<SUBMISSION>
<ACCESSION-NUMBER>0000950117-05-002831
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>7
<PERIOD>20050714
<ITEMS>1.01
<ITEMS>9.01
<FILING-DATE>20050715
<DATE-OF-FILING-DATE-CHANGE>20050715
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>CORRECTIONAL SERVICES CORP
<CIK>0000914670
<ASSIGNED-SIC>8744
<IRS-NUMBER>113182580
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-23038
<FILM-NUMBER>05957323
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1819 MAIN STREET SUITE 1000
<CITY>SARASOTA
<STATE>FL
<ZIP>34236
<PHONE>9419539199
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1819 MAIN STREET SUITE 1000
<STREET2>CORRECTIONAL SERVICES CORP
<CITY>SARASOTA
<STATE>FL
<ZIP>34236
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>ESMOR CORRECTIONAL SERVICES INC
<DATE-CHANGED>19931110
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a40181.htm
<DESCRIPTION>CORRECTIONAL SERVICES CORP.
<TEXT>
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<table width="100%"  border="0" cellspacing="0" cellpadding="0">
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    <td colspan="3" align="center" valign="bottom"><b><font size="4" face="Times New Roman, Times, serif">SECURITIES AND EXCHANGE COMMISSION</font></b></td>
  </tr>
  <tr>
    <td width="33%">&nbsp;</td>
    <td align="center" valign="bottom"><b><font size="2" face="Times New Roman, Times, serif">Washington, D.C. 20549</font></b></td>
    <td width="33%">&nbsp;</td>
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    <td>&nbsp;</td>
    <td height="25" align="center" valign="bottom"><font size="2" face="Times New Roman, Times, serif">_____________________________________________________</font></td>
    <td>&nbsp;</td>
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    <td>&nbsp;</td>
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    <td>&nbsp;</td>
    <td align="center" valign="bottom"><b><font size="4" face="Times New Roman, Times, serif">FORM 8-K</font></b></td>
    <td>&nbsp;</td>
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    <td>&nbsp;</td>
    <td align="center" valign="bottom">&nbsp;</td>
    <td>&nbsp;</td>
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    <td colspan="3" align="center" valign="bottom"><b><font size="2" face="Times New Roman, Times, serif">CURRENT REPORT <BR>
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES<BR>
EXCHANGE ACT OF 1934</font></b></td>
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  <tr>
    <td>&nbsp;</td>
    <td align="center" valign="bottom">&nbsp;</td>
    <td>&nbsp;</td>
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  <tr align="center" valign="bottom">
    <td colspan="3"><font size="2" face="Times New Roman, Times, serif">Date of Report (Date of earliest event reported): <B>July 14, 2005</B></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="center" valign="bottom">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
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    <td></td>
    <td align="center" valign="bottom"></td>
    <td></td>
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    <td colspan="3" align="center" valign="bottom"><font size="4" face="Times New Roman, Times, serif"><b>CORRECTIONAL SERVICES CORPORATION </b></font></td>
  </tr>
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    <td>&nbsp;</td>
    <td align="center" valign="top"><font size="2" face="Times New Roman, Times, serif">(Exact Name of registrant as specified in charter)</font></td>
    <td>&nbsp;</td>
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    <td>&nbsp;</td>
    <td align="center" valign="bottom">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
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    <td nowrap><font size="2" face="Times New Roman, Times, serif"><B>Delaware </B><BR>
(State or Other Jurisdiction of <br>
Incorporation)</font></td>
    <td align="center" nowrap><font size="2" face="Times New Roman, Times, serif"><B>0-23038</B> &nbsp;<BR>
(Commission File Number)</font></td>
    <td nowrap><font size="2" face="Times New Roman, Times, serif"><B>11-3182580</B> <BR>
      (IRS Employer Identification <br>
Number)</font></td>
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  <tr>
    <td>&nbsp;</td>
    <td align="center" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
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    <td colspan="2"><font size="2" face="Times New Roman, Times, serif"><B>&nbsp;&nbsp;&nbsp;&nbsp;1819 Main Street, Suite 1000, Sarasota, Florida</B> <BR>
          <B>&nbsp;&nbsp;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&nbsp;&nbsp;</B>&nbsp;&nbsp;(Address of principal executive offices)</font></td>
    <td width="33%" align="center" valign="bottom"><font size="2" face="Times New Roman, Times, serif"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34326</B> <BR>
        <B>&nbsp;&nbsp;&nbsp;&nbsp;</B>&nbsp;&nbsp;<B>&nbsp;&nbsp;</B>&nbsp;&nbsp;&nbsp;&nbsp;<B>&nbsp;&nbsp;&nbsp;</B>&nbsp;(Zip Code)</font></td>
  </tr>
  <tr>
    <td width="33%">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
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    <td colspan="3"><font size="2" face="Times New Roman, Times, serif">Registrant&#146;s telephone number, including area code: <B>(941) 953-9199</B></font></td>
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    <td width="33%">&nbsp;</td>
    <td align="center" valign="bottom">&nbsp;</td>
    <td width="33%">&nbsp;</td>
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    <td>&nbsp;</td>
    <td align="center" valign="bottom"><font size="2" face="Times New Roman, Times, serif"><B>Not Applicable</B> </font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="3" align="center" valign="bottom"><font size="2" face="Times New Roman, Times, serif">(Former name or former address, if changed since last report.)</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
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    <TD colSpan=5><font size="2" face="Times New Roman, Times, serif">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</font></TD>
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    <TD>&nbsp;</TD>
    <TD colSpan=4>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=6% valign="top"><font size="2" face="wingdings 2">&#163;</font></TD>
    <TD colSpan=4><font size="2" face="Times New Roman, Times, serif">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></TD>
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    <TD valign="top">&nbsp;</TD>
    <TD colSpan=4>&nbsp;</TD>
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  <TR valign="bottom">
    <TD valign="top"><font size="2" face="wingdings 2">&#163;</font></TD>
    <TD colSpan=4><font size="2" face="Times New Roman, Times, serif">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></TD>
  </TR>
  <TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD colSpan=4>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD valign="top"><font size="2" face="wingdings 2">&#163;</font></TD>
    <TD colSpan=4><font size="2" face="Times New Roman, Times, serif">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 40.14d-2(b))</font></TD>
  </TR>
  <TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD colSpan=4>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD valign="top"><font size="2" face="wingdings 2">&#163;</font></TD>
    <TD colSpan=4><font size="2" face="Times New Roman, Times, serif">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></TD>
  </TR>
  <TR>
    <TD width=638>&nbsp;</TD>
    <TD width=591></TD>
    <TD width=213></TD>
    <TD width=287></TD>
    <TD width=213></TD>
  </TR>
</TABLE>
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<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>ITEM 1.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;Entry
into a Material Definitive Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>On July 14, 2005, Correctional Services Corporation (the &#147;Company&#148;) entered into an Agreement
and Plan of Merger by and among The GEO Group, Inc. (&#147;GEO&#148;), GEO Acquisition, Inc. (&#147;Merger
Sub&#148;) and the Company (the &#147;Merger Agreement&#148;) providing for the merger of Merger
Sub with and into the Company, with the Company surviving the merger as a wholly-owned subsidiary
of GEO (the &#147;Merger&#148;). Pursuant to the Merger, each share of common stock of the Company
(&#147;Company Common Stock&#148;) will be converted into the right to receive $6.00 in cash, without
interest (the &#147;Merger Consideration&#148;). A copy of the Merger Agreement is attached hereto
as Exhibit 2.1 and is incorporated herein by reference. The descriptions herein of the Merger Agreement
and the Merger are qualified in their entirety by reference to the full text of the Merger Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>Each holder of an option to purchase shares of Company Common Stock, granted pursuant to any Company
stock option plan (each, a &#147;Company Stock Option&#148;), that is outstanding and unexercised
as of the effective time of the Merger and has an exercise price per share that is less than the
Merger Consideration will receive an amount in cash equal to the product of (i) the difference between
the Merger Consideration and the applicable exercise price and (ii) the aggregate number of shares
of Company Common Stock issuable upon the exercise of the Company Stock Option.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>The representations and warranties of each party set forth in the Merger Agreement have been made solely
for the benefit of the other party to the Merger Agreement and such representations and warranties
should not be relied on by any other person. In addition, such representations and warranties (i)
have been qualified by disclosure schedules that the parties have exchanged in connection with the
signing of the Merger Agreement, (ii) will not survive consummation of the Merger and, except if
willfully breached, cannot be the basis for any claims under the Merger Agreement by the other party
after termination of the Merger Agreement, (iii) are subject to the materiality standards set forth
in the Merger Agreement, which may differ from what may be viewed as material by investors and (iv)
were made only as of the date of the Merger Agreement or such other date as specified in the Merger
Agreement. The disclosure schedules referred to above contain information (including information
that has been included in the Company&#146;s prior public disclosures, as well as non-public information)
that modifies, qualifies and creates exceptions to the representations and warranties set forth in
the Merger Agreement. Accordingly, no person should rely on the representations and warranties as
characterizations of the actual state of facts, as they are modified in important part by those disclosure
schedules. Moreover, information concerning the subject matter of the representations and warranties
may change after the date of execution of the Merger Agreement, which subsequent information may
or may not be fully reflected in the Company&#146;s public disclosures.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>The Merger Agreement contains certain termination rights for both the Company and GEO, and further
provides that, upon termination of the Merger Agreement under specified circumstances, the Company
and GEO, as the case may be, may be obligated to make termination payments aggregating $3,000,000
to the other.</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
  <FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>Concurrently
  with the execution and delivery of the Merger Agreement and as a condition to
  GEO&#146;s willingness to enter into the Merger Agreement, James F. Slattery,
  President and Chief Executive Officer of the Company, entered into a Voting
  Agreement (the &#147;Voting Agreement&#148;) with GEO pursuant to which Mr.
  Slattery has agreed to vote all shares of Company Common Stock beneficially
  owned by him in favor of the adoption of the Merger Agreement and not to sell
  or otherwise transfer any shares of Company Common Stock prior to the termination
  of the Voting Agreement other than in accordance with the terms of the Voting
  Agreement. In addition, Mr. Slattery has agreed to vote against any proposal
  (i) for any recapitalization, reorganization, liquidation, merger, sale of assets
  or other business combination between the Company and any other person (other
  than the Merger) and (ii) any other action that could reasonably be expected
  to, impede, interfere with, delay, postpone or adversely affect the Merger or
  any of the Transactions (as defined in the Merger Agreement), any transactions
  contemplated by the Voting Agreement or result in a breach in any material respect
  of any covenant, representation or warranty or other obligation or agreement
  of the Company under the Merger Agreement. The Voting Agreement will terminate
  upon the earliest of (a) the effective time of the Merger, (b) the termination
  of the Merger Agreement in accordance with its terms, and (c) written notice
  of termination of the Voting Agreement by GEO to Mr. Slattery. Mr. Slattery
  owns or has voting control over approximately 9.1% of the outstanding shares
  of Company Common Stock. A copy of the Voting Agreement is attached hereto as
  Exhibit 9.1 and is incorporated herein by reference. The description of the
  Voting Agreement is qualified in its entirety by reference to the full text
  of the Voting Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>Consummation of the Merger is subject to various customary conditions, including the approval by the
stockholders of the Company and the receipt of the required regulatory approvals.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>A copy of the July 14, 2005 press release of the Company announcing the execution of the Merger Agreement
is attached hereto as Exhibit 99.1.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>Prior to entering into the Merger Agreement, the Company also amended the Rights Agreement (the &#147;Company
Rights Agreement&#148;), dated as of January 11, 2000, between the Company and American Stock Transfer
&amp; Trust Company (&#147;AST&#148;). Such amendment (i) expressly exempts GEO and Merger Sub from
the definition of &#147;Acquiring Person&#148; and (ii) includes the Merger and related transactions
under the definition of &#147;Permitted Offer&#148; under the Company Rights Agreement. A copy of
the amendment to the Company Rights Agreement is attached hereto as Exhibit 4.1 and is incorporated
herein by reference. The description of the amendment to the Company Rights Agreement is qualified
in its entirety by reference to the full text of such amendment.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>In addition, the Company has entered into Change of Control, Retention and Severance Agreements, each
dated July 14, 2005, with each of Bernard A. Wagner, Senior Vice President and Chief Financial Officer
of the Company, and John R. Mentzer, III, Vice President, Secretary and General Counsel of the Company
(each a &#147;Change of Control Agreement&#148;). Pursuant to each such Change of Control Agreement,
each of Mr. Wagner and Mr. Mentzer have agreed to remain in the employ of the Company for a period
of ninety (90) days following the consummation of the Merger and will be entitled to receive on or
about the closing date of the Merger, among other benefits, a lump sum severance payment equal to
one year of his base </FONT></P>
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<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><BR>salary as in effect as of the date of the Merger. Copies of each Change of Control Agreement are attached
hereto as Exhibits 10.1 and 10.2, respectively, and are incorporated herein by reference. The description
of each Change of Control Agreement is qualified in its entirety by reference to the full text of
such agreement.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>ITEM 9.01 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements
and Exhibits.</FONT></P>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR valign="bottom">
    <TD width=10% align="left" valign="top"><font size="2" face="Times New Roman, Times, serif">c)</font></TD>
    <TD width=552><font size="2" face="Times New Roman, Times, serif"><U>Exhibits</U></font></TD>
  </TR>
  <TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=71 align="left" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD width=552><font size="2" face="Times New Roman, Times, serif">The following exhibits are filed in accordance with Item 601 of Regulation S-K:</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=71 align="left" valign="top"><font size="2" face="Times New Roman, Times, serif">2.1</font></TD>
    <TD width=552><font size="2" face="Times New Roman, Times, serif">Agreement and Plan of Merger, dated as of July 14, 2005, by and among GEO, Merger Sub and the Company</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=71 align="left" valign="top"><font size="2" face="Times New Roman, Times, serif">4.1</font></TD>
    <TD width=552><font size="2" face="Times New Roman, Times, serif">First Amendment to the Company Rights Plan, dated as of July 13, 2005, by and between the Company and AST</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=71 align="left" valign="top"><font size="2" face="Times New Roman, Times, serif">9.1</font></TD>
    <TD width=552><font size="2" face="Times New Roman, Times, serif">Voting Agreement, dated as of July 14, 2005, by and between GEO and James F. Slattery</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=71 align="left" valign="top"><font size="2" face="Times New Roman, Times, serif">10.1</font></TD>
    <TD width=552><font size="2" face="Times New Roman, Times, serif">Change of Control, Retention and Severance Agreement, dated July 14, 2005, by and between the Company and Bernard A. Wagner</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=71 align="left" valign="top"><font size="2" face="Times New Roman, Times, serif">10.2</font></TD>
    <TD width=552><font size="2" face="Times New Roman, Times, serif">Change of Control, Retention and Severance Agreement, dated July 14, 2005, by and between the Company and John R. Mentzer, III</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width=71 align="left" valign="top"><font size="2" face="Times New Roman, Times, serif">99.1</font></TD>
    <TD width=552><font size="2" face="Times New Roman, Times, serif">Press Release of the Company, dated July 14, 2005</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
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<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>SIGNATURES</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.<br>
</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="45%" align="left" valign="bottom"><font size="2" face="Times New Roman, Times, serif">CORRECTIONAL SERVICES CORPORATION</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="2" face="Times New Roman, Times, serif">By:&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="2" face="Times New Roman, Times, serif">Name:&nbsp;&nbsp;Bernard A. Wagner</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="2" face="Times New Roman, Times, serif">Title:&nbsp;&nbsp;&nbsp;&nbsp;Senior Vice President</font></td>
  </tr>
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    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;and Chief Financial Officer</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">Date:&nbsp;&nbsp;&nbsp;July
      15, 2005 </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
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<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>EXHIBIT INDEX</B></FONT></P>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR align="left" valign="top">
    <TD width=10%><font size="2" face="Times New Roman, Times, serif">2.1 </font></TD>
    <TD valign="bottom"><font size="2" face="Times New Roman, Times, serif">Agreement and Plan of Merger, dated as of July 14, 2005, by and among GEO, Merger Sub and the Company</font></TD>
  </TR>
  <TR align="left" valign="top">
    <TD>&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR align="left" valign="top">
    <TD><font size="2" face="Times New Roman, Times, serif">4.1 </font></TD>
    <TD valign="bottom"><font size="2" face="Times New Roman, Times, serif">First Amendment to the Company Rights Plan, dated as of July 13, 2005, by and between the Company and AST</font></TD>
  </TR>
  <TR align="left" valign="top">
    <TD>&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR align="left" valign="top">
    <TD><font size="2" face="Times New Roman, Times, serif">9.1 </font></TD>
    <TD valign="bottom"><font size="2" face="Times New Roman, Times, serif">Voting Agreement, dated as of July 14, 2005, by and between GEO and James F. Slattery</font></TD>
  </TR>
  <TR align="left" valign="top">
    <TD>&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR align="left" valign="top">
    <TD><font size="2" face="Times New Roman, Times, serif">10.1 </font></TD>
    <TD valign="bottom"><font size="2" face="Times New Roman, Times, serif">Change of Control, Retention and Severance Agreement, dated July 14, 2005, by and between the Company and Bernard A. Wagner</font></TD>
  </TR>
  <TR align="left" valign="top">
    <TD>&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR align="left" valign="top">
    <TD><font size="2" face="Times New Roman, Times, serif">10.2 </font></TD>
    <TD valign="bottom"><font size="2" face="Times New Roman, Times, serif">Change of Control, Retention and Severance Agreement, dated July 14, 2005, by and between the Company and John R. Mentzer, III</font></TD>
  </TR>
  <TR align="left" valign="top">
    <TD>&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR align="left" valign="top">
    <TD><font size="2" face="Times New Roman, Times, serif">99.1 </font></TD>
    <TD valign="bottom"><font size="2" face="Times New Roman, Times, serif">Press Release of the Company, dated July 14, 2005</font></TD>
  </TR>
  <TR align="left" valign="top">
    <TD>&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
  </TR>
</TABLE>
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<P align=center><FONT face="Times New Roman, Times, serif" size=2><B>AGREEMENT AND PLAN OF MERGER</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2><B>by and among</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2><B>THE GEO GROUP, INC.,</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2><B>GEO ACQUISITION, INC.</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2><B>and</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2><B>CORRECTIONAL SERVICES CORPORATION</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2><B>Dated as of July 14, 2005</B></FONT></P>
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<P align=center><FONT face="Times New Roman, Times, serif" size=2><B>AGREEMENT AND PLAN OF MERGER</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AGREEMENT AND PLAN OF MERGER (this &#147;<U>Agreement</U>&#148;) dated as of July 14, 2005 by and among Correctional Services Corporation, a Delaware corporation
(the &#147;<U>Company</U>&#148;), The GEO Group, Inc., a Florida corporation (&#147;<U>Parent</U>&#148;), and GEO Acquisition, Inc., a Delaware corporation and a wholly-owned subsidiary of Parent (&#147;<U>Merger Sub</U>&#148;).</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2><B>W I T N E S S E T H:</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, a Special Committee (the &#147;<U>Special Committee</U>&#148;) of the Board of Directors of the Company (the &#147;<U>Company Board</U>&#148;), the Company Board and the respective Boards of Directors of each of Parent and Merger Sub
deem it in the best interests of their respective stockholders, as the case may be, to consummate
the merger (the &#147;<U>Merger</U>&#148;), on the terms and subject to the conditions set forth in this Agreement, of Merger Sub with
and into the Company in which the Company would become a wholly owned subsidiary of Parent, and such
Special Committee and Boards of Directors have approved this Agreement and declared its advisability
(and, in the case of the Company Board, recommended that this Agreement be adopted by the Company&#146;s
stockholders); and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, upon consummation of the Merger, each issued and outstanding share of common stock, par value
$.01 per share, of the Company (the &#147;<U>Company Common Stock</U>&#148;), will be converted into the right to receive $6.00 per share in cash, upon the terms and subject
to the conditions of this Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained,
and intending to be legally bound hereby, Parent, Merger Sub and the Company hereby agree as follows:</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2><B>ARTICLE I<BR>
  <BR>
THE MERGER</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.01&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>The Merger</U>.&nbsp;&nbsp;&nbsp;Upon the terms and subject to the conditions set forth in Article VII, 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. At the Effective
Time, the separate corporate existence of Merger Sub shall cease and the Company shall continue as
the surviving corporation of the Merger (the &#147;<U>Surviving Corporation</U>&#148;).</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.02&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Closing</U>.</font>&nbsp;&nbsp;&nbsp;Unless this Agreement shall have been terminated in accordance with Section 8.01, and subject
to the satisfaction or waiver of the conditions set forth in Article VII, the closing of the Merger
(the &#147;<U>Closing</U>&#148;) will take place at 11:00 a.m., New York time, on a date to be specified by the parties, which
shall be no later than the second business day after the satisfaction or waiver of the conditions
set forth in Article VII (other than those that by their terms are to be satisfied or waived at the
Closing), at the offices of Akerman Senterfitt, One Southeast Third Avenue, Suite 2800, Miami, Florida
33131, unless another time, date and/or place is agreed to in writing by Parent and the Company.</font></P>
<p>
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<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.03&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Effective Time</U>.</FONT>&nbsp;&nbsp;&nbsp;Upon the terms and subject to the conditions set forth in this Agreement, simultaneously
with the Closing, the parties hereto shall (i) file a certificate of merger (the &#147;<U>Certificate of Merger</U>&#148;) in such form as is required by, and executed and acknowledged in accordance with, the relevant
provisions of the DGCL, and (ii) make all other filings or recordings required under the DGCL to
effect the Merger. The Merger shall become effective at such date and time as the Certificate of
Merger is duly filed with the Secretary of State of the State of Delaware or at such subsequent date
and time as Parent and the Company shall agree in writing and specify in the Certificate of Merger.
The date and time at which the Merger becomes effective is referred to in this Agreement as the &#147;<U>Effective Time</U>&#148;.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.04&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Effect of the Merger</U>.</font>&nbsp;&nbsp;&nbsp;At the Effective Time, the effect of the Merger shall be as provided in Section 259 of
the DGCL.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Certificate of Incorporation; Bylaws</U>.&nbsp;</font>&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;At the Effective Time, the Certificate of Incorporation of the
Company, as in effect immediately prior to the Effective Time, shall be amended to read in its entirety
as set forth in Exhibit A attached hereto and, as so amended, shall be the Certificate of Incorporation
of the Surviving Corporation until thereafter amended in accordance with the provisions thereof and
as provided by Law.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At the Effective Time, the Bylaws of the Company, as in effect immediately prior to the Effective
Time, shall be amended and restated to read in their entirety as set forth in Exhibit B attached
hereto and, as so amended and restated, shall be the Bylaws of the Surviving Corporation until thereafter
amended as provided by Law, the Certificate of Incorporation of the Surviving Corporation and such
Bylaws.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.06&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Directors and Officers</U>.</FONT>&nbsp;&nbsp;&nbsp;The directors of Merger Sub immediately prior to the Effective Time shall be the initial
directors of the Surviving Corporation, each to hold office in accordance with the Certificate of
Incorporation and Bylaws of the Surviving Corporation, and the officers of Merger Sub immediately
prior to the Effective Time shall be the initial officers of the Surviving Corporation, in each case
until their respective successors are duly elected or appointed and qualified or until the earlier
of their death, resignation or removal.</font></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2><B>ARTICLE II<BR>
  <BR>
CONVERSION OF SECURITIES; EXCHANGE OF CERTIFICATES</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.01&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Conversion of Securities</U>.</FONT>&nbsp;&nbsp;&nbsp;At the Effective Time, by virtue of the Merger and without any action on the part of Merger
Sub, the Company or the holders of any of the following securities:</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Conversion of Company Common Stock</U>. Each share of Company Common Stock (each issued and outstanding share of Company Common Stock being
hereinafter referred to as a &#147;<U>Share</U>&#148; and collectively referred to as the &#147;<U>Shares</U>&#148;) issued and outstanding immediately prior to the Effective Time (other than any Shares to be
canceled pursuant to Section 2.01(b), Shares owned by any direct or indirect wholly owned subsidiary
of the Company and any Dissenting Shares) shall be canceled and shall be converted automatically
into the right to receive $6.00 in cash, without interest (the &#147;<U>Merger Consideration</U>&#148;), payable </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>2</FONT></P>
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<P align=left><FONT face="Times New Roman, Times, serif" size=2>upon surrender, in the manner provided in Section 2.02, of the certificate that formerly evidenced
such Share.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Cancellation of Treasury Stock and Parent-Owned Stock</U>. &nbsp;&nbsp;Each Share held in the treasury of the Company and each Share owned by Merger Sub, Parent or any
direct or indirect wholly owned subsidiary of Parent or the Company immediately prior to the Effective
Time shall automatically be canceled without any conversion thereof and no payment or distribution
shall be made with respect thereto.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Capital Stock of Merger Sub</U>. &nbsp;&nbsp;Each share of common stock, par value $.001 per share, of Merger Sub issued and outstanding immediately
prior to the Effective Time shall be converted into and become one validly issued, fully paid and
nonassessable share of common stock, par value $.001 per share, of the Surviving Corporation.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.02&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Exchange of Certificates</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Paying Agent</U>. &nbsp;&nbsp;Prior to the Effective Time, Parent shall (i) appoint a bank or trust company reasonably acceptable
to the Company (the &#147;<U>Paying Agent</U>&#148;), and (ii) enter into an exchange agent agreement, in form and substance reasonably acceptable
to the Company, with such Paying Agent for the payment of the aggregate Merger Consideration and
Option Payments in accordance with this Article II. Immediately prior to the Effective Time, Parent
shall deposit with the Paying Agent, for the benefit of the holders of Shares and Company Stock Options,
separate and apart from its other funds, as a trust fund, cash sufficient to pay the aggregate Merger
Consideration and Option Payments (such deposited cash being hereinafter referred to as the &#147;<U>Exchange Fund</U>&#148;). The Exchange Fund shall not be used for any other purpose. The Exchange Fund shall be invested
by the Paying Agent as directed by Parent; <U>provided</U>, <U>however</U>, that the Exchange Fund shall not be invested in any manner that would preclude, limit or delay the
Paying Agent from timely making all payments contemplated by this Article II; and <U>provided</U>, <U>further</U>, that, if invested, such investments shall be in short-term obligations of, or short-term obligations
guaranteed by, the United States of America or any agency or instrumentality thereof and backed by
the full faith and credit of the United States of America, in commercial paper obligations rated
A-1 or P-1 or better by Moody&#146;s Investors Service, Inc. or Standard &amp; Poor&#146;s Corporation,
respectively, or in certificates of deposit, bank repurchase agreements or banker&#146;s acceptances
of commercial banks with capital exceeding $1.0 billion (based on the most recent financial statements
of such bank which are then publicly available). Any net profit resulting from, or interest or income
produced by, such investments shall be payable to the Surviving Corporation.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exchange Procedures</U>. &nbsp;&nbsp;Promptly after the Effective Time, Parent shall cause the Paying Agent to mail to each person who,
at the Effective Time, was a holder of record of Shares entitled to receive the Merger Consideration
pursuant to Section 2.01(a): (i) a letter of transmittal (in customary form, specifying that delivery
shall be effected, and risk of loss and title to the certificates evidencing such Shares (the &#147;<U>Certificates</U>&#148;) shall pass, only upon proper delivery of the Certificates to the Paying Agent); and (ii) instructions
for use in effecting the surrender of the Certificates in exchange for the Merger Consideration.
Upon surrender to the Paying Agent of a Certificate for cancellation, together with such letter of
transmittal, duly completed and validly executed in accordance with the instructions thereto, and
such other </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>3</FONT></P>
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<P align=left><FONT face="Times New Roman, Times, serif" size=2>documents as reasonably may be required pursuant to such instructions, the holder of such Certificate
shall be entitled to receive in exchange therefor the amount of cash which such holder has the right
to receive in respect of the Shares formerly represented by such Certificate pursuant to Section
2.01(a), and the Certificate so surrendered shall forthwith be canceled. In the event of a transfer
of ownership of Shares that is not registered in the transfer records of the Company, payment of
the Merger Consideration may be made to a person other than the person in whose name the Certificate
so surrendered is registered if the Certificate shall be properly endorsed or otherwise be in proper
form for transfer and the person requesting such issuance shall pay any transfer or other Taxes required
as a result of such payment or establish to the reasonable satisfaction of Parent that such Tax has
been paid or is not applicable. Until surrendered as contemplated by this Section 2.02, each Certificate
shall be deemed at all times after the Effective Time to represent only the right to receive upon
such surrender the Merger Consideration to which the holder of such Certificate is entitled pursuant
to this Article II. No interest shall be paid or will accrue on any cash payable to holders of Certificates
pursuant to the provisions of this Article II.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Further Rights</U>. &nbsp;&nbsp;From and after the Effective Time, holders of Certificates shall cease to have any rights as stockholders
of the Company, except as provided herein or by Law.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Termination of Exchange Fund</U>. &nbsp;&nbsp;Any portion of the Exchange Fund that remains undistributed to the holders of Shares for one year
after the Effective Time shall be delivered to Parent, upon demand, and any holders of Shares who
have not theretofore complied with this Article II shall thereafter look only to Parent for, and
Parent shall remain liable for, payment of their claim for the Merger Consideration. Any portion
of the Exchange Fund remaining unclaimed by holders of Shares as of a date which is immediately prior
to such time as such amounts would otherwise escheat to or become property of any Governmental Authority
shall, to the extent permitted by applicable Law, become the property of Parent free and clear of
any claims or interest of any person previously entitled thereto.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>No Liability</U>. &nbsp;&nbsp;None of the Paying Agent, Parent, Merger Sub or the Surviving Corporation shall be liable to any
holder of Shares for any cash (including any&nbsp;dividends or distributions with respect to such
Shares) delivered to a public official pursuant to any abandoned property, escheat or similar Law.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Withholding Rights</U>. &nbsp;&nbsp;Each of the Paying Agent, the Surviving Corporation and Parent shall be entitled to deduct and withhold
from the consideration otherwise payable pursuant to this Agreement to any holder of Shares or Company
Stock Options, such amounts as it is required to deduct and withhold with respect to such payment
under all applicable Tax Laws. To the extent that amounts are so deducted or withheld by the Paying
Agent, the Surviving Corporation or Parent, as the case may be, such amounts shall be treated for
all purposes of this Agreement as having been paid to the holder of the Shares in respect of which
such deduction and withholding was made by the Paying Agent, the Surviving Corporation or Parent,
as the case may be.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Lost Certificates</U>. &nbsp;&nbsp;If any Certificate shall have been lost, stolen or destroyed, upon the making and delivery of an
affidavit of that fact by the person claiming such </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>4</FONT></P>
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<P align=left><FONT face="Times New Roman, Times, serif" size=2>Certificate to be lost, stolen or destroyed and, if required by the Surviving Corporation, the posting
by such person of a bond, in such reasonable and customary amount as the Surviving Corporation may
direct, as indemnity against any claim that may be made against it with respect to such Certificate,
the Paying Agent shall pay in respect of such lost, stolen or destroyed Certificate the Merger Consideration
to which the holder thereof is entitled pursuant to Section 2.01(a).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.03&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Stock Transfer Books</U>.</font>&nbsp;&nbsp;&nbsp;At the Effective Time, the stock transfer books of the Company shall be closed and there
shall be no further registration of transfers of Shares thereafter on the records of the Company.
From and after the Effective Time, the holders of Certificates representing Shares outstanding immediately
prior to the Effective Time shall cease to have any rights with respect to such Shares, except as
otherwise provided in this Agreement or by Law. At or after the Effective Time, any Certificates
presented to the Paying Agent or Parent for any reason shall be canceled against delivery of the
Merger Consideration to which the holders thereof are entitled pursuant to Section 2.01(a).</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.04&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Company Stock Options</U>.</FONT>&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Between the date of this Agreement and the Effective Time, the
Company shall take all necessary action (which action shall be effective as of the Effective Time),
including obtaining the consent of the individual option holders and the adoption of Company Board
resolutions, if necessary, to ensure that (i) immediately prior to the Effective Time, each outstanding
option to purchase Company Common Stock granted under any of the stock option plans of the Company
as amended through the date of this Agreement (collectively, the &#147;<U>Company Stock Option Plans</U>&#148;) shall become immediately vested and exercisable in full, (ii) at the Effective Time, each option
to purchase shares of Company Common Stock granted under the Company Stock Option Plans (each, a &#147;<U>Company Stock Option</U>&#148;) that is outstanding, unexercised and not subject to payment under Section 2.04(b) as of the
Effective Time shall be cancelled, and (iii) at the Effective Time, all of the Company Stock Option
Plans shall be terminated (in each case, in accordance with and pursuant to the terms of the Company
Stock Option Plans and without the creation of additional liability to the Company or any Subsidiaries).</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each holder of a Company Stock Option that is outstanding and unexercised as of the Effective Time
and has an exercise price per share of Company Common Stock that is less than the Merger Consideration
shall (subject to the provisions of this Section 2.04) be paid by the Paying Agent, in exchange for
the cancellation of such Company Stock Option, an amount in cash (subject to any applicable withholding
Taxes) equal to the product of (i) the difference between the Merger Consideration and the applicable
exercise price of such Company Stock Option, and (ii) the aggregate number of shares of Company Common
Stock issuable upon exercise of such Company Stock Option (the &#147;<U>Option Payments</U>&#148;). The Paying Agent shall make the Option Payments as promptly as practicable after the Effective
Time. Any such payments shall be subject to all applicable federal, state and local Tax withholding
requirements.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.05&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Dissenting Shares</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding any provision of this Agreement to the contrary and to the extent available under
the DGCL, Shares that are outstanding immediately prior to the </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>5</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>Effective Time and that are held by any stockholder who is entitled to demand and properly demands
the appraisal for such Shares (the &#147;<U>Dissenting Shares</U>&#148;) pursuant to, and in compliance in all respects with, the provisions of Section 262 of the DGCL
(&#147;<U>Section 262</U>&#148;) shall not be converted into, or represent the right to receive, the Merger Consideration. Any
such stockholder shall instead be entitled to receive payment of the fair value of such stockholder&#146;s
Dissenting Shares in accordance with the provisions of Section 262; <U>provided</U>, <U>however</U>, that all Dissenting Shares held by any stockholder who shall have failed to perfect or who otherwise
shall have withdrawn or lost such stockholder&#146;s rights to appraisal of such Shares under Section
262 shall thereupon be deemed to have been converted into, and to have become exchangeable for, as
of the Effective Time, the right to receive the Merger Consideration, without any interest thereon,
upon surrender in the manner provided in Section 2.02 of the Certificate or Certificates that formerly
evidenced such Shares.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company shall give Parent (i) prompt notice of any demands received by the Company for appraisal
of any Shares, withdrawals of such demands and any other instruments served pursuant to the DGCL
and received by the Company and (ii) the right to participate in and direct all negotiations and
proceedings with respect to demands for appraisal under the DGCL. The Company shall not, except with
the prior written consent of Parent, make any payment or agree to make any payment with respect to
any demands for appraisal or offer to settle or settle any such demands.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2><B>ARTICLE III<BR>
  <BR>
REPRESENTATIONS AND WARRANTIES OF THE COMPANY</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in the disclosure schedule delivered by the Company to Parent and Merger Sub concurrently
with the execution and delivery of this Agreement (the &#147;<U>Company Disclosure Schedule</U>&#148;), the Company hereby represents and warrants to Parent and Merger Sub as follows:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Organization and Qualification; Subsidiaries</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each of the Company and each subsidiary of the Company (each, a &#147;<U>Subsidiary</U>&#148; and collectively, the &#147;<U>Subsidiaries</U>&#148;) is a corporation or other entity duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization and has the requisite power and authority and all
necessary governmental approvals to own, lease and operate its properties and to carry on its business
as it is now being conducted, except where the failure to be so organized, existing or in good standing
or to have such power, authority and governmental approvals would not, individually or in the aggregate,
have a Company Material Adverse Effect. Except as set forth in Section 3.01(a) of the Company Disclosure
Schedule, each of the Company and each Subsidiary is duly qualified or licensed to do business, and
is in good standing, in each jurisdiction where the character of the properties owned, leased or
operated by it or the nature of its business makes such qualification or licensing necessary, except
for such failures to be so qualified or licensed and in good standing that would not have a Company
Material Adverse Effect. As used in this Agreement, the term &#147;<U>Company Material Adverse Effect</U>&#148; means any event, circumstance, development, change or effect that individually or in the aggregate
with all other events, circumstances, developments, changes and effects, is </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>6</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>materially adverse to the business, operations, assets, condition (financial or otherwise) or results
of operations of the Company and the Subsidiaries taken as a whole or would reasonably be expected
to prevent or materially delay the consummation of the Merger and the other transactions contemplated
hereby (collectively, the &#147;<U>Transactions</U>&#148;) or prevent or materially impair or delay the ability of the Company to perform its obligations
hereunder; <U>provided</U>, <U>however</U>, that in no event shall any of the following, alone or in combination, be deemed to constitute, nor
shall any of the following be taken into account in determining whether there has been, or will be,
a Company Material Adverse Effect:&nbsp;any event, circumstance, change or effect resulting from
or relating to (i) a change in general economic or financial market conditions, (ii) a change in
industry conditions, (iii) any acts of terrorism or war, (iv) the announcement of the execution of
this Agreement or the pendency or consummation of the Transactions, or (v) compliance with the terms
of, or the taking of any action required by, this Agreement; <U>provided</U> <U>further</U> that the exceptions set forth in clauses (iv) and (v) will not apply with respect to the representations
and warranties set forth in Section 3.05.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A true and complete list of all the Subsidiaries, together with the jurisdiction of organization of
each Subsidiary and the percentage of the outstanding capital stock or other equity interests of
each Subsidiary owned by the Company, each other Subsidiary and any other person, is set forth in
Section 3.01(b) of the Company Disclosure Schedule.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.01(c) of the Company Disclosure Schedule lists any and all persons of which the Company
directly or indirectly owns an equity or similar interest, or an interest convertible into or exchangeable
or exercisable for an equity or similar interest, of less than 50% (collectively, the &#147;<U>Investments</U>&#148;). The Company or a Subsidiary, as the case may be, owns all Investments free and clear of all
Liens, and there are no outstanding contractual obligations of the Company or any Subsidiary permitting
the repurchase, redemption or other acquisition of any of its interest in the Investments or to provide
funds to, or make any investment (in the form of a loan, capital contribution or otherwise) in, or
provide any guarantee with respect to, any Investment.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Certificate of Incorporation and Bylaws</U>.</font>&nbsp;&nbsp;&nbsp;The Company has made available to Parent a complete and correct copy of the Certificate
of Incorporation and the Bylaws, or equivalent organizational documents, in each case as amended
to date (&#147;<U>Organizational Documents</U>&#148;), of the Company and each Subsidiary. Such Organizational Documents are in full force and effect
and no other organizational documents are applicable or binding upon the Company or any of its Subsidiaries.
Neither the Company nor any Subsidiary is, nor has the Company been, in violation of any of the provisions
of its Organizational Documents. No Subsidiary has been in material violation of any of the provisions
of its Organizational Documents. The Company has made available to Parent complete and correct copies
of the minutes of all meetings of the Company Board (and each committee thereof) and of the stockholders
of the Company, in each case since January 1, 2002.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.03&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Capitalization</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The authorized capital stock of the Company consists of (i) 30,000,000 shares of Company Common Stock
and (ii) 1,000,000 shares of preferred stock, par value $.001 per share (the &#147;<U>Company Preferred Stock</U>&#148;).</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>7</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As of the date of this Agreement, (i) 10,169,607 shares of Company Common Stock are issued and outstanding,
all of which are validly issued, fully paid and nonassessable and were issued free of preemptive
(or similar) rights, (ii) 1,217,652 shares of Company Common Stock are held in the treasury of the
Company, (iii) no shares of Company Common Stock are held by the Subsidiaries, (iv) 629,334 shares
of Company Common Stock are issuable upon exercise of outstanding Company Stock Options granted under
the Company Stock Option Plans at a weighted average per share exercise price of $6.68, (v) 1,625,000
shares of Company Common Stock are reserved for future issuance in connection with the Company Stock
Option Plans (including shares reserved pursuant to outstanding Company Stock Options), and (vi)
1,000,000 shares of Series A Participating Preferred Stock, par value $.01 per share, are reserved
for issuance pursuant to the Rights Agreement, dated January 11, 2000, between the Company and American
Stock Transfer &amp; Trust Company (the &#147;<U>Company Rights Agreement</U>&#148;). As of the date of this Agreement, no shares of Company Preferred Stock are issued and outstanding.
Except for the Company Rights Agreement, the Company does not have a &#147;poison pill&#148; or similar
stockholder rights plan. Except as set forth in this Section 3.03, there are no (A) options, warrants
or other rights, agreements, arrangements or commitments of any character relating to the issued
or unissued capital stock of the Company or any Subsidiary or obligating the Company or any Subsidiary
to issue or sell any shares of capital stock of, or other equity interests in, the Company or any
Subsidiary, (B) voting securities of the Company or securities convertible, exchangeable or exercisable
for shares of capital stock or voting securities of the Company, or (C) equity equivalents, interests
in the ownership or earnings of the Company or any Subsidiary or similar rights. All shares of Company
Common Stock subject to issuance as aforesaid, upon issuance on the terms and conditions specified
in the instruments pursuant to which they are issuable, will be duly authorized, validly issued,
fully paid and nonassessable and free of preemptive (or similar) rights. Other than the Company Stock
Option Plans, there are no outstanding contractual obligations of the Company or any Subsidiary to
repurchase, redeem or otherwise acquire any shares of Company Common Stock or any capital stock of
any Subsidiary or to provide funds to or make any investment (in the form of a loan, capital contribution
or otherwise) in any Subsidiary or any other person. None of the Company or any Subsidiary is a party
to any stockholders&#146; agreement, voting trust agreement or registration rights agreement relating
to any equity securities of the Company or any Subsidiary or any other Contract relating to disposition,
voting or dividends with respect to any equity securities of the Company or of any Subsidiary. All
dividends on the Company Common Stock that have been declared or have accrued prior to the date of
this Agreement have been paid in full.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each outstanding share of capital stock or other equity interest of each Subsidiary is duly authorized,
validly issued, fully paid and nonassessable and was issued free of preemptive (or similar) rights,
and, except as set forth in Section 3.03(c) of the Company Disclosure Schedule, each such share or
other equity interest is owned by the Company or another Subsidiary free and clear of all options,
rights of first refusal, agreements, limitations on the Company&#146;s or any Subsidiary&#146;s voting,
dividend or transfer rights, charges and other encumbrances or Liens of any nature whatsoever.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as set forth in Section 3.03(d) of the Company Disclosure Schedule, neither the Company nor
any of its Subsidiaries have any outstanding indebtedness for borrowed money.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>8</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.04&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Authority Relative to This Agreement</U>.</font>&nbsp;&nbsp;&nbsp;The Company has all necessary corporate power and authority to execute and deliver this
Agreement, to perform its obligations hereunder and to consummate the Transactions. The execution,
delivery and performance of this Agreement by the Company and the consummation by the Company of
the Transactions have been duly and validly authorized by all necessary corporate action, and no
other corporate proceedings on the part of the Company are necessary to authorize this Agreement
or to consummate the Transactions (other than, with respect to the Merger, the adoption of this Agreement
by the affirmative vote of a majority of the combined voting power of the outstanding shares of Company
Common Stock entitled to vote thereon and the filing and recordation of appropriate merger documents
as required by the DGCL). This Agreement has been duly and validly executed and delivered by the
Company and, assuming the due authorization, execution and delivery by Parent and Merger Sub, constitutes
a legal, valid and binding obligation of the Company, enforceable against the Company in accordance
with its terms, subject to the effect of any applicable bankruptcy, insolvency (including all Laws
relating to fraudulent transfers), reorganization, moratorium or similar Laws affecting creditors&#146; rights generally and subject to the effect of general principles of equity now or hereafter in effect.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>No Conflict; Required Filings and Consents</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The execution and delivery of this Agreement by the Company do not, and the performance of this Agreement
by the Company and the consummation by the Company of the Transactions will not, (i) conflict with
or violate the Certificate of Incorporation or Bylaws (or similar organizational documents) of the
Company or any Subsidiary, (ii) assuming that all consents, approvals and other authorizations described
in Section 3.05(a) have been obtained and that all filings and other actions described in Section
3.05(a) have been made or taken, conflict with or violate any statute, law, ordinance, regulation,
rule, code, executive order, judgment, injunction, decree or other order (&#147;<U>Law</U>&#148;) applicable to the Company or any Subsidiary or by which any property or asset of the Company
or any Subsidiary is bound or affected, or (iii) except as set forth in Section 3.05(a) of the Company
Disclosure Schedule, 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) under, require consent or result in
a material loss of a material benefit under, give rise to any right or obligation under, give to
others any right of termination, amendment, acceleration or cancellation of, or result in the creation
of a Lien on any property or asset of the Company or any Subsidiary pursuant to, any note, bond,
mortgage, indenture, contract (written or oral), agreement, lease, license, permit, franchise or
other binding commitment, instrument or obligation (each, a &#147;<U>Contract</U>&#148;) to which the Company or any Subsidiary is a party or by which the Company or a Subsidiary or
any property or asset of the Company or any Subsidiary is bound or affected.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as set forth in Section 3.05(a) of the Company Disclosure Schedule, the execution and delivery
of this Agreement by the Company do not, and the performance of this Agreement by the Company and
the consummation by the Company of the Transactions will not, require any consent, approval, authorization
or permit of, or filing with or notification to, any supranational, national, provincial, federal,
state or local government, regulatory or administrative authority, or any court, tribunal, or judicial
or arbitral body (a &#147;<U>Governmental Authority</U>&#148;), except for (i) applicable requirements, if any, of the Securities Exchange Act of 1934, as
amended (the &#147;<U>Exchange Act</U>&#148;), (ii) the filing with the Securities and </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>9</FONT></P>
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<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>Exchange Commission (the &#147;<U>SEC</U>&#148;) of a proxy statement relating to the adoption of this Agreement by the Company&#146;s stockholders
(as amended or supplemented from time to time, the &#147;<U>Proxy Statement</U>&#148;), (iii) any filings required under the rules and regulations of the NASDAQ Stock Market, Inc.
(the &#147;<U>NASDAQ</U>&#148;), (iv) the filing and recordation of (A) appropriate merger documents as required by the DGCL
and (B) appropriate documents with the relevant authorities of other states in which the Company
or any Subsidiary is qualified to do business, and (v) the notification requirements of the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder
(the &#147;<U>HSR Act</U>&#148;).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.06&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2" face="Times New Roman, Times, serif"><U>Permits; Compliance</U>.</font>&nbsp;&nbsp;&nbsp;Each of the Company and each Subsidiary is in possession of all franchises, grants, authorizations,
licenses, permits, easements, variances, exceptions, consents, certificates, approvals and orders
of any Governmental Authority necessary for each such entity to own, lease and operate its properties
or to carry on its business as it is now being conducted (the &#147;<U>Company Permits</U>&#148;), except where the failure to have, or the suspension or cancellation of, any of the Company
Permits would not have a Company Material Adverse Effect. No suspension or cancellation of any of
the Company Permits is pending or, to the knowledge of the Company, threatened, except where the
failure to have, or the suspension or cancellation of, any of the Company Permits would not have
a Company Material Adverse Effect. Each of the Company and each Subsidiary is in compliance with,
and since January 1, 2002 has been or has taken any necessary steps to become in compliance with,
(a) except as set forth in Section 3.06 of the Company Disclosure Schedule, any Law applicable to
such entity or by which any property or asset of such entity is bound or affected (including, without
limitation, the Sarbanes-Oxley Act of 2002 (the &#147;<U>Sarbanes-Oxley Act</U>&#148;)), and (b) any Contract or Company Permit to which such entity is a party or by which such entity
or any property or asset of such entity is bound, except, with respect to clauses (a) and (b), for
any such conflicts, defaults, breaches or violations that would not have a Company Material Adverse
Effect. To the extent that any correctional, rehabilitative, educational, detention or other similar
facility (each, a &#147;<U>Facility</U>&#148;) operated or otherwise managed by the Company is required to comply with the requirements for
accreditation by and the standards of, the American Correctional Association and the Joint Commission
on the Accreditation of Health Organizations&nbsp;(collectively, &#147;<U>Accreditation Requirements</U>&#148;), such Facility, is, and has been, in compliance with, and has taken any necessary steps to
become in compliance with, the Accreditation Requirements and all notices, reports, documents and
other information required to be filed under any Accreditation Requirements were properly filed and
were in compliance with such Accreditation Requirements.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.07&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Company SEC Reports; Financial Statements; Undisclosed Liabilities</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company has filed all forms, reports, statements, schedules and other documents required to be
filed by it with the SEC since January 1, 2002 (collectively, the &#147;<U>SEC Reports</U>&#148;). The SEC Reports (i) complied in all material respects in accordance with the applicable requirements
of the Securities Act of 1933, as amended (the &#147;<U>Securities Act</U>&#148;), the Exchange Act, the Sarbanes-Oxley Act and, in each case, the rules and regulations promulgated
thereunder, and (ii) did not, at the time they were filed, or, if amended, as of the date of such
amendment, contain any untrue statement of a material fact or omit to state a material fact </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>10</FONT></P>
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<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>required to be stated therein or necessary in order to make the statements made therein, in the light
of the circumstances under which they were made, not misleading (including any financial statements
or other documentation incorporated by reference therein). No Subsidiary is required to file any
form, report or other document with the SEC. There has been no correspondence between the SEC, on
the one hand, and the Company and any of the Subsidiaries, on the other hand, since January 1, 2002
through the date of this Agreement. As of the date hereof, there are no material unresolved comments
issued by the staff of the SEC with respect to any of the Company SEC Reports.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each of the consolidated financial statements (including, in each case, any notes thereto) contained
in the SEC Reports, when filed, complied in all material respects with applicable accounting requirements
and with published rules and regulations of the SEC with respect thereto, was prepared in accordance
with United States generally accepted accounting principles (&#147;<U>GAAP</U>&#148;) applied on a consistent basis throughout the periods indicated (except as may be indicated
in the notes thereto or, in the case of unaudited statements, as permitted by Form 10-Q or 8-K or
any successor forms under the Exchange Act) and each fairly presents, in all material respects, the
consolidated financial position, results of operations and cash flows of the Company and its consolidated
Subsidiaries as at the respective dates thereof and for the respective periods indicated therein
(subject, in the case of unaudited statements, to normal and recurring year-end adjustments none
of which, individually or in the aggregate, has had or could have a Company Material Adverse Effect).
All of the Subsidiaries are consolidated for accounting purposes.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as and to the extent set forth on the consolidated balance sheet of the Company and the consolidated
Subsidiaries as at March 31, 2005 (including the notes thereto) included in the Company&#146;s Quarterly
Report on Form 10-Q for the fiscal quarter ended March 31, 2005, neither the Company nor any Subsidiary
has any liability or obligation of any nature (whether accrued, absolute, contingent or otherwise),
except for liabilities and obligations incurred (i) in connection with the Transactions, or (ii)
in the ordinary course of business and in a manner consistent with past practice since March 31,
2005 that, individually or in the aggregate, would not reasonably be expected to have a Company Material
Adverse Effect.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company has made available to Parent a complete and correct copy of any amendments or modifications
which have not yet been filed with the SEC to Contracts which previously have been filed by the Company
with the SEC pursuant to the Securities Act or the Exchange Act.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Neither the Company nor any of its Subsidiaries is indebted to any director or officer of the Company
or any of its Subsidiaries (except for amounts due as normal salaries and bonuses or in reimbursement
of ordinary business expenses and directors&#146; fees) and no such person is indebted to the Company
or any of its Subsidiaries, and there have been no other transactions of the type required to be
disclosed pursuant to Items 402 or 404 of Regulation S-K promulgated by the SEC that have not been
so disclosed.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.08&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Information Supplied</U>.</font>&nbsp;&nbsp;&nbsp;None of the information included or incorporated by reference in the Proxy Statement will,
at the date it is first mailed to the Company&#146;s stockholders or at the time of the Company Stockholders&#146; Meeting or at the time of </font></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>11</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>any amendment or supplement thereof, contain any untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary in order to make the statements therein,
in light of the circumstances under which they are made, not misleading, except that no representation
is made by the Company with respect to statements made or incorporated by reference therein based
on information supplied by Parent or Merger Sub in connection with the preparation of the Proxy Statement
for inclusion or incorporation by reference therein. The Proxy Statement will comply as to form in
all material respects with the requirements of the Exchange Act and the rules and regulations promulgated
thereunder.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.09&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Absence of Certain Changes or Events</U>.</font>&nbsp;&nbsp;&nbsp;Since December 31, 2004, there has not been any event, circumstance, change, development
or effect that, individually or in the aggregate, has had or would reasonably be expected to have,
a Company Material Adverse Effect. Except as expressly disclosed in the SEC Reports filed since December
31, 2004 or as otherwise expressly contemplated by this Agreement, since December 31, 2004, (a) the
Company and the Subsidiaries have conducted their businesses only in the ordinary course of business
and in a manner consistent with past practice, and (b) neither the Company nor any Subsidiary has:</font></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=50>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;amended or otherwise changed its Certificate of Incorporation or Bylaws or similar organizational
documents;</FONT></TD>
</TR>
<TR>
<TD width="50" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=50>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;declared, set aside, made or paid any dividend or other distribution, payable in cash, stock, property
or otherwise, with respect to any of its capital stock;</FONT></TD>
</TR>
<TR>
<TD width="50" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=50>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reclassified, combined, split, subdivided or redeemed, or purchased or otherwise acquired, directly
or indirectly, any of its capital stock;</FONT></TD>
</TR>
<TR>
<TD width="50" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=50>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;except as set forth in Section 3.09(iv) of the Company Disclosure Schedule, increased the compensation
payable or to become payable or the benefits provided to its directors, officers or employees, except
for increases in the ordinary course of business and in a manner consistent with past practice, or
granted any severance or termination pay to, or entered into any employment, bonus, change of control
or severance agreement with, any director or officer or, except in the ordinary course of business
in a manner consistent with past practice, any other employee of the Company or of any Subsidiary;</FONT></TD>
</TR>
<TR>
<TD width="50" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=50>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;suffered any damage, destruction or loss (whether or not covered by insurance), other than in the
ordinary course of business, that has had a Company Material Adverse Effect;</FONT></TD>
</TR>
<TR>
<TD width="50" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=50>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;made any change in financial or Tax accounting methods or practices materially affecting its assets,
liabilities or business, except insofar as may have been required by a change in GAAP;</FONT></TD>
</TR>
<TR>
<TD width="50" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=50>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) &nbsp;&nbsp;&nbsp;&nbsp;except as set forth in Section 3.09(vii) of the Company Disclosure Schedule, made any acquisition
or disposition of any real property;</FONT></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>12</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=50>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) &nbsp;&nbsp;made any material Tax election or settled or compromised any material United States federal, state
or local income Tax liability; or</FONT></TD>
</TR>
<TR>
<TD width="50" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=50>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) &nbsp;&nbsp;&nbsp;&nbsp;announced an intention, entered into any formal or informal agreement or otherwise made a commitment,
to do any of the foregoing.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.10&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Absence of Litigation</U>.</font>&nbsp;&nbsp;&nbsp;Except as set forth in Section 3.10 of the Company Disclosure Schedule, there is no litigation,
suit, claim, action, proceeding, hearing, petition, grievance, complaint or investigation (an &#147;<U>Action</U>&#148;) pending or, to the knowledge of the Company, threatened against the Company or any Subsidiary,
or any property or asset of the Company or any Subsidiary, before any Governmental Authority or arbitrator
that would reasonably be expected to have a Company Material Adverse Effect. Except as set forth
in Section 3.10 of the Company Disclosure Schedule, as of the date of this Agreement, no officer
or director of the Company is a defendant in any Action in connection with his status as an officer
or director of the Company or any Subsidiary. Other than pursuant to Certificates of Incorporation,
Bylaws or other organizational documents or any insurance policy for the benefit of directors or
officers as set forth in Section 3.18 of the Company Disclosure Schedule, no Contract between the
Company or any Subsidiary and any current or former director or officer exists that provides for
indemnification. Neither the Company nor any Subsidiary nor any property or asset of the Company
or any Subsidiary is subject to any continuing order of, consent decree, settlement agreement or
other similar written agreement with, or, to the knowledge of the Company, continuing investigation
by, any Governmental Authority, or any order, writ, judgment, injunction, decree, determination or
award of any Governmental Authority that would reasonably be expected to have a Company Material Adverse Effect.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.11&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Employee Benefit Plans</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.11(a) of the Company Disclosure Schedule lists all employee benefit plans (as defined in
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (&#147;<U>ERISA</U>&#148;)) and all bonus, stock option, stock purchase, restricted stock, incentive, deferred compensation,
retiree medical or life insurance, supplemental retirement, severance or other benefit plans, programs
or arrangements, and all employment, termination, severance or other contracts or agreements to which
the Company or any Subsidiary is a party, with respect to which the Company or any Subsidiary has
any obligation or which are maintained, contributed to or sponsored by the Company or any Subsidiary
for the benefit of any current or former employee, consultant, officer or director of the Company
or any Subsidiary (collectively, the &#147;<U>Plans</U>&#148;). The Company has made available to Parent a true and complete copy of each Plan and has made
available to Parent a true and complete copy of (where applicable) (A) each trust or funding arrangement
prepared in connection with each such Plan, (B) the two most recently filed annual reports on Internal
Revenue Service (&#147;<U>IRS</U>&#148;) Form 5500, (C) the most recently received IRS determination letter for each such Plan, (D)
the two most recently prepared actuarial reports and financial statements in connection with each
such Plan, and (E) the most recent summary plan description and any material written communications
(or a description of any material oral communications) by the Company or the Subsidiaries to any
current or former employees, consultants, or directors of the Company or any Subsidiary concerning
the extent of the benefits provided under a Plan.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>13</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Neither the Company nor any Subsidiary has now or at any time contributed to, sponsored, or maintained
(i) a pension plan (within the meaning of Section 3(2) of ERISA) subject to Section 412 of the Code
or Title IV of ERISA; (ii) a multiemployer plan (within the meaning of Section 3(37) or 4001(a)(3)
of ERISA) (a &#147;<U>Multiemployer Plan</U>&#148;); or (iii) a single employer pension plan (within the meaning of Section 4001(a)(15) of ERISA)
for which the Company or any Subsidiary could incur liability under Section 4063 or 4064 of ERISA
(a &#147;<U>Multiple Employer Plan</U>&#148;). Except for the Company Stock Option Plans and as set forth in Section 3.11(b) of the Company
Disclosure Schedule, no Plan exists that could result in the payment to any present or former employee,
director or consultant of the Company or any Subsidiary of any money or other property or accelerate
or provide any other rights or benefits to any current or former employee of the Company or any Subsidiary
as a result of the consummation of the Transactions (whether alone or in connection with any subsequent
event). There is no contract, plan or arrangement (written or otherwise) covering any current or
former employee of the Company or any Subsidiary that, individually or collectively, could give rise
to the payment of any amount that would not be deductible pursuant to the terms of Section 280G of
the United States Internal Revenue Code of 1986, as amended (the &#147;<U>Code</U>&#148;).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; With respect to the Plans, no event has occurred and, to the knowledge of the Company, there exists
no condition or set of circumstances, in connection with which the Company or any Subsidiary could
be subject to any actual or contingent liability under the terms of such Plan or any applicable Law.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Plan that is intended to be qualified under Section 401(a) of the Code has received a favorable
determination letter or prototype opinion letter from the IRS, covering all of the provisions applicable
to the Plan for which determination letters or prototype opinion letters are currently available,
stating that the Plan is so qualified and each trust established in connection with any Plan which
is intended to be exempt from federal income taxation under Section 501(a) of the Code is so exempt,
and, to the knowledge of the Company, no circumstance exists that could reasonably be expected to
result in the revocation of such exemption.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) Each Plan has been established and administered in accordance with its terms, and in substantial
compliance with the applicable provisions of ERISA, the Code and other applicable Laws, and (ii)
no Plan provides retiree welfare benefits, and neither the Company nor any Subsidiary has any obligation
to provide any retiree welfare benefits other than as required by Section 4980B of the Code.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; With respect to any Plan, (i) no Actions (other than routine claims for benefits in the ordinary course)
are pending or, to the knowledge of the Company, threatened, (ii) to the knowledge of the Company,
no facts or circumstances exist that could reasonably be expected to give rise to any such Actions,
and (iii) no administrative investigation, audit or other administrative proceeding by the Department
of Labor, the IRS or other Governmental Authority is pending, in progress or, to the knowledge of
the Company, threatened that could reasonably be expected to have a Company Material Adverse Effect.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.12&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2" face="Times New Roman, Times, serif"><U>Labor and Employment Matters</U>.</font>&nbsp;&nbsp;&nbsp;Except as set forth in Section 3.12 of the Company Disclosure Schedule, (i) neither the
Company nor any Subsidiary is a party </font></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>14</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>to any collective bargaining agreement or other labor union contract applicable to persons employed
by the Company or any Subsidiary, nor, to the knowledge of the Company, are there any activities
or proceedings of any labor union to organize any such employees, and (ii) as of the date of this
Agreement, there are no unfair labor practice complaints pending against the Company or any Subsidiary
before the National Labor Relations Board or any other Governmental Authority or any current union
representation questions involving employees of the Company or any Subsidiary. As of the date of
this Agreement, there is no strike, controversy, slowdown, work stoppage or lockout, or, to the knowledge
of the Company, threatened in writing, by or with respect to any employees of the Company or any Subsidiary.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Real Property; Title to Assets</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.13(a) of the Company Disclosure Schedule lists each parcel of real property (including submerged
land) currently owned by the Company or any Subsidiary and sets forth the Company or the applicable
Subsidiary owning such properties (collectively, the &#147;<U>Owned Real Properties</U>&#148;). The Company or the applicable Subsidiary set forth on Section 3.13(a) of the Company Disclosure
Schedule owns fee simple title to the Owned Real Properties, free and clear of all mortgages, pledges,
liens, restrictions, security interests, conditional and installment sale agreements, encumbrances,
charges or other claims of third parties of any kind, including any easement, right of way or other
encumbrance to title, or any option, right of first refusal, or right of first offer (collectively, &#147;<U>Liens</U>&#148;), other than (i) as set forth in Section 3.13(a) of the Company Disclosure Schedule, (ii) Liens
for current taxes and assessments not yet due and payable, (iii) inchoate mechanics&#146; and materialmen&#146;s
Liens for construction in progress, and (iv) to the extent such Liens would not reasonably be expected
to have a Company Material Adverse Effect, (A) workmen&#146;s, repairmen&#146;s, warehousemen&#146;s
and carriers&#146; Liens arising in the ordinary course of business of the Company or such Subsidiary
consistent with past practice, (B) all matters of record, and (C) all Liens and other imperfections
of title and encumbrances that are typical for the applicable property type and locality and which
would not reasonably be expected to materially interfere with the conduct of the business of the
Company (collectively, &#147;<U>Permitted Liens</U>&#148;). None of the Properties is subject to any governmental decree or order to be sold nor is being
condemned, expropriated or otherwise taken by any public authority with or without payment of compensation
therefor, nor, to the knowledge of the Company, has any such condemnation, expropriation or taking
been proposed. Neither the Company nor any Subsidiary has violated any material covenants, conditions
or restrictions affecting any Properties (as defined below) which violations would have a Company
Material Adverse Effect.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.13(b) of the Company Disclosure Schedule lists each parcel of real property (including submerged
land) currently leased or subleased by or to the Company or any Subsidiary (collectively, the &#147;<U>Leased Properties</U>&#148;; the Leased Properties, together with the Owned Real Properties, collectively, the &#147;<U>Properties</U>&#148;) and sets forth the Company or the Subsidiary holding such leasehold interest, the name of the
lessor and the lessee, whether such leasehold interest relates to a Facility operated or managed
by the Company, and the date of the lease, sublease, assignment of the lease, any guaranty given
or leasing commissions remaining payable by the Company or any Subsidiary in connection therewith,
and each material amendment to any of the foregoing (collectively, the &#147;<U>Lease Documents</U>&#148;). The Company or the applicable Subsidiary set forth on Section 3.13(b) of the Company Disclosure
Schedule owns a valid leasehold interest in the Leased Properties, free and clear of all Liens other
than Permitted </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>15</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>Liens. &nbsp;True, correct and complete copies of all Lease Documents have been delivered to Parent.
Each of the Lease Documents is valid, binding and in full force and effect as against the Company
or the Subsidiaries and, to the Company&#146;s knowledge, as against the other party thereto. Except
as set forth in Section 3.13(b) of the Company Disclosure Schedule, neither the Company nor any Subsidiary
has received written notice under any of the Lease Documents of any default which has not been cured
to the satisfaction of the other party thereto, and, to the Company&#146;s knowledge, no event has
occurred which, with notice or lapse of time or both, would constitute a material default by the
Company or the applicable Subsidiaries.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; There are no latent defects or adverse physical conditions affecting any Property or the improvements
thereon, other than those that would not reasonably be expected to have a Company Material Adverse
Effect.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as set forth in Section 3.13(d) of the Company Disclosure Schedule, valid policies of title
insurance or title commitments for which premiums have been paid (collectively, the &#147;<U>Title Policies</U>&#148;) have been issued insuring the Company or the applicable Subsidiary&#146;s fee simple or leasehold
title to the Properties owned or ground leased by the Company or the applicable Subsidiaries in amounts
at least equal to the purchase price thereof paid by the Company or the applicable Subsidiary, subject
only to Permitted Liens. No claim has been made against any Title Policies. The Company and the Subsidiaries
have not received any written notice and are not otherwise aware that the Title Policies are not
in full force and effect.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As of the date hereof, the Company has no Properties under construction.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as set forth in Section 3.13(f) of the Company Disclosure Schedule, the Company or the Subsidiaries
own all material furniture, fixtures, equipment, operating supplies and other personal property (the &#147;<U>Personal Property</U>&#148;) necessary for the operation of each Property, free and clear of all Liens.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; There are no violations of any zoning, land use, handicap access or building codes and regulations
applicable to any Property or the use and occupancy thereof, other than those that would not have
a Company Material Adverse Effect.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.14&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Intellectual Property</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as would not reasonably be expected to have a Company Material Adverse Effect, (i) the conduct
of the business of the Company and the Subsidiaries as currently conducted does not infringe upon
or misappropriate the Intellectual Property rights of any third party, and no claim has been asserted
to the Company or any Subsidiary that the conduct of the business of the Company and the Subsidiaries
as currently conducted infringes upon or may infringe upon or misappropriates the Intellectual Property
rights of any third party; (ii) with respect to each item of Intellectual Property that is owned
by the Company or a Subsidiary (&#147;<U>Owned Intellectual Property</U>&#148;), the Company or a Subsidiary is the owner of the entire right, title and interest in and to
such Owned Intellectual Property and is entitled to use such Owned Intellectual Property in the continued
operation of its respective business; (iii) with respect to each item of Intellectual Property that
is licensed to or otherwise held or used by the Company or </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>16</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>a Subsidiary (&#147;<U>Licensed Intellectual Property</U>&#148;), the Company or a Subsidiary has the right to use such Licensed Intellectual Property in the
continued operation of its respective business in accordance with the terms of the license agreement
governing such Licensed Intellectual Property; (iv) none of the Owned Intellectual Property has been
adjudged invalid or unenforceable in whole or in part and, to the knowledge of the Company, the Owned
Intellectual Property is valid and enforceable; (v) to the knowledge of the Company, no person is
engaging in any activity that infringes upon the Owned Intellectual Property; (vi) to the knowledge
of the Company, each license of the Licensed Intellectual Property is valid and enforceable, is binding
on all parties to such license, and is in full force and effect; (vii) to the knowledge of the Company,
no party to any license of the Licensed Intellectual Property is in breach thereof or default thereunder;
(viii) the Company has taken all reasonable actions (including executing non-disclosure and intellectual
property assignment agreements) to protect, preserve and maintain the Owned Intellectual Property;
and (ix) neither the execution of this Agreement nor the consummation of any Transaction shall adversely
affect any of the Company&#146;s rights with respect to the Owned Intellectual Property or the Licensed
Intellectual Property.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For purposes of this Agreement, &#147;<U>Intellectual Property</U>&#148; means (i) United States patents, patent applications and statutory invention registrations,
(ii) trademarks, service marks, trade dress, logos, trade names, corporate names, domain names and
other source identifiers, and registrations and applications for registration thereof, (iii) copyrightable
works, copyrights, and registrations and applications for registration thereof and (iv) confidential
and proprietary information, including trade secrets and know-how.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.15&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Taxes</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company and the Subsidiaries (i) have timely filed or caused to be filed or will timely file or
cause to be filed (taking into account any extension of time to file granted or obtained) all material
Tax Returns required to be filed by them, and all such filed Tax Returns are true, correct and complete
in all material respects; and (ii) have timely paid or will timely pay all material amounts of Taxes
due and payable except to the extent that such Taxes are being contested in good faith and for which
the Company or the appropriate Subsidiary has set aside adequate reserves in accordance with GAAP.
All material amounts of Taxes required to have been withheld by or with respect to the Company and
the Subsidiaries have been or will be timely withheld and remitted to the applicable Tax authority.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Except as set forth in Section 3.15(b) of the Company Disclosure Schedule, there are no pending or,
to the knowledge of the Company, threatened audits, examinations, investigations or other proceedings
in respect of any Tax or Tax matter of the Company or any Subsidiary. No deficiency for any material
amount of Tax has been asserted or assessed by any Tax authority in writing against the Company or
any Subsidiary, which deficiency has not been satisfied by payment, settled or been withdrawn or
contested in good faith and for which the Company or the appropriate Subsidiary has set aside adequate
reserves in accordance with GAAP. There are no Tax liens on any assets of the Company or any Subsidiary
(other than any liens for Taxes not yet due and payable for which adequate reserves have been made
in accordance with GAAP or for Taxes being contested in good faith). Neither the Company nor any
Subsidiary is subject to any accumulated earnings Tax or personal holding company Tax.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>17</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as set forth in Section 3.15(c) of the Company Disclosure Schedule, neither the Company nor
any Subsidiary has made or is obligated to make any payment that would not be deductible pursuant
to Section 162(m) or 280G of the Code. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; There are no pending or, to the knowledge of the Company, potential claims for indemnity (other than
customary indemnity under credit or any other agreements or arrangements) against the Company or
any Subsidiary (other than against each other) under any indemnification, allocation or sharing agreement
with respect to income Taxes.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Neither the Company nor any Subsidiary 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 (other than pursuant
to extensions of time to file Tax Returns obtained in the ordinary course).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No claim is pending by a taxing authority in a jurisdiction where the Company or any Subsidiary does
not file a Tax Return that the Company or such Subsidiary is or may be subject to Tax by such jurisdiction.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company and the Subsidiaries have not participated in any reportable transactions as contemplated
in Treasury Regulation 1.6011-4.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; There are no proposed reassessments of any property owned by the Company and the Subsidiaries that
could result in a material increase in the amount of any Tax to which the Company or any such Subsidiary
would be subject.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Neither the Company nor any Subsidiary will be required to include any item of income in, or exclude
any item of deduction from, taxable income as a result of any (1) adjustment pursuant to Section
481 of the Code, the regulations thereunder or any similar provision under state or local Law, (2) &#147;closing agreement&#148; as described in Section 7121 of the Code (or any corresponding or similar
provision of state, local or foreign income Tax Law) executed on or prior to the Closing, (3) intercompany
transaction or excess loss account described in the Treasury Regulations under Section 1502 of the
Code (or any corresponding or similar provision of state, local or foreign income Tax Law), (4) installment
sale or open transaction disposition made on or prior to the Closing, or (5) prepaid amount received
on or prior to the Closing.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Neither the Company nor any Subsidiary has made an election under Section 341(f) of the Code.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp; &nbsp;&nbsp;&nbsp; For purposes of this Agreement:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tax</U>&#148; or &#147;<U>Taxes</U>&#148; shall mean any and all federal, state, local and foreign income, gross receipts, license, payroll,
employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs
duties, capital stock, franchise, profits, withholding, social security, unemployment, disability,
real property, personal property, sales, use, transfer, registration, value added, alternative or
add-on minimum, estimated, or other taxes of any kind (together with any and all interest, </FONT></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>18</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>penalties, additions to tax and additional amounts imposed with respect thereto) imposed by any governmental
or Tax authority.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tax Returns</U>&#148; means any and all returns, declarations, claims for refund, or information returns or statements,
reports and forms relating to Taxes filed with any Tax authority (including any schedule or attachment
thereto) with respect to the Company or the Subsidiaries, including any amendment thereof.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.16&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Environmental Matters</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp; Except as would not reasonably be expected to have a Company Material Adverse Effect: (i) none of
the Company or any of the Subsidiaries has violated, or is in violation of, any Environmental Law;
(ii) to the knowledge of the Company, there is and has been no presence, release or threat of release
of Hazardous Substances at, on, under or affecting (A) any of the properties currently owned, leased
or operated by the Company or any of the Subsidiaries or, during the period of the Company&#146;s
or the Subsidiaries&#146; ownership, lease or operation thereof, formerly owned, leased or operated
by the Company or any of the Subsidiaries, or (B) any location at which Hazardous Substances are
present for which the Company or any of the Subsidiaries is or is allegedly liable, under conditions
in the case of either clauses (A) or (B) that would reasonably be expected to result in a liability
or obligation to the Company or any of the Subsidiaries, or, as the Company and the Subsidiaries
are currently operated, adversely affect the revenues of the Company or any of the Subsidiaries;
(iii) the Company and the Subsidiaries have obtained and are and have been in compliance with all,
and have not violated any, required Environmental Permits; (iv) there are no written claims pending
or, to the knowledge of the Company, threatened against the Company or any of the Subsidiaries alleging
violations of or liability or obligations under any Environmental Law or otherwise concerning the
presence or release of Hazardous Substances; and (v) none of the Company or any of the Subsidiaries
has received any written notice of, is a party to, or, to the knowledge of the Company, is reasonably
likely to be affected by any proceedings, any investigations or any agreements concerning such matters.
The Company has provided to Parent a copy of all material studies, audits, assessments or investigations
concerning compliance with, or liability or obligations under, any Environmental Law affecting the
Company or any Subsidiary that is in the possession or, to the knowledge of the Company, control of the Company or any Subsidiary.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp; For purposes of this Agreement:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Laws</U>&#148; means any Laws (including common law) of the United States federal, state, local, non United
States, or any other Governmental Authority, relating to (A) releases or threatened releases of Hazardous
Substances or materials containing Hazardous Substances; (B) the manufacture, handling, transport,
use, treatment, storage or disposal of Hazardous Substances or materials containing Hazardous Substances;
or (C) pollution or protection of the environment or human health and safety as affected by Hazardous
Substances or materials containing Hazardous Substances.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Permits</U>&#148; means any permit, license registration, approval, notification or any other authorization pursuant
to Environmental Law.</FONT></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>19</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Hazardous Substances</U>&#148; means (A) those substances, materials or wastes defined as toxic, hazardous, acutely hazardous,
pollutants or contaminants in or regulated under the following United States federal statutes and
any analogous state statutes, and all regulations thereunder:&nbsp;the Hazardous Materials Transportation
Act, the Resource Conservation and Recovery Act, the Comprehensive Environmental Response, Compensation
and Liability Act, the Clean Water Act, the Safe Drinking Water Act, the Atomic Energy Act, the Federal
Insecticide, Fungicide, and Rodenticide Act and the Clean Air Act; (B) petroleum and petroleum products,
including crude oil and any fractions thereof; (C) natural gas, synthetic gas, and any mixtures thereof;
(D) polychlorinated biphenyls, asbestos, molds that could reasonably be expected to adversely affect
human health, urea formaldehyde foam insulation and radon; and (E) any substance, material or waste
regulated by any Governmental Authority pursuant to, or that would reasonably be expected to result
in liability under, any Law in addition to those identified in (A) above the primary purpose of which
is the protection of the environment or human health and safety as affected by environmental media.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.17&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Material Contracts</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.17(a) of the Company Disclosure Schedule contains a list of the following Contracts to which
the Company or any Subsidiary is a party or by which the Company or any Subsidiary or any of their
respective properties or assets are bound or affected as of the date hereof:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any lease of real or personal property providing for annual rentals of $25,000 or more;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp; any Contract (A) pursuant to which the Company or any Subsidiary manages or operates a Facility, or
(B) which provides for the placement, housing or detention of inmates, detainees, juveniles or other
individuals in any Facility;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp; any Contract for the purchase of materials, supplies, goods, services, equipment or other assets that
is not terminable without material penalty on 90 days notice by the Company or the Subsidiaries and
that provides for or is reasonably likely to require (A) annual payments from the Company and the
Subsidiaries of $50,000 or more, (B) aggregate payments from the Company and/or the Subsidiaries
of $100,000 or more, (C) annual payments to the Company and the Subsidiaries of $250,000 or more,
or (D) aggregate payments to the Company and the Subsidiaries of $500,000 or more (other than Contracts
referenced in clause (ii) of this Section 3.17(a));</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) &nbsp;&nbsp;&nbsp; any partnership, limited liability company agreement, joint venture or other similar agreement or
arrangement relating to the formation, creation, operation, management or control of any partnership
or joint venture;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) &nbsp;&nbsp;&nbsp;&nbsp; any Contract (other than among consolidated Subsidiaries) under which Indebtedness is outstanding
or may be incurred or pursuant to which any property or asset is mortgaged, pledged or otherwise
subject to a Lien, or any Contract restricting the incurrence of Indebtedness or the incurrence of
Liens or restricting the payment of </FONT></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>20</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>dividends or the transfer of any Property (except, with respect to the transfer of Leased Properties,
restrictions contained in the Lease Documents). &#147;<U>Indebtedness</U>&#148; means (A) indebtedness for borrowed money (excluding any interest thereon), secured or unsecured,
(B) obligations under conditional sale or other title retention Contracts relating to purchased property,
(C) capitalized lease obligations, (D) obligations under interest rate cap, swap, collar or similar
transactions or currency hedging transactions (valued at the termination value thereof), (E) any
obligations consolidated on the financial statements of the Company pursuant to Financial Accounting
Standards Board Interpretation No. 46(R), and (F) guarantees of any of the foregoing of any other person;</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) &nbsp;&nbsp;&nbsp; any Contract required to be filed as an exhibit to the Company&#146;s Annual Report on Form 10-K pursuant
to Item 601(b)(10) of Regulation S-K under the Securities Act;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) &nbsp;&nbsp; any Contract that purports to limit the right of the Company or any of its Subsidiaries (A) to engage
in any line of business, (B) to compete with any person or operate in any location, or (C) to acquire
equity securities of any person;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)  &nbsp;&nbsp;any Contract to which the Company or any of its Subsidiaries has continuing indemnification obligations
or potential liability under any purchase price adjustment;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) &nbsp;&nbsp;&nbsp;&nbsp; any Contract providing for the sale or exchange of, or option to sell or exchange, any Property, or
for the purchase or exchange of, or option to purchase or exchange, any real estate;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; any Contract for the acquisition or disposition, directly or indirectly (by merger or otherwise),
of assets (other than Contracts referenced in clause (ix) of this Section 3.17(a)) or capital stock
or other equity interests of another person for aggregate consideration in excess of $100,000, in
each case other than in the ordinary course of business and in a manner consistent with past practice;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) &nbsp;&nbsp;&nbsp;&nbsp; any Contract (other than Contracts referenced in clauses (i) and (ii) of this Section 3.17(a)) pursuant
to which the Company or any of the Subsidiaries manages any real property;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) &nbsp;&nbsp;&nbsp; other than Contracts for ordinary repair and maintenance, any Contract relating to the development
or construction of, or additions or expansions to, the Properties, under which the Company or any
of the Subsidiaries has, or expects to incur, an obligation in excess of $100,000 in the aggregate;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) &nbsp;&nbsp; any advertising or other promotional Contract providing for payment by the Company or any Subsidiary
of $50,000 or more;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) &nbsp;&nbsp; any license, royalty or other Contract concerning&nbsp;Intellectual Property which is material to
the Company and the Subsidiaries; and</FONT></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>21</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) &nbsp;&nbsp;&nbsp; any Contract (other than Contracts referenced in clauses (i) through (xiv) of this Section 3.17(a))
which by its terms is likely to involve payment or receipt of consideration over the remaining term
of such Contract in excess of $500,000 in the aggregate, or which is otherwise material to the business
of the Company and its Subsidiaries, taken as a whole.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>(the Contracts described in clauses (i) through (xv) and those required to be identified in Sections
3.11(a) and 3.13(b) of the Company Disclosure Schedule and as referenced in Section 3.17(c), in each
case together with all exhibits and schedules thereto being, the &#147;<U>Material Contracts</U>&#148;).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as would not have a Company Material Adverse Effect, (i) neither the Company nor any Subsidiary
is and, to the Company&#146;s knowledge, no other party is in breach or violation of, or default
under, any Material Contract, (ii) none of the Company or any of the Subsidiaries have received any
claim of default under any Material Contract, and (iii) to the Company&#146;s knowledge, no event
has occurred which would result in a breach or violation of, or a default under, any Material Contract
(in each case, with or without notice or lapse of time or both). Except as would not have a Company
Material Adverse Effect, each Material Contract is valid, binding and enforceable in accordance with
its terms and is in full force and effect. The Company has made available to Parent true and complete
copies of all Material Contracts, including any amendments thereto.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as disclosed in the Company&#146;s proxy statement for its 2005 annual meeting of stockholders
filed with the SEC, or as were not required to be disclosed therein under the Exchange Act or would
not be required to be disclosed in the Company&#146;s succeeding proxy statement under the Exchange
Act, there are no Contracts or transactions between the Company or any Subsidiary, on the one hand,
and any (i) officer or director of the Company or any Subsidiary, (ii) record or beneficial owner
of five percent or more of the voting securities of the Company, or (iii) associate (as defined in
Rule 12b-2 under the Exchange Act) or affiliate of any such officer, director or record or beneficial
owner, on the other hand, except those of a type available to employees generally.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.18&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Insurance</U>.</font>&nbsp;&nbsp;&nbsp;Section 3.18 of the Company Disclosure Schedule sets forth a complete and correct list
of all current material insurance policies owned or held by the Company and each Subsidiary, true
and complete copies of which have been made available to Parent. With respect to each such insurance
policy, except as would not reasonably be expected to have a Company Material Adverse Effect: (a)
the policy is legal, valid, binding and enforceable in accordance with its terms and, except for
policies that have expired under their terms in the ordinary course, is in full force and effect;
(b) neither the Company nor any Subsidiary is in breach or default (including any such breach or
default with respect to the payment of premiums or the giving of notice), and no event has occurred
which, with notice or the lapse of time, would constitute such a breach or default, or permit termination
or modification, under the policy; (c) to the knowledge of the Company, no insurer on the policy
has been declared insolvent or placed in receivership, conservatorship or liquidation; (d) no notice
of cancellation or termination has been received; and (e) the policy is sufficient for compliance
with all requirements of Law and of all Contracts to which the Company or the Subsidiaries are parties
or otherwise bound.</font></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>22</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.19&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Board Approval; State Antitakeover Statutes and Company Rights Agreement; Vote Required</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company Board, by resolutions duly adopted at a meeting duly called and held, has duly (i) approved
this Agreement, (ii) determined that the Merger Consideration is fair to the Company&#146;s stockholders,
(iii) directed that this Agreement be submitted for consideration by the Company&#146;s stockholders
at the Company Stockholders&#146; Meeting, and (iv) recommended that the stockholders of the Company
adopt this Agreement (collectively, the &#147;<U>Company Board Recommendation</U>&#148;).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each of the Company, the Company Board and the Special Committee has taken all actions necessary to
ensure that (i) no &#147;fair price&#148;, &#147;moratorium&#148;, &#147;control share acquisition&#148; or other similar antitakeover statute or regulation enacted under state or federal laws in the United
States (including Section 203 of the DGCL) applicable to the Company shall be applicable to this
Agreement, the Merger or the other Transactions contemplated by the Agreement, and (ii) the Company
Rights Agreement shall not apply to Parent or Merger Sub, or to this Agreement, the Merger and the
other Transactions.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The only vote of the holders of any class or series of capital stock or other securities of the Company
necessary to approve this Agreement, the Merger and the other Transactions contemplated by this Agreement
is the affirmative vote of the holders of a majority of the outstanding shares of Company Common
Stock in favor of the approval and adoption of this Agreement, the Merger and the other Transactions
(the &#147;<U>Stockholder Approval</U>&#148;).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.20&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Interested Party Transactions</U>.</font>&nbsp;&nbsp;&nbsp;Between the date of the Company&#146;s proxy statement for its 2005 annual meeting of stockholders
filed with the SEC and the date of this Agreement, no event has occurred that would be required to
be reported by the Company pursuant to Item 404 of Regulation S-K promulgated by the SEC. Except
as described in the Company&#146;s proxy statement for its 2005 annual meeting of stockholders filed
with the SEC, no director, executive officer or &#147;associate&#148; (as such terms are defined
in Rule 12b-2 under the Exchange Act) of the Company or any of its Subsidiaries owns any direct or
indirect interest of any kind in, or is a director, officer, employee, partner, affiliate or associate
of, or consultant or lender to, or borrower from, or has the right to participate in the management,
operations or profits of, any person or entity which is (i) a competitor, supplier, customer, distributor,
lessor, tenant, creditor or debtor of the Company or any of its Subsidiaries, (ii) participating
in any material transaction to which the Company or any of its Subsidiaries is a party, or (iii)
otherwise a party to any Company Material Contract, arrangement or understanding with the Company
or any of its Subsidiaries, other than with respect to at-will employment arrangements, written employment
arrangements or Plans, all as described in the Schedules hereto.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.21&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Corrupt Gifts and Payments</U>.</font>&nbsp;&nbsp;&nbsp;Except as set forth in Section 3.21 of the Company Disclosure Schedule, none of the Company,
any Subsidiary, or any director, officer, employee or other person associated with or acting on behalf
of the Company or any Subsidiary, has (i) used any Company or Subsidiary funds for any unlawful contribution,
gift, entertainment or other unlawful expense relating to political activity, (ii) made any direct
or indirect unlawful payment to any governmental official or employee from any Company or </font></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>23</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>Subsidiary funds, or (iii) made any bribe, rebate, payoff, influence payment, kickback or other unlawful
payment.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.22&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Opinion of Financial Advisor</U>.</font>&nbsp;&nbsp;&nbsp;The Special Committee has received the written opinion of Jefferies &amp; Company, Inc.
to the effect that, as of the date of such opinion, the Merger Consideration is fair, from a financial
point of view, to the Company&#146;s stockholders. An executed copy of such opinion is being delivered
to Parent simultaneously with the execution of this Agreement.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.23&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Brokers</U>.</font>&nbsp;&nbsp;&nbsp;No broker, finder or investment banker (other than Jefferies &amp; Company, Inc.) is entitled
to any brokerage, finder&#146;s or other fee or commission in connection with the Transactions based
upon arrangements made by or on behalf of the Company. The Company has furnished to Parent a complete
and correct copy of any Contract between the Company and Jefferies &amp; Company, Inc. pursuant to
which Jefferies &amp; Company, Inc. could be entitled to any payment from the Company relating to
the Transactions.</font></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2><B>ARTICLE IV<BR>
  <BR>
REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in the disclosure schedule delivered by Parent and Merger Sub to the Company concurrently
with the execution and delivery of this Agreement (the &#147;<U>Parent Disclosure Schedule</U>&#148;), Parent and Merger Sub hereby, jointly and severally, represent and warrant to the Company
that:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.01&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Corporate Organization</U>.</font>&nbsp;&nbsp;&nbsp;Each of Parent and Merger Sub is a corporation, in each case, duly organized, validly existing
and in good standing under the laws of the jurisdiction of its organization and has the requisite
power and authority and all necessary governmental approvals to own, lease and operate its properties
and to carry on its business as it is now being conducted, except where the failure to be so organized,
existing or in good standing or to have such power, authority and governmental approvals would not,
individually or in the aggregate, prevent or materially delay consummation of any of the Transactions
or otherwise prevent or materially delay Parent or Merger Sub from performing their obligations under
this Agreement.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Certificate of Incorporation and Bylaws</U>.</font>&nbsp;&nbsp;&nbsp;Parent has heretofore furnished to the Company a complete and correct copy of the Certificate
of Incorporation and Bylaws of Parent and Merger Sub, each as amended to date. Such Certificates
of Incorporation and Bylaws are in full force and effect. Neither Parent nor Merger Sub is in violation
of any of the provisions of its Certificate of Incorporation or Bylaws.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Authority Relative to This Agreement</U>.</font>&nbsp;&nbsp;&nbsp;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.
The execution, delivery and performance of this Agreement by Parent and Merger Sub and the consummation
by Parent and Merger Sub of the Transactions have been duly and validly authorized by all necessary
corporate action, and no other corporate proceedings on the part of Parent or Merger Sub are </font></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>24</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>necessary to authorize this Agreement or to consummate the Transactions. This Agreement has been duly
and validly executed and delivered by Parent and Merger Sub and, assuming due authorization, execution
and delivery by the Company, constitutes a legal, valid and binding obligation of each of Parent
and Merger Sub, enforceable against each of Parent and Merger Sub in accordance with its terms, subject
to the effect of any applicable bankruptcy, insolvency (including all laws relating to fraudulent
transfers), reorganization, moratorium or similar laws affecting creditors&#146; rights generally
and subject to the effect of general principles of equity now or hereafter in effect.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.04&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>No Conflict; Required Filings and Consents</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The execution and delivery of this Agreement by Parent and Merger Sub do not, and the performance
of this Agreement by Parent and Merger Sub and the consummation by Parent and Merger Sub of the Transactions
will not, (i) conflict with or violate the Certificate of Incorporation or Bylaws of Parent or Merger
Sub, (ii) assuming that all consents, approvals, authorizations and other actions described in Section
4.04(b) have been obtained and all filings and other actions described in Section 4.04(b) have been
made or taken, conflict with or violate any Law applicable to Parent or Merger Sub or by which any
property or asset of either of them is bound or affected, or (iii) except as set forth in Section
4.04(a)(iii) of the Parent Disclosure Schedule, 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) under,
or give to others any rights of termination, amendment, acceleration or cancellation of, or result
in the creation of a Lien on any property or asset of Parent or Merger Sub pursuant to, any Contract
to which Parent or Merger Sub is a party or by which Parent or Merger Sub or any property or asset
of either of them is bound or affected.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The execution and delivery of this Agreement by Parent and Merger Sub do not, and the performance
of this Agreement by Parent and Merger Sub and the consummation by Parent and Merger Sub of the Transactions
will not, require any consent, approval, authorization or permit of, or filing with or notification
to, any Governmental Authority, except for (i) applicable requirements, if any, of the Exchange Act,
(ii) any filings required under the rules and regulations of the New York Stock Exchange (the &#147;<U>NYSE</U>&#148;), (iii) the filing and recordation of (A) appropriate merger documents as required by the DGCL
and (B) appropriate documents with the relevant authorities of other states in which the Company
or any of the Subsidiaries is qualified to do business, (iv) the notification requirements of the
HSR Act, and (v) where the failure to obtain such consents, approvals, authorizations or permits,
or to make such filings or notifications, would not, individually or in the aggregate, prevent or
materially delay consummation of any of the Transactions or otherwise prevent Parent or Merger Sub
from performing their material obligations under this Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.05&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Information Supplied</U>.</font>&nbsp;&nbsp;&nbsp;None of the information supplied by Parent or Merger Sub for inclusion in the Proxy Statement
will, at the date it is first mailed to the Company&#146;s stockholders or at the time of the Company
Stockholders&#146; Meeting or at the time of any amendment or supplement thereof, contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or
necessary in order to make the statements therein, in light of the circumstances under which they
are made, not misleading. No representation is made by Parent or Merger Sub with respect to statements
made or incorporated </font></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>25</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>by reference therein based on information supplied by the Company in connection with the preparation
of the Proxy Statement for inclusion or incorporation by reference therein.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.06&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Absence of Litigation</U>.</font>&nbsp;&nbsp;&nbsp;As of the date of this Agreement, there is no Action pending or, to the knowledge of the
officers of Parent, threatened, against Parent or any of its affiliates before any Governmental Authority
that would or seeks to materially delay or prevent the consummation of any of the Transactions. As
of the date of this Agreement, neither Parent nor any of its affiliates is subject to any continuing
order of, consent decree, settlement agreement or other similar written agreement with, or, to the
knowledge of the officers of Parent, continuing investigation by, any Governmental Authority, or
any order, writ, judgment, injunction, decree, determination or award of any Governmental Authority
that would or seeks to materially delay or prevent the consummation of any of the Transactions.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.07&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Operations of Merger Sub</U>.</font>&nbsp;&nbsp;&nbsp;Merger Sub is a direct, wholly owned subsidiary of Parent, has been used by Parent for
the purpose of engaging in the Transactions, and has conducted its operations only as contemplated
by this Agreement.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.08&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Brokers</U>.</font>&nbsp;&nbsp;&nbsp;Except for fees and commissions payable by Buyer to Lehman Brothers, Parent&#146;s financial
adviser with respect to the Transactions, the Company will not be responsible for any brokerage,
finder&#146;s or other fee or commission to any broker, finder or investment banker in connection
with the Transactions based upon arrangements made by or on behalf of Parent or Merger Sub.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.09&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Financing</U>.</font>&nbsp;&nbsp;&nbsp;Immediately prior to the Effective Time, Parent will have sufficient cash available to
it to pay the Merger Consideration and to consummate the Transactions.</font></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2><B>ARTICLE V<BR>
  <BR>
CONDUCT OF BUSINESS PENDING THE MERGER</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Conduct of Business by the Company Pending the Merger</U>.</font>&nbsp;&nbsp;&nbsp;The Company agrees that, between the date of this Agreement and the Effective Time, except
as expressly contemplated by this Agreement or as set forth in Section 5.01 of the Company Disclosure
Schedule, the businesses of the Company and the Subsidiaries shall be conducted only in, and the
Company and the Subsidiaries shall not take any action without the prior written consent of Parent,
except in the ordinary course of business and in a manner consistent with past practice and in compliance
in all material respects with applicable Law, and the Company shall, and shall cause each of the
Subsidiaries to, use its reasonable best efforts to preserve substantially intact the business organization
of the Company and the Subsidiaries, to preserve the assets and properties of the Company and the
Subsidiaries in good repair and condition, to maintain and protect rights in material Intellectual
Property used in the business of the Company and the Subsidiaries and to preserve the current relationships
of the Company and the Subsidiaries with customers, suppliers and other persons with which the Company
or any Subsidiary has material business relations, in each case in the ordinary course of business
and in a manner consistent with past practice. By way of amplification and not limitation, except
as expressly contemplated by any other provision of this Agreement or as set forth in Section 5.01 </font></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>26</FONT></P>
<HR color=black noShade>
<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>of the Company Disclosure Schedule, the Company agrees that neither the Company nor any Subsidiary
shall, between the date of this Agreement and the Effective Time, directly or indirectly, do, or
propose to do, any of the following without the prior written consent of Parent:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; amend or otherwise change its Certificate of Incorporation, Bylaws or other similar organizational
documents;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; issue, sell, pledge, dispose of, grant, encumber, or otherwise subject to any Lien, or authorize such
issuance, sale, pledge, disposition, grant or encumbrance of or subjection to such Lien, (i) any
shares of any class of capital stock of the Company or any Subsidiary, or any options, warrants,
convertible securities or other rights of any kind to acquire any shares of such capital stock, or
any other ownership interest (including any phantom interest), of the Company or any Subsidiary (except
for the issuance of Shares issuable pursuant to employee stock options outstanding on the date of
this Agreement and granted under Company Stock Option Plans as in effect on the date of this Agreement
in the ordinary course of business and in a manner consistent with past practice), or (ii) any Properties
or other assets of the Company or any Subsidiary, except assets (other than Properties) that are
not material in the ordinary course of business and in a manner consistent with past practice, other
than pursuant to the Contracts for sale set forth in Section 5.01(b) of the Company Disclosure Schedule;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 dividends or other distributions
by any Subsidiary only to the Company or any direct or indirect wholly owned Subsidiary;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; reclassify, combine, split, subdivide or redeem, or purchase or otherwise acquire, directly or indirectly,
any capital stock of the Company or any Subsidiary;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) acquire (including by merger, consolidation, or acquisition of stock or assets or any other business
combination) any corporation, partnership, other business organization (or any division thereof)
or any property or asset, except assets (other than real property) in the ordinary course of business
and in a manner consistent with past practice, and other assets (other than real property) that do
not exceed $200,000 in the aggregate; (ii) except as set forth in Section 6.08 of the Company Disclosure
Schedule, authorize, or make any commitment with respect to, any capital expenditure, other than
(A) maintenance expenditures at existing Properties in the ordinary course of business and consistent
with past practice (provided that the Company shall provide Parent notice if it intends to make any
maintenance expenditures with respect to Properties related to, or held for use by, the Company&#146;s
Juvenile Business Division (the &#147;<U>Juvenile Business</U>&#148; in excess of $25,000)), and (B) any expenditures in connection with the completion or development
of the Facilities set forth on Section 6.08 of the Company Disclosure Schedule, up to the amount
set forth in such Section for the applicable period; (iii) acquire, enter into or extend any option
to acquire, or exercise an option to acquire, real property or commence construction of, or enter
into any Contract to develop or construct, other real estate projects, other than in connection with
the continued development of the Facilities set forth in Section 6.08 of the Company Disclosure Schedule
and as set forth in Section 5.01(e) of the Company Disclosure Schedule; (iv) enter into any new line
of business; (v) make any investments in persons other than existing Subsidiaries; or (vi) make any
investments in the </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>27</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>Juvenile Business, except for such investments in the ordinary course of business and in a manner consistent
with past practice or as required by an existing Contract;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) increase the compensation payable or to become payable or the benefits provided to its current
or former directors, officers or employees, except for increases in compensation in the ordinary
course of business and in a manner consistent with past practice; (ii) except as set forth on Section
5.01(f) of the Company Disclosure Schedule, grant any retention, severance or termination pay to,
or enter into any employment, bonus, change of control or severance agreement with, any current or
former director, officer or other employee of the Company or of any Subsidiary; (iii) establish,
adopt, enter into, terminate or amend any Plan or establish, adopt or enter into any plan, agreement,
program, policy, trust, fund or other arrangement that would be a Plan if it were in existence as
of the date of this Agreement for the benefit of any director, officer or employee except as required
by Law; (iv) loan or advance any money or other property to any current or former director, officer
or employee of the Company or the Subsidiaries; or (v) grant any equity or equity based awards (provided
that equity awards may be transferred in accordance with the terms of the applicable plan document or agreement);</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; change any of the material accounting policies, practices or procedures used by the Company and its
Subsidiaries as of the date hereof, except as may be required or permitted as a result of a change
in applicable Law or in United States GAAP;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; make any change (or file for such change) in any method of Tax accounting;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; make, change or rescind any material Tax election, file any amended Tax Return, except as required
by applicable Law, enter into any closing agreement relating to Taxes, waive or extend the statute
of limitations in respect of Taxes (other than pursuant to extensions of time to file Tax Returns
obtained in the ordinary course of business) or settle or compromise any material United States federal,
state or local income Tax liability, audit, claim or assessment, or surrender any right to claim
for a Tax Refund;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pay, discharge, waive, settle or satisfy any claim, liability or obligation that is not an Action,
other than the payment, discharge, waiver, settlement or satisfaction, in the ordinary course of
business and consistent with past practice;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; waive, release, assign, settle or compromise any pending or threatened Action (i) requiring payment
by the Company or any Subsidiary in excess of $100,000 individually or $250,000 in the aggregate,
unless such payments are fully covered by the Company&#146;s or such Subsidiary&#146;s insurance
policies, (ii) set forth on Section 5.01(k)(ii) of the Company Disclosure Schedule, or (iii) that
is brought by any current, former or purported holder of any securities of the Company in its capacity
as such and that (A) requires any payment to such security holder by the Company or any Subsidiary,
or (B) adversely affects in any material respect the ability of the Company and the Subsidiaries
to conduct their business in a manner consistent with past practice;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) enter into, materially amend or modify, or consent to the termination of (other than a termination
in accordance with its terms) any Material Contract, or (ii) amend, </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>28</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>waive, modify or consent to the termination of (other than a termination in accordance with its terms)
the Company&#146;s or any Subsidiary&#146;s rights thereunder;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; make any expenditure in connection with any advertising or marketing, other than in the ordinary course
of business and in a manner consistent with past practice;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; fail to maintain in full force and effect the existing insurance policies covering the Company and
the Subsidiaries and their respective properties, assets and businesses;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; except as set forth in Section 5.01(o) of the Company Disclosure Schedule and as required by Section
6.07 hereof, enter into, amend, modify or consent to the termination of any Contract that would be
a Material Contract or transaction that would be required to be set forth in a schedule to Section
3.17(c) if in effect on the date of this Agreement;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; except as set forth in Section 5.01(p) of the Company Disclosure Schedule, effectuate a &#147;plant
closing&#148; or &#147;mass layoff,&#148; as those terms are defined in the Worker Adjustment and
Retraining Notification Act of 1988;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; permit any Subsidiary to own any real property or conduct any business other than currently owned
or conducted by such Subsidiary;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; initiate or consent to any material zoning reclassification of any Owned Real Property or any material
change to any approved site plan, special use permit, planned unit development approval or other
land use entitlement affecting any Owned Real Property;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; repurchase, repay or incur any Indebtedness (other than in connection with letters of credit and borrowings
for working capital purposes, in each case, in the ordinary course of business consistent with past
practice), or issue any debt securities or assume or endorse, or otherwise become responsible for,
the obligations of any person, or make any loans or advances, or grant any security interest in any
of its assets;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; amend, modify or waive any term of any outstanding security of the Company or any of its Subsidiaries,
except (i) as required by this Agreement, (ii) in connection with accelerating the vesting schedules
of the Company Stock Options to the extent required by the Company Stock Option Plans or the agreements
pursuant to which such Company Stock Options were granted, and (iii) in connection with terminating
the Company Stock Options and the Company Stock Option Plans;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; fail to (i) maintain any material real property to which the Company and any of its Subsidiaries have
ownership or a leasehold interest (including, without limitation, the furniture, fixtures, equipment
and systems therein) in its current condition, subject to reasonable wear and tear and subject to
any casualty or condemnation, (ii) timely pay all taxes, water and sewage rents, assessments and
insurance premiums affecting such real property, and (iii) timely comply in all material respects
with the terms and provisions of all leases, contracts and agreements relating to such real property
and the use and operation thereof;</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>29</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; enter into, or amend, any labor or collective bargaining agreement, memorandum or understanding, grievance
settlement or any other agreement or commitment to or relating to any labor union, except as required
by Law;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; adopt or put into effect a plan of complete or partial liquidation, dissolution, merger, consolidation,
restructuring, recapitalization or other reorganization of the Company or any of its Subsidiaries
other than as contemplated hereunder;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; take, or agree or commit to take, any action that would, or would reasonably be expected to, result
in a Company Material Adverse Effect at, or as of any time prior to, the Effective Time or result
in any of the conditions to the Merger set forth in Article VII not being satisfied, or omit, or
agree to omit, to take any action necessary to prevent any such Company Material Adverse Effect as
of such time or to prevent any such condition from not being satisfied;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; engage in any action with the intent, directly or indirectly, to adversely affect the Transactions;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;except as otherwise contemplated herein, grant any waiver to any party with respect to the Company
Rights Agreement, or any applicable state anti-takeover statute, including Section 203 of the DGCL;
or</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; announce an intention, enter into any formal or informal agreement or otherwise make a commitment,
to do any of the foregoing.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Conduct of Business by Parent and Merger Sub Pending the Merger</U>.</font>&nbsp;&nbsp;&nbsp;Each of Parent and Merger Sub agrees that, between the date of this Agreement and the Effective
Time, it shall not, directly or indirectly, (a) take any action to cause its representations and
warranties set forth in Article IV to be untrue in any material respect; or (b) take any action that
would reasonably be likely to materially delay the consummation of the Transactions.</font></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2><B>ARTICLE VI<BR>
  <BR>
ADDITIONAL AGREEMENTS</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Proxy Statement; Company Stockholders&#146; Meeting</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As promptly as practicable following the date of this Agreement (but in any event within 15 business
days unless the parties shall otherwise agree), the Company shall prepare and file with the SEC the
preliminary Proxy Statement. Each of the Company and Parent shall furnish all information concerning
itself and its affiliates that is required to be included in the Proxy Statement or that is customarily
included in proxy statements prepared in connection with transactions of the type contemplated by
this Agreement. Each of the Company and Parent shall use its reasonable best efforts to respond as
promptly as practicable to any comments of the SEC with respect to the Proxy Statement, and the Company
shall use its reasonable best efforts to cause the definitive Proxy Statement to be mailed to the
Company&#146;s stockholders as promptly as reasonably practicable after the date of this Agreement.
The Company shall promptly notify Parent upon the receipt of any comments from the SEC or its </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>30</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>staff or any request from the SEC or its staff for amendments or supplements to the Proxy Statement
and shall provide Parent with copies of all correspondence between the Company and its Representatives,
on the one hand, and the SEC and its staff, on the other hand relating to the Proxy Statement. If
at any time prior to the Company Stockholders&#146; Meeting, any information relating to the Company,
Parent or any of their respective affiliates, officers or directors, should be discovered by the
Company or Parent which should be set forth in an amendment or supplement to the Proxy Statement,
so that the Proxy Statement shall not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they are made, not misleading, the party which
discovers such information shall promptly notify the other parties, and an appropriate amendment
or supplement describing such information shall be filed with the SEC and, to the extent required
by applicable Law, disseminated to the stockholders of the Company. Notwithstanding anything to the
contrary stated above, 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 provide
Parent an opportunity to review and comment on such document or response and shall include in such
document or response comments reasonably proposed by Parent; <U>provided</U>, <U>however</U>, that in the event of a Change in Board Recommendation, the Company shall consider in good faith including
in such document or response comments reasonably proposed by Parent.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company shall duly call, give notice of, convene and hold a meeting of its stockholders (the &#147;<U>Company Stockholders&#146; Meeting</U>&#148;), as promptly as practicable after the date of this Agreement, for the purpose of obtaining
the Stockholder Approval. Unless this Agreement shall have been terminated in accordance with Section
8.01, the Company shall hold the Company Stockholders&#146; Meeting regardless of whether the Company
Board has effected a Change in Board Recommendation. Subject to Section 6.03(c), the Company Board
shall (i) recommend to holders of the Shares that they adopt this Agreement, (ii) include such recommendation
in the Proxy Statement and (iii) use its reasonable best efforts to solicit and obtain the Stockholder
Approval.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Access to Information; Confidentiality</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as otherwise prohibited by applicable Law or the terms of any Contract entered into prior to
the date hereof or would be reasonably expected to violate any attorney-client privilege, from the
date of this Agreement until the Effective Time, the Company shall (and shall cause the Subsidiaries
to), at Parent&#146;s expense:&nbsp;(i) provide to Parent and to the officers, directors, employees,
accountants, consultants, legal counsel, financing sources, agents and other representatives (collectively, &#147;<U>Representatives</U>&#148;) of Parent reasonable access, during normal business hours and upon reasonable prior notice
by Parent, to the officers, employees, agents, properties, offices and other facilities (including,
but not limited to, the Facilities) of the Company and the Subsidiaries and to the books and records
thereof, and (ii) furnish promptly to Parent such information concerning the business, properties,
Contracts, assets, liabilities, personnel and other aspects of the Company and the Subsidiaries as
Parent or its Representatives may reasonably request. Without limiting the foregoing, Parent and
its Representatives (including its financing sources) shall have the right to conduct appraisal and
environmental and engineering inspections of each of the Company&#146;s properties, <U>provided</U>, <U>however</U>, that unless reasonably required by the financing sources of Parent, neither Parent nor its Representatives </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>31</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>shall have the right to take and analyze any samples of any environmental media (including soil, groundwater,
surface water, air or sediment) or any building material or to perform any invasive testing procedure
on any building; and that any such taking and analyzing of samples or any such performance of invasive
testing conducted pursuant to this Section 6.02 shall be reasonably acceptable to the Company, implemented
in a manner that does not disrupt the operations of the Company or any of the Subsidiaries, paid
for by Parent at Parent&#146;s sole cost and expense and a copy of the results thereof delivered
to the Company; and that Parent, at Parent&#146;s sole cost and expense, shall return any site at
which or from which, or that has otherwise been affected by, any taking and analyzing of samples
or performance of invasive testing conducted pursuant to this Section 6.02, in all material respects,
to the condition existing at such site prior to the taking and analyzing of samples or performance
of invasive testing.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All information obtained by Parent or its Representatives pursuant to this Section 6.02 shall be kept
confidential in accordance with the confidentiality agreement, dated December 22, 2004 (the &#147;<U>Confidentiality Agreement</U>&#148;), between Parent and the Company.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any actions taken pursuant to this Section 6.02, and/or the failure to take any actions pursuant to
this Section 6.02, shall not affect any representation or warranty in this Agreement of any party
hereto or any condition to the obligations of the parties hereto.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>No Solicitation of Transactions</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company agrees that neither it nor any Subsidiary shall, nor shall it authorize or permit the
Representatives of the Company or the Subsidiaries to, directly or indirectly, (i) solicit or initiate
or knowingly encourage or otherwise knowingly facilitate (including by way of furnishing information)
any inquiries or the implementation or submission of any Acquisition Proposal, or (ii) participate
in discussions or negotiations regarding, or furnish to any person any non-public information in
connection with, any Acquisition Proposal; <U>provided</U>, <U>however</U>, that, prior to the adoption of this Agreement by the Company&#146;s stockholders at the Company Stockholders&#146; Meeting, nothing contained in this Agreement shall prevent the Company or the Special Committee from
furnishing information to, or engaging in negotiations or discussions with, any person in connection
with an unsolicited bona fide written Acquisition Proposal by such person, if and only to the extent
that prior to taking such action (A) the Special Committee believes in good faith (after consultation
with its advisors) that such Acquisition Proposal is, or could reasonably be expected to result in,
a Superior Proposal, and the Special Committee determines in good faith (after consultation with
its outside legal counsel) that it is required to do so in order to comply with its fiduciary duties
to the stockholders of the Company under applicable Law, and (B) the Special Committee receives from
such person an executed confidentiality agreement, the terms of which are substantially similar to
and no less favorable to the Company than those contained in the Confidentiality Agreement, and which
shall include a standstill provision substantially similar to and no less favorable to the Company
than that contained in the Confidentiality Agreement. Except as set forth in this Section 6.03, neither
the Company nor any Subsidiary shall enter into any letter of intent, acquisition agreement or similar
agreement with respect to an Acquisition Proposal (other than a confidentiality agreement referred
to in this Section 6.03(a)).</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>32</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company shall notify Parent as promptly as practicable (and in any event within 48 hours) of the
receipt by the Company or any of the Subsidiaries, or any of its or their respective Representatives,
of any bona fide inquiries, proposals or offers, requests for information or requests for discussions
or negotiations regarding any Acquisition Proposal, specifying the material terms and conditions
thereof and the identity of the party making such proposal. The Company shall keep Parent reasonably
informed of the status of any such discussions or negotiations and of any modifications to such inquiries,
proposals or offers (the Company agreeing that it shall not, and shall cause the Subsidiaries not
to, enter into any confidentiality agreement with any person subsequent to the date of this Agreement
which prohibits the Company from providing such information to Parent). The Company agrees that neither
it nor any Subsidiary shall terminate, waive, amend or modify any provision of any existing standstill
or confidentiality agreement to which it or any of the Subsidiaries is a party and that it and the
Subsidiaries shall enforce the provisions of any such agreement. The Company shall, and shall cause
the Subsidiaries and its and their Representatives to, immediately cease and cause to be terminated
any discussions or negotiations with any parties that may be ongoing with respect to any Acquisition
Proposal as of the date hereof, shall take reasonable steps to inform its and the Subsidiaries&#146; Representatives of the obligations undertaken in this Section 6.03 and shall request that all confidential
information previously furnished to any such third parties be returned promptly.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as set forth in this Section 6.03, the Company Board (or any committee thereof) shall not,
and shall not publicly propose to, (i) withdraw or modify, in a manner adverse to Parent or Merger
Sub, the approval or recommendation of this Agreement, the Merger or the other Transactions by the
Company Board, the Special Committee, or any other committee of the Company Board; (ii) approve or
recommend any Acquisition Proposal; or (iii) approve any letter of intent, acquisition agreement
or similar agreement with respect to any Acquisition Proposal (other than a confidentiality agreement
referred to in this Section 6.03). Notwithstanding the foregoing, prior to the adoption of this Agreement
by the Company&#146;s stockholders at the Company Stockholders&#146; Meeting, (x) in response to
the receipt of an unsolicited bona fide written Acquisition Proposal, if the Special Committee (A)
determines in good faith (after consultation with its advisors) that such Acquisition Proposal is
a Superior Proposal and (B) determines in good faith (after consultation with its outside legal counsel)
that it is required to do so in order to comply with its fiduciary duties to the stockholders of
the Company under applicable Law, then the Special Committee may approve and recommend such Superior
Proposal and, in connection with such Superior Proposal, the Company Board may withdraw or modify
the Company Board Recommendation or (y) other than in connection with an Acquisition Proposal, if
the Special Committee determines in good faith (after consultation with its outside legal counsel)
that it is required to do so in order to comply with its fiduciary duties to the stockholders of
the Company under applicable Law, then the Company Board may withdraw or modify the Company Board
Recommendation (either event described in the foregoing clauses (x) and (y), a &#147;<U>Change in Board Recommendation</U>&#148;).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nothing contained in this Agreement shall prohibit the Company from taking and disclosing to its stockholders
a position contemplated by Rules 14d-9 and 14e-2(a) promulgated under the Exchange Act or from making
any disclosure to the Company&#146;s stockholders if the Company Board (or any committee thereof)
determines in good faith (after consultation with its outside legal counsel) that it is required
to do so under applicable Law; </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>33</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2><U>provided</U>, <U>however</U>, that neither the Company nor the Company Board (nor any committee thereof) shall (i) recommend that
the stockholders of the Company tender their Shares in connection with any such tender or exchange
offer (or otherwise approve or recommend any Acquisition Proposal) or (ii) withdraw or modify the
Company Board Recommendation, unless in the case of each of clause (d)(i) and (d)(ii) hereof, the
requirements of Section 6.03(c) shall have been satisfied.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company shall not take any action to exempt any person other than Parent and Merger Sub from the
restrictions on &#147;business combinations&#148; contained in Section 203 of the DGCL (or any similar
provision) or otherwise cause such restrictions not to apply, unless the requirements of Section
6.03(c) shall have been satisfied.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For purposes of this Agreement:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Acquisition Proposal</U>&#148; means any proposal or offer (including any proposal from or to the Company&#146;s stockholders)
from any person other than Parent or Merger Sub relating to (1) any direct or indirect acquisition
of (A) more than 20% of the assets of the Company and its consolidated Subsidiaries, taken as a whole
or (B) more than 20% of any class of equity securities of the Company; (2) any tender offer or exchange
offer, as defined pursuant to the Exchange Act, that if consummated, would result in any person beneficially
owning 20% or more of any class of equity securities of the Company; or (3) any merger, consolidation,
business combination, recapitalization, liquidation, dissolution or other similar transaction involving
the Company.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Superior Proposal</U>&#148; means any bona fide written Acquisition Proposal not solicited or initiated in violation of
Section 6.03(a) that (1) relates to more than 50% of the outstanding Shares or all or substantially
all of the assets of the Company and the Subsidiaries taken as a whole, (2) is on terms that the
Special Committee determines in its good faith judgment (after consultation with its financial advisor
and after taking into account all the terms and conditions of the Acquisition Proposal) are more
favorable to the Company&#146;s stockholders (in their capacities as stockholders) from a financial
point of view than this Agreement (including any alterations to this Agreement agreed to in writing
by Parent in response thereto) and (3) which the Special Committee and the Company Board determines
is reasonably capable of being consummated.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.04&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Directors&#146; and Officers&#146; Indemnification and Insurance</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Certificate of Incorporation of the Surviving Corporation shall contain provisions no less favorable
with respect to indemnification than are set forth in the Certificate of Incorporation of the Company,
which provisions shall not be amended, repealed or otherwise modified for a period of six years from
the Effective Time in any manner that would affect adversely the rights thereunder of individuals
who, at or prior to the Effective Time, were directors, officers, employees, fiduciaries or agents
of the Company or any of the Subsidiaries.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; After the Effective Time, Parent and the Surviving Corporation shall, to the fullest extent permitted
under applicable Law, indemnify and hold harmless, each present and former director and officer of
the Company and each Subsidiary (collectively, the &#147;<U>Indemnified </U></FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>34</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2><U>Parties</U>&#148;) against all costs and expenses (including attorneys&#146; fees), judgments, fines, losses,
claims, damages, liabilities and settlement amounts paid in connection with any claim, action, suit,
proceeding or investigation (whether arising before or after the Effective Time), whether civil,
criminal, administrative or investigative, arising out of or pertaining to any action or omission
in their capacity as an officer, director, employee, fiduciary or agent, occurring on or before the
Effective Time, to the same extent as provided in the Certificate of Incorporation of the Company.
In the event of any such claim, action, suit, proceeding or investigation, (i) Parent or the Surviving
Corporation shall pay the reasonable fees and expenses of counsel selected by the Indemnified Parties,
which counsel shall be reasonably satisfactory to the Surviving Corporation, promptly after statements
therefor are received (provided the applicable Indemnified Party provides an undertaking to repay
all advanced expenses if it is finally judicially determined that such Indemnified Party is not entitled
to indemnification) and (ii) the Surviving Corporation shall cooperate in the defense of any such matter; <U>provided</U>, <U>however</U>, that the Surviving Corporation shall not be liable for any settlement effected without the Surviving
Corporation&#146;s written consent (which consent shall not be unreasonably withheld or delayed);
and provided, further, that neither Parent nor the Surviving Corporation shall be obligated pursuant
to this Section 6.04(b) to pay the fees and expenses of more than one counsel (selected by a plurality
of the applicable Indemnified Parties) for all Indemnified Parties in any jurisdiction with respect
to any single action except to the extent that two or more of such Indemnified Parties shall have
conflicting interests in the outcome of such action.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Surviving Corporation shall either (i) cause to be obtained and maintained at the Effective Time &#147;tail&#148; insurance policies with a claims period of at least six years from the Effective
Time with respect to directors&#146; and officers&#146; liability insurance in amount and scope at
least as favorable as the Company&#146;s existing policies for claims arising from facts or events
that occurred on or prior to the Effective Time; or (ii) if such tail coverage is not available,
maintain in effect for six years from the Effective Time, if available, the current directors&#146;
and officers&#146; liability insurance policies maintained by the Company (provided that the Surviving
Corporation may substitute therefor policies of at least the same coverage containing terms and conditions
that are not less favorable) with respect to matters occurring prior to the Effective Time; <U>provided</U>, <U>however</U>, that in no event shall the Surviving Corporation be required to expend pursuant to Section 6.04(c)(i)
more than six (6) times an amount equal to 100% of current annual premiums paid by the Company for
directors&#146; and officers&#146; liability insurance or, pursuant to Section 6.04(c)(ii), more
than 100% of current annual premiums paid by the Company for such insurance; <U>provided</U>, <U>however</U>, that in the event of an expiration, termination or cancellation of such current directors&#146; and
officers&#146; insurance policies, Parent or the Surviving Corporation shall be required to obtain
as much coverage as is possible under substantially similar policies for such maximum annual amount
in aggregate annual premiums. The Company represents that such current annual premium amount is set
forth in Section 6.04(c)(ii) of the Company Disclosure Schedule. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event Parent or the Surviving Corporation or any of their respective successors or assigns
(i) consolidates with or merges into any other person and shall not be the continuing or surviving
corporation or entity of such consolidation or merger, or (ii) transfers all or substantially all
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 Parent or the Surviving </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>35</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>Corporation, as the case may be, shall succeed to or otherwise be bound by the obligations set forth
in this Section 6.04.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Parent shall cause the Surviving Corporation to perform all of the obligations of the Surviving Corporation
under this Section 6.04.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Notification of Certain Matters</U>.</font>&nbsp;&nbsp;&nbsp;The Company shall give prompt notice to Parent, and Parent shall give prompt notice to
the Company, of (a) the occurrence, or non occurrence, of any event the occurrence, or non occurrence,
of which could reasonably be expected to cause any representation or warranty contained in this Agreement
to be untrue or inaccurate in any material respect, in the case of representations or warranties
not qualified by any &#147;material&#148; or &#147;Company Material Adverse Effect&#148; qualifier,
or in any respect, in the case of representations or warranties qualified by the &#147;material&#148;
or &#147;Company Material Adverse Effect&#148; qualifier, and (b) any failure of the Company, Parent
or Merger Sub, as the case may be, to comply with or satisfy any covenant or agreement to be complied
with or satisfied by it hereunder; <U>provided</U>, <U>however</U>, that the delivery of any notice pursuant to this Section 6.05 shall not limit or otherwise affect
the remedies available hereunder to the party receiving such notice. In addition, the Company shall
give prompt written notice to Parent, and Parent shall give prompt written notice to the Company,
of any notice or other communication (i) from any person and the response thereto of the Company
or the Subsidiaries or Parent, as the case may be, or its or their Representatives alleging that
the consent of such person is or may be required in connection with this Agreement or the Transactions,
(ii) from any Governmental Authority and the response thereto of the Company or the Subsidiaries
or Parent, as the case may be, or its or their Representatives in connection with this Agreement
or the Transactions, and (iii) except in the event the Company Board shall have effected a Change
of Board Recommendation, from or to the SEC.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.06&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Further Action; Reasonable Best Efforts</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Upon the terms and subject to the conditions of this Agreement, each of the parties hereto agrees
to use its reasonable best efforts to (i) take, or cause to be taken, all appropriate action, and
to do, or cause to be done, all things necessary, proper or advisable under applicable Law or otherwise
to consummate and make effective the Transactions, and (ii) obtain from Governmental Authorities
and third parties any consents, licenses, permits, waivers, approvals, authorizations or orders required
to be obtained by Parent or the Company or any of their respective subsidiaries in connection with
the authorization, execution and delivery of this Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As soon as practicable after the date of this Agreement, each of the parties hereto agrees to make
an appropriate filing pursuant to the HSR Act with respect to the transactions contemplated by this
Agreement and to supply as promptly as practicable to the appropriate Governmental Authorities any
additional information and documentary material that may be requested pursuant to the HSR Act.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to appropriate confidentiality protections, each of Parent and the Company shall have the
right to review and approve in advance drafts of all applications, notices, petitions, filings and
other documents made or prepared in connection with the items </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>36</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>described in clauses (a) and (b) above, which approval shall not be unreasonably withheld or delayed,
shall cooperate with each other in connection with the making of all such filings, shall furnish
to the other party such necessary information and assistance as such other party may reasonably request
with respect to the foregoing and shall provide the other party with copies of all filings made by
such party with any applicable Government Authority, and, upon request, any other information supplied
by such party to a Governmental Authority in connection with this Agreement and the Transactions.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Parent and Merger Sub agree to take whatever action as may be necessary or required by any Governmental
Authority to resolve any objections asserted under the HSR Act or any other applicable federal or
state antitrust, competition or fair trade Laws with respect to the Transactions (including, without
limitation, agreeing to hold separate or to divest any of the businesses, products or assets of Parent,
Merger Sub, the Company or any of their respective affiliates) or to avoid the entry of, or to effect
the dissolution of, any non-appealable permanent injunction or other final judgment that has the
effect of preventing the consummation of any of the Transactions; <U>provided</U>, <U>however</U>, that notwithstanding anything to the contrary in this Section 6.06(d), (i) neither Parent nor Merger
Sub shall be required to divest (or to cause any Subsidiary to divest) any business, products or
assets (1) which, individually or in the aggregate, account at the time of such divestiture for more
than either $25 million of the consolidated gross revenues of Parent or $50 million of the consolidated
gross assets of Parent, and (2) unless, in connection with any such divestiture, Parent, Merger Sub,
the Company or any of their respective affiliates, as the case may be, receives reasonable compensation
therefor (each, a &#147;<U>Prohibited Divestiture</U>&#148;), or (B) take or agree to take any other action that would reasonably be expected to have a
material adverse effect on the Parent, the Company and their respective subsidiaries, on a combined
basis, after the Effective Time, and (ii) Parent shall be entitled to terminate this Agreement pursuant
to Section 8.01(i) in the event that a Governmental Authority requires Parent or Merger Sub to make
a Prohibited Divestiture in connection with the consummation of the Transactions. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Merger Sub, the Company, and Parent shall use their respective reasonable best efforts to obtain any
third party consents (i) necessary, proper or advisable to consummate the Transactions, (ii) disclosed
in the Company Disclosure Schedule or (iii) required to prevent a Company Material Adverse Effect
from occurring prior to the Effective Time. In the event that the Company shall fail to obtain any
third party consent described above, the Company shall use its reasonable best efforts, and shall
take such actions as are reasonably requested by Parent, to minimize any adverse effect upon the
Company and Parent and their respective businesses resulting, or which could reasonably be expected
to result, after the Effective Time, from the failure to obtain such consent. In addition, at the
request of Parent, the Company shall use its reasonable best efforts to assist Parent in obtaining
(A) any estoppel certificates from any ground lessor under the ground leases underlying the Leased
Properties, and (B) customary &#147;comfort&#148; letters from any franchisors or licensors under
any franchise or license agreements to which the Company or any Subsidiary is a party.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding anything to the contrary in this Agreement, in connection with obtaining any approval
or consent from any person (other than a Governmental Authority) with respect to the Merger or any
other Transaction, (i) without the prior written consent of Parent which shall not be unreasonably
withheld, none of the Company or any of its Subsidiaries </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>37</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>shall pay or commit to pay to such person whose approval or consent is being solicited any cash or
other consideration, make any commitment or incur any liability or other obligation due to such person
and (ii) none of Parent, Merger Sub or their respective affiliates shall be required to pay or commit
to pay to such person whose approval or consent is being solicited any cash or other consideration,
make any commitment or to incur any liability or other obligation.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each of the Company and its Subsidiaries will, and will cause each of its Representatives to, use
its reasonable efforts, subject to applicable Laws, to cooperate with and assist Parent and Merger
Sub in connection with planning the integration of the Company and its Subsidiaries and their respective
employees with the business operations of Parent and its Subsidiaries.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.07&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Certain Actions With Respect to Contracts</U>.</font></font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Between the date of this Agreement
and the Effective Time, the Company shall, and shall cause its Subsidiaries to, use reasonable best
efforts to cause the Contract set forth in Section 6.07(a) of the Company Disclosure Schedule to
be terminated on October 14, 2005, and renewed in the name of Youth Services International, Inc.
for an additional term not to exceed one year. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company shall not renew or extend
the Contract set forth in Section 6.07(b) of the Company Disclosure Schedule.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.08&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Pending Projects</U>.</font>&nbsp;&nbsp;&nbsp;Section 6.08 of the Company Disclosure Schedule sets forth a comprehensive list of all business
development opportunities with respect to which the Company or any Subsidiary has submitted a bid
or received an award, in each case, for the management or operation of a Facility (collectively,
the &#147;<U>Pending Projects</U>&#148;). Following the execution of this Agreement, the Company shall (a) fund all capital expenditures
related to the development and construction of the Pending Projects, provided that such amount may
not exceed $5 million in the aggregate, unless required by an existing Contract, without the prior
written consent of Parent, (b) provide Parent with the opportunity to be present at and participate
in all material discussions and negotiations with customers and other third parties regarding the
Pending Projects (including, but not limited to, any such discussions or negotiations regarding the
pricing, staffing, construction or financing of the Pending Projects), and (c) otherwise take any
and all reasonable steps necessary to exercise the Company&#146;s rights and fulfill the Company&#146;s
obligations related to the Pending Projects and to preserve their economic value to the Surviving Corporation.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.09&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Obligations of Parent and Merger Sub</U>.</font>&nbsp;&nbsp;&nbsp;Parent shall take all action necessary to cause Merger Sub to perform its obligations under
this Agreement and to consummate the Transactions on the terms and subject to the conditions set
forth in this Agreement.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.10&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Public Announcements</U>.</font>&nbsp;&nbsp;&nbsp;The initial press release relating to this Agreement shall be a joint press release the
text of which shall have been agreed to by each of Parent and the Company. Thereafter, each of Parent
and the Company shall consult with each other before issuing any press release with respect to this
Agreement or any of the Transactions, </font></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>38</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>except to the extent public disclosure is required by applicable Law or the requirements of the NYSE
or NASDAQ, in which case the issuing party shall use its reasonable best efforts to consult with
the other party before issuing any such release or making any such public statements.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.11&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Transfer Taxes</U>.</font>&nbsp;&nbsp;&nbsp;The Company and Parent shall cooperate in the preparation, execution and filing of all
returns, questionnaires, applications or other documents regarding any sales, transfer, stamp, stock
transfer, value added, use, real property transfer or gains and any similar Taxes which become payable
in connection with the transactions contemplated by this Agreement. Each of Parent and the Surviving
Corporation agrees to assume liability for and pay any sales, transfer, stamp, stock transfer, value
added, use, real property transfer or gains and any similar Taxes, as well as any transfer, recording,
registration and other fees that may be imposed upon, payable or incurred in connection with this
Agreement and the Transactions.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.12&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Resignations</U>.</font>&nbsp;&nbsp;&nbsp;The Company shall use its reasonable best efforts to obtain and deliver to Parent at the
Closing evidence reasonably satisfactory to Parent of the resignation effective as of the Effective
Time, of those directors of the Company or any Subsidiary designated by Parent to the Company in
writing at least 20 calendar days prior to the Closing.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.13&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>De-listing</U>.</font>&nbsp;&nbsp;&nbsp;As soon as practicable following the Effective Time, Parent and the Surviving Corporation
shall use their reasonable best efforts to cause the Company Common Stock to no longer be quoted
on the Nasdaq National Market System and to be de-registered under the Exchange Act. Nothing in this
Section 6.13 shall be construed to prohibit Parent or any of its subsidiaries from having any securities
issued by Parent or any of its subsidiaries from time to time after the Effective Time quoted on
the Nasdaq National Market System or registered under the Exchange Act.</font></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2><B>ARTICLE VII<BR>
  <BR>
CONDITIONS TO THE MERGER</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Conditions to the Obligations of Each Party</U>.</font>&nbsp;&nbsp;&nbsp;The obligations of the Company, Parent and Merger Sub to consummate the Merger are subject
to the satisfaction or waiver (where permissible) of the following conditions:</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Company Stockholder Approval</U>.</font>&nbsp;&nbsp;&nbsp;This Agreement shall have been adopted by the requisite affirmative vote of the stockholders
of the Company in accordance with the DGCL and the Company&#146;s Certificate of Incorporation.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>No Order</U>.</FONT>&nbsp;&nbsp;&nbsp;No Governmental Authority shall have enacted, issued, promulgated, enforced or entered
any law, rule, regulation, judgment, decree, executive order or award which is then in effect and
has the effect of making the Merger illegal or otherwise prohibiting consummation of the Merger.</font></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>39</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>U.S. Antitrust Approvals and Waiting Periods</U>.</font>&nbsp;&nbsp;&nbsp;Any waiting period (and any extension thereof) applicable to the consummation of the Merger
under the HSR Act shall have expired or been terminated.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Conditions to the Obligations of Parent and Merger Sub</U>.</FONT>&nbsp;&nbsp;&nbsp;The obligations of Parent and Merger Sub to consummate the Merger are subject to the satisfaction
or waiver (where permissible) of the following additional conditions:</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Representations and Warranties</U>. (i) The representations and warranties of the Company contained in this Agreement not qualified by
a &#147;materiality&#148; or &#147;Company Material Adverse Effect&#148; qualifier shall be accurate
in all material respects, and (ii) the representations and warranties of the Company contained in
this Agreement qualified by a &#147;materiality&#148; or &#147;Company Material Adverse Effect&#148; qualifier shall be accurate in all respects, in the case of both (i) and (ii) above, as of the date
of this Agreement and as of the Effective Time, as though made on and as of the Effective Time or,
to the extent representations and warranties speak as of an earlier date, as of such earlier date. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Agreements and Covenants</U>. The Company shall have performed or complied in all material respects with all agreements and covenants
required by this Agreement to be performed or complied with by it on or prior to the Effective Time.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Officer&#146;s Certificate</U>. The Company shall have delivered to Parent a certificate, dated the date of the Closing, signed by
an officer of the Company and certifying as to the satisfaction of the conditions specified in Sections
7.02(a) and 7.02(b).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Dissenters</U>. The holders of not more than ten percent (10%) of the outstanding Company Common Stock shall have
demanded appraisal of their Company Common Stock in accordance with the DGCL.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>No Company Material Adverse Effect</U>. No Company Material Adverse Effect shall have occurred since the date hereof.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Consents</U>. All consents, approvals or authorizations from the third parties set forth on Section 7.02(f) of
the Company Disclosure Schedule, as agreed to by Parent and the Company, shall have been obtained.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>GECC Credit Facility</U>. At or prior to the Effective Time, General Electric Capital Corporation (&#147;<U>GECC</U>&#148;), as lender under the Loan and Security Agreement, dated October 30, 2002, as amended (the &#147;<U>GECC Credit Facility</U>&#148;), by and among GECC, CSC and the other parties thereto, shall have provided the Company with
(i)&nbsp;documentation reasonably satisfactory to Parent evidencing full release and discharge as
of the Effective Time of each&nbsp;of CSC and the Subsidiaries&nbsp;from any and all obligations
and liabilities under the GECC Credit Facility and all other documents arising or executed in connection
therewith, including, but not limited to, any pledge of&nbsp;any equity interest&nbsp;in any Subsidiary
as security under the GECC Credit Facility, any guaranty by any Subsidiary, and any lien upon any
of the assets of CSC or any Subsidiary, (ii)&nbsp;UCC -3 termination statements evidencing the release
of all liens upon the assets of CSC and any of the Subsidiaries, (iii) the original pledged stock
or other pledges equity </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>40</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>interest&nbsp;certificates of any of the Subsidiaries, and the original of any pledged debt instruments
of CSC or any of the Subsidiaries, and (iv) the originals of all letters of credit issued pursuant
to the GECC Credit Facility.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Conditions to the Obligations of the Company</U>.</font>&nbsp;&nbsp;&nbsp;The obligations of the Company to consummate the Merger are subject to the satisfaction
or waiver (where permissible) of the following additional conditions:</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Representations and Warranties</U>. The representations and warranties of Parent and Merger Sub that are qualified by materiality shall
be true and correct in all respects, and the representations and warranties of Parent and Merger
Sub contained in this Agreement that are not so qualified shall be true and correct in all material
respects, (i) in each case as of the date of this Agreement and as of the Effective Time, as though
made on and as of the Effective Time, except to the extent expressly made as of an earlier date,
in which case as of such earlier date, and (ii) in each case, except where the failure of such representations
and warranties to be so true and correct would not, individually or in the aggregate, prevent or
materially delay consummation of any of the Transactions or otherwise prevent or materially delay
Parent or Merger Sub from performing their obligations under this Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Agreements and Covenants</U>. Parent and Merger Sub shall have performed or complied in all material respects with all agreements
and covenants required by this Agreement to be performed or complied with by it on or prior to the
Effective Time.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Officer&#146;s Certificate</U>. Parent shall have delivered to the Company a certificate, dated the date of the Closing, signed by
an officer of Parent, certifying as to the satisfaction of the conditions specified in Sections 7.03(a)
and 7.03(b).</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2><B>ARTICLE VIII<BR>
  <BR>
TERMINATION, AMENDMENT AND WAIVER</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.01&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Termination</U>.</font>&nbsp;&nbsp;&nbsp;This Agreement may be terminated and the Merger and the other Transactions may be abandoned
at any time prior to the Effective Time by action taken or authorized by the Board of Directors of
the terminating party or parties, notwithstanding any requisite adoption of this Agreement by the
stockholders of the Company, and whether before or after the stockholders of the Company have approved
this Agreement at the Company Stockholders&#146; Meeting, as follows (the date of any such termination,
the &#147;<U>Termination Date</U>&#148;):</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by mutual written consent of Parent and the Company;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by either Parent or the Company if the Effective Time shall not have occurred on or before December
1, 2005; <U>provided</U>, <U>however</U>, that the right to terminate this Agreement under this Section 8.01(b) shall not be available to any
party whose failure to fulfill any obligation under this Agreement has been the cause of, or resulted
in, the failure of the Effective Time to occur on or before such date;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by either Parent or the Company if any Governmental Authority shall have enacted, issued, promulgated,
enforced or entered any injunction, order, decree or ruling </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>41</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>(whether temporary, preliminary or permanent) or taken any other action (including the failure to have
taken an action) which has become final and non-appealable and has the effect of making consummation
of the Merger illegal or otherwise preventing or prohibiting consummation of the Merger;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by Parent, if neither Parent nor Merger Sub is in material breach of its obligations under this Agreement,
and if there shall have been a breach of any representation, warranty, covenant or agreement on the
part of the Company contained in this Agreement, or if any such representation or warranty shall
have become untrue or inaccurate, such that (i) the conditions set forth in Sections 7.02(a) or 7.02(b)
(as the case may be) would not be capable of being satisfied, and (ii) such breach or inaccuracy
is not capable of being cured or, if reasonably capable of being cured, has not been cured within
30 days after notice to the Company;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by the Company, if the Company is not in material breach of its obligations under this Agreement,
and if there shall have been a breach of any representation, warranty, covenant or agreement on the
part of Parent or Merger Sub contained in this Agreement, or if any such representation or warranty
shall have become untrue or inaccurate, such that (i) the conditions set forth in Sections 7.03(a)
or 7.03(b) (as the case may be) would not be capable of being satisfied, and (ii) such breach or
inaccuracy is not capable of being cured or, if reasonably capable of being cured, has not been cured
within 30 days after notice to Parent;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by either Parent or the Company if this Agreement shall fail to receive the Stockholder Approval at
the Company Stockholders&#146; Meeting (including any adjournments or postponements thereof to any
date prior to December 1, 2005);</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by Parent if the Company Board shall have (i) effected a Change of Board Recommendation or (ii) recommended
or approved any Acquisition Proposal;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by the Company at any time prior to the adoption of this Agreement by the Company&#146;s stockholders
at the Company Stockholders&#146; Meeting, if the Company Board (or the Special Committee) has determined
in good faith (after consultation with its advisors), in the exercise of its fiduciary duties, that
an unsolicited bona fide Acquisition Proposal is a Superior Proposal, but only (i) after providing
written notice to Parent (a &#147;<U>Notice of Superior Proposal</U>&#148;) advising Parent that the Company Board (or the Special Committee, as the case may be) has received
a Superior Proposal, specifying the material terms and conditions of such Superior Proposal and identifying
the person making such Superior Proposal, and (ii) if Parent does not, within three (3) business
days of Parent&#146;s receipt of the Notice of Superior Proposal, make an offer that the Company
Board (or the Special Committee, as the case may be) determines, in its good faith judgment (after
consultation with its advisors) to be at least as favorable to the Company&#146;s stockholders as
such Superior Proposal; provided that during such three business day period, the Company shall negotiate
in good faith with Parent (to the extent Parent wishes to negotiate) to enable Parent to make such an offer; <U>provided</U>, <U>however</U>, that any such purported termination pursuant to this Section 8.01(h) shall be void and of no force
or effect unless the Company concurrently with such termination pays to Parent the Company Termination
Fee and the Termination Expenses in accordance with Section 8.03; and <U>provided</U> <U>further</U> that Parent and Merger Sub hereby acknowledge and agree that concurrently with such termination the
Company </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>42</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>may enter into a definitive agreement providing for implementation of such Superior Proposal; or</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by Parent, pursuant to Section 6.07(d), in the event that a Governmental Authority requires Parent
or Merger Sub to make a Prohibited Divestiture in connection with the consummation of the Transactions.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.02&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Effect of Termination</U>.</font>&nbsp;&nbsp;&nbsp;Except as otherwise provided in Section 8.02, Section 8.03 and Article IX (which shall
survive any termination of this Agreement), in the event of the termination of this Agreement pursuant
to Section 8.01, this Agreement shall forthwith become void, and there shall be no liability under
this Agreement on the part of any party hereto; <U>provided</U>, <U>however</U>, that in the event any party willfully breaches any of its representations, warranties, covenants
or agreements as set forth in this Agreement, the non-breaching party shall be entitled to elect
its damages under Section 8.03 or to pursue recovery of its actual damages hereunder.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.03&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Fees and Expenses</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as otherwise set forth in this Section 8.03, all Expenses incurred in connection with this
Agreement and the Transactions shall be paid by the party incurring such expenses, whether or not
the Merger or any other Transaction is consummated. &#147;<U>Expenses</U>&#148;, as used in this Agreement, shall include all reasonable out of pocket expenses (including all
fees and expenses of counsel, accountants, investment bankers, financing sources, hedging counterparties,
experts and consultants to a party hereto and its affiliates) incurred by a party or on its behalf
in connection with or related to the authorization, preparation, negotiation, execution and performance
of this Agreement, the preparation, printing, filing and mailing of the Proxy Statement, the solicitation
of stockholder approvals and all other matters related to the closing of the Merger and the other
Transactions.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company agrees that if this Agreement shall be terminated:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by Parent pursuant to Section 8.01(d), then the Company shall pay Parent the Company Termination Fee
and the Termination Expenses;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by Parent or the Company pursuant to Section 8.01(f), then the Company shall pay Parent the Termination
Expenses and, further, if (A)&nbsp;at or prior to the Termination Date, an Acquisition Proposal shall
have been publicly announced and (B) if, concurrently with such termination or within 9 months of
the Termination Date, the Company enters into, or submits to the stockholders of the Company for
adoption, an agreement with respect to an Acquisition Proposal (which need not be the same Acquisition
Proposal as the Acquisition Proposal described above that shall have been publicly announced at or
prior to the Termination Date), or an Acquisition Proposal (which need not be the same Acquisition
Proposal as the Acquisition Proposal described above that shall have been publicly announced at or
prior to the Termination Date) is consummated, then the Company shall pay Parent the Company Termination Fee;</FONT></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>43</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii)&nbsp;&nbsp;&nbsp;&nbsp; by Parent pursuant to Section 8.01(g), then the Company shall pay Parent the Company Termination Fee
and the Termination Expenses; or</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by the Company pursuant to Section 8.01(h), then the Company shall pay Parent the Company Termination
Fee and the Termination Expenses.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company Termination Fee shall be paid to Parent or its designee by the Company in immediately
available funds (i) concurrently with and as a condition to the effectiveness of a termination of
this Agreement pursuant to Section 8.01(d), 8.01(g) and/or Section 8.01(h) and (ii) within two business
days after the date of the event giving rise to the obligation to make such payment in all other
circumstances. The Termination Expenses shall be paid to Parent or its designee by the Company in
immediately available funds within two business days after receipt by the Company of reasonable documentation
with respect to such Expenses.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For purposes of this Section 8.03, Acquisition Proposal shall have the meaning assigned to such
term in Section 6.03(f).</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For purposes of this Agreement, &#147;<U>Company Termination Fee</U>&#148; means an amount equal to $1,750,000.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii)&nbsp;&nbsp;&nbsp;&nbsp; For purposes of this Agreement, &#147;<U>Termination Expenses</U>&#148; means an amount, not to exceed $1,250,000, equal to the reasonably documented Expenses of Parent
and Merger Sub.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Parent agrees that, if the Company shall terminate this Agreement pursuant to Section 8.01(e), then
Parent shall pay to the Company a fee of $3,000,000 (the &#147;<U>Parent Termination Fee</U>&#148;) in immediately available funds no later than two business days after such termination by the
Company.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each of the Company and Parent acknowledges that the agreements contained in this Section 8.03 are
an integral part of the transactions contemplated by this Agreement. In the event that the Company
shall fail to pay the Company Termination Fee or any Termination Expenses when due or Parent shall
fail to pay the Parent Termination Fee when due, the Company or the Parent, as the case may be, shall
reimburse the other party for all reasonable costs and expenses actually incurred or accrued by such
other party (including reasonable fees and expenses of counsel) in connection with the collection
under and enforcement of this Section 8.03.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.04&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Amendment</U>.</font>&nbsp;&nbsp;&nbsp;This Agreement may be amended by the parties hereto by action taken by or on behalf of
their respective Boards of Directors at any time prior to the Effective Time; <U>provided</U>, <U>however</U>, that, after the adoption of this Agreement and the Transactions by the stockholders of the Company,
no amendment shall be made except as allowed under applicable Law. This Agreement may not be amended
except by an instrument in writing signed by each of the parties hereto.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.05&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Waiver</U>.</font>&nbsp;&nbsp;&nbsp;At any time prior to the Effective Time, any party hereto may (a) extend the time for the
performance of any obligation or other act of any other party </font></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>44</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>hereto, (b) waive any inaccuracy in the representations and warranties of any other party contained
herein or in any document delivered pursuant hereto and (c) waive compliance with any agreement of
any other party or any condition to its own obligations contained herein. Any such extension or waiver
shall be valid if set forth in an instrument in writing signed by the party or parties to be bound
thereby. The failure of any party to assert any of its rights under this Agreement or otherwise shall
not constitute a waiver of those rights.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2><B>ARTICLE IX<BR>
  <BR>
GENERAL PROVISIONS</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Non-Survival of Representations, Warranties and Agreements</U>.</font>&nbsp;&nbsp;&nbsp;The representations and warranties in this Agreement and in any certificate delivered pursuant
hereto shall terminate at the Effective Time. This Section 9.01 shall not limit any covenant or agreement
of the parties which by its terms contemplates performance after the Effective Time.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.02&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Notices</U>.</font>&nbsp;&nbsp;&nbsp;All notices, requests, claims, demands and other communications hereunder shall be in writing
in the English language and shall be given (a) on the date of delivery if delivered personally, (b)
on the first business day following the date of dispatch if delivered by a nationally recognized
next-day courier service, (c) on the fifth business day following the date of mailing if delivered
by registered or certified mail (postage prepaid, return receipt requested) or (d) if sent by facsimile
transmission, when transmitted and receipt is confirmed. All notices hereunder shall be delivered
to the respective parties at the following addresses (or at such other address for a party as shall
be specified in a notice given in accordance with this Section 9.02):</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if to Parent or Merger Sub:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>The GEO Group, Inc.</FONT></TD></TR>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>621 NW 53rd Street, Suite 700</FONT></TD></TR>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Boca Raton, Florida 33487</FONT></TD></TR>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Facsimile No:&nbsp; (561) 893-0101</FONT></TD></TR>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Attention:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;John
J. Bulfin, General Counsel</FONT></TD></TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with a copy to (which shall not constitute notice):</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Akerman Senterfitt</FONT></TD></TR>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>One Southeast Third Avenue, Suite 2800</FONT></TD></TR>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Miami, Florida 33131</FONT></TD></TR>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Facsimile No:&nbsp; (305) 374-5095</FONT></TD></TR>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Attention:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jose Gordo</FONT></TD></TR>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stephen K. Roddenberry</FONT></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>45</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if to the Company:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Correctional Services Corporation</FONT></TD></TR>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>1819 Main Street, Suite 1000</FONT></TD></TR>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Sarasota, Florida 34236</FONT></TD></TR>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Facsimile No:&nbsp; (941) 952-9198</FONT></TD></TR>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Attention:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;James
F. Slattery, Chief Executive Officer</FONT></TD></TR>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stuart M. Gerson, Chairman</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with a copy to (which shall not constitute notice):</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Epstein, Becker &amp; Green</FONT></TD></TR>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>250 Park Avenue</FONT></TD></TR>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>New York, New York 10177</FONT></TD></TR>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Facsimile No: (212) 669-0989</FONT></TD></TR>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Attention:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Theodore L.
Polin</FONT></TD></TR>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sidney Todres</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.03&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Certain Definitions</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For purposes of this Agreement:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>affiliate</U>&#148; of a specified person means a person who, directly or indirectly through one or more intermediaries,
controls, is controlled by, or is under common control with, such specified person.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>beneficial owner</U>&#148;, with respect to any Shares, has the meaning ascribed to such term under Rule 13d-3(a) of the
Exchange Act.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>business day</U>&#148; means any day on which the principal offices of the SEC in Washington, D.C. are open to accept
filings, or, in the case of determining a date when any payment is due, any day on which banks are
not required or authorized to close in The City of New York.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>control</U>&#148; (including the terms &#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 and policies of a person, whether through the ownership
of voting securities, as trustee or executor, by contract or credit arrangement or otherwise.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>knowledge of the Company</U>&#148; or &#147;<U>Company&#146;s knowledge</U>&#148; means the actual knowledge (after reasonable inquiry) of any executive officer of the Company.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>person</U>&#148; means an individual, corporation, partnership, limited partnership, limited liability company,
syndicate, person (including a &#147;<U>person</U>&#148; as defined in Section 13(d)(3) of the Exchange Act), trust, association or other entity or government,
political subdivision, agency or instrumentality of a government.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>46</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>subsidiary</U>&#148; or &#147;<U>subsidiaries</U>&#148; of the Company, the Surviving Corporation, Parent or any other person means an affiliate controlled
by such person, directly or indirectly, through one or more intermediaries, and, without limiting
the foregoing, includes any entity in respect of which such person, directly or indirectly, beneficially
owns 50% or more of the voting securities or equity.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; When a reference is made in this Agreement to Sections, Schedules or Exhibits, such reference shall
be to a Section, Schedule or Exhibit of this Agreement, respectively, unless otherwise indicated.
Whenever the words &#147;include,&#148; &#147;includes&#148; or &#147;including&#148; are used in
this Agreement, they shall be deemed to be followed by the words &#147;without limitation&#148;.
The words &#147;hereof,&#148; &#147;herein&#148; and &#147;hereunder&#148; and words of similar import
when used in this Agreement shall refer to this Agreement as a whole and not any particular provision
of this Agreement. The definitions contained in this Agreement are applicable to the singular as
well as the plural forms of such terms. References to a person are also to its permitted successors
and assigns. Whenever the context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.04&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Severability</U>.</font>&nbsp;&nbsp;&nbsp;If any term or other provision of this Agreement is invalid, illegal or incapable of being
enforced by any rule of Law, or public policy, all other conditions and provisions of this Agreement
shall nevertheless remain in full force and effect so long as the economic or legal substance of
the Transactions is not affected in any manner materially adverse to any party. Upon such determination
that any term or other provision is invalid, illegal or incapable of being enforced, the parties
hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent
of the parties as closely as possible in a mutually acceptable manner in order that the Transactions
be consummated as originally contemplated to the fullest extent possible.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Disclaimer of Other Representations and Warranties</U>.</font>&nbsp;&nbsp;&nbsp;Parent, Merger Sub and the Company each acknowledges and agrees that, except for the representations
and warranties expressly set forth in this Agreement (a) no party makes, and has not made, any representations
or warranties relating to itself or its businesses or otherwise in connection with the Transactions,
(b) no person has been authorized by any party to make any representation or warranty relating to
itself or its businesses or otherwise in connection with the Transactions and, if made, such representation
or warranty must not be relied upon as having been authorized by such party, and (c) any estimates,
projections, predictions, data, financial information, memoranda, presentations or any other materials
or information provided or addressed to any party or any of its Representatives are not and shall
not be deemed to be or to include representations or warranties unless any such materials or information
is the subject of any representation or warranty set forth in this Agreement.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.06&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Entire Agreement; Assignment</U>.</FONT>&nbsp;&nbsp;&nbsp;This Agreement and the Confidentiality Agreement constitute the entire agreement among
the parties hereto with respect to the subject matter hereof and thereof and supersede all prior
agreements and undertakings, both written and oral, among the parties hereto, or any of them, with
respect to the subject matter hereof and thereof. This Agreement shall not be assigned (whether pursuant
to a merger, by operation of law or otherwise), except that Parent and Merger Sub may assign all
or any of their rights and obligations hereunder to any direct or indirect wholly owned subsidiary
of Parent, </font></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>47</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2><U>provided</U>, <U>however</U>, that no such assignment shall relieve the assigning party of its obligations hereunder if such assignee
does not perform such obligations.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.07&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Parties in Interest</U>.</font>&nbsp;&nbsp;&nbsp;This Agreement shall be binding upon and inure solely to the benefit of each party hereto,
and nothing in this Agreement, express or implied, is intended to or shall confer upon any other
person any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement,
other than Section 6.04 (which is intended to be for the benefit of the persons covered thereby and
may be enforced by such persons).</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.08&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Remedies; Specific Performance</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding anything to the contrary in this Agreement, except as otherwise set forth in Section
8.02 and Section 9.08(b), (i) the Company&#146;s receipt of the Parent Termination Fee pursuant to
Section 8.03 shall constitute liquidated damages and shall be the sole and exclusive remedy of the
Company and the Subsidiaries for (A) any breach of any representation, warranty, covenant or agreement
contained in this Agreement on the part of Parent or Merger Sub, (B) any loss suffered as a result
of the failure of the Merger and the other Transactions to be consummated, and/or (C) any other losses
or damages incurred in connection with this Agreement, and upon payment of the Parent Termination
Fee in accordance with Section 8.03, none of Parent or Merger Sub or any officers, directors, employees,
agents, representatives or stockholders of Parent or Merger Sub, shall have any further liability
or obligation relating to or arising out of this Agreement or the Transactions, and (ii) Parent&#146;s
receipt of the Company Termination Fee and the Termination Expenses pursuant to Section 8.03 shall
constitute liquidated damages and shall be the sole and exclusive remedy of Parent and Merger Sub
for (A) any breach of any representation, warranty, covenant or agreement contained in this Agreement
on the part of the Company, (B) any loss suffered as a result of the failure of the Merger and the
other Transactions to be consummated, and/or (C) any other losses or damages incurred in connection
with this Agreement, and upon payment of the Company Termination Fee and the Termination Expenses
in accordance with Section 8.03, none of the Company or the Subsidiaries, or any officers, directors,
employees, agents, representatives or stockholders of the Company or the Subsidiaries, shall have
any further liability or obligation relating to or arising out of this Agreement or the Transactions.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior to the termination of this Agreement pursuant to Section 8.01, Parent, Merger Sub and the Company
shall have the right to seek specific performance of the terms hereof in the event that any provisions
of this Agreement are not performed in accordance with the terms hereof, to the extent available
under applicable Law.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.09&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Governing Law</U>.</font>&nbsp;&nbsp;&nbsp;This Agreement shall be governed by, and construed in accordance with, the laws of the
State of Delaware applicable to contracts executed in and to be performed in that State. All Actions
arising out of or relating to this Agreement shall be heard and determined exclusively in the Delaware
Court of Chancery. The parties hereto hereby (a) submit to the exclusive jurisdiction of the Delaware
Court of Chancery for the purpose of any Action arising out of or relating to this Agreement brought
by any party hereto, and (b) irrevocably waive, and agree not to assert by way of motion, defense,
or otherwise, in any such Action, any claim that it is not subject personally to the jurisdiction
of the above-named </font></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>48</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>court, that its property is exempt or immune from attachment or execution, that the Action is brought
in an inconvenient forum, that the venue of the Action is improper, or that this Agreement or the
Transactions may not be enforced in or by the above-named court.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.10&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Waiver of Jury Trial</U>.</font>&nbsp;&nbsp;&nbsp;Each of the parties hereto hereby waives to the fullest extent permitted by applicable
Law any right it may have to a trial by jury with respect to any litigation directly or indirectly
arising out of, under or in connection with this Agreement or the Transactions. Each of the parties
hereto (a) certifies that no representative, agent or attorney of any other party has represented,
expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce
that foregoing waiver and (b) acknowledges that it and the other parties hereto have been induced
to enter into this Agreement and the Transactions, as applicable, by, among other things, the mutual
waivers and certifications in this Section 9.10.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.11&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Headings</U>.</font>&nbsp;&nbsp;&nbsp;The descriptive headings contained in this Agreement are included for convenience of reference
only and shall not affect in any way the meaning or interpretation of this Agreement.</font></P>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.12&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size="2" face="Times New Roman, Times, serif"><U>Counterparts</U>.</font>&nbsp;&nbsp;&nbsp;This Agreement may be executed and delivered (including by facsimile transmission) in one
or more counterparts, and by the different parties hereto in separate counterparts, each of which
when executed shall be deemed to be an original but all of which taken together shall constitute
one and the same agreement.</font></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>[SIGNATURE PAGE FOLLOWS]</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>49</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, Parent, Merger Sub and the Company have caused this Agreement to be executed as
of the date first written above by their respective officers thereunto duly authorized.</FONT></P>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD colspan="2"><FONT face="Times New Roman, Times, serif" size=2>CORRECTIONAL
      SERVICES CORPORATION</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD></TD>
    <TD colspan="2">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD></TD>
    <TD colspan="2">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD width="5%"><FONT face="Times New Roman, Times, serif" size=2>By: </FONT></TD>
    <TD width="54%" style='border-bottom:solid black 1px'><font size="2">/s/ Stuart
      M. Gerson</font></TD>
  </TR>
  <TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD><FONT face="Times New Roman, Times, serif" size=2>Name:</FONT></TD>
    <TD style='border-bottom:solid black 1px'><font size="2">Stuart M. Gerson</font></TD>
  </TR>
  <TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD><FONT face="Times New Roman, Times, serif" size=2>Title:</FONT></TD>
    <TD style='border-bottom:solid black 1px'><font size="2">Chairman of the Board of Directors</font></TD>
  </TR>
  <TR valign="bottom">
    <TD></TD>
    <TD colspan="2"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD></TD>
    <TD colspan="2"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD colspan="2"><FONT face="Times New Roman, Times, serif" size=2>THE GEO
      GROUP, INC.</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD width="41%"></TD>
    <TD colspan="2"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD></TD>
    <TD colspan="2"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD width="5%"><FONT face="Times New Roman, Times, serif" size=2>By: </FONT></TD>
    <TD width="54%" style='border-bottom:solid black 1px'><font size="2">/s/ George
      Zoley </font></TD>
  </TR>
  <TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD><FONT face="Times New Roman, Times, serif" size=2>Name:</FONT></TD>
    <TD style='border-bottom:solid black 1px'><font size="2">George Zoley </font></TD>
  </TR>
  <TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD><FONT face="Times New Roman, Times, serif" size=2>Title:</FONT></TD>
    <TD style='border-bottom:solid black 1px'><font size="2">Chief Executive Officer</font></TD>
  </TR>
  <TR valign="bottom">
    <TD></TD>
    <TD colspan="2"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD></TD>
    <TD colspan="2"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD colspan="2"><FONT face="Times New Roman, Times, serif" size=2>GEO ACQUISITION,
      INC.</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD></TD>
    <TD colspan="2"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD></TD>
    <TD colspan="2"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD width="5%"><FONT face="Times New Roman, Times, serif" size=2>By: </FONT></TD>
    <TD width="54%" style='border-bottom:solid black 1px'><font size="2">/s/ George
      Zoley </font></TD>
  </TR>
  <TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD><FONT face="Times New Roman, Times, serif" size=2>Name:</FONT></TD>
    <TD style='border-bottom:solid black 1px'><font size="2">George Zoley </font></TD>
  </TR>
  <TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD ><FONT face="Times New Roman, Times, serif" size=2>Title:</FONT></TD>
    <TD style='border-bottom:solid black 1px'><font size="2">President</font></TD>
  </TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>50</FONT></P>
<HR color=black noShade>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4
<SEQUENCE>3
<FILENAME>ex4-1.htm
<DESCRIPTION>EXHIBIT 4.1
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>CORRECTIONAL SERVICES CORPORATION</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>First Amendment to Rights Agreement</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First Amendment, dated as of July 13, 2005, between
Correctional Services Corporation, a Delaware corporation (the &#147;Company&#148;), and American
Stock Transfer &amp; Trust Company (the &#147;Rights Agent&#148;).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company and the Rights Agent entered
into a Rights Agreement, dated as of January 11, 2000 (the &#147;Rights Agreement&#148;), in order
to prevent hostile takeovers;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,&nbsp;&nbsp;the&nbsp;Company&nbsp;anticipates
entering into that certain Agreement and Plan of Merger, by and among The GEO Group, Inc., a Florida
corporation, GEO Acquisition, Inc., a Delaware corporation, and the Company (the &#147;Merger Agreement&#148;);</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Company has negotiated the Merger Agreement, a Special Committee of the Company&#146;s
Board of Directors has recommended the Merger Agreement to the Company&#146;s Board of Directors
(the &#147;Board&#148;) and the Board has approved the Merger Agreement;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, prior to execution of the Merger Agreement,
the Company desires to make certain amendments to the Rights Agreement to exempt the transaction
contemplated by the Merger Agreement and each of The GEO Group, Inc. and GEO Acquisition, Inc. from
the protective measures of the Rights Agreement; </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, pursuant to Section 27 of the
Rights Agreement, the Company and the Rights Agent may amend any provision of the Rights Agreement
without the approval of the Company&#146;s stockholders; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,&nbsp;&nbsp;pursuant to Section 27 of
the Rights&nbsp;Agreement,&nbsp;the Company has directed the Rights Agent to execute this First Amendment
in order to amend the Rights Agreement as set forth below;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, the Rights Agreement is hereby
amended as follows:</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="8%" align="right" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>1.</FONT></td>
    <td width="3%">&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>The&nbsp;first sentence of the definition of&nbsp;&#147;Acquiring&nbsp;Person&#148; set forth in Section 1(a) of the Rights Agreement&nbsp;shall&nbsp;be&nbsp;deleted&nbsp;in its&nbsp;entirety&nbsp;and&nbsp;the&nbsp;following&nbsp;is substituted therefor:</FONT></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=11%></TD>
    <TD vAlign=top width=3%><FONT face="Times New Roman, Times, Serif" size=2>(a)</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#147;Acquiring&nbsp;Person&#148; shall mean any&nbsp;Person who&nbsp;or&nbsp;which,&nbsp;together&nbsp;with&nbsp;all Affiliates&nbsp;and Associates of such Person,&nbsp;shall be&nbsp;the&nbsp;Beneficial&nbsp;Owner of 10% or more of the then outstanding Common Shares (other
than as result of a Permitted Offer) or was such a Beneficial Owner at any time after the date hereof, whether or not such Person continues to be the Beneficial Owner of 10% or more of the then outstanding Common Shares, but shall not include (A) the Company, (B) any Subsidiary of&nbsp;the&nbsp;Company,&nbsp;(C) any employee&nbsp;benefit plan of the Company or of any&nbsp;Subsidiary of the Company, (D) any Person or entity holding Common Shares for or pursuant to the terms of any such employee benefit plan, or (E) either of The GEO Group, Inc. or GEO Acquisition, Inc.
with respect to or as a consequence of any action taken or to be taken by them,&nbsp;or&nbsp;either of them,&nbsp;pursuant&nbsp;to that certain&nbsp;Agreement&nbsp;and&nbsp;Plan of&nbsp;Merger to be entered into by and among The GEO Group, Inc., GEO Acquisition, Inc. and the Company, as amended from time to time.&#148;</FONT></TD>
  </TR>
</TABLE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="8%" align="right" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>2.</FONT></td>
    <td width="3%">&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>The definition of &#147;Permitted Offer&#148; set forth in Section 1(n) of the Rights Agreement shall be deleted in its entirety and the following is substituted thereof:</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=11%></TD>
<TD vAlign=top width=3%><FONT face="Times New Roman, Times, Serif" size=2>(n)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#147;Permitted Offer&#148; shall mean (i) a tender or exchange offer for all outstanding Common Shares
which is at a price and on terms determined, prior to the purchase of such shares under such tender
or exchange offer, by at least a majority of the Disinterested Directors, to be adequate and otherwise
in the best interests of the Company and the stockholders (other than the Person, or and Affiliate
or Associate thereof, on whose behalf the offer is being made), taking into account all factors that
such Disinterested Directors may deem relevant or (ii) the offer by </FONT></TD></TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
</TABLE>
<HR color=#000000 noShade>
<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=14%>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The GEO Group, Inc. and GEO Acquisition, Inc. to the holders of Common Shares to exchange such Common
Shares for cash pursuant to the terms of that certain Agreement and Plan of Merger to be entered
into by and among The GEO Group, Inc., GEO Acquisition, Inc. and the Company and the transactions
related thereto.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD width=8% align="right" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>3.</FONT></TD>
<TD vAlign=top width=3%>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Exhibit C to the Rights Plan (&#147;Summary of Rights to Purchase Preferred Shares of Correctional
Services Corporation&#148;) is hereby amended to conform the definitions of &#147;Acquiring Person&#148;
and &#147;Permitted Offer&#148; set forth therein with those contemplated by paragraphs 1 and 2 above.
</FONT></TD></TR></TABLE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="8%" align="right" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>4.</FONT></td>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Except as amended hereby,&nbsp;the Rights Agreement remains unchanged and in full force and effect and is ratified and confirmed in all respects.</FONT></td>
  </tr>
</table>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>[Remainder of page intentionally left blank. Signature page to follow.]</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>- 2 -</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to the Rights Agreement to be duly&nbsp;executed,&nbsp;all as of the day and year first written above.</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td width="50%">&nbsp;</td>
    <td colspan="3"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;CORRECTIONAL
      SERVICES CORPORATION</FONT></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td width="3%"><FONT face="Times New Roman, Times, Serif" size=2>By </FONT></td>
    <td colspan="2" style='border-bottom:solid black 1px'><font size="2">/s/ Bernard
      A. Wagner</font></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td width="5%"><FONT face="Times New Roman, Times, Serif" size=2>Name:&nbsp;</FONT></td>
    <td width="42%"><FONT face="Times New Roman, Times, Serif" size=2> Bernard
      A. Wagner</FONT></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Title:&nbsp;&nbsp;&nbsp;
      </FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Senior Vice President
      and<br>
      Chief Financial Officer </FONT></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td colspan="3"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td colspan="3"><FONT face="Times New Roman, Times, Serif" size=2>AMERICAN
      STOCK TRANSFER &amp; TRUST COMPANY</FONT></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>By </FONT></td>
    <td colspan="2" style='border-bottom:solid black 1px'><font size="2">/s/ <FONT face="Times New Roman, Times, Serif">Herbert
      J. Lemmer</FONT></font></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Name:&nbsp;</FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2> Herbert J. Lemmer</FONT></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Title:
      </FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Vice President
      </FONT></td>
  </tr>
</table>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>- 3 -</FONT></P>
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<DOCUMENT>
<TYPE>EX-9
<SEQUENCE>4
<FILENAME>ex9-1.htm
<DESCRIPTION>EXHIBIT 9.1
<TEXT>
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<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>VOTING AGREEMENT</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>VOTING AGREEMENT, dated as of July 14, 2005 (this &#147;<U>Agreement</U>&#148;), by and between The GEO Group, Inc., a Florida corporation (&#147;<U>Parent</U>&#148;) and James F. Slattery (&#147;<U>Stockholder</U>&#148;).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, concurrently herewith, Parent, GEO Acquisition Inc., a Delaware corporation and a wholly owned
subsidiary of Parent (&#147;<U>Merger Sub</U>&#148;), and Correctional Services Corporation, a Delaware corporation (the &#147;<U>Company</U>&#148;), are entering into an Agreement and Plan of Merger (the &#147;<U>Merger Agreement</U>&#148;; capitalized terms used but not defined herein shall have the meanings set forth in the Merger
Agreement), pursuant to which (and subject to the terms and conditions set forth therein) Merger
Sub will merge with and into the Company (the &#147;<U>Merger</U>&#148;), and each issued and outstanding share of common stock, par value $.01 per share, of the Company
(the &#147;<U>Company Common Stock</U>&#148;), will be converted into the right to receive the Merger Consideration;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, Stockholder beneficially owns 797,245 shares of Company Common Stock (the &#147;<U>Owned Shares</U>&#148; and, together with any shares of Company Common Stock of which Stockholder acquires beneficial
ownership after the date hereof and prior to the termination hereof, whether upon exercise of options,
warrants, conversion of other convertible securities or otherwise, are collectively referred to herein
as the &#147;<U>Covered Shares</U>&#148;); </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, in order to induce Parent to enter into the Merger Agreement and proceed with the Merger,
Parent and Stockholder are entering into this Agreement; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, Stockholder acknowledges that Parent is entering into the Merger Agreement in reliance on
the representations, warranties, covenants and other agreements of Stockholder set forth in this
Agreement and would not enter into the Merger Agreement if Stockholder did not enter into this Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained,
and intending to be legally bound hereby, Parent and Stockholder hereby agree as follows:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>1. &nbsp;<U>Agreement to Vote</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Prior to any termination of this Agreement, Stockholder hereby agrees that it shall, and shall cause
any other holder of record of any Covered Shares to, at any meeting of the stockholders of the Company
(whether annual or special and whether or not an adjourned or postponed meeting), however called,
(i) when a meeting is held, appear at such meeting or otherwise cause the Covered Shares to be counted
as present thereat for the purpose of establishing a quorum, (ii) vote (or cause to be voted) in
person or by proxy all Covered Shares in favor of the Merger and any other matters necessary for
the consummation of the Transactions and (iii) vote (or cause to be voted) all Covered Shares against
(A) any proposal for any recapitalization, reorganization, liquidation, merger, sale of assets or
other business combination between the Company and any other Person (other than the Merger) and (B)
any other action that could reasonably be expected to, impede, interfere with, delay, postpone or
adversely affect the Merger or any of the Transactions, any transactions contemplated by this Agreement
or result in </FONT></P>
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<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>a breach in any material respect of any covenant, representation or warranty or other obligation or
agreement of the Company under the Merger Agreement. For the purposes of this Agreement, the term
&#147;Person&#148; means a natural person, corporation, trust, partnership, joint venture, association,
limited liability company or other business or other legal entity of any kind.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>STOCKHOLDER HEREBY GRANTS TO, AND APPOINTS, PARENT, THE PRESIDENT OF PARENT AND THE SECRETARY OF PARENT,
IN THEIR RESPECTIVE CAPACITIES AS OFFICERS OF PARENT, AND ANY OTHER DESIGNEE OF PARENT, EACH OF THEM
INDIVIDUALLY, THE STOCKHOLDER&#146;S&nbsp;IRREVOCABLE (UNTIL THE TERMINATION DATE, AS DEFINED BELOW)
PROXY AND ATTORNEY-IN-FACT (WITH FULL POWER OF SUBSTITUTION) TO VOTE THE COVERED SHARES AS INDICATED
IN CLAUSE (a) OF THIS SECTION 1. STOCKHOLDER INTENDS THIS PROXY TO BE IRREVOCABLE (UNTIL THE TERMINATION
DATE, AS DEFINED BELOW) AND COUPLED WITH AN INTEREST AND WILL TAKE SUCH FURTHER ACTION OR EXECUTE
SUCH OTHER INSTRUMENTS AS MAY BE NECESSARY TO EFFECTUATE THE INTENT OF THIS PROXY AND HEREBY REVOKES
ANY PROXY PREVIOUSLY GRANTED BY STOCKHOLDER WITH RESPECT TO THE COVERED SHARES.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Except as set forth in clause (a) of this Section 1, Stockholder shall not be restricted from voting
in favor of, against or abstaining with respect to any matter presented to the stockholders of the
Company. In addition, nothing in this Agreement shall give Parent or any of its officers or designees
the right to vote any Covered Shares in connection with the election of directors.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>2. &nbsp;<U>No Inconsistent Agreements</U>. Stockholder hereby covenants and agrees that, except as contemplated by this Agreement, it (a) has
not entered into, and shall not enter at any time while this Agreement remains in effect, any voting
agreement or voting trust with respect to the Covered Shares and (b) has not granted, and shall not
grant at any time while this Agreement remains in effect, a proxy or power of attorney with respect
to the Covered Shares, in either case, which is inconsistent with its obligations pursuant to this
Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>3. &nbsp;<U>Termination</U>. &nbsp;This Agreement shall terminate upon the earliest of (a)&nbsp;the Effective Time, (b)&nbsp;the
termination of the Merger Agreement in accordance with its terms, and (c) written notice of termination
of this Agreement by Parent to Stockholder, such earliest date being referred to herein as the &#147;<U>Termination Date</U>&#148;.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>4. &nbsp;<U>Representations and Warranties</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a) &nbsp;<U>Representations and Warranties of Parent</U>. Parent hereby represents and warrants to Stockholder as follows:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Valid Existence</U>. Parent is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation and has the requisite corporate power and authority and all necessary
governmental approvals to own, lease and operate its properties and to carry on its business as it
is now being conducted.</FONT></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>2</FONT></P>
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<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Authority Relative to This Agreement</U>. Parent 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 the consummation by Parent of the transactions
contemplated hereby have been duly and validly authorized by all necessary corporate action, and
no other corporate proceedings on the part of Parent are necessary to authorize this Agreement or
to consummate the transactions contemplated hereby. This Agreement has been duly and validly authorized,
executed and delivered by Parent and, assuming due authorization, execution and delivery by Stockholder,
constitutes a legal, valid and binding obligation of Parent, enforceable against Parent in accordance
with its terms. </FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(iii)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>No Conflicts</U>. Except for the applicable requirements of the Exchange Act, (A) no filing with, and no permit, authorization,
consent or approval of, any Governmental Authority is necessary on the part of Parent for the execution
and delivery of this Agreement by Parent and the consummation by Parent of the transactions contemplated
hereby and (B) neither the execution and delivery of this Agreement by Parent nor the consummation
by Parent of the transactions contemplated hereby nor compliance by Parent with any of the provisions
hereof shall (1) conflict with or violate the Articles of Incorporation or Bylaws of Parent, (2)
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) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, or result in the creation of a Lien on any property or
asset of Parent pursuant to, any Contract to which Parent is a party or by which Parent or any property
or asset of Parent is bound or affected or (3) violate any order, writ, injunction, decree, statute,
rule or regulation applicable to Parent or any of its properties or assets, except in the case of
(2) or (3) for violations, breaches or defaults that would not in the aggregate materially impair
the ability of Parent to perform its obligations hereunder. </FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT><U>Representations and Warranties of Stockholder</U>. Stockholder hereby represents and warrants to Parent as follows:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Ownership of Securities</U>. As of the date of this Agreement, (A) Stockholder beneficially owns the Owned Shares, (B) Stockholder
is the sole record holder of the Owned Shares free and clear of Liens (other than Liens created by
this Agreement), (C) Stockholder has sole voting power and sole power of disposition with respect
to all Owned Shares, with no restrictions (other than those created by this Agreement or in connection
with the arrangements set forth on Schedule I attached to this Agreement), subject to applicable
federal securities laws on their rights of disposition pertaining thereto, (D) Stockholder beneficially
owns stock options representing the right to buy 190,000 shares of Company Common Stock, all of which
are issuable upon the exercise of currently exercisable stock options (the &#147;<U>Options</U>&#148;), and (E) Stockholder does not own beneficially or of record any equity securities of the Company
other than the Covered Shares or the Options. Stockholder has not appointed or granted any proxy
which is still in effect with respect to the Owned Shares. As used in this Agreement, the terms &#147;beneficial
owner&#148;, &#147;beneficial ownership&#148;, &#147;beneficially owns&#148; or &#147;owns </FONT></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>3</FONT></P>
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<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>beneficially&#148;, with respect to any securities, refer to the beneficial ownership of such securities
as determined under Rule 13d-3(a) of the Exchange Act. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Existence, Power; Binding Agreement</U>. Stockholder has full power and authority to execute and deliver this Agreement, to perform his obligations
hereunder and to consummate the transactions contemplated hereby. This Agreement has been duly and
validly executed and delivered by Stockholder and, assuming due authorization, execution and delivery
by Parent, constitutes a legal, valid and binding obligation of Stockholder, enforceable against
Stockholder in accordance with its terms. If Stockholder is married, and any of the Covered Shares
constitute community property or otherwise need spousal or other approval for this Agreement to be
legal, valid and binding, this Agreement has been duly authorized, executed and delivered by, and
constitutes the legal, valid and binding obligation of, Stockholder&#146;s spouse, enforceable in
accordance with its terms.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(iii)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT><U>No Conflicts</U>. Except for the applicable requirements of the Exchange Act (A) no filing with, and no permit, authorization,
consent or approval of, any state, federal or foreign governmental authority is necessary on the
part of Stockholder for the execution and delivery of this Agreement by Stockholder and the consummation
by Stockholder of the transactions contemplated hereby and (B) none of the execution and delivery
of this Agreement by Stockholder, the consummation by Stockholder of the transactions contemplated
hereby or compliance by Stockholder with any of the provisions hereof will (1) 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) under, or give to others any rights of termination, amendment, acceleration
or cancellation of, or result in the creation of a Lien on any property or asset of Stockholder pursuant
to, any Contract to which Stockholder is a party or by which Stockholder or any property or asset
of Stockholder is bound or affected or (3) violate any order, writ, injunction, decree, statute,
rule or regulation applicable to Stockholder or any of its properties or assets, except in the case
of (2) or (3) for violations, breaches or defaults that would not in the aggregate materially impair
the ability of Stockholder to perform its obligations hereunder. </FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(iv)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Accredited Investor</U>. Stockholder is an &#147;accredited investor&#148; (as defined under the Securities Act) and a sophisticated
investor, is capable of evaluating the merits and risks of its investments and has the capacity to
protect its own interests.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>5. &nbsp;<U>Certain Covenants</U>. Stockholder hereby covenants and agrees as follows: </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>No Solicitation</U>. Prior to any termination of this Agreement, subject to Section 7 hereof (with respect to Stockholder),
Stockholder agrees that neither it nor any of its Representatives shall, directly or indirectly,
solicit (including by way of furnishing information) any inquiries or the making of any proposal
by any Person or entity (other than Parent or any affiliate of Parent) which constitutes, or could
reasonably be expected to lead to, an Acquisition Proposal. In addition, neither the Stockholder
nor any of its respective affiliates shall, directly or indirectly, make any proposal which constitutes,
or could reasonably be expected to lead to, an Acquisition Proposal. If Stockholder receives a bona
fide inquiry or proposal with respect to the </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>4</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>sale of shares of Company Common Stock, then Stockholder shall promptly inform the Company and Parent
of the terms and conditions, if any, of such inquiry or proposal and the identity of the Person making
it. Stockholder will immediately cease and cause to be terminated any existing activities, discussions
or negotiations with any parties conducted prior to the date of this Agreement with respect to any
of the foregoing. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Restriction on Transfer, Proxies and Non-Interference</U>. Except as set forth in Section 8 hereof, Stockholder hereby agrees, while this Agreement is in effect,
and except as contemplated hereby, not to (i) sell, transfer, pledge, encumber, assign or otherwise
dispose of, or enter into any Contract, option or other arrangement or understanding with respect
to the sale, transfer, pledge, encumbrance, assignment or other disposition of, any of the Covered
Shares or Options, (ii) grant any proxies or powers of attorney, deposit any Covered Shares into
a voting trust or enter into a voting agreement with respect to any Covered Shares or (iii) knowingly
take any action that would make any representation or warranty of Stockholder contained herein untrue
or incorrect or have the effect of preventing or disabling Stockholder from performing its obligations
under this Agreement. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Additional Covered Shares</U>. Stockholder agrees, while this Agreement is in effect, to promptly notify Parent of the number of
any new shares of Common Stock of which Stockholder acquires beneficial ownership after the date
hereof (including, upon the exercise of Options).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>6. &nbsp;<U>Further Assurances</U>. From time to time, at the other party&#146;s request and without further consideration, each party
hereto shall take such reasonable further action as may reasonably be necessary or desirable to consummate
and make effective the transactions contemplated by this Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>7. &nbsp;<U>Fiduciary Duties</U>. Notwithstanding anything in this Agreement to the contrary: (a) Stockholder makes no agreement or
understanding herein in any capacity other than in Stockholder&#146;s capacity as a record holder
and beneficial owner of Covered Shares, (b) nothing herein shall be construed to limit or affect
any action or inaction by Stockholder acting in such person&#146;s capacity as a director or officer
of the Company and in compliance with Section 6.03 of the Merger Agreement, (c) Stockholder may provide
information and engage in discussions with a third party, as and to the extent that the Company is
permitted to do so, if, after the Company shall have received an unsolicited bona fide written Acquisition
Proposal from such third party, the Company Board has complied with the provisions of Section 6.03(a)
of the Merger Agreement, and (d) Stockholder shall have no liability to Parent or any of its affiliates
under this Agreement or otherwise as a result of any action or inaction by Stockholder in such person&#146;s
capacity as a director or officer of the Company and in compliance with Section 6.03 of the Merger Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>8. &nbsp;<U>Permitted Transfers</U>. Notwithstanding anything in this Agreement to the contrary, Stockholder may transfer any or all of
the Covered Shares, in accordance with provisions of applicable Law, to Stockholder&#146;s spouse,
ancestors, descendants or any trust (controlled by Stockholder) for any of their benefit or to a
charitable trust (controlled by Stockholder); <U>provided</U>, <U>however</U>, that, prior to and as a condition to the effectiveness of such transfer, each Person to which any
of such Covered Shares or any interest in any of such Covered </FONT></P><U></U>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>5</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Shares is or may be transferred shall have executed and delivered to Parent a counterpart of this Agreement
pursuant to which such Person shall be bound by all of the terms and provisions of this Agreement,
and shall have agreed in writing with Parent to hold such Covered Shares or interest in such Covered
Shares subject to all of the terms and provisions of this Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>9. &nbsp;<U>No Control</U>. &nbsp;Nothing contained in this Agreement shall give Parent the right to control or direct the Company
or the Company&#146;s operations. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>10. &nbsp;<U>Amendment</U>. &nbsp;This Agreement may not be amended except by an instrument in writing signed by each of the
parties hereto.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>11. &nbsp;<U>Non-survival of Representations and Warranties</U>. The respective representations and warranties of Stockholder and Parent contained herein shall not
survive the closing of the transactions contemplated hereby and by the Merger Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>12. &nbsp;<U>Notices</U>. &nbsp;All notices, requests, claims, demands and other communications hereunder shall be in writing
in the English language and shall be deemed duly given (a)&nbsp;on the date of delivery if delivered
personally, (b)&nbsp;on the first business day following the date of dispatch if delivered by a nationally
recognized next-day courier service, (c)&nbsp;on the fifth business day following the date of mailing
if delivered by registered or certified mail (postage prepaid, return receipt requested) or (d)&nbsp;if
sent by facsimile transmission, when transmitted and receipt is confirmed. All notices hereunder
shall be delivered to the respective parties at the following addresses (or at such other address
for a party as shall be specified in a notice given in accordance with this Section 12):</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=108>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>if to Parent:</FONT></TD></TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
<TR>
<TD width="156" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=156>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The GEO Group, Inc.<br>
  621 Northwest 53<sup>rd</sup> Street<br>
  Boca Raton, Florida 33487<BR>Facsimile No:&nbsp;&nbsp;(561) 893-0101<BR>Attention:&nbsp;&nbsp;John Bulfin</FONT></TD>
</TR>
<TR>
<TD width="156" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=108>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>with a copy to:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=156>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Akerman Senterfitt<BR>One Southeast Third Avenue, 28<SUP>th</SUP> Floor<BR>Miami, Florida 33131<BR>Facsimile No:&nbsp;&nbsp;(305) 374-5095<BR>Attention:&nbsp;&nbsp;Jose Gordo</FONT></TD>
</TR>
<TR>
<TD vAlign=top width=144>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Stephen K. Roddenberry</FONT></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>6</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=108>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>if to Stockholder:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD width=156 vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>James F. Slattery<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>Correctional Services Corporation<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>1819 Main Street, Suite 1000<br>
</FONT><font face="Times New Roman, Times, Serif" size=2>Sarasota, Florida 34236<br>
  </font><font face="Times New Roman, Times, Serif" size=2>Facsimile: (941) 952-9198</font></TD></TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=108>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>with a copy to:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD width=156 vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Epstein, Becker &amp; Green<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>250 Park Avenue<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>New York, New York 10177<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>Facsimile:&nbsp; (212) 669-0989<BR>Attention:&nbsp;&nbsp;Theodore L. Polin</FONT></TD>
</TR>
<TR>
<TD vAlign=top width=144>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;
&nbsp;Sidney Todres</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>13. &nbsp;<U>Severability</U>. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced
by any rule of Law or public policy, all other conditions and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal substance of the transactions
contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination
that any term or other provision is invalid, illegal or incapable of being enforced, the parties
hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent
of the parties as closely as possible in a mutually acceptable manner in order that the transactions
contemplated hereby be consummated as originally contemplated to the fullest extent possible.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>14. &nbsp;<U>Entire Agreement; Assignment</U>. This Agreement (a) constitutes the entire agreement among the parties hereto with respect to the
subject matter hereof and supersedes all prior agreements and undertakings, both written and oral,
among the parties hereto with respect to the subject matter hereof and (b) shall not be assigned
by operation of law or otherwise, except that Parent may assign all or any of its rights and obligations
hereunder to any direct or indirect wholly owned subsidiary of Parent; <U>provided</U>, <U>however</U>, that no such assignment shall relieve the assigning party of its obligations hereunder if such assignee
does not perform such obligations.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>15. &nbsp;<U>Specific Performance</U>. The parties hereto agree that irreparable damage would occur in the event any provision of this Agreement
were not performed in accordance with the terms hereof and that the parties hereto shall be entitled
to specific performance of the terms hereof, in addition to any other remedy at law or equity.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>16. &nbsp;<U>Governing Law</U>. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware
applicable to contracts executed in and to be performed in that State. All Actions arising out of
or relating to this Agreement shall be heard and determined exclusively in the Delaware Court of
Chancery. The parties hereto hereby (a) submit to the exclusive jurisdiction of the Delaware Court
of Chancery for the purpose of any Action arising out of or relating to this Agreement brought by
any party hereto, and (b)&nbsp;irrevocably waive, and agree not to assert by way of motion, defense,
or otherwise, in any </FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>7</FONT></P>
<HR color=black noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>such Action, any claim that it is not subject personally to the jurisdiction of the above-named court,
that its property is exempt or immune from attachment or execution, that the Action is brought in
an inconvenient forum, that the venue of the Action is improper, or that this Agreement or the transactions
contemplated hereby may not be enforced in or by the above-named court. This Agreement does not involve
less than $100,000, and the parties intend that 6 Del.C. &#167;2708 shall apply to this Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>17. &nbsp;<U>Headings</U>. &nbsp;The descriptive headings contained in this Agreement are included for convenience of reference
only and shall not affect in any way the meaning or interpretation of this Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>18. &nbsp;<U>Counterparts</U>. This Agreement may be executed and delivered (including by facsimile transmission) in one or more
counterparts, and by the different parties hereto in separate counterparts, each of which when executed
shall be deemed to be an original but all of which taken together shall constitute one and the same.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>[<B>REMAINDER OF PAGE INTENTIONALLY LEFT BLANK</B>]</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>8</FONT></P>
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<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>IN WITNESS WHEREOF, Parent and Stockholder have caused to be executed or executed this Agreement as
of the date first written above.</FONT></P>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>THE GEO GROUP, INC.</FONT></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=45% vAlign=bottom>&nbsp;</TD>
    <TD width="3%" vAlign=bottom nowrap><font face="Times New Roman, Times, Serif" size=2>By:&nbsp;</font></TD>
    <TD vAlign=bottom STYLE="BORDER-BOTTOM:1px solid #000000;"><font size="2" face="Times New Roman, Times, Serif">/s/
      George C. Zoley </font></TD>
    <TD width="20%" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>Name:
      George C. Zoley</FONT></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>Title:&nbsp;&nbsp;
      Chairman and CEO</FONT></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom></TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD colspan="2" vAlign=bottom STYLE="BORDER-BOTTOM:1px solid #000000;"><font size="2">/s/
      James F. Slattery</font></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD colspan="2" vAlign=bottom nowrap><FONT face="Times New Roman, Times, Serif" size=2>JAMES
      F. SLATTERY, as Stockholder</FONT></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<br>
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<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>5
<FILENAME>ex10-1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>CORRECTIONAL SERVICES CORPORATION<BR><BR><BR><U>CHANGE IN CONTROL, RETENTION AND SEVERANCE AGREEMENT</U></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>CHANGE IN CONTROL, RETENTION AND SEVERANCE AGREEMENT</B> &nbsp;(&#147;Agreement&#148;) made and entered into as of this 14th day of July, 2005, by and between
<B>CORRECTIONAL SERVICES CORPORATION</B>, a Delaware corporation (the &#147;Company&#148;), and <B>BERNARD A. WAGNER </B>(&#147;Employee&#148;).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>WHEREAS, </B>Employee is currently employed by the Company; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>WHEREAS</B>, the Company is currently planning a merger (the &#147;Merger&#148;) of GEO Acquisition, Inc., (&#147;GEO&#148;)
a Delaware corporation with and into the Company, pursuant to which the Company shall become a wholly-owned
subsidiary of GEO; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>WHEREAS</B>, the Company desires to retain the services of Employee through, and for a ninety-day period following,
the conclusion of the Merger; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>NOW, THEREFORE</B>, in consideration of the mutual promises and covenants contained herein, the parties hereto agree
as follows:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>1.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Definitions</U>. For purposes of this Agreement, the following terms shall have the meanings set forth below:&nbsp;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&#147;<U>Cause</U>&#148; shall mean (i) any act of personal dishonesty committed by Employee in connection with his responsibilities
as an employee or officer of the Company which is intended to result in personal enrichment of Employee
to the detriment of the Company,&nbsp;(ii) Employee&#146;s conviction of a crime that the Board reasonably
believes has had or will have a material detrimental effect on the Company&#146;s reputation or business,
(iii) a willful act by Employee injurious to the Company and constituting gross misconduct in the
performance of his duties or (iv) continued willful violations by Employee of his obligations to
the Company after receiving a written notice from the Company describing the basis for the Company&#146;s
belief that Employee was not substantially performing his duties.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&#147;<U>Company</U>&#148; shall mean Correctional Services Corporation and any successor to all or substantially all of
the business and/or assets of the Company, by purchase, merger, share exchange, consolidation or
otherwise, whether direct or indirect or by operation of law or otherwise.</FONT></P>
<HR color=#000000 noShade>
<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&#147;<U>Constructive Discharge</U>&#148; shall mean (i)&nbsp;a reduction of Employee&#146;s base salary as in effect immediately prior
to such reduction; (ii)&nbsp;a material reduction by the Company in the kind or level of employee
benefits to which Employee is entitled immediately prior to such reduction with the result that Employee&#146;s
overall benefits package is significantly reduced, unless the reduction is similar to all employees;
(iii) the required relocation of Employee to a facility or a location more than twenty (20) miles
from his current office location; or (iv)&nbsp;the failure of the Company to obtain the assumption
of the obligations under this Agreement by a successor entity.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>All other capitalized terms used in this Agreement shall have the meanings given them in this Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>2.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Continued Employment</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Subject to the terms and conditions of this Agreement, in consideration of the agreements of the Company
set forth herein, and provided that the Company shall have complied fully with its obligations under
Section 3(a) below, Employee agrees to remain in the employ of the Company until the date which is
ninety (90) days after the closing date of the Merger (the &#147;Retention Date&#148;). During such
time, the Company shall continue to pay to Employee his full base salary through the Retention Date
at the rate in effect as of the date of this Agreement, plus all other amounts to which Employee
is entitled under any Company compensation or retirement&nbsp;plan in which he is then a participant,
payable at the time such payments are normally due, and Employee will continue to perform the duties
of his or her current position and such other duties as are assigned to him or her in connection
with or related to his or her qualifications and experience. During such period, the Company shall
continue to provide Employee with health insurance benefits (including medical and dental benefits)
substantially similar to those Employee was receiving immediately prior to the date of this Agreement
and Employee shall continue to participate in the Company&#146;s employee benefits plans, including,
but not limited to the 401(k) plan, health insurance plans, option plans and other incentive plans,
provided that Employee satisfies any eligibility requirements for such plans.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>3.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Severance Benefits</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Subject only to the delivery by Employee to the Company of an executed Release of All Claims Agreement,
in the form attached hereto as <U>Exhibit A</U>, at or after the time of the Merger, the Company shall pay to the Employee, not later than the third
business day following the Effective Date of the Release of All Claims Agreement, as severance pay
and a retention bonus and in consideration of his entering into the Release of All Claims Agreement,
a lump sum severance payment (the &#147;Severance Payment&#148;) equal to Employee&#146;s annual
base salary at the rate in effect on the closing date of the Merger. Employee&#146;s rights to receive
the Severance Payment shall terminate if Employee voluntarily resigns prior to the Merger or Employee&#146;s
employment with the Company is terminated by reason of Employee&#146;s death or Disability (as defined
in Section 4 below) prior to the closing date of the Merger or if the Company terminates Employee
for Cause prior to the Merger. If the Company terminates Employee&#146;s employment prior to the
Merger, for any reason other than Cause, or in the event of a Constructive Discharge by the Company
of the Employee prior to the Merger, Employee shall be entitled to the Severance Payment and the
other benefits contemplated by this Agreement. </FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>2</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In addition to the Severance Payment, the Company shall provide to Employee for a period of 12 months
from and after the earlier of the Retention Date or the date of the termination of his employment,
without cost to Employee (notwithstanding the COBRA provisions that require Employee to pay for such
benefits following the termination of his employment), health insurance benefits (including medical
and dental benefits) substantially similar to those Employee was receiving immediately prior to the
closing of the Merger; provided, however, that the benefits otherwise receivable by Employee pursuant
to this Section 3(b) shall be reduced to the extent comparable benefits are received by Employee
during the 12-month period following the termination of his employment, any benefits so received
to be reported to the Company by Employee.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The Company also shall pay for all legal fees and expenses incurred by Employee in seeking to
obtain or enforce any right or benefit provided by this Agreement (including any legal fees and expenses
incurred in contesting any purported termination of his employment for Cause or any denial by the
Company of any of the benefits provided to Employee herein).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Payments hereunder shall be made without regard to whether the deductibility of such payments (or
any other payments to or for the benefit of Employee) would be limited or precluded by Code Section
280G and without regard to whether such payments (or any other payments) would subject Employee to
the federal excise tax levied on certain &#147;excess parachute payments&#148; under Internal Revenue
Code Section 4999; <U>provided</U>, that if any such payment or payments (the &#147;Required Contractual Payments&#148;) subject&nbsp;Employee
to the imposition of tax under&nbsp;Section 4999 of the Code (&#147;Section 4999 Tax&#148;), the
Required Contractual Payments shall be grossed-up so that, in addition to such payments, the Company
shall timely pay to Employee the amount necessary so that after imposition of any Section 4999 Tax
and any income tax on such additional payments, Employee shall be entitled to receive an amount equal
to the amount of the Required Contractual Payment as if such Required Contractual Payment were not
subject to Section 4999 Tax.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>4.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>&nbsp;Unused vacation.</U> &nbsp;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Employee shall be entitled to payment for all unused vacation time upon the termination of Employee&#146;s
employment with the Company. The amount of the payment shall be based on Employee&#146;s then-current
salary and shall be included in Employee&#146;s final payroll payment.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>5.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Death, Disability, Cause and Voluntary Termination</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
Employee&#146;s employment shall terminate before the Merger by reason of Employee&#146;s death or
inability to perform the essential functions of his job with or without a reasonable accommodation,
or his employment shall be terminated before the Merger for Cause, or if he voluntarily terminates
his employment before the Merger, (excluding a termination attributable to a Constructive Discharge),
this Agreement shall terminate without further obligation to Employee or his legal representatives
other than the obligation to pay Employee or his legal representatives any unpaid salary or other
compensation through the date of termination. Provided, however, that the provisions of paragraphs
7, 8, 9, and 10 of this </FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>3</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Agreement and the waiver and release provisions of the Release of All Claims Agreement shall survive
the termination of this Agreement. If the Company determines in good faith that the inability of
Employee to perform the essential functions of his job with or without a reasonable accommodation
has occurred before the Merger, it may give Employee written notice of its intention to terminate
his employment. In such event, Employee&#146;s employment with the Company shall terminate effective
on the 30th day after his receipt of such notice;&nbsp;provided that, within the 30 days of such
receipt, Employee shall not have returned to performance of the essential functions of his job with
or without a reasonable accommodation.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>6.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Condition Precedent</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>As a condition precedent to receiving any payments or benefits under this Agreement and subject to
the provisions of the Release of All Claims Agreement, Employee shall execute the Release of All
Claims Agreement, which is attached as <U>Exhibit A</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>7.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Confidentiality</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Employee acknowledges and agrees that, during his employment by the Company, Employee holds a fiduciary
relationship, capacity, and duty with respect to employment with the Company and agrees that he will
not, except for the Company&#146;s sole benefit, use, reveal, communicate, or divulge either during
Employee&#146;s employment or after the end of said employment, to any person, corporation, or other
entity, any trade secrets or other Confidential Information. For purposes of this Agreement, Confidential
Information includes but is not limited to knowledge, data, or records, whether written or otherwise,
of whatsoever kind or nature not generally available to the public. Employee will, except for the
Company&#146;s use, not copy, duplicate, transcribe, or in any way reproduce (including without limitation
electronically), any Company documents or objects or remove them from the Company&#146;s offices
or facilities, except for the Company&#146;s sole benefit, during Employee&#146;s employment or at
any time after the end of said employment. Employee further agrees that he will deliver all of the
aforementioned documents and objects that may be in his possession to the Company upon the termination
of employment, or at any time upon the Company&#146;s request.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>8.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Nonsolicitation of Specific Prospective or Existing Customers or Clients</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Employee agrees that during his employment with the Company and for a period of two (2) years after
Employee leaves the employment of the Company (for any reason whatsoever, with or without Cause,
voluntarily or involuntarily), Employee will not, either alone or in concert with others, directly
or indirectly, solicit, entice, induce or encourage, take-away, attempt to take-away or do business
with any of the Company&#146;s specific prospective or existing customers or clients for or on behalf
of a competing business;&nbsp;will not, either alone or in concert with others, directly or indirectly,
solicit, entice, induce or encourage any clients to discontinue or decrease their use of the Company&#146;s
services or products or to discontinue referring prospective clients to the Company. A &#147;specific
prospective&#148; customer or client means any person or entity with which the Company is or has
been, at any time during the six (6) month period preceding Employee&#146;s solicitation of the customer
or client, engaged in substantive formal or informal discussions regarding the provision of the Company&#146;s
goods or services.</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>4</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>9.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Covenant Not to Solicit Company Employees</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>During Employee&#146;s employment with the Company, and for one (1) year after Employee leaves the
employment of the Company (for any reason whatsoever, with or without cause, voluntarily or involuntarily),
Employee will not, directly or indirectly employ, attempt to employ, solicit, entice, or induce,
any then-current Company employee or consultant, to perform services as a consultant, employee, associate,
agent, sales representative, or contractor for any person, company or business organization other
than the Company.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>10.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Work Product</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Employee agrees that all memoranda, notes, records, work product, reports, drawings, training manuals,
or other writings or documents, equipment, apparatus, products, or materials and the like, including
all copies thereof, made or compiled by Employee or made available to Employee in the course of his
employment, shall be and are the property of the Company and shall be delivered to the Company upon
termination of Employee&#146;s employment or at any other time upon request.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>11.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Term of Agreement</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>This Agreement shall be and become effective as of the date set forth above and shall continue in effect
until the date that all obligations of the parties hereto under this Agreement have been satisfied
in full, or earlier, as set forth in above.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>12.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>No Mitigation</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Employee shall not be required to mitigate the amount of any payment provided for in this Agreement
by seeking other employment or otherwise, nor shall the amount of any payment or benefit provided
for in this Agreement be reduced by any compensation earned by Employee from employment by another
employer, by retirement benefits, by offset against any amount claimed to be owed by Employee to
the Company, or otherwise except as specifically provided herein.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>13.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>No Employment Contract Created</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>Nothing contained in this Agreement shall be interpreted or construed as creating a contract of employment
between the Company and Employee or in any way requiring the Company to employ Employee, or for Employee
to remain in the employ of the Company, for any period of time. Notwithstanding the terms of this
Agreement, Employee at all times shall remain an <I>at will</I> employee of the Company and, as such, either he or the Company may terminate his employment with the
Company at any time for any reason, subject to the terms of this Agreement.</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>14.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Successors; Binding Agreement</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The rights and obligations of the Company under this Agreement shall inure to the benefit of and be
binding upon the Company, its successors and assigns and any successor (whether by purchase, merger,
share exchange, consolidation, or otherwise, whether </FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>5</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>direct or indirect, and whether by operation of law, or otherwise) acquiring all, or substantially
all, of the business and/or assets of the Company will be required by the Company to assume expressly
and agree to perform the obligations of the Company under this Agreement. The failure of the Company
to obtain such assumption and agreement prior to the effectiveness of any such succession shall be
a breach of this Agreement and shall entitle Employee to compensation from the Company in the same
amount and on the same terms as he would be entitled to hereunder if the Company had obtained such
assumption and agreement prior to the effectiveness of any such succession, except that for purposes
of implementing the foregoing, the date on which any such succession becomes effective shall be deemed
the closing date of the Merger.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The Company has agreed to enter into this Agreement for the purposes set forth in the recitals to
this Agreement. Accordingly, Employee may not assign any of his rights or delegate any of his duties
or obligations under this Agreement except upon his death as provided herein. This Agreement shall
inure to the benefit of and be enforceable by Employee&#146;s personal or legal representatives,
executors, administrators, heirs, distributees and legatees.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>If, at any time during the term of this Agreement, Employee is employed by a subsidiary of the Company,
any reference to the &#147;Company&#148; shall also include such subsidiary, unless the context otherwise
requires. The Company shall cause the subsidiary to carry out the terms of this Agreement insofar
as they relate to the employment relationship between Employee and the subsidiary, and shall indemnify
Employee and save Employee harmless from and against all liability and damage Employee may suffer
as a consequence of the subsidiary&#146;s failure to perform and carry out such terms. Wherever reference
is made to any benefit program of the Company, such reference shall include, where appropriate, the
corresponding benefit program of the subsidiary if Employee were a participant in the benefit program
on the closing date of the Merger.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>15.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Severability</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The provisions of this Agreement are independent of and separable from each other, and no provision
shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason
any other or others of them may be invalid or unenforceable in whole or in part.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>16.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Notices</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Any notice required or permitted to be given under this Agreement shall be given in writing, and shall
be delivered by hand or by certified mail, postage prepaid and return receipt requested, addressed
as set forth below:</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>If to the Company:</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>Correctional Services Corporation<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>1819 Main Street, Suite 1000<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>Sarasota, Florida 34236<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>Attention:&nbsp; Chief Executive Officer</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>6</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>If to Employee:</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>Bernard A. Wagner<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>1077 Mallard Marsh Drive<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>Osprey, FL 34229</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>All notices delivered by certified mail shall be deemed delivered on the third day (not including Sundays
or holidays observed by the U.S. postal service) after mailing. Notices delivered by hand to Employee
must be delivered in person to Employee. Notices delivered by hand to the Company must be delivered
to a person at the offices of the Company or in person to the Chief Executive Officer. Any change
of address by either the Company or Employee must be promptly communicated in writing and delivered
in accordance with this Section 16.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>17.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Waivers</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>No purported waiver of any of the terms of this Agreement shall be effective unless made in writing
by the party granting the waiver. The waiver by any party hereto of a breach of any provision of
this Agreement by any other party hereto shall not operate or be construed as a waiver of any subsequent
breach by the breaching party.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>18.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Entire Agreement</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>This Agreement, along with the Release of All Claims Agreement attached as Exhibit A, constitutes the
entire understanding of Employee and the Company with respect to the subject matter hereof and supersedes
any and all prior understandings and agreements, written or oral, relating thereto. This Agreement
and the provisions hereof may not be changed, waived or canceled orally, but may be changed, waived,
or canceled only by an instrument in writing signed by the parties hereto.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>19.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Section Headings</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Section headings of this Agreement are for convenience of reference only and shall not limit or
otherwise affect any of the provisions of this Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>20.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Validity</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The invalidity or unenforceability of any provision of this Agreement shall not affect the validity
or enforceability of any other provision of this Agreement, which shall remain in full force and
effect.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>21.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Governing Law and Interpretation</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>This Agreement shall be governed by the laws of the State of Florida, and the invalidity or unenforceability
of any provisions hereof shall in no way affect the validity of enforceability of any other provisions.</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>7</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>22.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Withholding</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Company may withhold from any and all amounts payable under this Agreement such federal, state
and local taxes as may be required to be withheld pursuant to any applicable law or regulation.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>23.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Contest Procedures</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Employee shall promptly notify the Company in writing of any proposed assessment or the commencement
of any tax audit or administrative or judicial proceeding or any demand or claim on Employee that,
if determined adversely to Employee or after the lapse of time, could be grounds for imposition of
a Section 4999 Tax on Employee (a &#147;Section 4999 Contest&#148;). The Company shall have the sole
right, at its expense, to control the conduct of such Section 4999 Contest and agree to any settlement
thereof to the extent such contest involves a Section 4999 Tax for which a gross-up payment is required
under Section 2(b) of this Agreement. Employee shall have the right, at his own expense, to participate
in any such Section 4999 Contest to the extent it involves taxes other than a Section 4999 Tax for
which a gross-up payment is required under Section 2(b) of this Agreement. In the event the Company
chooses not to exercise its right to control the conduct of a Section 4999 Contest, Employee may
control the conduct of such audit. The Company shall reimburse all legal fees and expenses incurred
by Employee in connection with such a Section 4999 Contest to the extent such contest relates to
a Section 4999 Tax for which a gross-up payment is required under Section 2(b) of this Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>24.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Remedies</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Employee agrees that a breach by Employee of the provisions of Sections 7, 8, 9 and/or 10 of this Agreement
would result in irreparable and continuing damage to the Company. In the event of a breach of any
such provision of this Agreement by Employee, the Company shall be entitled to immediately pursue
any and all remedies it may have against Employee in a court of competent jurisdiction by specific
performance, injunction, or such other remedies and relief as may be available. The Company agrees
that any breach by the Company of the provisions of Section 3 of this Agreement would result in irreparable
and continuing damage to Employee. In the event of a breach of any such provision of this Agreement
by Employee, the Employee shall be entitled to immediately pursue any and all remedies he may have
against the Company in a court of competent jurisdiction by specific performance, injunction, or
such other remedies and relief as may be available. It is agreed that in the event of any litigation
or proceeding under this Agreement (other than an action challenging the validity of this Agreement&nbsp;under
the Older Workers Benefit Protection Act), the prevailing party shall be entitled to all costs and
expenses incurred in such litigation or proceeding, including reasonable attorney&#146;s fees. </FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>8</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>IN WITNESS </B><B>WHEREOF</B>, the parties hereto have executed and delivered this Agreement as of the date first above written.</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="48%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="3"><FONT face="Times New Roman, Times, serif" size=2>CORRECTIONAL
      SERVICES CORPORATION</FONT></td>
    <td width="5%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="3"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="4%"><FONT face="Times New Roman, Times, serif" size=2>By:</FONT></td>
    <td width="43%" colspan="2" style='border-bottom:solid black 1px'><font size="2">/s/
      Stuart M. Gerson</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>Name:</FONT></td>
    <td colspan="2"><font size="2">Stuart M. Gerson</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>Title:</FONT></td>
    <td colspan="2"><font size="2">Chairman of the Board of Directors</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="3"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="3" style='border-bottom:solid black 1px'><font size="2">/s/ <FONT face="Times New Roman, Times, serif">Bernard
      A. Wagner</FONT></font><font size="2">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="center"></div></td>
    <td valign="top">
<div align="left"><FONT face="Times New Roman, Times, serif" size=2>Bernard A.
        Wagner</FONT></div></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
</table>
<B></B>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>9</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><U>EXHIBIT A</U></B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>RELEASE OF ALL CLAIMS AGREEMENT</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS
RELEASE OF ALL CLAIMS AGREEMENT (&#147;Agreement&#148;) sets forth the agreement reached between
Bernard A. Wagner (&#147;Employee&#148;) and Correctional Services Corporation (the &#147;Company&#148;).
</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=24>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>WHEREAS, </B>although unlikely, potential claims, and possible disputes may exist between Employee and the Company
arising out of Employee&#146;s employment with the Company.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>WHEREAS, </B>Employee and the Company have discussed these matters and it is their mutual desire that all such claims
and disputes be resolved by this Agreement.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>WHEREAS</B>, Employee is signing this Agreement on the closing date of the Merger.</FONT></TD></TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW THEREFORE</B>, in accordance with the terms of the CHANGE IN CONTROL, RETENTION AND SEVERANCE AGREEMENT executed
by Employee and the Company on July 14, 2005 (the &#147;Change in Control Agreement&#148;), and intending
to be legally bound by the terms of the Change in Control Agreement and by the terms of this Agreement,
the parties agree as follows:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>1.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company will pay to Employee all of the payments and will provide all of the benefits described
in the Change in Control Agreement (the &#147;Payments&#148;). Employee agrees that these payments
are consideration to which he would not otherwise be entitled but for his execution of this Agreement.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>2.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>In exchange for the Payments, Employee voluntarily and knowingly agrees that Employee:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=72></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>a)<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>shall not sue the Company, GEO Acquisition, Inc. (&#147;GEO&#148;), and any of the Company&#146;s or
GEOs officers, directors, managers, employees, shareholders, agents, parent corporations, subsidiaries,
affiliates, predecessors, successors and assigns, and the heirs, executors, personal representatives
and assigns of any such person or entity (collectively referred to as &#147;Releasees&#148;), or
authorize a third-party, directly or indirectly, to file any complaint or suit against Releasees
on Employee&#146;s behalf, except in the event of a breach of, or the enforcement of, or action regarding
the validity of, this Agreement.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=72></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;<B>&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>waives and releases and forever discharges Releasees from any and all claims, rights, and causes of
action, in law or in equity, of any kind whatsoever, which Employee has or may have against Releasees
as of the Effective Date of this Agreement, whether such claims, rights, or causes of action are
now known or are later discovered. <B>The foregoing waiver and release is a full and final bar to </B></FONT></TD></TR>
</TABLE>
<B></B>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>10</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=72></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT><B>any and all claims Employee has or may have against Releasees, except those concerning the validity
of this waiver under the Older Workers Benefit Protection Act.</B> &nbsp;The claims, rights, and causes of action covered by this waiver and release include, but are
not limited to, any claim based on any federal, state, or local law, constitution, executive order,
statute or ordinance, including the Age Discrimination in Employment Act of 1967; Title VII of the
Civil Rights Act of 1964; the Civil Rights Acts of 1866 and 1871; the Equal Pay Act of 1963; the
Rehabilitation Act of 1973; the Americans With Disabilities Act of 1990; the Employee Retirement
Income Security Act of 1974; the Occupational Safety and Health Act of 1970; the National Labor Relations
Act of 1935 (including the Labor Management Relations Act of 1947); the Florida Civil Rights Act
of 1992; Florida&#146;s &#147;Whistleblower&#148; law (Florida Statute &#167; 448.102); the Broward
County Human Rights Act; and any other claim, right, or cause of action founded in tort (including
negligence), contract, public policy, estoppel or any other common law or equitable basis of action
of any type. Employee acknowledges that this Agreement does not interfere with his right to file
a charge with or participate in an investigation or proceeding conducted by the EEOC.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=72></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>c)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>shall not take any action or make any comments which might embarrass, harass or adversely affect Releasees,
or its business operations, practices or services. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=72></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>d)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>Employee&nbsp;further agrees to continue abiding by all the promises he made in the Change in Control
Agreement, which are intended to survive the termination of Employee&#146;s employment with the Company.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>3.<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>It is understood by Employee and the Company that the foregoing promises are essential to this Agreement,
and that, but for the agreement of Employee to comply with Section 2 of this Agreement, this Agreement
would not have been entered into by the parties. Breach of any of the promises as set forth in Section
2 of this agreement shall be a material and substantial breach of this Agreement. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>4.<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>Employee agrees that a breach of this Agreement would result in irreparable and continuing damage to
the Company. In the event of a breach of any provision of this Agreement by Employee, the Company
shall be entitled to immediately pursue any and all remedies it may have against Employee in a court
of competent jurisdiction by specific performance, injunction, or such other remedies and relief
as may be available. It is agreed that in the event of any litigation or proceeding under this Agreement
(other than an action challenging the validity of this Agreement&nbsp;under the Older Workers Benefit
Protection Act), the prevailing party shall be entitled to all costs and expenses incurred in such
litigation or proceeding, including reasonable attorney&#146;s fees.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>5.<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>Any waiver by Employee or the Company of a breach of any provision of this Agreement shall not be construed
to be a waiver of any other breach of any provision of this Agreement. The failure of Employee or
the Company to insist upon strict adherence to any term of this Agreement shall not constitute a
waiver by such party to require at some </FONT></TD></TR></TABLE>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>11</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>subsequent time strict adherence to such term. To be effective, any waiver must be in writing and signed by the waiving party.</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>6.<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>Neither this Agreement, nor anything contained herein, shall be construed as an admission or concession
by the Company or by Employee of any liability, unlawful conduct, or wrongdoing whatsoever.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>7.<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>This Agreement shall be binding upon any heirs, successors or assigns of Employee and the Company.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>8.<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>This Agreement, together with the Change in Control Agreement, contains the complete, full, and exclusive
understanding of Employee and the Company and supersedes any and all other oral or written agreements
between them. This Agreement supersedes and renders null and void any previous employment contracts,
whether written or oral, between Employee and the Company, except that Change in Control Agreement
which is intended to survive the execution of this Agreement. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>9.<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>Any amendments, additions, or supplements to this Agreement shall be effective and binding on Employee
and the Company only if any such amendments, additions, or supplements are in writing and signed
by both parties.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>10.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>If any provision of this Agreement is invalid, illegal or unenforceable, it shall not affect the other
provisions of this Agreement, which shall remain in effect. This Agreement shall be construed in
all respects as if such invalid or unenforceable provision was omitted.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>11.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>This Agreement shall be governed by the laws of the State of Florida, and venue of any action brought
under this Agreement shall be exclusively in Broward County, Florida. Any trial/hearing/proceeding
under this Agreement shall be heard by a JUDGE WITHOUT A JURY. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>12.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>Employee&nbsp;acknowledges that he received a copy of this Agreement at least twenty-one (21) days
before the date on which he signs such Agreement and that he has had the opportunity to consider
the terms of this Agreement for at least twenty-one (21) days.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>13.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>&nbsp;Employee has been given the opportunity to negotiate with respect to the terms of this Agreement.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>14.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>Employee is advised to consult with an attorney prior to signing this Agreement.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>15.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>For a period of seven (7) days following the date Employee signs this Agreement, which signing shall
occur on the closing date of the Merger, Employee may revoke this Agreement by providing written
notice of revocation to the Director of Human Resources of the Company, to be received by him/her
not later than the end of the seven (7) day period.</FONT></TD></TR></TABLE>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>12</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>16.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>This Agreement shall become effective and enforceable upon expiration of the seven (7) day revocation
period unless this Agreement is timely revoked by Employee. The &#147;Effective Date&#148; of this
Agreement shall be the eighth day following the signing of this Agreement by Employee. Nothing in
this Agreement waives any rights or claims arising after the Effective Date of this Agreement.</FONT></TD></TR></TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2>BOTH PARTIES, HAVING HAD A FULL OPPORTUNITY TO REVIEW THE FOREGOING, AND BOTH PARTIES, BEING IN COMPLETE
AND FULL AGREEMENT AS TO THE TERMS OF THIS AGREEMENT, HAVE VOLUNTARILY SIGNED THIS AGREEMENT.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>EMPLOYEE</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="35%"><font size="2" face="Times New Roman, Times, serif">______________________________</font></td>
    <td width="8%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="5%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="35%"><font size="2" face="Times New Roman, Times, serif">______________________________</font></td>
    <td width="10%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, serif" size=2>Name</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>By:</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>Title:</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">______________________________</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">______________________________</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, serif" size=2>Date</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>Date</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">______________________________</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">______________________________</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, serif" size=2>Witness</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>Witness</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, serif" size=2>ATTEST:</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="3"><FONT face="Times New Roman, Times, serif" size=2>CORRECTIONAL SERVICES CORPORATION</FONT></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="3"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">____________________________</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="3"><FONT face="Times New Roman, Times, serif" size=2>By:____________________________</FONT></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, serif" size=2>Name:</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="3"><FONT face="Times New Roman, Times, serif" size=2>Name:</FONT></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, serif" size=2>Title:</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="3"><FONT face="Times New Roman, Times, serif" size=2>Title:</FONT></td>
  </tr>
</table>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>13</FONT></P>
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<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>6
<FILENAME>ex10-2.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
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<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>CORRECTIONAL SERVICES CORPORATION<BR><BR><BR><U>CHANGE IN CONTROL, RETENTION AND SEVERANCE AGREEMENT</U></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>CHANGE IN CONTROL, RETENTION AND SEVERANCE AGREEMENT</B> &nbsp;(&#147;Agreement&#148;) made and entered into as of this 14th day of July, 2005, by and between
<B>CORRECTIONAL SERVICES CORPORATION</B>, a Delaware corporation (the &#147;Company&#148;), and <B>JOHN R. MENTZER, III </B>(&#147;Employee&#148;).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>WHEREAS, </B>Employee is currently employed by the Company; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>WHEREAS</B>, the Company is currently planning a merger (the &#147;Merger&#148;) of GEO Acquisition, Inc., (&#147;GEO&#148;)
a Delaware corporation with and into the Company, pursuant to which the Company shall become a wholly-owned
subsidiary of GEO; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>WHEREAS</B>, the Company desires to retain the services of Employee through, and for a ninety-day period following,
the conclusion of the Merger; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>NOW, THEREFORE</B>, in consideration of the mutual promises and covenants contained herein, the parties hereto agree
as follows:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>1.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Definitions</U>. &nbsp;For purposes of this Agreement, the following terms shall have the meanings set forth below:&nbsp;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&#147;<U>Cause</U>&#148; &nbsp;shall mean (i) any act of personal dishonesty committed by Employee in connection with his responsibilities
as an employee or officer of the Company which is intended to result in personal enrichment of Employee
to the detriment of the Company,&nbsp;(ii) Employee&#146;s conviction of a crime that the Board reasonably
believes has had or will have a material detrimental effect on the Company&#146;s reputation or business,
(iii) a willful act by Employee injurious to the Company and constituting gross misconduct in the
performance of his duties or (iv) continued willful violations by Employee of his obligations to
the Company after receiving a written notice from the Company describing the basis for the Company&#146;s
belief that Employee was not substantially performing his duties.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&#147;<U>Company</U>&#148; &nbsp;shall mean Correctional Services Corporation and any successor to all or substantially all of
the business and/or assets of the Company, by purchase, merger, share exchange, consolidation or
otherwise, whether direct or indirect or by operation of law or otherwise.</FONT></P>
<HR color=#000000 noShade>
<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&#147;<U>Constructive Discharge</U>&#148; shall mean (i)&nbsp;a reduction of Employee&#146;s base salary as in effect immediately prior
to such reduction; (ii)&nbsp;a material reduction by the Company in the kind or level of employee
benefits to which Employee is entitled immediately prior to such reduction with the result that Employee&#146;s
overall benefits package is significantly reduced, unless the reduction is similar to all employees;
(iii) the required relocation of Employee to a facility or a location more than twenty (20) miles
from his current office location; or (iv)&nbsp;the failure of the Company to obtain the assumption
of the obligations under this Agreement by a successor entity.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>All other capitalized terms used in this Agreement shall have the meanings given them in this Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>2.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Continued Employment</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Subject to the terms and conditions of this Agreement, in consideration of the agreements of the Company
set forth herein, and provided that the Company shall have complied fully with its obligations under
Section 3(a) below, Employee agrees to remain in the employ of the Company until the date which is
ninety (90) days after the closing date of the Merger (the &#147;Retention Date&#148;). During such
time, the Company shall continue to pay to Employee his full base salary through the Retention Date
at the rate in effect as of the date of this Agreement, plus all other amounts to which Employee
is entitled under any Company compensation or retirement&nbsp;plan in which he is then a participant,
payable at the time such payments are normally due, and Employee will continue to perform the duties
of his or her current position and such other duties as are assigned to him or her in connection
with or related to his or her qualifications and experience. During such period, the Company shall
continue to provide Employee with health insurance benefits (including medical and dental benefits)
substantially similar to those Employee was receiving immediately prior to the date of this Agreement
and Employee shall continue to participate in the Company&#146;s employee benefits plans, including,
but not limited to the 401(k) plan, health insurance plans, option plans and other incentive plans,
provided that Employee satisfies any eligibility requirements for such plans.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>3.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Severance Benefits</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Subject only to the delivery by Employee to the Company of an executed Release of All Claims Agreement,
in the form attached hereto as <U>Exhibit A</U>, at or after the time of the Merger, the Company shall pay to the Employee, not later than the third
business day following the Effective Date of the Release of All Claims Agreement, as severance pay
and a retention bonus and in consideration of his entering into the Release of All Claims Agreement,
a lump sum severance payment (the &#147;Severance Payment&#148;) equal to Employee&#146;s annual
base salary at the rate in effect on the closing date of the Merger. Employee&#146;s rights to receive
the Severance Payment shall terminate if Employee voluntarily resigns prior to the Merger or Employee&#146;s
employment with the Company is terminated by reason of Employee&#146;s death or Disability (as defined
in Section 4 below) prior to the closing date of the Merger or if the Company terminates Employee
for Cause prior to the Merger. If the Company terminates Employee&#146;s employment prior to the
Merger, for any reason other than Cause, or in the event of a Constructive Discharge by the Company
of the Employee prior to the Merger, Employee shall be entitled to the Severance Payment and the
other benefits contemplated by this Agreement. </FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>2</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In addition to the Severance Payment, the Company shall provide to Employee for a period of 12 months
from and after the earlier of the Retention Date or the date of the termination of his employment,
without cost to Employee (notwithstanding the COBRA provisions that require Employee to pay for such
benefits following the termination of his employment), health insurance benefits (including medical
and dental benefits) substantially similar to those Employee was receiving immediately prior to the
closing of the Merger; provided, however, that the benefits otherwise receivable by Employee pursuant
to this Section 3(b) shall be reduced to the extent comparable benefits are received by Employee
during the 12-month period following the termination of his employment, any benefits so received
to be reported to the Company by Employee.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The Company also shall pay for all legal fees and expenses incurred by Employee in seeking to
obtain or enforce any right or benefit provided by this Agreement (including any legal fees and expenses
incurred in contesting any purported termination of his employment for Cause or any denial by the
Company of any of the benefits provided to Employee herein).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Payments hereunder shall be made without regard to whether the deductibility of such payments (or
any other payments to or for the benefit of Employee) would be limited or precluded by Code Section
280G and without regard to whether such payments (or any other payments) would subject Employee to
the federal excise tax levied on certain &#147;excess parachute payments&#148; under Internal Revenue
Code Section 4999; <U>provided</U>, that if any such payment or payments (the &#147;Required Contractual Payments&#148;) subject&nbsp;Employee
to the imposition of tax under&nbsp;Section 4999 of the Code (&#147;Section 4999 Tax&#148;), the
Required Contractual Payments shall be grossed-up so that, in addition to such payments, the Company
shall timely pay to Employee the amount necessary so that after imposition of any Section 4999 Tax
and any income tax on such additional payments, Employee shall be entitled to receive an amount equal
to the amount of the Required Contractual Payment as if such Required Contractual Payment were not
subject to Section 4999 Tax.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>4.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>&nbsp;Unused vacation.</U> &nbsp;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Employee shall be entitled to payment for all unused vacation time upon the termination of Employee&#146;s
employment with the Company. The amount of the payment shall be based on Employee&#146;s then-current
salary and shall be included in Employee&#146;s final payroll payment.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>5.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Death, Disability, Cause and Voluntary Termination</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
Employee&#146;s employment shall terminate before the Merger by reason of Employee&#146;s death or
inability to perform the essential functions of his job with or without a reasonable accommodation,
or his employment shall be terminated before the Merger for Cause, or if he voluntarily terminates
his employment before the Merger, (excluding a termination attributable to a Constructive Discharge),
this Agreement shall terminate without further obligation to Employee or his legal representatives
other than the obligation to pay Employee or his legal representatives any unpaid salary or other
compensation through the date of termination. Provided, however, that the provisions of paragraphs
7, 8, 9, and 10 of this </FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>3</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Agreement and the waiver and release provisions of the Release of All Claims Agreement shall survive
the termination of this Agreement. If the Company determines in good faith that the inability of
Employee to perform the essential functions of his job with or without a reasonable accommodation
has occurred before the Merger, it may give Employee written notice of its intention to terminate
his employment. In such event, Employee&#146;s employment with the Company shall terminate effective
on the 30th day after his receipt of such notice;&nbsp;provided that, within the 30 days of such
receipt, Employee shall not have returned to performance of the essential functions of his job with
or without a reasonable accommodation.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>6.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Condition Precedent</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>As a condition precedent to receiving any payments or benefits under this Agreement and subject to
the provisions of the Release of All Claims Agreement, Employee shall execute the Release of All
Claims Agreement, which is attached as <U>Exhibit A</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>7.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Confidentiality</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Employee acknowledges and agrees that, during his employment by the Company, Employee holds a fiduciary
relationship, capacity, and duty with respect to employment with the Company and agrees that he will
not, except for the Company&#146;s sole benefit, use, reveal, communicate, or divulge either during
Employee&#146;s employment or after the end of said employment, to any person, corporation, or other
entity, any trade secrets or other Confidential Information. For purposes of this Agreement, Confidential
Information includes but is not limited to knowledge, data, or records, whether written or otherwise,
of whatsoever kind or nature not generally available to the public. Employee will, except for the
Company&#146;s use, not copy, duplicate, transcribe, or in any way reproduce (including without limitation
electronically), any Company documents or objects or remove them from the Company&#146;s offices
or facilities, except for the Company&#146;s sole benefit, during Employee&#146;s employment or at
any time after the end of said employment. Employee further agrees that he will deliver all of the
aforementioned documents and objects that may be in his possession to the Company upon the termination
of employment, or at any time upon the Company&#146;s request.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>8.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Nonsolicitation of Specific Prospective or Existing Customers or Clients</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Employee agrees that during his employment with the Company and for a period of two (2) years after
Employee leaves the employment of the Company (for any reason whatsoever, with or without Cause,
voluntarily or involuntarily), Employee will not, either alone or in concert with others, directly
or indirectly, solicit, entice, induce or encourage, take-away, attempt to take-away or do business
with any of the Company&#146;s specific prospective or existing customers or clients for or on behalf
of a competing business;&nbsp;will not, either alone or in concert with others, directly or indirectly,
solicit, entice, induce or encourage any clients to discontinue or decrease their use of the Company&#146;s
services or products or to discontinue referring prospective clients to the Company. A &#147;specific
prospective&#148; customer or client means any person or entity with which the Company is or has
been, at any time during the six (6) month period preceding Employee&#146;s solicitation of the customer
or client, engaged in substantive formal or informal discussions regarding the provision of the Company&#146;s
goods or services.</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>4</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>9.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Covenant Not to Solicit Company Employees</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>During Employee&#146;s employment with the Company, and for one (1) year after Employee leaves the
employment of the Company (for any reason whatsoever, with or without cause, voluntarily or involuntarily),
Employee will not, directly or indirectly employ, attempt to employ, solicit, entice, or induce,
any then-current Company employee or consultant, to perform services as a consultant, employee, associate,
agent, sales representative, or contractor for any person, company or business organization other
than the Company.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>10.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Work Product</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Employee agrees that all memoranda, notes, records, work product, reports, drawings, training manuals,
or other writings or documents, equipment, apparatus, products, or materials and the like, including
all copies thereof, made or compiled by Employee or made available to Employee in the course of his
employment, shall be and are the property of the Company and shall be delivered to the Company upon
termination of Employee&#146;s employment or at any other time upon request.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>11.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Term of Agreement</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>This Agreement shall be and become effective as of the date set forth above and shall continue in effect
until the date that all obligations of the parties hereto under this Agreement have been satisfied
in full, or earlier, as set forth in above.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>12.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>No Mitigation</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Employee shall not be required to mitigate the amount of any payment provided for in this Agreement
by seeking other employment or otherwise, nor shall the amount of any payment or benefit provided
for in this Agreement be reduced by any compensation earned by Employee from employment by another
employer, by retirement benefits, by offset against any amount claimed to be owed by Employee to
the Company, or otherwise except as specifically provided herein.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>13.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>No Employment Contract Created</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>Nothing contained in this Agreement shall be interpreted or construed as creating a contract of employment
between the Company and Employee or in any way requiring the Company to employ Employee, or for Employee
to remain in the employ of the Company, for any period of time. Notwithstanding the terms of this
Agreement, Employee at all times shall remain an <I>at will</I> employee of the Company and, as such, either he or the Company may terminate his employment with the
Company at any time for any reason, subject to the terms of this Agreement.</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>14.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Successors; Binding Agreement</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The rights and obligations of the Company under this Agreement shall inure to the benefit of and be
binding upon the Company, its successors and assigns and any successor (whether by purchase, merger,
share exchange, consolidation, or otherwise, whether</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>5</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>direct or indirect, and whether by operation of law, or otherwise) acquiring all, or substantially
all, of the business and/or assets of the Company will be required by the Company to assume expressly
and agree to perform the obligations of the Company under this Agreement. The failure of the Company
to obtain such assumption and agreement prior to the effectiveness of any such succession shall be
a breach of this Agreement and shall entitle Employee to compensation from the Company in the same
amount and on the same terms as he would be entitled to hereunder if the Company had obtained such
assumption and agreement prior to the effectiveness of any such succession, except that for purposes
of implementing the foregoing, the date on which any such succession becomes effective shall be deemed
the closing date of the Merger.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The Company has agreed to enter into this Agreement for the purposes set forth in the recitals to
this Agreement. Accordingly, Employee may not assign any of his rights or delegate any of his duties
or obligations under this Agreement except upon his death as provided herein. This Agreement shall
inure to the benefit of and be enforceable by Employee&#146;s personal or legal representatives,
executors, administrators, heirs, distributees and legatees.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>If, at any time during the term of this Agreement, Employee is employed by a subsidiary of the Company,
any reference to the &#147;Company&#148; shall also include such subsidiary, unless the context otherwise
requires. The Company shall cause the subsidiary to carry out the terms of this Agreement insofar
as they relate to the employment relationship between Employee and the subsidiary, and shall indemnify
Employee and save Employee harmless from and against all liability and damage Employee may suffer
as a consequence of the subsidiary&#146;s failure to perform and carry out such terms. Wherever reference
is made to any benefit program of the Company, such reference shall include, where appropriate, the
corresponding benefit program of the subsidiary if Employee were a participant in the benefit program
on the closing date of the Merger.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>15.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Severability</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The provisions of this Agreement are independent of and separable from each other, and no provision
shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason
any other or others of them may be invalid or unenforceable in whole or in part.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>16.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Notices</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Any notice required or permitted to be given under this Agreement shall be given in writing, and shall
be delivered by hand or by certified mail, postage prepaid and return receipt requested, addressed
as set forth below:</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>If to the Company:</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>Correctional Services Corporation<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>1819 Main Street, Suite 1000<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>Sarasota, Florida 34236<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>Attention:&nbsp; Chief Executive Officer</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>6</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>If to Employee:</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>John R. Mentzer, III<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>3772 Countryside Road<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>Sarasota, FL 34233</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>All notices delivered by certified mail shall be deemed delivered on the third day (not including Sundays
or holidays observed by the U.S. postal service) after mailing. Notices delivered by hand to Employee
must be delivered in person to Employee. Notices delivered by hand to the Company must be delivered
to a person at the offices of the Company or in person to the Chief Executive Officer. Any change
of address by either the Company or Employee must be promptly communicated in writing and delivered
in accordance with this Section 16.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>17.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Waivers</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>No purported waiver of any of the terms of this Agreement shall be effective unless made in writing
by the party granting the waiver. The waiver by any party hereto of a breach of any provision of
this Agreement by any other party hereto shall not operate or be construed as a waiver of any subsequent
breach by the breaching party.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>18.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Entire Agreement</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>This Agreement, along with the Release of All Claims Agreement attached as Exhibit A, constitutes the
entire understanding of Employee and the Company with respect to the subject matter hereof and supersedes
any and all prior understandings and agreements, written or oral, relating thereto. This Agreement
and the provisions hereof may not be changed, waived or canceled orally, but may be changed, waived,
or canceled only by an instrument in writing signed by the parties hereto.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>19.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Section Headings</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Section headings of this Agreement are for convenience of reference only and shall not limit or
otherwise affect any of the provisions of this Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>20.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Validity</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The invalidity or unenforceability of any provision of this Agreement shall not affect the validity
or enforceability of any other provision of this Agreement, which shall remain in full force and
effect.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>21.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Governing Law and Interpretation</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>This Agreement shall be governed by the laws of the State of Florida, and the invalidity or unenforceability
of any provisions hereof shall in no way affect the validity of enforceability of any other provisions.</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>7</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>22.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Withholding</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Company may withhold from any and all amounts payable under this Agreement such federal, state
and local taxes as may be required to be withheld pursuant to any applicable law or regulation.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>23.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Contest Procedures</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Employee shall promptly notify the Company in writing of any proposed assessment or the commencement
of any tax audit or administrative or judicial proceeding or any demand or claim on Employee that,
if determined adversely to Employee or after the lapse of time, could be grounds for imposition of
a Section 4999 Tax on Employee (a &#147;Section 4999 Contest&#148;). The Company shall have the sole
right, at its expense, to control the conduct of such Section 4999 Contest and agree to any settlement
thereof to the extent such contest involves a Section 4999 Tax for which a gross-up payment is required
under Section 2(b) of this Agreement. Employee shall have the right, at his own expense, to participate
in any such Section 4999 Contest to the extent it involves taxes other than a Section 4999 Tax for
which a gross-up payment is required under Section 2(b) of this Agreement. In the event the Company
chooses not to exercise its right to control the conduct of a Section 4999 Contest, Employee may
control the conduct of such audit. The Company shall reimburse all legal fees and expenses incurred
by Employee in connection with such a Section 4999 Contest to the extent such contest relates to
a Section 4999 Tax for which a gross-up payment is required under Section 2(b) of this Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>24.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U>Remedies</U>. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Employee agrees that a breach by Employee of the provisions of Sections 7, 8, 9 and/or 10 of this Agreement
would result in irreparable and continuing damage to the Company. In the event of a breach of any
such provision of this Agreement by Employee, the Company shall be entitled to immediately pursue
any and all remedies it may have against Employee in a court of competent jurisdiction by specific
performance, injunction, or such other remedies and relief as may be available. The Company agrees
that any breach by the Company of the provisions of Section 3 of this Agreement would result in irreparable
and continuing damage to Employee. In the event of a breach of any such provision of this Agreement
by Employee, the Employee shall be entitled to immediately pursue any and all remedies he may have
against the Company in a court of competent jurisdiction by specific performance, injunction, or
such other remedies and relief as may be available. It is agreed that in the event of any litigation
or proceeding under this Agreement (other than an action challenging the validity of this Agreement&nbsp;under
the Older Workers Benefit Protection Act), the prevailing party shall be entitled to all costs and
expenses incurred in such litigation or proceeding, including reasonable attorney&#146;s fees. </FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>8</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>IN WITNESS WHEREOF</B>, the parties hereto have executed and delivered this Agreement as of the date first above written.</FONT></P>

<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td colspan="2"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td width="49%"><font size="2">&nbsp;</font></td>
    <td colspan="2" nowrap><FONT face="Times New Roman, Times, Serif" size=2>CORRECTIONAL
      SERVICES CORPORATION</FONT></td>
    <td width="14%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td width="4%"><FONT face="Times New Roman, Times, Serif" size=2>By:</FONT></td>
    <td width="33%" style='border-bottom:solid black 1px'><font size="2">/s/ Stuart
      M. Gerson</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Name:</FONT></td>
    <td><font size="2">Stuart M. Gerson</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Title:</FONT></td>
    <td><font size="2">Chairman of the Board of Directors</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td colspan="2" nowrap><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td colspan="2" nowrap style='border-bottom:solid black 1px'><font size="2">/s/
      <FONT face="Times New Roman, Times, Serif">John R. Mentzer, III&nbsp;</FONT></font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="center" nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></td>
    <td align="center" nowrap><div align="left"><FONT face="Times New Roman, Times, Serif" size=2>John
        R. Mentzer, III&nbsp;</FONT></div></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>

<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>9</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><U>EXHIBIT A</U></B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>RELEASE OF ALL CLAIMS AGREEMENT</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS
RELEASE OF ALL CLAIMS AGREEMENT (&#147;Agreement&#148;) sets forth the agreement reached between
John R. Mentzer, III (&#147;Employee&#148;) and Correctional Services Corporation (the &#147;Company&#148;).
</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=24>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>WHEREAS, </B>although unlikely, potential claims, and possible disputes may exist between Employee and the Company
arising out of Employee&#146;s employment with the Company.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>WHEREAS, </B>Employee and the Company have discussed these matters and it is their mutual desire that all such claims
and disputes be resolved by this Agreement.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>WHEREAS</B>, Employee is signing this Agreement on the closing date of the Merger.</FONT></TD></TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW THEREFORE</B>, in accordance with the terms of the CHANGE IN CONTROL, RETENTION AND SEVERANCE AGREEMENT executed
by Employee and the Company on July 14, 2005 (the &#147;Change in Control Agreement&#148;), and intending
to be legally bound by the terms of the Change in Control Agreement and by the terms of this Agreement,
the parties agree as follows:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>1.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company will pay to Employee all of the payments and will provide all of the benefits described
in the Change in Control Agreement (the &#147;Payments&#148;). Employee agrees that these payments
are consideration to which he would not otherwise be entitled but for his execution of this Agreement.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>2.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>In exchange for the Payments, Employee voluntarily and knowingly agrees that Employee:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=72></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>a)<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>shall not sue the Company, GEO Acquisition, Inc. (&#147;GEO&#148;), and any of the Company&#146;s or
GEOs officers, directors, managers, employees, shareholders, agents, parent corporations, subsidiaries,
affiliates, predecessors, successors and assigns, and the heirs, executors, personal representatives
and assigns of any such person or entity (collectively referred to as &#147;Releasees&#148;), or
authorize a third-party, directly or indirectly, to file any complaint or suit against Releasees
on Employee&#146;s behalf, except in the event of a breach of, or the enforcement of, or action regarding
the validity of, this Agreement.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=72></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>b)<FONT face="Times New Roman, Times, Serif" size=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>waives and releases and forever discharges Releasees from any and all claims, rights, and causes of
action, in law or in equity, of any kind whatsoever, which Employee has or may have against Releasees
as of the Effective Date of this Agreement, whether such claims, rights, or causes of action are
now known or are later discovered. <B>The foregoing waiver and release is a full and final bar to </B></FONT></TD></TR></TABLE>
<B></B>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>10</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>any and all claims Employee has or may have against Releasees, except those concerning the validity
of this waiver under the Older Workers Benefit Protection Act.</B> &nbsp;The claims, rights, and causes of action covered by this waiver and release include, but are
not limited to, any claim based on any federal, state, or local law, constitution, executive order,
statute or ordinance, including the Age Discrimination in Employment Act of 1967; Title VII of the
Civil Rights Act of 1964; the Civil Rights Acts of 1866 and 1871; the Equal Pay Act of 1963; the
Rehabilitation Act of 1973; the Americans With Disabilities Act of 1990; the Employee Retirement
Income Security Act of 1974; the Occupational Safety and Health Act of 1970; the National Labor Relations
Act of 1935 (including the Labor Management Relations Act of 1947); the Florida Civil Rights Act
of 1992; Florida&#146;s &#147;Whistleblower&#148; law (Florida Statute &#167; 448.102); the Broward
County Human Rights Act; and any other claim, right, or cause of action founded in tort (including
negligence), contract, public policy, estoppel or any other common law or equitable basis of action
of any type. Employee acknowledges that this Agreement does not interfere with his right to file
a charge with or participate in an investigation or proceeding conducted by the EEOC.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=72></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>c)<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>shall not take any action or make any comments which might embarrass, harass or adversely affect Releasees,
or its business operations, practices or services. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=72></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>d)<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>Employee&nbsp;further agrees to continue abiding by all the promises he made in the Change in Control
Agreement, which are intended to survive the termination of Employee&#146;s employment with the Company.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>3.<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>It is understood by Employee and the Company that the foregoing promises are essential to this Agreement,
and that, but for the agreement of Employee to comply with Section 2 of this Agreement, this Agreement
would not have been entered into by the parties. Breach of any of the promises as set forth in Section
2 of this agreement shall be a material and substantial breach of this Agreement. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>4.<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>Employee agrees that a breach of this Agreement would result in irreparable and continuing damage to
the Company. In the event of a breach of any provision of this Agreement by Employee, the Company
shall be entitled to immediately pursue any and all remedies it may have against Employee in a court
of competent jurisdiction by specific performance, injunction, or such other remedies and relief
as may be available. It is agreed that in the event of any litigation or proceeding under this Agreement
(other than an action challenging the validity of this Agreement&nbsp;under the Older Workers Benefit
Protection Act), the prevailing party shall be entitled to all costs and expenses incurred in such
litigation or proceeding, including reasonable attorney&#146;s fees.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>5.<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>Any waiver by Employee or the Company of a breach of any provision of this Agreement shall not be construed
to be a waiver of any other breach of any provision of this Agreement. The failure of Employee or
the Company to insist upon strict adherence to any term of this Agreement shall not constitute a
waiver by such party to require at some </FONT></TD></TR></TABLE>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>11</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>subsequent time strict adherence to such term. To be effective, any waiver must be in writing and signed
by the waiving party.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>6.<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>Neither this Agreement, nor anything contained herein, shall be construed as an admission or concession
by the Company or by Employee of any liability, unlawful conduct, or wrongdoing whatsoever.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>7.<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>This Agreement shall be binding upon any heirs, successors or assigns of Employee and the Company.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>8.<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>This Agreement, together with the Change in Control Agreement, contains the complete, full, and exclusive
understanding of Employee and the Company and supersedes any and all other oral or written agreements
between them. This Agreement supersedes and renders null and void any previous employment contracts,
whether written or oral, between Employee and the Company, except that Change in Control Agreement
which is intended to survive the execution of this Agreement. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>9.<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>Any amendments, additions, or supplements to this Agreement shall be effective and binding on Employee
and the Company only if any such amendments, additions, or supplements are in writing and signed
by both parties.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>10.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>If any provision of this Agreement is invalid, illegal or unenforceable, it shall not affect the other
provisions of this Agreement, which shall remain in effect. This Agreement shall be construed in
all respects as if such invalid or unenforceable provision was omitted.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>11.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>This Agreement shall be governed by the laws of the State of Florida, and venue of any action brought
under this Agreement shall be exclusively in Broward County, Florida. Any trial/hearing/proceeding
under this Agreement shall be heard by a JUDGE WITHOUT A JURY. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>12.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>Employee&nbsp;acknowledges that he received a copy of this Agreement at least twenty-one (21) days
before the date on which he signs such Agreement and that he has had the opportunity to consider
the terms of this Agreement for at least twenty-one (21) days.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>13.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>&nbsp;Employee has been given the opportunity to negotiate with respect to the terms of this Agreement.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>14.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>Employee is advised to consult with an attorney prior to signing this Agreement.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>15.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>For a period of seven (7) days following the date Employee signs this Agreement, which signing shall
occur on the closing date of the Merger, Employee may revoke this Agreement by providing written
notice of revocation to the Director of Human Resources of the Company, to be received by him/her
not later than the end of the seven (7) day period.</FONT></TD></TR></TABLE>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>12</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>16.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>This Agreement shall become effective and enforceable upon expiration of the seven (7) day revocation
period unless this Agreement is timely revoked by Employee. The &#147;Effective Date&#148; of this
Agreement shall be the eighth day following the signing of this Agreement by Employee. Nothing in
this Agreement waives any rights or claims arising after the Effective Date of this Agreement.</FONT></TD></TR></TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2>BOTH PARTIES, HAVING HAD A FULL OPPORTUNITY TO REVIEW THE FOREGOING, AND BOTH PARTIES, BEING IN COMPLETE
AND FULL AGREEMENT AS TO THE TERMS OF THIS AGREEMENT, HAVE VOLUNTARILY SIGNED THIS AGREEMENT.</FONT></P>

<P><FONT face="Times New Roman, Times, Serif" size=2>EMPLOYEE&nbsp;</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="35%"><font size="2" face="Times New Roman, Times, serif">______________________________</font></td>
    <td width="8%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="5%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="35%"><font size="2" face="Times New Roman, Times, serif">______________________________</font></td>
    <td width="10%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, serif" size=2>Name</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>By:</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>Title:</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">______________________________</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">______________________________</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, serif" size=2>Date</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>Date</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">______________________________</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">______________________________</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, serif" size=2>Witness</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>Witness</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, serif" size=2>ATTEST:</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="3"><FONT face="Times New Roman, Times, serif" size=2>CORRECTIONAL SERVICES CORPORATION</FONT></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="3"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">________________________</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="3"><FONT face="Times New Roman, Times, serif" size=2>By:________________________</FONT></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, serif" size=2>Name:</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="3"><FONT face="Times New Roman, Times, serif" size=2>Name:</FONT></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, serif" size=2>Title:</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="3"><FONT face="Times New Roman, Times, serif" size=2>Title:</FONT></td>
  </tr>
</table>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>13</FONT></P>
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<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>7
<FILENAME>ex99-1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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<TABLE width="100%"  border="0" cellspacing="0" cellpadding="0">
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
<TD width="78%"><FONT face="Arial">&nbsp;</FONT></TD>
<TD width="22%"><P><FONT face="Arial" size=2><I><B>NEWS</B></I></FONT></P>
</TD>
</TR>
<TR>
<TD><FONT face="Arial">&nbsp;</FONT></TD>
<TD><FONT face="Arial">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT face="Arial">&nbsp;</FONT></TD>
<TD><FONT face="Arial" size=2><I>COMPANY CONTACT:</I></FONT></TD>
</TR>
<TR>
<TD><FONT face="Arial">&nbsp;</FONT></TD>
<TD nowrap><FONT face="Arial" size=2><I>Bernard A. &#147;Skip&#148; Wagner&nbsp;&nbsp;</I></FONT></TD>
</TR>
<TR>
<TD><FONT face="Arial" size=2>July 14, 2005</FONT></TD>
<TD><FONT face="Arial" size=2><I>Chief Financial Officer</I></FONT></TD>
</TR>
<TR>
<TD><FONT face="Arial">&nbsp;</FONT></TD>
<TD><FONT face="Arial" size=2>(941) 953-9199</FONT></TD>
</TR>
</TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><FONT face="Arial">For Immediate Release<br>
</FONT></B></FONT></P>
<P align=center><FONT face="Arial" size=2><B>CORRECTIONAL SERVICES CORPORATION ENTERS AGREEMENT TO BE <BR>
ACQUIRED BY THE GEO GROUP, INC.</B></FONT></P>
<P align=left><FONT face="Arial" size=2>Sarasota, Florida &#151; Correctional Services Corporation (NASDAQ NMS:CSCQ) today announced the signing
of a definitive merger agreement by which CSC will be acquired by The GEO Group, Inc. (NYSE:GGI).</FONT></P>
<P><FONT face="Arial" size=2>Under the terms of the definitive agreement approved by the boards of directors of both GEO and CSC,
GEO will acquire all outstanding shares of CSC, with CSC stockholders receiving $6.00 in cash per
common share, or approximately $62 million in the aggregate, and GEO will assume approximately $124
million in CSC debt. The closing of the acquisition, which is subject to the approval of CSC&#146;s
stockholders and federal regulatory agencies as well as to other customary conditions, is targeted
for the beginning of the fourth quarter of 2005.</FONT></P>
<P><FONT face="Arial" size=2>James Slattery, President and Chief Executive Officer of CSC, commented, &#147;We appreciate the long-term
support of our stockholders and are pleased with this opportunity to realize enhanced stockholder
value at $6.00 per share.&#148; </FONT></P>
<P><FONT face="Arial" size=2>Stuart Gerson, Chairman of the Board of Directors of CSC, added, &#147;The Special Committee of CSC&#146;s
Board of Directors worked very hard to realize value for the company&#146;s stockholders at a level
that did not appear attainable by CSC in the near term.&#148;</FONT></P>
<P><FONT face="Arial" size=2>Jefferies &amp; Company, Inc. served as financial advisor to CSC and Epstein Becker &amp; Green, P.C.
served as legal counsel to CSC.</FONT></P>
<P align=left><FONT face="Arial" size=2><U><B><FONT size="1">SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995<br>
</FONT></B></U></FONT><FONT face="Arial" size=1>Certain statements contained in this press release are not historical but are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These include statements regarding the expectations,
beliefs, intentions or strategies regarding the future. The Company intends that all forward-looking
statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements reflect the Company&#146;s views as of the date they are
made with respect to future events and financial performance, but are subject to many uncertainties
and risks which could cause the actual results of the Company to differ materially from any future
results expressed or implied by such forward-looking statements. Examples of such uncertainties and
risks include, but are not limited to: GEO&#146;s ability to consummate the acquisition; fluctuations
in occupancy </FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always"><PAGE>
<P align=left><FONT face="Arial" size=1>levels and labor costs; the ability to secure both new contracts and the renewal of existing contracts;
the possibility of unforeseen costs relating to facility closings, the ability to achieve profitability
and public resistance to privatization; ability to obtain construction financing; and ability to
complete new construction projects within budgeted amounts. Additional risk factors include those
discussed in reports filed by the Company from time to time on Forms 10-K, 10-Q and 8-K. The Company
does not undertake any obligation to update any forward-looking statements.</FONT></P>
<P align=center><FONT face="Arial" size=1>*&nbsp;&nbsp; *&nbsp;&nbsp; *</FONT></P>
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