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Authorized Signatory</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Address:&nbsp;&nbsp;</TD>
    <TD align="left">599 Lexington Avenue, 20<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>
Floor<BR> New York, New York 10022
</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Fax:&nbsp;</TD>
    <TD align="left">(212) 845-7986&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="100%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="100%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Shares Owned</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>1,941,215</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>Parche, LLC</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Owen Littman&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Owen Littman&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Authorized Signatory</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Address:&nbsp;&nbsp;</TD>
    <TD align="left">599 Lexington Avenue, 20<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>
Floor<BR> New York, New York 10022
</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Fax:&nbsp;</TD>
    <TD align="left">(212) 845-7986&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="100%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="100%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Shares Owned</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>369,824</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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