<SUBMISSION>
<ACCESSION-NUMBER>0001104659-04-038618
<TYPE>SC 13D/A
<PUBLIC-DOCUMENT-COUNT>3
<FILING-DATE>20041207
<DATE-OF-FILING-DATE-CHANGE>20041207
<SUBJECT-COMPANY>
<COMPANY-DATA>
<CONFORMED-NAME>ACCUIMAGE DIAGNOSTICS CORP
<CIK>0001089799
<ASSIGNED-SIC>7371
<IRS-NUMBER>330713615
<STATE-OF-INCORPORATION>NV
<FISCAL-YEAR-END>0930
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC 13D/A
<ACT>34
<FILE-NUMBER>005-79375
<FILM-NUMBER>041188110
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>501 GRANDVIEW DRIVE
<STREET2>STE 100
<CITY>SOUTH SAN FRANCISCO
<STATE>CA
<ZIP>94080
<PHONE>6508750192
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>501 GRANDVIEW DRIVE
<STREET2>STE 100
<CITY>SOUTH SAN FRANCISCO
<STATE>CA
<ZIP>94080
</MAIL-ADDRESS>
</SUBJECT-COMPANY>
<FILED-BY>
<COMPANY-DATA>
<CONFORMED-NAME>FALIKS AVIEL
<CIK>0001271966
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC 13D/A
</FILING-VALUES>
<MAIL-ADDRESS>
<STREET1>101 SUMMERS ST
<STREET2>APT 414
<CITY>STAMFORD
<STATE>CT
<ZIP>06901
</MAIL-ADDRESS>
</FILED-BY>
<DOCUMENT>
<TYPE>SC 13D/A
<SEQUENCE>1
<FILENAME>a04-14465_1sc13da.htm
<DESCRIPTION>SC 13D/A
<TEXT>
<html>

<head>





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

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  <p align="center" style="margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">UNITED STATES</font></b></p>
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  <p align="center" style="margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p align="center" style="margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">SECURITIES AND EXCHANGE<br>
  COMMISSION</font></b></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt .7pt .7pt;width:15.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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 </tr>
 <tr>
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  <p align="center" style="margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="64%" valign="top" style="padding:0in .7pt .7pt .7pt;width:64.58%;">
  <p align="center" style="margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Washington, D.C. 20549</font></p>
  </td>
  <td width="15%" valign="bottom" style="padding:0in .7pt .7pt .7pt;width:15.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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 </tr>
 <tr>
  <td width="20%" valign="top" style="padding:0in .7pt .7pt .7pt;width:20.0%;">
  <p align="center" style="margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="64%" valign="top" style="padding:0in .7pt .7pt .7pt;width:64.58%;">
  <p align="center" style="margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="bottom" style="padding:0in .7pt .7pt .7pt;width:15.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="top" style="padding:0in .7pt .7pt .7pt;width:20.0%;">
  <p align="center" style="margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="64%" valign="top" style="padding:0in .7pt .7pt .7pt;width:64.58%;">
  <p align="center" style="margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">SCHEDULE 13D</font></b></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt .7pt .7pt;width:15.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<h4 align="center" style="font-family:Times New Roman;font-size:10.0pt;font-weight:bold;margin-left:0in;margin-right:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">Under
the Securities Exchange Act of 1934 </font><br>
</font></b>(Amendment No. 2)*</h4>

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

<p align="center" style="border:none;margin:0in 0in .0001pt;padding:0in;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ACCUIMAGE DIAGNOSTICS CORP.</font></b></p>

</div>

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

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

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

<p align="center" style="border:none;margin:0in 0in .0001pt;padding:0in;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Common Stock</font></b></p>

</div>

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

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

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

<p align="center" style="border:none;margin:0in 0in .0001pt;padding:0in;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">004381109</font></b></p>

</div>

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

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

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

<p align="center" style="border:none;margin:0in 0in .0001pt;padding:0in;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Aviel Faliks</font></b></p>

<p align="center" style="border:none;margin:0in 0in .0001pt;padding:0in;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">24 Rozmus Court<br>
Allendale, N.J. 07401</font></b></p>

</div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Name,
Address and Telephone Number of Person<br>
Authorized to Receive Notices and Communications)</font></p>

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

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

<p align="center" style="border:none;margin:0in 0in .0001pt;padding:0in;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">November 24, 2004</font></b></p>

</div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Date
of Event which Requires Filing of this Statement)<br><br></font></p>

<p style="font-size:10.0pt;margin:0in .5in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the filing person has
previously filed a statement on Schedule 13G to report the acquisition that is
the subject of this Schedule 13D, and is filing this schedule because of
&#167;&#167;240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. </font><font face="Wingdings">o</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:5.0pt .5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Note</font></b>: Schedules filed in paper format shall
include a signed original and five copies of the schedule, including all
exhibits. See &#167;240.13d-7 for other parties to whom copies are to be sent. </p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:5.0pt .5in;"><sup><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font></sup> The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page. </p>

<p style="margin:0in .5in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The information required on
the remainder of this cover page shall not be deemed to be &quot;filed&quot;
for the purpose of Section 18 of the Securities Exchange Act of 1934
(&quot;Act&quot;) or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).</font></p>

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>


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

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

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="100%" colspan="6" style="border:none;border-bottom:solid windowtext 1.0pt;padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="font-size:10.0pt;margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">CUSIP
  No.&nbsp; </font>&nbsp;004381109</p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="6" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:3.32%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:5.58%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font></p>
  </td>
  <td width="91%" colspan="4" style="border:none;border-bottom:solid windowtext 1.0pt;padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Names of Reporting
  Persons. I.R.S. Identification Nos. of above persons (entities only)<br>
  Aviel Faliks</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="6" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:3.32%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:5.58%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font></p>
  </td>
  <td width="91%" colspan="4" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check
  the Appropriate Box if a Member of a Group (See Instructions)</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:3.32%;">
  <p style="margin:4.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:5.58%;">
  <p style="margin:4.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" colspan="3" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.36%;">
  <p style="margin:4.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font></p>
  </td>
  <td width="82%" style="border:none;border-bottom:solid windowtext 1.0pt;padding:3.0pt 3.0pt 3.0pt 3.0pt;width:82.74%;">
  <p style="font-size:10.0pt;margin:4.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font><font face="Wingdings">o</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:3.32%;">
  <p style="margin:4.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:5.58%;">
  <p style="margin:4.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" colspan="3" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.36%;">
  <p style="margin:4.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font></p>
  </td>
  <td width="82%" style="border:none;border-bottom:solid windowtext 1.0pt;padding:3.0pt 3.0pt 3.0pt 3.0pt;width:82.74%;">
  <p style="font-size:10.0pt;margin:4.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font><font face="Wingdings">&#253;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="6" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:3.32%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:5.58%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font></p>
  </td>
  <td width="91%" colspan="4" style="border:none;border-bottom:solid windowtext 1.0pt;padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SEC
  Use Only </font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="6" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:3.32%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:5.58%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font></p>
  </td>
  <td width="91%" colspan="4" style="border:none;border-bottom:solid windowtext 1.0pt;padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Source
  of Funds (See Instructions)<br>
  PF</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="6" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:3.32%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:5.58%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font></p>
  </td>
  <td width="91%" colspan="4" style="border:none;border-bottom:solid windowtext 1.0pt;padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="font-size:10.0pt;margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check if Disclosure of
  Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)&nbsp; </font>&nbsp;&nbsp;&nbsp;<font face="Wingdings">o</font><br>
  N/A</p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="6" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:3.32%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:5.58%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.</font></p>
  </td>
  <td width="91%" colspan="4" style="border:none;border-bottom:solid windowtext 1.0pt;padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Citizenship or Place of
  Organization<br>
  US Citizen</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="6" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="12%" colspan="3" rowspan="7" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:12.04%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Number of<br>
  Shares<br>
  Beneficially<br>
  Owned by<br>
  Each<br>
  Reporting<br>
  Person With</font></p>
  </td>
  <td width="4%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:4.46%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.</font></p>
  </td>
  <td width="83%" colspan="2" style="border:none;border-bottom:solid windowtext 1.0pt;padding:3.0pt 3.0pt 3.0pt 3.0pt;width:83.5%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Sole
  Voting Power <br>
  0</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="87%" colspan="3" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:87.96%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="4%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:4.46%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.</font></p>
  </td>
  <td width="83%" colspan="2" style="border:none;border-bottom:solid windowtext 1.0pt;padding:3.0pt 3.0pt 3.0pt 3.0pt;width:83.5%;">
  <p style="font-size:10.0pt;margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Shared
  Voting Power</font>&nbsp;<br>
  34,050,000</p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="87%" colspan="3" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:87.96%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="4%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:4.46%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.</font></p>
  </td>
  <td width="83%" colspan="2" style="border:none;border-bottom:solid windowtext 1.0pt;padding:3.0pt 3.0pt 3.0pt 3.0pt;width:83.5%;">
  <p style="font-size:10.0pt;margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Sole
  Dispositive Power</font>&nbsp;<br>
  0</p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="87%" colspan="3" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:87.96%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="4%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:4.46%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.</font></p>
  </td>
  <td width="83%" colspan="2" style="border:none;border-bottom:solid windowtext 1.0pt;padding:3.0pt 3.0pt 3.0pt 3.0pt;width:83.5%;">
  <p style="font-size:10.0pt;margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Shared Dispositive Power</font>&nbsp;<br>
  34,050,000</p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="6" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:3.32%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:5.58%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.</font></p>
  </td>
  <td width="91%" colspan="4" style="border:none;border-bottom:solid windowtext 1.0pt;padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="font-size:10.0pt;margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Aggregate
  Amount Beneficially Owned by Each Reporting Person</font>&nbsp;<br>
  34,050,000 shares</p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="6" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:3.32%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:5.58%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.</font></p>
  </td>
  <td width="91%" colspan="4" style="border:none;border-bottom:solid windowtext 1.0pt;padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="font-size:10.0pt;margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check
  if the Aggregate Amount in Row (11) Excludes Certain Shares (See
  Instructions)</font>&nbsp;&nbsp; <font face="Wingdings">o</font><br>
  N/A</p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="6" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:3.32%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:5.58%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.</font></p>
  </td>
  <td width="91%" colspan="4" style="border:none;border-bottom:solid windowtext 1.0pt;padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="font-size:10.0pt;margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Percent
  of Class Represented by Amount in Row (11)</font>&nbsp;<br>
  59.4%*</p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="6" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:3.32%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:5.58%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.</font></p>
  </td>
  <td width="91%" colspan="4" style="border:none;border-bottom:solid windowtext 1.0pt;padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="font-size:10.0pt;margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Type
  of Reporting Person (See Instructions)</font><br>
  IN</p>
  </td>
 </tr>
 <tr height="0">
  <td width="25" style="border:none;"></td>
  <td width="42" style="border:none;"></td>
  <td width="23" style="border:none;"></td>
  <td width="33" style="border:none;"></td>
  <td width="6" style="border:none;"></td>
  <td width="619" style="border:none;"></td>
 </tr>
</table>

</div>

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

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

</font></div>

<p style="margin:0in 0in .0001pt .1in;text-indent:-.1in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*
Based on 57,336,295 shares of AccuImage common Stock outstanding as of November
24, 2004, as represented by AccuImage in the Merger Agreement discussed in Item
4 below.</font></p>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>


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


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

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="8%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p style="margin:4.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 1.</font></b></p>
  </td>
  <td width="91%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Security and Issuer</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="8%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p style="margin:4.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="91%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Statement relates
  to the common stock, no par value (the &#147;<b><font style="font-weight:bold;">Common
  Stock</font></b>&#148;), of AccuImage Diagnostics Corp. (the &#147;<b><font style="font-weight:bold;">Company</font></b>&#148; or &#147;<b><font style="font-weight:bold;">AccuImage</font></b>&#148;), whose offices are located at 400 Oyster Point
  Boulevard, Suite 201, South San Francisco, California 94080.</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p style="margin:4.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="91%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p style="margin:4.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 2.</font></b></p>
  </td>
  <td width="91%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Identity and Background</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p align="center" style="margin:4.0pt 0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font></p>
  </td>
  <td width="91%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in 4.0pt 19.45pt;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Aviel Faliks</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p align="center" style="margin:4.0pt 0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font></p>
  </td>
  <td width="91%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in 4.0pt 19.45pt;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24 Rozmus Court,
  Allendale, N.J. 07401</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p align="center" style="margin:4.0pt 0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font></p>
  </td>
  <td width="91%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in 4.0pt 19.45pt;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Employer: A-Squared
  Management, LLC; Financial Management; Research Analyst</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p align="center" style="margin:4.0pt 0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font></p>
  </td>
  <td width="91%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the last five years, Mr. Faliks has not
  been convicted in any criminal proceeding (excluding traffic violations or
  similar misdemeanors).</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p align="center" style="margin:4.0pt 0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font></p>
  </td>
  <td width="91%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the last five years, Mr. Faliks has not
  been a party to a civil proceeding of a judicial or administrative body of
  competent jurisdiction resulting in his being subject to a judgment, decree
  or final order enjoining future violations of, or prohibiting or mandating
  activities subject to, federal or state securities laws or finding any
  violation with respect to such laws. </font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p align="center" style="margin:4.0pt 0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font></p>
  </td>
  <td width="91%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in 4.0pt 19.45pt;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. Faliks is a citizen of
  the United States.</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p align="center" style="margin:4.0pt 0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="91%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in 4.0pt 19.45pt;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p style="margin:4.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 3.</font></b></p>
  </td>
  <td width="91%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Source and Amount of Funds or Other
  Consideration</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="8%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p style="margin:4.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="91%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Not Applicable</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p style="margin:4.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="91%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="8%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p style="margin:4.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 4.</font></b></p>
  </td>
  <td width="91%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Purpose of Transaction</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin-left:0in;margin-right:0in;margin-top:6.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the Merger
  Agreement, dated as of November 24, 2004 (the &#147;<b><font style="font-weight:bold;">Merger
  Agreement</font></b>&#148;), by and among Merge Technologies Incorporated (&#147;<b><font style="font-weight:bold;">Merge</font></b>&#148;), ADI Acquisition Corp. (&#147;<b><font style="font-weight:bold;">Acquisition
  Sub</font></b>&#148;), AccuImage and Aviel Faliks, Merge will acquire AccuImage by
  means of the merger of a wholly owned subsidiary of Merge, Acquisition Sub,
  with and into AccuImage (the &#147;<b><font style="font-weight:bold;">Merger</font></b>&#148;).&nbsp; As a result of the Merger, AccuImage will
  become a wholly owned subsidiary of Merge.</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin-left:0in;margin-right:0in;margin-top:6.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under the Merger
  Agreement, at the effective time, each share of AccuImmage Common Stock
  issued and outstanding immediately prior to the effective time, with the
  exception of certain excluded shares, will be converted into the right to
  receive the proportionate share of Six Million Dollars ($6,000,000).&nbsp; Based on the 57,336,295 shares of
  AccuImmage Common Stock outstanding as of November 24, 2004, as represented
  by AccuImage in the Merger Agreement, the total consideration Merge will pay
  each AccuImage shareholder is $0.01 per share of AccuImage Common Stock in
  cash.&nbsp; </font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin-left:0in;margin-right:0in;margin-top:6.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As an inducement for Merge
  to enter into the Merger and in consideration thereof, Mr. Faliks, the
  principal shareholder of AccuImage, entered into a Voting, Proxy and Option
  Agreement with Merge, dated as of November 24, 2004 (the &#147;<b><font style="font-weight:bold;">Voting Agreement</font></b>&#148;) and is more fully described in Item
  6.&nbsp; Mr. Faliks beneficially own
  approximately 59.4% of AccuImage Common Stock, and is also Chairman,
  director, President and Chief Executive Officer of AccuImage. </font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin-left:0in;margin-right:0in;margin-top:6.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the Voting
  Agreement, Mr. Faliks has agreed the he will not, and will not permit any of
  his affiliates, attorneys, representatives or agents to, directly or
  indirectly, (i) discuss, negotiate, undertake, authorize, recommend, propose
  or enter into any transaction involving a merger, consolidation or business
  combination involving AccuImage or any of its subsidiaries or any purchase or
  disposition of any amount of the assets of AccuImage or any of its
  subsidiaries outside the ordinary course of business or (ii) any purchase or
  disposition of any capital stock of AccuImage or any of its subsidiaries in
  each case other than the transactions contemplated by the Merger Agreement
  (an &#147;<b><font style="font-weight:bold;">Alternative Transaction</font></b>&#148;), (iii)
  facilitate, encourage, solicit or initiate discussions, negotiations or
  submissions of proposals or offers in respect of an Alternative Transaction,
  (iv) furnish or cause to be furnished, to any person, any information
  concerning the business, operations, properties or assets of the AccuImage in
  connection with an Alternative Transaction, or (v) otherwise cooperate in any
  way with, or assist or participate in, facilitate or encourage, any effort or
  attempt by any other person to do or seek any of the foregoing.&nbsp; </font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin-left:0in;margin-right:0in;margin-top:6.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. Faliks further agreed
  to (i) notify Merge orally and in writing promptly within twenty-four (24)
  hours after receipt of any proposal or offer to effect an Alternative
  Transaction or any request for non-public information relating to AccuImage
  or any of its subsidiaries or for access to the properties, books or records
  of AccuImage or any subsidiary by any person other than Merge, and (ii) keep
  Merge informed, on a current basis, of any material changes in the status and
  any material changes or modifications in the material terms of any such
  proposal, offer, indication or request.&nbsp;
  Mr. Faliks also agreed to (and to cause his representatives to) (i)
  immediately cease and cause to be terminated any existing discussions or
  negotiations conducted heretofore with respect to any of the foregoing, and
  (ii) refrain from releasing any third party from the confidentiality and
  standstill provisions of any agreement relating to AccuImage or any of its
  subsidiaries.</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin-left:0in;margin-right:0in;margin-top:6.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, Mr. Faliks
  has agreed to vote that number of AccuImage Common Stock held of record and
  beneficially owned by him (the &#147;<b><font style="font-weight:bold;">Shares</font></b>&#148;) or
  execute a written consent in respect thereof (i) for approval and adoption of
  the Merger Agreement and the transactions contemplated by the Merger&nbsp; Agreement, as applicable, at any meeting or
  meetings of the shareholders of the Company at which the Merger&nbsp; Agreement or the transactions contemplated
  thereunder are submitted for the vote of such Shareholder or in any written
  consent in respect thereof, (ii) against any Alternative Transaction, without
  regard to any board of directors recommendation to shareholders concerning
  such Alternative Transaction, and without regard to the terms of such
  Alternative Transaction, (iii) against any agreement, amendment of any
  agreement, or any other action that is intended or could reasonably be
  expected to prevent, impede, interfere with, delay, postpone, or discourage
  the transactions contemplated by the Merger&nbsp;
  Agreement, other than those specifically permitted by the Voting
  Agreement or the Merger&nbsp; Agreement, or
  (iv) against any action, agreement, transaction or proposal that would result
  in a breach of any representation, warranty, covenant, agreement or other
  obligation of the Company in the Merger&nbsp;
  Agreement.&nbsp;&nbsp; </font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin-left:0in;margin-right:0in;margin-top:6.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the Voting Agreement,
  Mr. Faliks, without the prior written consent of Merge, may not, directly or
  indirectly, sell, offer to sell, give, pledge, encumber, assign, grant any
  option for the sale of or otherwise transfer or dispose of, or enter into any
  agreement, arrangement or understanding to sell, any Shares.&nbsp; The Mr.&nbsp;Faliks irrevocably appointed
  Merge or its designee as Mr. Faliks&#146; agent, attorney and proxy, to vote (or
  cause to be voted) the Shares owned by him in favor of approval of the Merger
  Agreement and the transactions contemplated by the Merger Agreement, as
  applicable.&nbsp; If Mr. Faliks fails for
  any reason to vote the Shares in accordance with the requirements of the
  Voting Agreement, then Merge or its designee will have the right to vote the
  Shares in accordance with the Voting Agreement.&nbsp; Under the Voting Agreement, the vote of the
  proxyholder will control in any conflict between the vote by the proxyholder
  of the Shares and a vote by Mr. Faliks of the Shares.&nbsp; The Voting Agreement expressly prohibits
  Mr. Faliks from entering into any agreement, contract or understanding prior
  to the termination of the Merger Agreement directly or indirectly to vote,
  grant a proxy or power of attorney or give instructions with respect to the
  voting of the Shares in any manner which is inconsistent with the Voting
  Agreement. The Voting Agreement applies to any AccuImage Common Stock
  acquired by Mr. Faliks after the date of the Voting Agreement.</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin-left:0in;margin-right:0in;margin-top:6.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under the Voting
  Agreement, Mr. Faliks granted to Merge an option to purchase all, but not
  fewer than all, of the Shares, exercisable for a period of two years from the
  date of termination of the Merger Agreement, at an amount for each Share
  equal to ninety-five percent (95%) of the consideration that would have been
  paid per share under the Merger Agreement.&nbsp;
  The option is exercisable only if the Merger Agreement is terminated
  pursuant to certain designated provisions of the Merger Agreement.&nbsp; The option may be exercised by Merge upon
  notification to Mr. Faliks in accordance with the notice provision of the
  Voting Agreement.</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin-left:0in;margin-right:0in;margin-top:6.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Voting Agreement and
  all obligations thereunder other than the option described in the following
  terminate upon the termination of the Merger Agreement.&nbsp; </font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin-left:0in;margin-right:0in;margin-top:6.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Following the effective
  time of the Merger, (i) the articles of incorporation and bylaws of
  Acquisition Sub will be the articles of incorporation and bylaws of AccuImage
  as in effect immediately prior to the effective time, (ii) the directors and
  officers of Acquisition Sub at the effective time will be the directors and
  officers of AccuImage, and (iii) it is contemplated that AccuImage Common
  Stock will become eligible for termination of registration pursuant to
  Section 12(g)(4) of the Securities Exchange Act of 1934, as amended (the &#147;<b><font style="font-weight:bold;">Exchange Act</font></b>&#148;). </font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:100.0%;">
  <p style="margin-left:0in;margin-right:0in;margin-top:6.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">References to, and
  descriptions of, the Merger, the Merger Agreement and the Voting Agreement
  throughout this Schedule 13D are qualified in their entirety by reference to
  the Merger Agreement, in the form of Exhibit A, and the Voting Agreement in
  the form of Exhibit B to this Schedule 13D.&nbsp;
  The agreements are incorporated into this Schedule 13D where such
  references and descriptions appear. </font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="91%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in 4.0pt 19.45pt;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p style="margin:4.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 5.</font></b></p>
  </td>
  <td width="91%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Interest in Securities of the
  Issuer</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p align="center" style="margin:4.0pt 0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font></p>
  </td>
  <td width="91%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. Faliks individually beneficially owns
  34,050,000 shares of the Company&#146;s Common Stock (approximately 59.4% of the
  shares of the Company&#146;s Common Stock).&nbsp;
  The foregoing percentage is calculated based upon 57,336,295 shares of
  Common Stock outstanding.&nbsp; </font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p align="center" style="margin:4.0pt 0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font></p>
  </td>
  <td width="91%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. Faliks has the sole voting and dispositive
  power with respect to 34,050,000 shares except with respect to the vote
  relating to the Merger and the option granted to Merge under the Voting
  Agreement, in each case as described in Item 4. </font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p align="center" style="margin:4.0pt 0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font></p>
  </td>
  <td width="91%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Not Applicable.</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p align="center" style="margin:4.0pt 0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font></p>
  </td>
  <td width="91%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Not Applicable.</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p align="center" style="margin:4.0pt 0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font></p>
  </td>
  <td width="91%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Not Applicable.</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p align="center" style="margin:4.0pt 0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="91%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p style="margin:4.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 6.</font></b></p>
  </td>
  <td width="91%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Contracts, Arrangements,
  Understandings or Relationships with Respect to Securities of the Issuer</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p style="margin:4.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="91%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Items 3, 4, and 5 of
  this Schedule 13D are incorporated herein by reference. </font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p style="margin:4.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="91%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:8.9%;">
  <p style="margin:4.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 7.</font></b></p>
  </td>
  <td width="91%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:91.1%;">
  <p style="margin:4.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Material to Be Filed as Exhibits</font></b></p>
  </td>
 </tr>
</table>

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

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="9%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:9.9%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit A</font></p>
  </td>
  <td width="90%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:90.1%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Merger Agreement, dated
  as of November 24, 2004, by and among Merge Technologies Incorporated, ADI
  Acquisition Corp., AccuImage Diagnostics Corporation, and Aviel Faliks.</font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" valign="top" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:9.9%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit B</font></p>
  </td>
  <td width="90%" style="padding:3.0pt 3.0pt 3.0pt 3.0pt;width:90.1%;">
  <p style="margin:4.0pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form of Voting, Proxy
  and Option Agreement, between Merge Technologies Incorporated and Aviel
  Faliks.</font></p>
  </td>
 </tr>
</table>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>


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

<h3 align="center" style="font-weight:bold;margin-left:0in;margin-right:0in;text-align:center;"><b><font size="4" face="Times New Roman" style="font-size:13.5pt;">Signature</font></b></h3>

<p style="margin-left:0in;margin-right:0in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">After reasonable inquiry and
to the best of my knowledge and belief, I certify that the information set
forth in this statement is true, complete and correct. </font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:50.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">December
  6, 2004</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:50.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:50.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><br>
  /s/ Aviel Faliks</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin-left:0in;margin-right:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p align="center" style="margin-left:0in;margin-right:0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Signature</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:50.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><br>
  Aviel Faliks</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name/Title</font></p>
  </td>
 </tr>
</table>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>


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

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

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

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

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
  <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Merger Agreement, dated as of November 24,
  2004, by and among Merge Technologies Incorporated, ADI Acquisition Corp.,
  AccuImage Diagnostics Corporation, and Aviel Faliks</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign="top" style="padding:0in .7pt 0in .7pt;width:10.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.2</font></p>
  </td>
  <td width="89%" valign="top" style="padding:0in .7pt 0in .7pt;width:89.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form of Voting, Proxy and Option Agreement,
  between Merge Technologies Incorporated and Aviel Faliks</font></p>
  </td>
 </tr>
</table>

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

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

</div>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a04-14465_1ex99d1.htm
<DESCRIPTION>EX-99.1
<TEXT>
<html>

<head>





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<body lang="EN-US" link="blue" vlink="purple">

<div>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 99.1</font></b></p>

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

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

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

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

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

</div>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">MERGER
AGREEMENT <br>
<br>
BY AND AMONG <br>
<br>
MERGE TECHNOLOGIES INCORPORATED, <br>
<br>
ADI ACQUISITION CORP., <br>
<br>
ACCUIMAGE DIAGNOSTICS CORP. <br>
<br>
AND <br>
<br>
THE PRINCIPAL SHAREHOLDER OF ACCUIMAGE DIAGNOSTICS CORPORATION<br>
NOVEMBER&nbsp;24, 2004</font></b></p>

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

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

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

</div>

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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


<div>

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

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

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

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="95%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:95.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Recitals" title="Click to goto RECITALS">RECITALS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="95%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:95.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section1_Definitions" title="Click to goto SECTION 1. DEFINITIONS">SECTION&nbsp;1. DEFINITIONS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="95%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:95.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section2_TheMergerClosingEffectiv" title="Click to goto SECTION 2. THE MERGER; CLOSING; EFFECTIVE TIME">SECTION&nbsp;2.
  THE MERGER; CLOSING; EFFECTIVE TIME</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A21themerger" title="Click to goto 2.1. THE MERGER.">2.1.
  THE MERGER</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A22closing" title="Click to goto 2.2 CLOSING.">2.2 CLOSING</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A23effectivetime" title="Click to goto 2.3 EFFECTIVE TIME.">2.3
  EFFECTIVE TIME</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A24charterandbylaws" title="Click to goto 2.4 CHARTER AND BYLAWS.">2.4 CHARTER AND BYLAWS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A25directorsandofficers" title="Click to goto 2.5. DIRECTORS AND OFFICERS.">2.5. DIRECTORS AND
  OFFICERS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A26effectofthemergeronshares" title="Click to goto 2.6 EFFECT OF THE MERGER ON SHARES.">2.6 EFFECT OF THE
  MERGER ON SHARES</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A27exchangeofsharesformergerconsid" title="Click to goto 2.7 EXCHANGE OF SHARES FOR MERGER CONSIDERATION.">2.7
  EXCHANGE OF SHARES FOR MERGER CONSIDERATION</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A28adjustmentforclosingbalancesheet" title="Click to goto 2.8 ADJUSTMENT FOR CLOSING BALANCE SHEET.">2.8
  ADJUSTMENT FOR CLOSING BALANCE SHEET</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A29holdback" title="Click to goto 2.9 HOLDBACK.">2.9
  HOLDBACK</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="95%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:95.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section3_RepresentationsAndWarrantie" title="Click to goto SECTION 3. REPRESENTATIONS AND WARRANTIES OF COMPANY AND THE PRINCIPAL SHAREHOLDER">SECTION&nbsp;3.
  REPRESENTATIONS AND WARRANTIES OF COMPANY AND THE PRINCIPAL SHAREHOLDER</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A31organization" title="Click to goto 3.1 ORGANIZATION.">3.1
  ORGANIZATION</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A32authorizationoftransaction" title="Click to goto 3.2 AUTHORIZATION OF TRANSACTION.">3.2 AUTHORIZATION OF
  TRANSACTION</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A33noncontraventionconsents" title="Click to goto 3.3 NONCONTRAVENTION; CONSENTS.">3.3 NONCONTRAVENTION;
  CONSENTS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A34capitalization" title="Click to goto 3.4. CAPITALIZATION.">3.4. CAPITALIZATION</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A35financialstatementssecfilings" title="Click to goto 3.5 FINANCIAL STATEMENTS; SEC FILINGS.">3.5 FINANCIAL
  STATEMENTS; SEC FILINGS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A36undisclosedliabilities" title="Click to goto 3.6 UNDISCLOSED LIABILITIES.">3.6 UNDISCLOSED
  LIABILITIES</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A37subsequentevents" title="Click to goto 3.7 SUBSEQUENT EVENTS.">3.7 SUBSEQUENT EVENTS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A38accountsreceivable" title="Click to goto 3.8 ACCOUNTS RECEIVABLE.">3.8 ACCOUNTS RECEIVABLE</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A39taxmatters" title="Click to goto 3.9 TAX MATTERS.">3.9
  TAX MATTERS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A310contracts" title="Click to goto 3.10 CONTRACTS.">3.10
  CONTRACTS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A311realproperty" title="Click to goto 3.11 REAL PROPERTY.">3.11
  REAL PROPERTY</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A312inventory" title="Click to goto 3.12 INVENTORY.">3.12
  INVENTORY</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A313titleandrelatedmatters" title="Click to goto 3.13 TITLE AND RELATED MATTERS.">3.13 TITLE AND RELATED
  MATTERS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A314intellectualproperty" title="Click to goto 3.14 INTELLECTUAL PROPERTY.">3.14 INTELLECTUAL PROPERTY</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A315litigation" title="Click to goto 3.15 LITIGATION.">3.15
  LITIGATION.</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A316employeebenefits" title="Click to goto 3.16 EMPLOYEE BENEFITS.">3.16 EMPLOYEE BENEFITS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A317laborrelationsemployees" title="Click to goto 3.17 LABOR RELATIONS; EMPLOYEES.">3.17 LABOR RELATIONS;
  EMPLOYEES</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A318environmentalmatters" title="Click to goto 3.18 ENVIRONMENTAL MATTERS.">3.18 ENVIRONMENTAL MATTERS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A319legalcompliance" title="Click to goto 3.19 LEGAL COMPLIANCE.">3.19 LEGAL COMPLIANCE</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A320permits" title="Click to goto 3.20 PERMITS.">3.20
  PERMITS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A321affiliateagreements" title="Click to goto 3.21 AFFILIATE AGREEMENTS">3.21 AFFILIATE AGREEMENTS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A322insurance" title="Click to goto 3.22 INSURANCE.">3.22
  INSURANCE</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A323bankaccountsandpowers" title="Click to goto 3.23 BANK ACCOUNTS AND POWERS.">3.23 BANK ACCOUNTS AND
  POWERS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A324brokersfees" title="Click to goto 3.24 BROKERS&#146; FEES.">3.24
  BROKERS&#146; FEES</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A325certainpayments" title="Click to goto 3.25 CERTAIN PAYMENTS.">3.25 CERTAIN PAYMENTS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A326customerrelationships" title="Click to goto 3.26 CUSTOMER RELATIONSHIPS.">3.26 CUSTOMER
  RELATIONSHIPS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A327vendors" title="Click to goto 3.27 VENDORS.">3.27
  VENDORS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A328boardapproval" title="Click to goto 3.28 BOARD APPROVAL.">3.28 BOARD APPROVAL</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A329booksandrecords" title="Click to goto 3.29 BOOKS AND RECORDS.">3.29 BOOKS AND RECORDS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
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  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A330antitrustlawcompliance" title="Click to goto 3.30 ANTITRUST LAW COMPLIANCE.">3.30 ANTITRUST LAW
  COMPLIANCE</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A331productliability" title="Click to goto 3.31 PRODUCT LIABILITY.">3.31 PRODUCT LIABILITY</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A332fulldisclosure" title="Click to goto 3.32 FULL DISCLOSURE.">3.32 FULL DISCLOSURE</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
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  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A333internalcontroloverfinancialrep" title="Click to goto 3.33 INTERNAL CONTROL OVER FINANCIAL REPORTING.">3.33
  INTERNAL CONTROL OVER FINANCIAL REPORTING</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i</font></p>

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

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

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
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  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A334compliancewithsox" title="Click to goto 3.34 COMPLIANCE WITH SOX.">3.34 COMPLIANCE WITH SOX</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="95%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:95.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section4_RepresentationsAndWarrantie" title="Click to goto SECTION 4. REPRESENTATIONS AND WARRANTIES OF MERGE">SECTION&nbsp;4.
  REPRESENTATIONS AND WARRANTIES OF MERGE</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A41organization" title="Click to goto 4.1 ORGANIZATION.">4.1
  ORGANIZATION</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A42authorizationoftransaction" title="Click to goto 4.2 AUTHORIZATION OF TRANSACTION.">4.2 AUTHORIZATION OF
  TRANSACTION</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A43noncontraventionconsents" title="Click to goto 4.3 NONCONTRAVENTION; CONSENTS.">4.3 NONCONTRAVENTION;
  CONSENTS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="95%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:95.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section5_PreclosingCovenants" title="Click to goto SECTION 5. PRE-CLOSING COVENANTS">SECTION&nbsp;5.
  PRE-CLOSING COVENANTS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A51general" title="Click to goto 5.1 GENERAL.">5.1 GENERAL</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A52noticesandconsents" title="Click to goto 5.2 NOTICES AND CONSENTS.">5.2 NOTICES AND CONSENTS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A53carryoninordinarycourse" title="Click to goto 5.3 CARRY ON IN ORDINARY COURSE.">5.3 CARRY ON IN
  ORDINARY COURSE</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A54nodefault" title="Click to goto 5.4 NO DEFAULT.">5.4 NO
  DEFAULT</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A55fullaccess" title="Click to goto 5.5 FULL ACCESS.">5.5
  FULL ACCESS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A56noticeofdevelopments" title="Click to goto 5.6 NOTICE OF DEVELOPMENTS.">5.6 NOTICE OF DEVELOPMENTS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A57nosolicitationoftransactions" title="Click to goto 5.7 NO SOLICITATION OF TRANSACTIONS.">5.7 NO
  SOLICITATION OF TRANSACTIONS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A58taxmatters" title="Click to goto 5.8 TAX MATTERS.">5.8
  TAX MATTERS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A59newoemcontracts" title="Click to goto 5.9 NEW OEM CONTRACTS.">5.9 NEW OEM CONTRACTS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A510proxystatement" title="Click to goto 5.10 PROXY STATEMENT.">5.10 PROXY STATEMENT</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A511companyshareholdersmeeting" title="Click to goto 5.11 COMPANY SHAREHOLDERS&#146; MEETING.">5.11 COMPANY
  SHAREHOLDERS&#146; MEETING</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A512missingrecords" title="Click to goto 5.12 MISSING RECORDS.">5.12 MISSING RECORDS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="95%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:95.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section6_PostclosingCovenants" title="Click to goto SECTION 6. POST-CLOSING COVENANTS">SECTION&nbsp;6.
  POST-CLOSING COVENANTS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A61general" title="Click to goto 6.1 GENERAL.">6.1 GENERAL</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A62litigationsupport" title="Click to goto 6.2 LITIGATION SUPPORT.">6.2 LITIGATION SUPPORT</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A63agreementsregardingtaxmatters" title="Click to goto 6.3 AGREEMENTS REGARDING TAX MATTERS.">6.3 AGREEMENTS
  REGARDING TAX MATTERS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A64confidentialinformation" title="Click to goto 6.4 CONFIDENTIAL INFORMATION.">6.4 CONFIDENTIAL
  INFORMATION</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A65covenantnottocompetesolicitatio" title="Click to goto 6.5 COVENANT NOT TO COMPETE; SOLICITATION.">6.5 COVENANT
  NOT TO COMPETE; SOLICITATION</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A66paymentofprincipalshareholdersn" title="Click to goto 6.6 PAYMENT OF PRINCIPAL SHAREHOLDER&#146;S NOTE.">6.6
  PAYMENT OF PRINCIPAL SHAREHOLDER&#146;S NOTE</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="95%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:95.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_ClosingConditions" title="Click to goto SECTION 7. CLOSING CONDITIONS">SECTION&nbsp;7. CLOSING
  CONDITIONS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A71conditionstoobligationofmerge" title="Click to goto 7.1 CONDITIONS TO OBLIGATION OF MERGE.">7.1 CONDITIONS
  TO OBLIGATION OF MERGE</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A72conditionstoobligationofthecomp" title="Click to goto 7.2 CONDITIONS TO OBLIGATION OF THE COMPANY AND ITS SHAREHOLDERS.">7.2
  CONDITIONS TO OBLIGATION OF THE COMPANY AND ITS SHAREHOLDERS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="95%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:95.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section8_RemediesForBreachesOfThis" title="Click to goto SECTION 8. REMEDIES FOR BREACHES OF THIS AGREEMENT">SECTION&nbsp;8.
  REMEDIES FOR BREACHES OF THIS AGREEMENT</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A81survival" title="Click to goto 8.1 SURVIVAL">8.1
  SURVIVAL</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A82indemnificationprovisionsforbenef" title="Click to goto 8.2 INDEMNIFICATION PROVISIONS FOR BENEFIT OF MERGE">8.2
  INDEMNIFICATION PROVISIONS FOR BENEFIT OF MERGE</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A83indemnificationprovisionsforbenef" title="Click to goto 8.3 INDEMNIFICATION PROVISIONS FOR BENEFIT OF THE COMPANY">8.3
  INDEMNIFICATION PROVISIONS FOR BENEFIT OF THE COMPANY</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A84indemnificationprocedures" title="Click to goto 8.4 INDEMNIFICATION PROCEDURES">8.4 INDEMNIFICATION
  PROCEDURES</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A85basketcapsolesourcesofindemni" title="Click to goto 8.5 BASKET; CAP; SOLE SOURCES OF INDEMNIFICATION">8.5
  BASKET; CAP; SOLE SOURCES OF INDEMNIFICATION</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A86rightofsetoff" title="Click to goto 8.6 RIGHT OF SET-OFF">8.6
  RIGHT OF SET-OFF</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A87disputeresolution" title="Click to goto 8.7 DISPUTE RESOLUTION">8.7 DISPUTE RESOLUTION</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="95%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:95.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section9_Termination" title="Click to goto SECTION 9. TERMINATION">SECTION&nbsp;9. TERMINATION</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A91termination" title="Click to goto 9.1 TERMINATION">9.1
  TERMINATION</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A92effectoftermination" title="Click to goto 9.2 EFFECT OF TERMINATION.">9.2 EFFECT OF TERMINATION</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="95%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:95.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section10_Miscellaneous" title="Click to goto SECTION 10. MISCELLANEOUS">SECTION&nbsp;10.
  MISCELLANEOUS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A101pressreleasesandannouncements" title="Click to goto 10.1 PRESS RELEASES AND ANNOUNCEMENTS">10.1 PRESS
  RELEASES AND ANNOUNCEMENTS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A102expensestransfertaxes" title="Click to goto 10.2 EXPENSES; TRANSFER TAXES">10.2 EXPENSES; TRANSFER
  TAXES</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A103waiver" title="Click to goto 10.3 WAIVER">10.3 WAIVER</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A104furtherassurances" title="Click to goto 10.4 FURTHER ASSURANCES">10.4 FURTHER ASSURANCES</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A105nothirdpartybeneficiaries" title="Click to goto 10.5 NO THIRD-PARTY BENEFICIARIES">10.5 NO THIRD-PARTY
  BENEFICIARIES</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A106successorsandassigns" title="Click to goto 10.6 SUCCESSORS AND ASSIGNS">10.6 SUCCESSORS AND ASSIGNS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A107severability" title="Click to goto 10.7 SEVERABILITY">10.7
  SEVERABILITY</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A108counterpartsfacsimilesignatures" title="Click to goto 10.8 COUNTERPARTS; FACSIMILE SIGNATURES">10.8
  COUNTERPARTS; FACSIMILE SIGNATURES</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
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  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A109descriptiveheadingsconstruction" title="Click to goto 10.9 DESCRIPTIVE HEADINGS; CONSTRUCTION">10.9
  DESCRIPTIVE HEADINGS; CONSTRUCTION</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
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  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A1010notices" title="Click to goto 10.10 NOTICES">10.10
  NOTICES</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A1011entireagreement" title="Click to goto 10.11 ENTIRE AGREEMENT">10.11 ENTIRE AGREEMENT</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A1012amendments" title="Click to goto 10.12 AMENDMENTS">10.12
  AMENDMENTS</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A1013timeofessence" title="Click to goto 10.13 TIME OF ESSENCE">10.13 TIME OF ESSENCE</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A1014incorporationofexhibitsandsche" title="Click to goto 10.14 INCORPORATION OF EXHIBITS AND SCHEDULES">10.14
  INCORPORATION OF EXHIBITS AND SCHEDULES</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#A1015attorneysfeesgoverninglaw" title="Click to goto 10.15 ATTORNEYS&#146; FEES; GOVERNING LAW">10.15 ATTORNEYS&#146;
  FEES; GOVERNING LAW</a></font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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


<div>

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

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

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

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consulting Agreement</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;A</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Escrow Agreement</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;B</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Items for Opinion of Counsel of Company</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;C</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Items for Opinion of Counsel to Merge</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;D</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SCHEDULES</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subsidiaries and Affiliates</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;3.1</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Liens and Encumbrances; Consents</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;3.3</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Capitalization</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;3.4</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Company Financial Statements</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;3.5</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Undisclosed Liabilities</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;3.6</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Conduct of Business</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;3.7</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accounts Receivable</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;3.8</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tax Matters</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;3.9</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Contracts</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;3.10</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Leases Schedule&nbsp;3.11</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;3.13</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Intellectual Property</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;3.14</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Litigation</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;3.15</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Employee Benefit Plans</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;3.16</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Labor Relations; Employees</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;3.17</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Legal Compliance Schedule&nbsp;3.19</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Permits</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;3.20</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Affiliate Agreements</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;3.21</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Insurance</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;3.22</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bank Accounts</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;3.23</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Customers</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;3.26</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vendors</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;3.27</font></p>
  </td>
 </tr>
 <tr>
  <td width="69%" valign="top" style="padding:0in 0in 0in 0in;width:69.06%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Internal Controls Over Financial Reporting</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule&nbsp;3.33</font></p>
  </td>
 </tr>
</table>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

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

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS MERGER AGREEMENT (the &#147;AGREEMENT&#148;)
is made and entered into as of the 24th day November, 2004 by and among MERGE
TECHNOLOGIES INCORPORATED, a Wisconsin corporation (&#147;MERGE&#148;), ADI ACQUISITION
CORP., a Nevada corporation (&#147;ACQUISITION SUB&#148;), ACCUIMAGE DIAGNOSTICS CORP., a
Nevada corporation (together with its subsidiaries and predecessors, the &#147;COMPANY&#148;),
and AVIEL FALIKS (&#147;PRINCIPAL SHAREHOLDER&#148;).</font></p>

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

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

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Company is presently engaged in the business of development,
marketing and support of software for the visualization, analysis and
management of medical imaging data whose primary function is to enhance
physicians&#146; interpretation of data from medical imaging modalities such as
computed tomography (&#147;CT&#148;), magnetic resonance (&#147;MR&#148;) and ultrasound through
the application of three-dimensional (&#147;3D&#148;) computer graphics and image
processing technologies (collectively the &#147;Business&#148;).</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The respective boards of directors of each of
MERGE, ACQUISITION SUB, and the COMPANY have determined that the merger of
Acquisition Sub with into the Company (the &#147;Merger&#148;) upon the terms and subject
to the conditions set forth in this Agreement is advisable and have approved
the Merger.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">C.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Principal Shareholder owns 34,050,000
Shares of the Company on the date hereof and has entered in a Voting, Proxy and
Option Agreement with Merge on the date hereof (the &#147;Voting Agreement&#148;)
approving the Merger and the transactions contemplated by this Agreement,
subject to the conditions set forth in the Voting Agreement.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">D.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The parties desire to make certain
representations, warranties, covenants and agreements as set forth in this
Agreement.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, in
consideration of the mutual agreements contained herein and for other good and
valuable consideration, the value, receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><a name="Section1_Definitions"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION&nbsp;1.
DEFINITIONS</font></b></a></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For purposes of this
Agreement, the following terms have the meanings set forth below:</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;ACQUISITION PROPOSAL&#148; means
any offer or proposal made by a Person other than Merge or Acquisition Sub
concerning any (a)&nbsp;merger, consolidation, business combination or similar
transaction involving the Company or any subsidiary of the Company pursuant to
which the stockholders of the Company immediately prior to such transaction
would own less than 85% of the aggregate voting power of the entity surviving
or resulting from such transaction (or the ultimate parent entity thereof),
(b)&nbsp;sale, exclusive license or other disposition, directly or indirectly,
of assets of the Company or its subsidiaries representing 15% or more of the
consolidated assets of the Company and its subsidiaries; (c)&nbsp;issuance,
sale or other disposition of securities (or rights to purchase, or instruments
convertible into, or exchangeable for, such securities) by the Company
representing 15% or more of the voting power of the Company; or
(d)&nbsp;transaction in which any Person or group shall acquire beneficial
ownership (as defined in Rule&nbsp;13d-3 under the Exchange Act), or the right
to acquire beneficial ownership of 15% or more of the outstanding capital stock
of the Company.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;AFFILIATE&#148; has the meaning
set forth in Rule&nbsp;12b-2 of the regulations promulgated under the
Securities Exchange Act of 1934, as amended.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;AFFILIATED GROUP&#148; means any
affiliated group within the meaning of Section&nbsp;1504(a) of the Code or any
similar provision of state, local or foreign Law.</font></p>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;AGREEMENT&#148; means this
Merger Agreement, as the same may be amended from time to time in accordance
with the terms hereof.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;ANCILLARY AGREEMENTS&#148; means
the Voting Agreement, the Escrow Agreement, the Consulting Agreement, and any
Employment Agreement to be signed at Closing by an employee of the Company and
Merge or any Affiliate of Merge or a Principal Shareholder.</font></p>

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

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

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;COMPANY&#148; means AccuImage
Diagnostics Corporation, a Nevada corporation, its subsidiaries and its
predecessors.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;CONSULTING AGREEMENT&#146; means
the Consulting Agreement in the form of <i><font style="font-style:italic;">EXHIBIT&nbsp;A</font></i>
between Merge and Principal Shareholder to be signed at Closing.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;CONTRACTS&#148; means,
collectively, all leases, licenses, agreements, purchase orders, indentures,
contracts, commitments, bids and proposals, Plans, guarantees, letters of
credit, bonds, notes, mortgages, indemnities, and all orders outstanding for
the purchase or provision of materials, goods or services by the Company, in
each case whether written or oral, including those listed on SCHEDULE&nbsp;3.10,
to which the Company is a party.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;EMPLOYEE PENSION BENEFIT
PLAN&#148; has the meaning set forth in Section&nbsp;3(2) of ERISA.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;EMPLOYEE WELFARE BENEFIT
PLAN&#148; has the meaning set forth in Section&nbsp;3(1) of ERISA.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;ENVIRONMENTAL, HEALTH, AND
SAFETY LIABILITIES&#148; means any cost, damages, expense, liability, obligation or
other responsibility, including those of the foregoing which are latent,
contingent or potential in nature, arising from or under any Environmental Law
and consisting of or relating to:</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any environmental, health or safety matters or conditions (including
on-site or off-site contamination, occupational safety and health, and
regulation of chemical substances or products);</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>fines, penalties, judgments, awards, settlements, legal or
administrative proceedings, damages, losses, claims, demands and response,
investigative, remedial, or inspection costs and expenses arising under any
Environmental Law;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>financial responsibility under any Environmental Law or any Law related
to occupational safety and health for cleanup costs or corrective action,
including any investigation, cleanup, removal, containment or other remediation
or response actions required by any Environmental Law (whether or not such
action has been required or requested by any Governmental Entity or any other
Person) and for any natural resource damages; or</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any other compliance, corrective, investigative, or remedial measures
required under any Environmental Law.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The terms &#147;removal&#148; and &#147;remediation,&#148;
and &#147;responsive action&#148; include the types of activities covered by the United
States Comprehensive Environmental Response, Compensation, and Liability Act,
42 U.S.C. Section&nbsp;9601 et. seq., as amended (&#147;CERCLA&#148;).</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;ENVIRONMENTAL LAW&#148; means
any Law with respect to the preservation of the environment or the promotion of
worker health and safety, including any Law relating to Hazardous Materials,
drinking water, surface water, groundwater, wetlands, landfills, open dumps,
storage tanks, underground storage tanks, solid waste, waste water, storm water
run-off, noises, odors, air emissions, waste emissions or wells. Without
limiting the generality of the foregoing, the term encompasses each of the
following statutes and the regulations promulgated thereunder, and any similar
applicable state, local or foreign Law, each as amended (a)&nbsp;CERCLA,
(b)&nbsp;the Solid Waste Disposal Act, (c)&nbsp;the Hazardous</font></p>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

</div>
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<div>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Materials Transportation Act, (d)&nbsp;the Toxic
Substances Control Act, (e)&nbsp;the Clean Water Act, (f)&nbsp;the Clean Air
Act, (g)&nbsp;the Safe Drinking Water Act, (h)&nbsp;the National Environmental
Policy Act of 1969, (i)&nbsp;the Superfund Amendments and Reauthorization Act
of 1986, (j)&nbsp;Title III of the Superfund Amendments and Reauthorization
Act, (k)&nbsp;the Federal Insecticide, Fungicide and Rodenticide Act and
(l)&nbsp;the provisions of the Occupational Safety and Health Act of 1970
relating to the handling of and exposure to Hazardous Materials and similar
substances.</font></p>

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

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

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;ESCROW AGENT&#148; means The
Capital Trust Company of Delaware.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;ESCROW AGREEMENT&#146; means the
Escrow Agreement among Merge, Principal Shareholder and the Escrow Agent, in
substantially the form of <i><font style="font-style:italic;">EXHIBIT B</font></i>
to be signed prior to Closing.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;GAAP&#148; means United States
generally accepted accounting principles, as in effect as of the date of this
Agreement.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;GOVERNMENTAL ENTITY&#148; means
any government or any agency, bureau, board, commission, court, department, official,
political subdivision, tribunal or other instrumentality of any government,
whether federal, state or local, domestic or foreign.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;HAZARDOUS ACTIVITY&#148; means
the distribution, generation, handling, importing, management, manufacturing,
processing, production, refinement, Release, storage, transfer, transportation,
treatment or use (including any withdrawal or other use of groundwater) of
Hazardous Materials in, on, under, about or from the facilities or any part
thereof into the environment, other than in ordinary use in compliance with
Laws, and any other act, business, operation or thing that poses an
unreasonable risk of harm to persons or property on or off the facilities, or
that may affect the value of the facilities of the Company.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;HAZARDOUS MATERIALS&#148; means
each and every element, compound, chemical mixture, contaminant, pollutant,
material, waste or other substance that is defined, determined or identified as
hazardous or toxic under any Environmental Law or the Release of which is
prohibited under any Environmental Law. Without limiting the generality of the
foregoing, the term will include (a)&nbsp;&#148;hazardous substances&#148; as defined in
CERCLA, the Superfund Amendments and Reauthorization Act of 1986, or Title III
of the Superfund Amendments and Reauthorization Act and regulations promulgated
thereunder, each as amended, (b)&nbsp;&#148;hazardous waste&#148; as defined in the Solid
Waste Disposal Act and regulations promulgated thereunder, each as amended,
(c)&nbsp;&#148;hazardous materials&#148; as defined in the Hazardous Materials
Transportation Act and the regulations promulgated thereunder, each as amended,
(d)&nbsp;&#148;chemical substance or mixture&#148; as defined in the Toxic Substances
Control Act and regulation promulgated thereunder, each as amended,
(e)&nbsp;petroleum and petroleum products and byproducts and (f)&nbsp;asbestos.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;INTELLECTUAL PROPERTY&#148;
means, collectively, patents, patent disclosures, trademarks, service marks,
trade dress, logos, trade names, copyrights and mask works, and all
registrations, applications, reissuances, continuations, continuations-in-part,
revisions, extensions, reexaminations and associated goodwill with respect to
each of the foregoing, computer software (including source and object codes),
computer programs, computer data bases and related documentation and materials,
data, documentation, trade secrets, confidential business information
(including ideas, formulas, compositions, inventions, know-how, manufacturing
and production processes and techniques, research and development information,
drawings, designs, plans, proposals and technical data, financial, marketing
and business data and pricing and cost information) and other intellectual
property rights (in whatever form or medium).</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;IRS&#148; means the Internal
Revenue Service of the U.S. Department of the Treasury.</font></p>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

</div>
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<div>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;LAW&#148; means any
constitutional provision, statute, law, rule, regulation, Permit, decree,
injunction, judgment, order, ruling, determination, finding or writ of any
Governmental Entity.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;LIEN&#148; means any mortgage,
pledge, security interest, charge, claim, suretyship, attachment, restriction
or encumbrance, other than (a)&nbsp;mechanics&#146;, materialmens&#146; and similar liens
with respect to amounts not yet due and payable, (b)&nbsp;liens for Taxes not
yet due and payable and (c)&nbsp;liens securing rental payments under capital
lease arrangements.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;NET ASSET VALUE&#148; means
total assets minus total liabilities of the Company determined in accordance
with GAAP.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;ORGANIZATIONAL DOCUMENTS&#148;
means, collectively, (a)&nbsp;the articles or certificate of incorporation and
the bylaws of a corporation; (b)&nbsp;any charter, operating agreement and
similar documents adopted or filed in connection with the creation, formation
or organization of a Person; and (c)&nbsp;any amendment to any of the foregoing.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;PBGC&#148; means the Pension
Benefit Guaranty Corporation.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;PERMIT&#148; means any license,
permit, franchise, certificate of authority or order, or any waiver of the
foregoing, issued by any Governmental Entity.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;PLAN&#148; means any written
plan, fund, program, policy, payroll policy, contract or commitment, whether
qualified or not qualified for federal income tax purposes, whether for the
benefit of a single individual or more than one individual whether or not
subject to ERISA, which is (a)&nbsp;an Employee Pension Benefit Plan,
(b)&nbsp;an Employee Welfare Benefit Plan or (c)&nbsp;an incentive, bonus,
employment, equity, retention, non-competition, deferred compensation,
severance, change in control or ownership or other benefit compensatory plan,
fund, program, policy, agreement, contract or commitment of the Company or any
Affiliate of the Company for employees, former employees, directors,
independent contractors, former independent contractors or their dependents or
their beneficiaries.</font></p>

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

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

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;PROHIBITED TRANSACTION&#148; has
the meaning set forth in Section&nbsp;406 of ERISA and Section&nbsp;4975 of the
Code.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;REGULATORY AGENCY&#148; means
(i)&nbsp;the Securities and Exchange Commission, (ii)&nbsp;any self-regulatory
organization (including NASDAQ), and (iii)&nbsp;any other federal, state or
foreign governmental or regulatory agency or authority.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;RELATED PERSON&#148; means with
respect to a particular individual: (a)&nbsp;each other member of such
individual&#146;s Family; (b)&nbsp;any Person that is directly or indirectly
controlled by such individual or one or more members of such individual&#146;s
Family; (c)&nbsp;any Person with respect to which such individual or one or
more members of such individual&#146;s Family serves as a director, officer,
partner, executor, or trustee (or in a similar capacity). &#147;RELATED PERSON&#148;
means, with respect to a specified Person other than an individual:
(a)&nbsp;any Person that directly or indirectly controls, is directly or
indirectly controlled by, or is directly or indirectly under common control
with such specified Person; (b)&nbsp;any Person that holds a 5% or more voting
or equity interest in such specified Person; (c)&nbsp;each Person that serves
as a director, officer, partner, executor or trustee of such specified Person
(or in a similar capacity); (d)&nbsp;any Person with respect to which such
specified Person serves as a general partner or a trustee (or in a similar
capacity); and (e)&nbsp;any related Person of any individual described in
clause&nbsp;(b) or (c). For purposes of this definition, the &#147;FAMILY&#148; of an
individual includes (i)&nbsp;the individual, (ii)&nbsp;the individual&#146;s spouse
and former spouses, (iii)&nbsp;any other natural person who is related to the
individual or the individual&#146;s spouse as a parent or descendant, and
(iv)&nbsp;any other natural person who resides with such individual.</font></p>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

</div>
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<div>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;RELEASE&#148; means any
spilling, leaking, emitting, discharging, depositing, escaping, leaching,
dumping or other releasing into the environment, whether intentional or
unintentional.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;SCHEDULES&#148; means,
collectively, the disclosure schedules attached to this Agreement, which are
incorporated into the Agreement in their entirety and made a part thereof.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;SHARES&#148; means all of the
issued and outstanding voting and non-voting shares of capital stock of the
Company.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;SHAREHOLDERS&#148; means the
owners of all the Shares of the Company.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;SUPERIOR PROPOSAL&#148; means
any bona fide written offer or proposal made by a Person other than Merge or
Acquisition Sub that concerns any merger, consolidation, tender offer, exchange
offer, asset acquisition (including by exclusive license), stock or other
securities issuance, business combination or similar transaction involving the
Company or any subsidiary of the Company that, if consummated, would result in
a third party (or its stockholders) owning, directly or indirectly, a majority
of the Shares then outstanding (or a majority of the voting power of the shares
of capital stock of the surviving entity in a merger, or of the direct or
indirect parent of the surviving entity in a merger) or a majority of the
assets of the Company and its subsidiaries prior to such transaction, which the
Board of Directors of the Company determines in good faith (after consultation
with a recognized financial advisor) to be (i)&nbsp;more favorable to the
stockholders of the Company from a financial point of view (taking into account
probability of closing and all other terms and conditions of such proposal and
this Agreement and any changes to the financial terms of this Agreement
proposed by Merge in response to such offer or otherwise) than the Merger; and
(ii)&nbsp;reasonably capable of being completed, taking into account all
financial, legal regulatory and other aspects of the proposal, and the identity
of the Person making the proposal.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;TAX RETURN&#148; means any
return, declaration, report, claim for refund or information return or
statement relating to Taxes, including any schedule&nbsp;or attachment thereto.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;TAX&#148; means any federal,
state, local or foreign net income, gross income, gross receipts, sales, use,
ad valorem, transfer, franchise, profits, license, lease, service, service use,
withholding, payroll, employment, excise, severance, environmental, capital
stock, social security, unemployment, disability, real property, personal
property, registration, value added, alternative, add-on minimum, stamp,
occupation, premium, windfall profits, customs, duties or other tax, fee,
assessment or charge, including any interest, penalty or addition thereto.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;TRANSFER AGENT&#148; means
Pacific Stock Transfer Company, the Company&#146;s current transfer agent for its
Shares.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, the following
terms shall have the meanings ascribed to them in the section&nbsp;number opposite
such term:</font></p>

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

<table border="0" cellspacing="0" cellpadding="0" width="86%" style="border-collapse:collapse;margin-left:1.0in;width:86.66%;">
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;ACCOUNTS RECEIVABLE&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.8</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;AUDITOR&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.8</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;BALANCE SHEET&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.8</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;BALANCE SHEET PROCEDURES&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.8</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;BASKET AMOUNT&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;8.5</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;BY-LAWS&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.4</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;BUSINESS&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Recitals</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;CERTIFICATE&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.6(a)</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;CERTIFICATE OF MERGER&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.3</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;CHARTER&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.4</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;CLOSING&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.2</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;CLOSING DATE&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.2</font></p>
  </td>
 </tr>
</table>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<table border="0" cellspacing="0" cellpadding="0" width="86%" style="border-collapse:collapse;margin-left:1.0in;width:86.66%;">
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;CLOSING DATE BALANCE SHEET&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.8</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;COMPANY BALANCE SHEET&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.5</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;COMPANY SEC REPORTS&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.5</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;CONSULTING AGREEMENT&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;1</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;DAMAGES&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;8.2</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;DISSENTING SHAREHOLDER&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.6</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;DISSENTING SHARES&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.6</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;EDGAR&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.5</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;EFFECTIVE TIME&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.3</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;ESCROW AGREEMENT&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;1</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;EXCLUDED SHARES&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.6</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;FILED COMPANY SEC REPORTS&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.5</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;FINANCIAL STATEMENTS&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.5(b)</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;HOLDBACK&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.9</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;INDEMNIFIED BUYERS&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;8.2</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;MERGE COMPANIES&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.6(a)</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;MERGER&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Recitals</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;MERGER CONSIDERATION&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.3</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;NEVADA SECRETARY&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.3</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;NEVADA STATUTE&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.1</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;PRELIMINARY CLOSING BALANCE SHEET&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.8</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;SEC&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.5(a)</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;SOX&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.5</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;SURVIVING CORPORATION&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.1</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;TARGET AMOUNT&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.8</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;VOTING AGREEMENT&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Recitals</font></p>
  </td>
 </tr>
 <tr>
  <td width="62%" valign="top" style="padding:0in 0in 0in 0in;width:62.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;YEAR-END BALANCE SHEET&#148;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.5(e)</font></p>
  </td>
 </tr>
</table>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><a name="Section2_TheMergerClosingEffectiv"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION&nbsp;2.
THE MERGER; CLOSING; EFFECTIVE TIME</font></b></a></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A21themerger"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.1.</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>THE
MERGER.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Upon the terms and subject
to the conditions set forth in this Agreement, at the Effective Time (as
defined in Section&nbsp;2.3) Acquisition Sub shall be merged with and into the
Company and the separate corporate existence of Acquisition Sub shall thereupon
cease. The Company shall be the surviving corporation in the Merger (sometimes
hereinafter referred to as the &#147;Surviving Corporation&#148;), and the separate
corporate existence of the Company with all its rights, privileges, immunities,
powers and franchises shall continue unaffected by the Merger. The Merger shall
have the effects specified in the Nevada General Corporation Law (the &#147;Nevada
Statute&#148;).</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A22closing"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.2</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CLOSING<b><font style="font-weight:bold;">.</font></b></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The closing of the Merger
(the &#147;Closing&#148;) shall take place (i)&nbsp;at the offices of Michael
Best&nbsp;&amp; Friedrich LLP, 100 E. Wisconsin Avenue, Milwaukee Wisconsin on
the second business day after the day on which the last to be fulfilled or
waived of the conditions set forth in Section&nbsp;7 shall be satisfied or
waived in accordance with this Agreement (other than those conditions that by
their nature are to be satisfied at the Closing, but subject to the fulfillment
or waiver of those conditions) or (ii)&nbsp;at such other place and time and/or
on such other date as the Company and Merge may agree in writing (the &#147;Closing
Date&#148;).</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A23effectivetime"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.3</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>EFFECTIVE
TIME<b><font style="font-weight:bold;">.</font></b></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As soon as practicable
following the Closing on the Closing Date, the Company and Merge will cause a
certificate of merger (the &#147;Certificate of Merger&#148;) to be executed,
acknowledged and filed with</font></p>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the Secretary of State of the State of Nevada (the &#147;Nevada
Secretary&#148;) as provided in Section&nbsp;92A.200 of the Nevada Statute. As part
of such filing, a plan of merger in form reasonably acceptable to Merge and the
Company will be filed with the Nevada Secretary. The Merger shall become
effective at the time the Certificate of Merger is duly filed with the
Secretary of State of the State of Nevada (the &#147;Effective Time&#148;).</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A24charterandbylaws"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.4</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CHARTER
AND BYLAWS.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Certificate of
Incorporation of Acquisition Sub as in effect immediately prior to the
Effective Time shall be the certificate of incorporation of the Surviving
Corporation (the &#147;Charter&#148;), until duly amended as provided therein or by
applicable Law. The bylaws of Acquisition Sub as in effect immediately prior to
the Effective Time shall be the bylaws of the Surviving Corporation (the &#147;By-Laws&#148;),
until duly amended as provided therein or by applicable Law.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A25directorsandofficers"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.5.</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>DIRECTORS AND OFFICERS.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The directors of Acquisition
Sub at the Effective Time shall, from and after the Effective Time, be the
directors of the Surviving Corporation until their successors have been duly
elected or appointed and qualified or until their earlier death, resignation or
removal in accordance with the Charter and the By-Laws. The officers of
Acquisition Sub at the Effective Time shall, from and after the Effective Time,
be the officers of the Surviving Corporation until their successors have been
duly elected or appointed and qualified or until their earlier death,
resignation or removal in accordance with the Charter and the By-Laws.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A26effectofthemergeronshares"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.6</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>EFFECT OF THE MERGER ON SHARES.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>At
the Effective Time, by virtue of the Merger and without any action on the part
of the holder of any Shares of the Company, each Share issued and outstanding
immediately prior to the Effective Time (other than &#147;Excluded Shares&#148; as
defined below) shall be converted into the right to receive the proportionate
share of Six Million Dollars ($6,000,000) which amount shall include the
Holdback (as defined in Section&nbsp;2.9) (the &#147;Merger Consideration&#148;).</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Shares owned by Merge,
Acquisition Sub or any other direct or indirect Subsidiary of Merge
(collectively, the &#147;Merge Companies&#148;) or Shares that are owned by the Company
or any direct or indirect subsidiary of the Company, and in each case not held
on behalf of third parties, or Shares (&#147;Dissenting Shares&#148;) that are owned by
shareholders (&#147;Dissenting Shareholders&#148;) who do not vote to approve the Merger
and comply with all the provisions of the Nevada Statute concerning the right
of holders of Shares to dissent from the Merger and require payment of fair
value (as that term is used in the Nevada Statute) for their Shares shall be an
&#147;Excluded Share&#148; and collectively, &#147;Excluded Shares&#148; for purposes of this
Agreement. At the Effective Time, all Shares shall no longer be outstanding and
shall be canceled and retired and shall cease to exist, and each certificate (a
&#147;Certificate&#148;) formerly representing any of such Shares (other than Excluded
Shares) shall thereafter represent only the right to receive the Merger
Consideration.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The portion of the Merger
Consideration due to each Shareholder on the Closing Date (other than
Dissenting Shareholders) shall be his or her proportionate ownership of the
outstanding Shares as of Closing.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Dissenting
Shares. Notwithstanding anything in this Agreement to the contrary, any
Dissenting Shares shall not be converted as described in Section&nbsp;2.6(a),
but shall be converted into the right to receive such consideration as may be
determined to be due to the respective Dissenting Shareholders pursuant to the
Nevada Statute. If, after the Effective Time, any Dissenting Shareholder
withdraws his demand or fails to perfect or otherwise loses his rights as a
Dissenting Shareholder to payment of fair value, in any case pursuant to the
Nevada Statute, his Shares shall be deemed to be converted as of the Effective
Time into the right to receive his</p>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">proportionate
share of the Merger Consideration. The Company shall give Merge (i)&nbsp;prompt
notice of any demands for fair value for Shares received by the Company and
(ii)&nbsp;the opportunity to participate in and direct all negotiations and
proceedings with respect to any such demands. The Company shall not, without
the prior written consent of Merge, make any payment with respect to, or
settle, offer to settle or otherwise negotiate, any such demands. Any amounts
paid to the holders of Dissenting Shares in excess of their proportionate share
of the Merger Consideration, and the costs of all proceedings, including
attorneys&#146; and expert witness fees, in resolving the claim of any Dissenting
Shareholder, shall be an amount to be indemnified under Section&nbsp;8 or paid
out of the Holdback, at the option of Merge</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Cancellation
of Shares. Each Share issued and outstanding immediately prior to the Effective
Time and owned by any of the Merge Companies or owned by the Company or any
direct or indirect subsidiary of the Company (in each case other than Shares
that are owned on behalf of third parties), shall, by virtue of the Merger and
without any action on the part of the holder thereof, cease to be outstanding,
shall be canceled and retired without payment of any consideration therefor and
shall cease to exist.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Acquisition
Sub. At the Effective Time, each share of Common Stock, par value $.01 per
share, of Acquisition Sub issued and outstanding immediately prior to the
Effective Time shall be automatically converted into one share of common stock
of the Surviving Corporation.</p>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A27exchangeofsharesformergerconsid"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.7</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>EXCHANGE OF SHARES FOR MERGER CONSIDERATION.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Payment
Procedures.&nbsp;At the Closing, Merge shall deliver to the Transfer Agent, for
delivery to each of the Shareholders (other than holders of Excluded Shares)
such Shareholder&#146;s proportionate share of the Merger Consideration due at
Closing in exchange for Shares being surrendered except that the Holdback shall
be delivered by Merge to the Escrow Agent at Closing for deposit pursuant to
the Escrow Agreement. Upon surrender of a Certificate (or affidavit of loss in
lieu thereof) for cancellation to the Transfer Agent, the holder of such
Certificate shall be entitled to receive in exchange therefor (after giving
effect to any tax withholding required by Law) (i)&nbsp;a check in the amount
of the holder&#146;s proportionate share of the Merger Consideration based upon the
number of Shares represented by such Certificate (or affidavit of loss in lieu
thereof), and the Certificate so surrendered shall forthwith be canceled. No
interest will be paid or accrued on any amount payable upon due surrender of
the Certificates. In the event of a transfer of ownership of Shares that is not
registered in the transfer records of the Transfer Agent, a check for any cash
to be paid upon due surrender of the Certificate may be paid to such a transferee
if the Certificate formerly representing such Shares is presented to the
Transfer Agent, accompanied by all documents required by the Transfer Agent to
evidence and effect such transfer and to evidence that any applicable stock
transfer taxes have been paid or are not applicable.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Transfers.&nbsp;After
the Effective Time, there shall be no transfers on the stock transfer books
regarding the Company of the Shares that were outstanding immediately prior to
the Effective Time.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Lost,
Stolen or Destroyed Certificates.&nbsp;In the event any Certificates shall have
been lost, stolen or destroyed, upon the making of an affidavit of that fact by
the Person claiming such Certificates to be lost, stolen or destroyed and
execution of an indemnity agreement in form satisfactory to Merge and the
Transfer Agent and further, if required by Merge or the Transfer Agent, the
posting by such Person of a bond in customary amount as indemnity against any
claim that may be made against it with respect to such Certificates, the Transfer
Agent may issue in exchange for such lost, stolen or destroyed Certificates a
check in the amount (after giving effect to any required tax withholdings)
proportionate share of the Merger Consideration represented by such lost,
stolen or destroyed Certificate deliverable in respect of, the Shares
represented by such Certificates pursuant to this Agreement.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A28adjustmentforclosingbalancesheet"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.8</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>ADJUSTMENT FOR CLOSING BALANCE SHEET.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font style="font-style:italic;">Adjustment.</font></i>&nbsp;&nbsp;Merge shall be reimbursed by the
amount that the Net Asset Value (as hereinafter defined) of the Company
determined as of the Closing Date is less than $&#151;220,168 (negative $220,168)
(the &#147;Target Amount&#148;). The amount of any such adjustment shall be paid to Merge
from the Holdback.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font style="font-style:italic;">Net Asset Value.&#160;&#160;&#160; </font></i>For purposes of this Section, the term &#147;Net Asset Value&#148; means the net
asset value reflected in the Closing Balance Sheet (as hereinafter defined),
except that the following shall be excluded from the calculation of any Net
Asset Value: (i)&nbsp;cash received upon exercise of stock options for Shares
exercised after September&nbsp;30, 2004; (ii)&nbsp;up to $80,000 of legal fees
incurred by the Company in connection with the Merger, as evidenced by invoices
of legal counsel for the Company prepared in a manner consistent with past
practices; and (iii)&nbsp;operating losses of the Company incurred in the
ordinary course of business from and after October&nbsp;1, 2004 (not to exceed
$40,000 per full calendar month, prorated to the Closing Date).</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Five
days prior to the Closing Date, the Company will prepare a Preliminary Balance
Sheet in accordance with GAAP which has properly accrued for all amounts owed
to vendors and employees, current and previous management and properly reserved
for bad debt and all pending, threatened and contingent liabilities required to
be reserved for under GAAP up to and including the Closing Date (such balance
sheet, the &#147;Preliminary Balance Sheet&#148; and such procedures, the</p>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Balance
Sheet Procedures&#148;). If the Preliminary Balance Sheet indicates that the Net
Asset Value is less than the Target Amount, Merge may deduct the difference
from the Merger Consideration.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The final balance sheet as
of the Closing Date (the &#147;Closing Date Balance Sheet&#148;) will be prepared by
Merge and delivered to the Principal Shareholder within one hundred eighty
(180)&nbsp;days after Closing. The Closing Date Balance Sheet shall be prepared
consistent with the Balance Sheet Procedures. If the Principal Shareholder
notifies Merge within thirty (30)&nbsp;days following receipt of the Closing
Date Balance Sheet that the Principal Shareholder disagrees with the Closing
Date Balance Sheet, the parties shall attempt in good faith to resolve such
dispute as soon as possible. If the parties are unable to resolve such dispute
within thirty (30)&nbsp;days after the Merge&#146;s receipt of notice from the
Principal Shareholder, such dispute shall be submitted to a neutral office of
nationally recognized independent accountants (the &#147;Auditor&#148;) jointly chosen
by, and mutually acceptable to, the Principal Shareholder and Merge for the
purpose of resolving the dispute set forth in such notice. If the parties are
not able to agree on the Auditor within thirty (30)&nbsp;days, the Auditor
shall be the Milwaukee Office of Grant Thornton or Deloitte Touche. The Auditor
shall review and decide the issue or issues that are subject of such dispute
within 30&nbsp;days. The decision of the Auditor shall be binding on the
parties. The fees and costs of the Auditor shall be borne equally by the
Principal Shareholder and Merge (50%). Any amount by which the Net Asset Value,
as finally determined in the Closing Date Balance Sheet, is less than the
Target Amount (other than any amount already withheld from the Merger
Consideration) shall at Merge&#146;s option, either first be paid out of the
Holdback referred to in Section&nbsp;2.9 or be subject to indemnification as
provided in Section&nbsp;8. The Merger Consideration shall not be increased if
the Closing Date Balance Sheet Net Asset Value shows a lower net loss than the
Target Amount.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A29holdback"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.9</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>HOLDBACK.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$1,000,000 of the Merger
Consideration shall be deposited by Merge at Closing with the Escrow Agent to
be governed by the terms of the Escrow Agreement (the &#147;Holdback&#148;). At the
conclusion of the escrow Merge will pay the Principal Shareholder simple
interest out of its own funds to the extent sufficient funds are not in Escrow,
at the rate of five percent (5%) per annum, on the net adjusted balance of the
Holdback outstanding at the end of the escrow period (i.e. original balance
less amounts due to Merge under Section&nbsp;2.8 or Section&nbsp;8 of this
Agreement) and due to Principal Shareholder. Such interest will be calculated
from the Closing Date. No interest shall be paid by Merge or out of the Escrow
to Principal Shareholder from and after the Closing Date on amounts paid to
Merge out of the Escrow.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><a name="Section3_RepresentationsAndWarrantie"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION&nbsp;3. REPRESENTATIONS AND WARRANTIES OF COMPANY AND
THE PRINCIPAL SHAREHOLDER</font></b></a></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company and the
Principal Shareholder, jointly and severally prior to the Closing, and the
Principal Shareholder by himself from and after the Closing, hereby represent
and warrant to, and covenant with, Merge and Acquisition Sub as of the date of
this Agreement and as of the Closing Date, as follows, it being agreed that a
disclosure applicable to one representation and warranty shall be deemed to
modify and provide information with respect to the other representations and
warranties to which the disclosure is reasonably believed to be relevant
without the necessity of repetition:</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A31organization"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.1</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>ORGANIZATION.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company is a corporation
duly organized, validly existing and in good standing under the Laws of the
State of Nevada. The Company and each of its Affiliates is duly qualified or
licensed to conduct business and is in good standing under the Laws of each
jurisdiction where the character of the properties owned, leased or operated by
it or the nature of its activities makes such qualification necessary, a list
of which is set forth on SCHEDULE&nbsp;3.1, except where the failure to so
qualify would not have a material adverse effect on the business or assets of
the Company. The Company has full corporate power and authority necessary to
own or lease its assets and property, and to carry on the</font></p>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Business and to own and use the properties owned and
used by it. The Company has delivered to Merge copies of the Organizational
Documents of the Company, each as amended to date, and each such document is in
full force and effect. The Company is not in violation of its Organizational
Documents. SCHEDULE&nbsp;3.1 lists all Affiliates of the Company, indicating
the jurisdiction of incorporation or organization of each Affiliate. The
Company does not control, directly or indirectly, or have any direct or
indirect ownership or equity interest in any Person.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A32authorizationoftransaction"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.2</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>AUTHORIZATION OF TRANSACTION.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The execution and delivery
of this Agreement and the consummation of the transactions contemplated hereby
have been duly authorized by all necessary action on the part of the Board of
Directors of the Company and, prior to Closing, will be authorized by all
necessary action on the part of the Shareholders. The Company and the Principal
Shareholder have the absolute and unrestricted right, power, authority and
capacity (including full corporate power and authority) or have taken all
requisite action to enable the Company and the Principal Shareholder to execute
and deliver this Agreement and the Ancillary Agreements and to perform their
obligations hereunder and thereunder. This Agreement has been, and upon Closing
will be, duly executed and delivered by the Company and the Principal
Shareholder. When duly executed and delivered, this Agreement constitutes, and
each of the Ancillary Agreements delivered in conjunction with this Agreement,
when executed and delivered will constitute, the valid and legally binding
obligation of the Company and/or of the Principal Shareholder as the case may
be, each enforceable in accordance with its terms, subject to (i)&nbsp;laws of
general application relating to bankruptcy insolvency, and the relief of
debtors, and (ii)&nbsp;general equitable principles.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A33noncontraventionconsents"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.3</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>NONCONTRAVENTION; CONSENTS.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except
as set forth on Schedule&nbsp;3.3, the execution and delivery of this Agreement
and the Ancillary Agreements by the Company and the Principal Shareholder contemplated
by this Agreement, and the consummation and performance by the Company and the
Principal Shareholder of the transactions contemplated hereby or thereby, will
not: (i)&nbsp;violate any Law to which the Company or the Principal Shareholder
or by which either of them or any of their respective properties are bound or
affected; (ii)&nbsp;violate any provision of the Organizational Documents of
the Company; (iii)&nbsp;result in any breach of or constitute a default (or an
event that with notice or lapse of time or both would become a default) under
or impair the Company&#146;s rights or alter the rights or obligations of any third
party under, or give to others any rights of termination, amendment,
acceleration or cancellation of, or result in the creation of a Lien on any of
the properties or assets of the Company, pursuant to any Contract, Permit, or
other instrument or obligation to which the Company is a party or by which the
Company or its properties are bound or affected.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>SCHEDULE&nbsp;3.3
lists all consents, waivers and approvals required to be obtained in connection
with the consummation and performance of the transactions contemplated hereby
under any of the Contracts or Permits to which the Company or the Principal
Shareholder is a party. No Contract to which the Company is a party has been
amended to increase the amount payable by the Company thereunder or otherwise
modify the terms thereof in order to obtain any such consent, approval or
authorization.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except
as set forth on Schedule&nbsp;3.3, no consent, approval, order or authorization
of or registration, declaration or filing with any Governmental Entity, is
required by or with respect to the Company or the Principal Shareholder in
connection with the execution and delivery of this Agreement or the consummation
of the transactions contemplated hereby or thereby.</p>

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

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

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<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A34capitalization"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.4.</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CAPITALIZATION.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>SCHEDULE&nbsp;3.4
sets forth for the Company (i)&nbsp;the number of shares of authorized capital
stock, (ii)&nbsp;the number of issued and outstanding capital stock of each
class of the shares, (iii)&nbsp;the names of its directors and elected officers
and (iv)&nbsp;the names each Person owning options or warrants for Shares and
the number of shares, options, warrants, and convertible securities owned by
such Person and obtainable upon exercise in full of all options and warrants.
All of the issued and outstanding Shares of capital stock of the Company, and
all Shares issuable upon exercise of outstanding options and warrants, have
been duly authorized and are validly issued, fully paid and nonassessable and
are not subject to preemptive rights whether created by (i)&nbsp;statute,
(ii)&nbsp;the Organizational Documents of the Company or (iii)&nbsp;any
agreement or document to which the Company or any Affiliate thereof is a party
or by which it is bound. The Principal Shareholder holds of record and owns
beneficially good, valid and marketable title to all of the outstanding Shares
of the Company listed on SCHEDULE&nbsp;3.4, free and clear of any restrictions
on transfer (other than restrictions under the Securities Act of 1933, as
amended, and applicable state securities Laws), Taxes, Liens, options,
warrants, purchase rights, contracts, agreements, commitments, equities, claims
or demands.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except
as set forth in SCHEDULE&nbsp;3.4, there are no equity securities, partnership
or limited liability company interests or similar ownership interests of any
class of the Company, or any securities exchangeable or convertible into or
exercisable for such equity securities, partnership or limited liability
company interests or similar ownership interests, issued, reserved for issuance
or outstanding. Except for securities the Company owns, directly or indirectly,
there are no equity securities, partnership interests or similar ownership
interests of any class of any subsidiary of the Company, or any security
exchangeable or convertible into or exercisable for such equity securities,
partnership interests or similar ownership interests, issued, reserved for
issuance or outstanding. Except as set forth in SCHEDULE&nbsp;3.4, there are no
outstanding or authorized options, warrants, equity securities, partnership or
limited liability company interests or similar ownership interests, calls,
rights (including purchase rights, subscription rights, conversion rights,
preemptive rights, exchange rights, rights related to stock appreciation,
phantom stock or profit participation, or similar rights), or any commitments,
contracts or agreements (all of the foregoing of which shall be terminated on
or before the Closing Date) of any character to which the Company is a party or
by which it is bound obligating the Company or the Principal Shareholder to
issue, deliver, sell, or cause to be issued, delivered or sold, or repurchase,
redeem or otherwise acquire, or cause the repurchase, redemption or
acquisition, of any shares of capital stock, partnership interests or similar
ownership interests of the Company or obligating the Company to grant, extend,
accelerate the vesting of or enter into any such option, warrant, equity
security, call, right, commitment, contract or agreement.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All
Shares and all options, warrants, convertible or other securities of the
Company have been issued in compliance with all applicable federal and state
securities laws and any applicable pre-emptive rights.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Principal Shareholder has good title to his 34,050,000 Shares, free and clear
from any Lien, preemptive right, voting trust or shareholder agreement,
exception, proxy, option, put, call, or any third-party right of any kind or
nature whatsoever except the Voting Agreement. The Principal Shareholder has
full and sole voting power (in the case of voting Shares owned by such Person)
over his Shares and has the full right, power and authority to deliver his
Shares to Merge in exchange for his pro rata share of the Merger Consideration
in the manner provided for in this Agreement.</p>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A35financialstatementssecfilings"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.5</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>FINANCIAL STATEMENTS; SEC FILINGS.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company has on a timely basis filed all forms, reports, and documents required
to be filed by it with the Securities and Exchange Commission (&#147;SEC&#148;) since January&nbsp;1,
2001. SCHEDULE&nbsp;3.5 lists and (except to the extent available in full
without redaction on the SEC&#146;s web site through the Electronic Data Gathering,
Analysis and Retrieval System (&#147;EDGAR&#148;) two days prior to the date of this
Agreement) contains true and complete copies in the form filed with the SEC of
(i)&nbsp;the Company&#146;s Annual Reports on Form&nbsp;10-K SB for each fiscal year
of the Company ending on or after December&nbsp;31, 1999; (ii)&nbsp;its
Quarterly Reports on Form&nbsp;10-Q SB for each of the first three fiscal
quarters in each of the fiscal years of the Company referred to in
clause&nbsp;(i) above; (iii)&nbsp;all proxy statements relating to the Company&#146;s
meetings of shareholders (whether annual or special) held, and all information
statements relating to shareholder consents since the beginning of the first
fiscal year referred to in clause&nbsp;(i) above; (iv)&nbsp;all certifications
and statements required by (A)&nbsp;Rule&nbsp;13a-14 or 15d-14 under the
Exchange Act or (B)&nbsp;18 U.S.C. &#167;&nbsp;1350 (Section&nbsp;906 of the
Sarbanes-Oxley Act of 2002 (&#147;SOX&#148;)) with respect to any report referred to in
clause&nbsp;(i) or (ii)&nbsp;above; (v)&nbsp;all other forms, reports,
registration statements, and other documents (other than preliminary materials
if the corresponding definitive materials are contained in Schedule&nbsp;3.5)
filed by the Company with the SEC since the beginning of the first fiscal year
referred to in clause&nbsp;(i) above (the forms, reports, registration
statements, and other documents referred to in clauses (i), (ii), (iii), (iv),
and (v)&nbsp;above are, collectively, the &#147;Company SEC Reports&#148; and, to the
extent available in full without redaction on the SEC&#146;s web site through EDGAR
two days prior to the date of this Agreement, are, collectively, the &#147;Filed
Company SEC Reports&#148;); and (vi)&nbsp;all comment letters received by the
Company from the staff of the SEC since January&nbsp;1, 2001, and all responses
to such comment letters by or on behalf of the Company. All matters and
statements made in the certifications and statements referred to in
clause&nbsp;(iv) above are accurate. The Company SEC Reports (x)&nbsp;were or
will be prepared in accordance with the requirements of the Securities Act and
the Exchange Act, as applicable, and the rules and regulations thereunder and
(y)&nbsp;did not at the time they were filed with the SEC, or will not at the
time they are filed with the SEC, contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements made therein, in the light of the
circumstances under which they were made, not misleading. The Company maintains
disclosure controls and procedures as required by Rule&nbsp;13a-15 or 15d-15
under the Exchange Act. Schedule&nbsp;3.5 contains true and complete copies of
all written descriptions of and all policies, manuals, and other documents
promulgating such disclosure controls and procedures. Except as disclosed in
Filed Company SEC Reports, each director and executive officer of the Company
has filed with the SEC on a timely basis complete and accurate versions of all
statements required by Section&nbsp;16(a) of the Exchange Act and the rules and
regulations thereunder since January&nbsp;1, 2001. As used in this Section&nbsp;3.5,
the term &#147;filed&#148; shall be broadly construed to include any manner in which a
document or information is furnished, supplied, or otherwise made available to
the SEC, including, but not limited to, as may be required pursuant to Item 9
or 12 of Form&nbsp;8-K.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
financial statements of the Company included or incorporated by reference in
any Company SEC Reports (including the related notes) complied as to form, as
of the respective dates of filing of such Company SEC Reports with the SEC, in
all material respects with applicable accounting requirements and the rules and
regulations of the SEC with respect thereto (including, without limitation,
Regulation&nbsp;S-B), have been prepared in accordance with GAAP (except, in
the case of unaudited financial statements, to the extent permitted by
Regulation SB for Quarterly Reports on Form&nbsp;10-Q-SB) applied on a
consistent basis throughout the periods involved (except as may be indicated in
the notes thereto) and fairly present the consolidated financial condition of the
Company at the dates thereof and the consolidated results of operations and
cash flows for the periods then ended (subject, in the case of unaudited
statements, to notes and normal year-end</p>

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

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

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</font></b></div>

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<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">audit
adjustments that were not, or with respect to any such financial statements
contained in any Company SEC Reports to be filed subsequent to the date hereof
are not expected to be, material in amount or effect). Schedule&nbsp;3.5 lists
copies of the documentation creating or governing, all &#147;off-balance sheet
arrangements&#148; (as defined in Item 303(c) of Regulation SB) in effect with
respect to the Company during any period covered by any of the Company SEC
Reports that was required to be disclosed in any Company SEC Report. Odenburg,
Ullakko Murenishi&nbsp;&amp; Company, LLP, which has expressed its opinion with
respect to the consolidated financial statements of the Company included in
Company SEC Reports (including the related notes) filed after January&nbsp;1,
2003, (x)&nbsp;is a registered public accounting firm (as defined in Section&nbsp;2(a)(12)
of SOX), (y)&nbsp;to the Company&#146;s knowledge, after reasonable inquiry, is and
has been throughout the periods covered by such financial statements &#147;independent&#148;
with respect to the Company within the meaning of Regulation&nbsp;S-X, and
(z)&nbsp;to the Company&#146;s knowledge, after reasonable inquiry, is, and has been
throughout the periods covered by such financial statements, with respect to
the Company, in compliance with subsections (g)&nbsp;through (l)&nbsp;of Section&nbsp;10A
of the Exchange Act. Pohl McNabola Berg&nbsp;&amp; Company LLP, which expressed
its opinion with respect to the consolidated financial statements of the
Company included in Company SEC Reports (including the related notes) filed
prior to January&nbsp;1, 2003, (y)&nbsp;to the Company&#146;s knowledge, after
reasonable inquiry, was throughout the periods covered by such financial
statements &#147;independent&#148; with respect to the Company within the meaning of
Regulation&nbsp;S-X, and (z)&nbsp;to the Company&#146;s knowledge, after reasonable
inquiry, was throughout the periods covered by such financial statements, with
respect to the Company, in compliance with subsections (g)&nbsp;through
(l)&nbsp;of Section&nbsp;10A of the Exchange Act. SCHEDULE&nbsp;3.5 lists all
non-audit services performed by Odenburg, Ullakko Murenishi&nbsp;&amp; Company,
LLP or Pohl McNabola Berg&nbsp;&amp; Company LLP for the Company since January&nbsp;1,
2003.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except
as and to the extent set forth on the audited balance sheet of the Company as
of September&nbsp;30, 2004, including all notes thereto (the &#147;Year-end Balance
Sheet&#148;) attached to this Agreement as SCHEDULE&nbsp;3.5(c), the Company has no
liabilities or obligations of any nature (whether accrued, absolute,
contingent, or otherwise) that would be required to be reflected on a balance
sheet, or in the notes thereto, prepared in accordance with GAAP, except
(i)&nbsp;for liabilities or obligations incurred in the ordinary course of
business since September&nbsp;30, 2004, that would not have a material adverse
effect on the Company, or (ii)&nbsp;as otherwise reflected in the Filed Company
SEC Reports.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A36undisclosedliabilities"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.6</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>UNDISCLOSED LIABILITIES.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company has no material
liabilities or obligations of a type required to be disclosed on a balance
sheet or in the related notes to the combined financial statements prepared in
accordance with GAAP (whether known or unknown, absolute or contingent,
liquidated or unliquidated, or due or to become due) except for liabilities and
obligations which are: (a)&nbsp;reflected or reserved for on the Financial
Statements or (b)&nbsp;that have arisen since the date of the last Year-end
Balance Sheet in the ordinary course of the operation of the Company (all of
which material liabilities and obligations are set forth on SCHEDULE&nbsp;3.6
and none of which results from, arises out of, relates to, is the nature of or
was caused by any breach of contract, breach of warranty, tort, infringement or
violation of Law) except as disclosed on such Schedule.</font></p>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A37subsequentevents"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.7</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>SUBSEQUENT
EVENTS.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Since December&nbsp;31,
2003, there has not been any material adverse change in the business,
condition, operations, properties, assets, results of operations or prospects
of the Company nor has any event occurred or circumstance arisen that could
reasonably be expected to result in such material adverse change. Except as set
forth in SCHEDULE&nbsp;3.7, since the end of its last fiscal year, the Company
has conducted its business only in the ordinary course of business and there
has not been any:</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>single
transaction in an amount exceeding $10,000 or series of related transactions
that result in expenditures in excess of $25,000 (not including compensation
paid in the ordinary course of business);</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>change
in the Company&#146;s authorized or issued capital stock; grant of any stock option
or right to purchase shares of capital stock of the Company; issuance of any
security convertible into such capital stock; grant of any registration rights;
purchase, redemption, retirement, or other acquisition by the Company of any
shares of any such capital stock; or declaration or payment of any dividend or
other distribution or payment in respect of shares of capital stock;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>amendment
to the Organizational Documents of the Company;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>payment
or increase by the Company of any bonuses, salaries, or other compensation to
any shareholder, director, officer, or (except in the ordinary course of
business) employee or entry into any employment, severance, separation, or
similar agreement with any director, officer or employee, except for the
salaries and bonuses set forth upon SCHEDULE&nbsp;3.7, the amount of which
bonuses is consistent with the past practices of the Company;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>adoption
of, or increase in the payments to or benefits under, any profit sharing,
bonus, deferred compensation, savings, insurance, pension, retirement or other
Employee Benefit Plan for or with any employees of the Company;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>damage
to or destruction or loss of any asset or property of the Company, whether or
not covered by insurance, materially and adversely affecting the properties,
assets, business, financial condition or prospects of the Company, taken as a
whole;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>entry
into, termination of, or receipt of notice of termination of (i)&nbsp;any
cooperative, marketing, license, distributorship, sales representative, joint
venture, credit or similar agreement, or (ii)&nbsp;any Contract or transaction,
or series of related Contracts or transactions, involving a total commitment by
or to the Company of more than $25,000.00, except for sales (but not
terminations) to customers in the ordinary course of business;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>sale (other
than sales in the ordinary course of business), lease or other disposition of
any asset or property of the Company or mortgage, pledge or imposition of any
Lien on any material asset or property of the Company;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>cancellation
or waiver of any claims or rights with a value to the Company in excess of
$10,000;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>material
change in the accounting methods, principles or practices used by the Company;</p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any
revaluation by the Company of any of its assets, including writing down the
value of capitalized inventory or writing off notes or Accounts Receivable
(defined below) other than in the ordinary course of business;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>agreement,
whether oral or written, by the Company to do any of the foregoing; or</p>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>Contracts
awarded to the Company, including those as to which work has not yet commenced,
that include prices at levels not reasonably expected, to yield profits at the
Company&#146;s usual and customary profitability margins.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A38accountsreceivable"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.8</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>ACCOUNTS RECEIVABLE.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All accounts receivable of
the Company that are included in the Year-end Balance Sheet or on the
accounting records of the Company as of the Closing Date or the Preliminary
Balance Sheet (collectively, the &#147;ACCOUNTS RECEIVABLE&#148;) represent or will represent
valid obligations accounted for in accordance with GAAP applied on a basis
consistent with that used in the preparation of the Financial Statements
arising from sales actually made or services actually performed in the ordinary
course of business. All such Accounts Receivable on the Preliminary Balance
Sheet will be or have been collected, net of the respective reserves shown on
the Preliminary Balance Sheet, within 90&nbsp;days following the Closing Date.
The reserves maintained by the Company are adequate and calculated consistent
with past practice and, in the case of the reserve as of the Closing Date, will
not represent a greater percentage of the Accounts Receivable as of the Closing
Date than the reserve reflected in the Year-end Balance Sheet representing the
Accounts Receivable reflected therein and will not represent a material adverse
change in the composition of such Accounts Receivable in terms of aging). There
is no contest, claim or right of set-off, under any Contract with any obligor
of an Accounts Receivable relating to the amount or validity of such Accounts
Receivable. SCHEDULE&nbsp;3.8 contains a complete and accurate list of all
Accounts Receivable as of the date hereof, which list sets forth the aging of
such Accounts Receivable.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A39taxmatters"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.9</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>TAX
MATTERS.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company filed all Tax Returns that it was required to file and all such Tax
Returns relating to the Company were correct and complete in all respects.
Except as set forth on SCHEDULE&nbsp;3.9(a)(1), all Taxes owed by the Company,
whether or not shown on any Tax Return, have been paid when due. Except as set
forth on SCHEDULE&nbsp;3.9(a)(2), the Company is not currently the beneficiary
of any extension of time within which to file any Tax Return. No claim with
respect to the Company has ever been made by an authority in a jurisdiction
where the Company does not file Tax Returns that any such entity is or may be
subject to taxation by that jurisdiction. There is no Lien affecting the Shares
or any of the assets or properties of the Company that arose in connection with
any failure or alleged failure to pay any Tax.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company has withheld and paid all Taxes required to have been withheld and paid
in connection with amounts paid or owing to any employee, independent
contractor, creditor, the Principal Shareholder or other party.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>No
taxing authority will assess any additional Taxes for any period for which Tax
Returns relating to the Company have been filed. There is no dispute or claim
concerning any Tax liability of the Company claimed or raised by any authority.
SCHEDULE&nbsp;3.9(c) lists all federal, state, local and foreign income Tax
Returns of the Company for the past six years, indicates those Tax Returns that
have been audited and indicates those Tax Returns that currently are the
subject of audit. The Company has delivered to Merge correct and complete
copies of all federal income Tax Returns, examination reports and statements of
deficiencies assessed against or agreed to by the Company for the past three
years.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company has not waived any statute of limitations in respect of Taxes or agreed
to any extension of time with respect to a Tax assessment or deficiency.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All
material elections in effect as of the date hereof with respect to Taxes
affecting the Company are set forth on SCHEDULE&nbsp;3.9. The Company is not or
will not be required to recognize positive adjustments to income pursuant to Section&nbsp;481
of the Code.</p>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>There
are no outstanding rulings of, or requests for rulings from, any tax authority
addressed to the Company that are, or if issued would be, binding on the
Company.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except
as set forth on SCHEDULE&nbsp;3.9, the Company is not a party to any joint
venture, partnership or other arrangement or contract which could be treated as
a partnership for federal income tax purposes.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company has not filed a consent under Section&nbsp;341(f) of the Code
concerning collapsible corporations. The Company has not made any payments, is
not obligated to make any payments and is not a party to any agreement that
under any circumstances could obligate it to make any payments that will not be
fully deductible under Section&nbsp;280G of the Code. The Company has not been
a United States real property holding corporation with the meaning of Section&nbsp;897(c)(2)
of the Code during the applicable period specified in Section&nbsp;897(c)(1)(A)(ii)
of the Code. The Company has disclosed on its federal income Tax Returns all
positions taken therein that could give rise to a substantial understatement of
federal income Tax within the meaning of Section&nbsp;6662 of the Code.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>None
of the assets or properties of the Company secures any debt the interest on
which is tax-exempt under Section&nbsp;103(a) of the Code. None of the assets
or properties of the Company are &#147;tax-exempt use property&#148; within the meaning
of Section&nbsp;168(h) of the Code. The transactions contemplated by this
Agreement are not subject to Tax withholding pursuant to the provisions of Section&nbsp;3406
or Subchapter&nbsp;A of Chapter&nbsp;3 of the Code or any other provision of
applicable Law. The Principal Shareholder is a United States Person within the
meaning of the Code.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except
as set forth on SCHEDULE&nbsp;3.9, the Company is not a party to any Tax
allocation or Tax sharing agreement. The Company (i)&nbsp;is not and has not
been a member of an Affiliated Group filing a consolidated federal income Tax
Return, and (ii)&nbsp;has not any liability for the Taxes of any Person under
Treasury Regulation Section&nbsp;1.1502-6 (or any similar provision of state,
local or foreign Law), as a transferee or successor, by contract or otherwise.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>No
taxing authority will assess any additional income Taxes against any Affiliated
Group for any period during which the Company was a member of such group. There
is no dispute or claim concerning any income Tax liability of any Affiliated
Group for any taxable period during which the Company was a member of such
group either (i)&nbsp;claimed or raised by any authority in writing or
(ii)&nbsp;as to which the Company has knowledge based upon personal contact with
any agent of such authority. Except as set forth in SCHEDULE&nbsp;3.9, no
Affiliated Group has waived any statute of limitations with respect to any
income Taxes or agreed to any extension of time with respect to an income Tax
assessment or deficiency for any taxable period during which the Company was a
member of such group.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
unpaid taxes of the Company do not and will not as of the Closing Date exceed
the reserves for tax liability set forth on its Year-end Balance Sheet.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>All net
operating losses (&#147;NOL&#146;s&#148;) set forth in the Tax Returns are valid.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>No new
material book deficiencies are expected for the fiscal year ended September&nbsp;30,
2004.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A310contracts"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.10</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CONTRACTS.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except
for the Contracts listed on SCHEDULE&nbsp;3.10, the Company is not a party to
or otherwise bound by any written or oral: (i)&nbsp;mortgage, indenture, credit
agreement, security agreement, note, installment obligation or other instrument
relating to the borrowing of money; (ii)&nbsp;guarantee of any obligation;
(iii)&nbsp;letter of credit, bond or other indemnity (including letters of
credit, bonds or other indemnities as to which the Company is the beneficiary
but excluding endorsements of instruments for collection in the ordinary course
of the operation of the</p>

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

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

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<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Company); (iv)&nbsp;currency or interest rate swap, collar or hedge
agreement; (v)&nbsp;offset, countertrade or barter agreement;
(vi)&nbsp;agreement for the sale, lease or other disposition by the Company to
any Person of any material amount of its assets other than the retirement or
other disposition of assets no longer useful to the Company or the sale of
finished products and spare parts in the ordinary course of the operation of
the Company; (vii)&nbsp;agreement requiring the payment by the Company of more
than $10,000 in any 12-month period for the purchase or lease of any machinery,
equipment or other capital assets; (viii)&nbsp;agreement providing for the
lease or sublease by the Company (as lessor, sublessor, lessee or sublessee) of
any real estate or personal property; (ix)&nbsp;distributor, representative,
broker or advertising agreement that is not terminable by the Company at will
or by giving notice of thirty (30)&nbsp;days or less, without liability;
(x)&nbsp;collective bargaining agreement, employment, change of control,
severance or consulting agreement or agreement providing for severance payments
or other additional rights or benefits (whether or not optional);
(xi)&nbsp;joint venture agreement; (xii)&nbsp;agreement requiring the payment
to the Company by any other Person (other than a division, unit or Affiliate of
the Company) of more than $10,000 in any 12-month period for the purchase of
goods or services; (xiii)&nbsp;any agreement, contract or commitment currently
in force relating to the acquisition by the Company of assets not in the
ordinary course of business or any ownership interest in any corporation,
partnership, joint venture or other business enterprise; (xiv)&nbsp;agreement
(including purchase orders, work assignment requests and work assignment
authorizations) between the Company and any other division, unit or Affiliate
of the Company or Shareholder requiring payments to or by the Company of more
than $10,000 in any 12-month period; (xv)&nbsp;license or sublicense agreement
with respect to any item of Intellectual Property (whether as licensor,
licensee, sublicensor or sublicensee); (xvi)&nbsp;agreement imposing
non-competition or exclusive dealing obligations on the Company which otherwise
contains any covenant that limits the freedom of the Company to engage in any
line of business anywhere in the world or compete with any Person or grants any
exclusive distribution rights; (xvii)&nbsp;Contract that is material to the
operations, financial condition or prospects of the Company and that is not
otherwise reflected on the Schedules; or (xviii)&nbsp;any Plan, including any
stock option plan, stock appreciation right plan or stock purchase plan, any of
the benefits of which will be increased, the vesting of benefits of which will
be accelerated, or amounts which may become payable (whether currently or in
the future) to current or former employees, officers or directors of the
Company by the occurrence of, as a result of or in connection with any of the
transactions contemplated by this Agreement or the Ancillary Agreements, or the
value of any of the benefits of which will be calculated on the basis of any of
the transactions contemplated by this Agreement or any of the Ancillary
Agreements.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company has delivered or made available to Merge correct and complete copies of
each written Contract listed on SCHEDULE&nbsp;3.10, as amended to date, and a
written summary setting forth the terms and conditions of each oral Contract
referred to on such Schedule. Each Contract is a valid, binding and enforceable
obligation of the Company, and, to the knowledge of the Principal Shareholder,
the other party or parties thereto, and is in full force and effect. Except as
set forth on SCHEDULE&nbsp;3.10: (i)&nbsp;neither the Company nor any other
party thereto has, to the knowledge of the Principal Shareholder, breached, violated
or defaulted under, or received notice that it has breached, violated or
defaulted under, any Contract set forth on SCHEDULE&nbsp;3.10; (ii)&nbsp;no
event, occurrence or condition exists that, with the lapse of time, the giving
of notice, or both, would constitute a breach, violation or default under any
Contract listed on SCHEDULE&nbsp;3.10 by the Company or any other party
thereto; and (iii)&nbsp;the Company has not waived or released any of its
material rights under any Contract.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A311realproperty"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.11</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>REAL
PROPERTY.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company does not own any real property.</p>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>SCHEDULE&nbsp;3.11
lists all lease and sublease agreements relating to real property leased or
subleased by the Company. With respect to each such lease and sublease:</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>such lease or sublease constitutes the entire agreement to which the
Company is a party with respect to the real property leased thereunder;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>there is no agreement, whether written or oral, to which the Company is
a party that will shorten the duration of the term of such lease or sublease as
a result of the consummation of the transaction pursuant to this Agreement;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Company has not assigned, subleased, transferred, conveyed,
mortgaged, deeded in trust or encumbered any interest in the leasehold or
subleasehold;</p>

<p style="margin:0in 0in .0001pt .85in;text-indent:.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>all facilities leased or subleased thereunder have received all
approvals of Governmental Entities (including all Permits) required in
connection with the operation thereof and have been operated and maintained in
accordance with all applicable Laws to the extent operated and maintained by
the Company and to the knowledge of the Company and the Principal Shareholder
by any other party which has contracted with the Company;</p>

<p style="margin:0in 0in .0001pt .85in;text-indent:.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>there is no action, suit or proceeding pending against the Company or,
to the any action, suit or proceeding pending or threatened against the Company
or any third party that would materially interfere with the quiet enjoyment of
such leased real property after the Closing Date;</p>

<p style="margin:0in 0in .0001pt .85in;text-indent:.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>all facilities leased or subleased thereunder are supplied with
utilities and other services necessary for the operation of such facilities;
and</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>To
the knowledge of the Company and the Principal Shareholder, no fact or
condition exists that is reasonably likely to result in the discontinuation of
presently available or otherwise necessary water, sewer, gas, electric,
telephone, drainage or other utilities or services relating to the real
property leased by the Company.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All of
the real property leased by the Company, and all components of all improvements
included within such leased real property, including the roofs and structural
elements thereof and the sprinkler and fire protection, heating, ventilation,
air conditioning, plumbing, electrical, mechanical, sewer, waste water, storm
water, paving and parking equipment, systems and facilities included therein,
are in good condition and repair, working order and repair and do not require
material repair or replacement in order to serve their intended purposes in all
material respects, including use and operation consistent with their present
use and operation, except for scheduled maintenance, repairs and replacements
conducted or required in the ordinary course of the operation of such leased
real property. The Company has made all material repairs and replacements
required to be made by it under the real estate leases and subleases to which
the Company is a party.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Other
than options, rights of first refusal or other similar arrangements in favor of
the Company under the leases and subleases relating to the real property leased
by the Company, the Company has not entered into any contract, arrangement or
understanding with respect to the future ownership, development, use, occupancy
or operation of any parcel of real property leased by the Company.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>There
are no pending or, to the knowledge of the Company and the Principal
Shareholder, threatened or contemplated condemnation or eminent domain
proceedings that affect the real property leased by the Company, and the
Company has not received any notice, oral or written, of the intention of any
Governmental Entity or other Person to take or use all or any part thereof.</p>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>During
the Company&#146; s occupancy, none of the real property leased by the Company or
any part thereof has suffered any material damage by fire or other casualty
that has not been completely restored.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company has not received any written notice for any insurance company that has
issued a policy to the Company with respect to any real property leased by the
Company requiring the performance of any structural or other repairs or
alterations to such property.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A312inventory"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.12</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>INVENTORY.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All inventory of the
Company, consists of a quality and quantity usable and salable in the ordinary
course of business, except for obsolete items and items of below-standard
quality, all of which have been written-off or written-down to net realizable
value in the Year-end Balance Sheet or on the accounting records of the Company
as of the Closing Date, as the case may be. All inventories not written-off
have been priced at the lower of cost or market on a first in, first out basis.
The quantities of each item of inventory are not excessive, but are reasonable
in the present circumstances of the Company. All work in progress of the
Company existing as of the Closing, whether or not reflected in any of the
Year-end Balance Sheet, is billable and collectable at the Company&#146;s usual and
customary rates and carries the Company&#146;s usual and customary profitability
margins.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A313titleandrelatedmatters"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.13</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>TITLE AND RELATED MATTERS.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except as set forth on SCHEDULE&nbsp;3.13,
the Company has good and marketable title, or, in the case of leased properties
and assets, valid leasehold interests in, to all the properties and assets
purported to be owned or leased, respectively, by it, free and clear of all
Liens. The properties and assets owned and leased by the Company include
sufficient tangible personal property to conduct the business and operations of
the Company as presently conducted. All material items of tangible personal
property owned or leased by the Company are in good operating condition and
repair, ordinary wear and tear excepted, and are suitable for the purposes for
which they are presently being used and presently proposed to be used. Each
item of tangible personal property owned or used by the Company immediately
prior to the Closing will be owned or available for use by the Company on
identical terms and conditions immediately subsequent to the Closing.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A314intellectualproperty"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.14</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>INTELLECTUAL PROPERTY.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company owns or has the right to use pursuant to valid license, sublicense,
Contract or permission all Intellectual Property necessary or desirable for
their operations as presently conducted and as the Company presently proposes
to be conducted. Each item of Intellectual Property owned or used by the
Company immediately prior to the Closing will continue to be owned or available
for use by the Company as survivor of the Merger on identical terms and
conditions immediately subsequent to the Closing. The execution, delivery and
performance of this Agreement, and the consummation of the transactions
contemplated hereby and thereby, will not (i)&nbsp;constitute a breach of any
instrument or Contract governing any Intellectual Property, (ii)&nbsp;cause the
forfeiture or termination or give rise to a right of forfeiture or termination
of any Intellectual Property or (iii)&nbsp;impair the right of the Company or
Merge to use, sell or license any Intellectual Property or portion thereof.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company has not interfered with, infringed upon, misappropriated or otherwise
come into conflict with any Intellectual Property rights of third parties.
Neither the provision of any service nor the manufacture, marketing, license,
sale or intended use of any product or technology currently licensed or sold or
under development by the Company violates any license or Contract between the
Company and any third party or infringes any third party intellectual property
rights. The Company has not received any charge, complaint, claim, demand or
notice alleging any such interference, infringement, misappropriation or
violation (including any claim that the Company must license or refrain from
using any Intellectual Property rights of any third party). No third party has
interfered with, infringed upon, misappropriated or otherwise come into
conflict with any Intellectual Property rights of the Company. Except as set
forth on SCHEDULE&nbsp;3.14, the Company has not licensed or permitted any
third party to exploit any of the Intellectual Property.</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>SCHEDULE&nbsp;3.14
identifies each patent or registration of Intellectual Property owned by the
Company or for which an application filed by the Company is pending, and identifies
each license, sublicense, Contract or permission pursuant to which the Company
uses any item of Intellectual Property.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company and the Intellectual Property will not interfere with, infringe upon,
misappropriate or otherwise come into conflict with any intellectual property
rights of third parties as a result of the continued operation of the business
of the Company now or in the future as presently conducted or as proposed to be
conducted or as otherwise contemplated by the Consulting Agreement.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A315litigation"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.15</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>LITIGATION.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except as set forth on SCHEDULE&nbsp;3.15,
the Company is not (a)&nbsp;subject to any unsatisfied judgment order, decree,
stipulation, injunction or charge or (b)&nbsp;a party to or is threatened to be
made a party to, any charge, complaint, action, suit, proceeding, hearing or
investigation of or in any court or quasi-judicial or administrative agency of
any federal, state, local or foreign jurisdiction. There are no judicial or
administrative actions, proceedings or investigations pending, or, to the
knowledge of the Company and the Principal Shareholder, threatened, that
question the validity of this Agreement or any of the Ancillary Agreements or
any action taken or to be taken by the Company or Principal Shareholder in
connection with this Agreement or any of the other agreements contemplated
hereby or that, if adversely determined, would have a material adverse effect
upon the Company&#146;s or the Principal Shareholder&#146;s ability to enter into or
perform their obligations under this Agreement or any of the other agreements
to which they are a party.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A316employeebenefits"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.16</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>EMPLOYEE
BENEFITS.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except for Plans of the
Company disclosed on SCHEDULE&nbsp;3.16, the Company, which for purposes of
this Section&nbsp;3.16 shall include any Affiliate, does not sponsor, maintain,
have any obligation to contribute to or have liability under, and is not
otherwise a party to any Plan or other employee benefit arrangements and
payroll practices. With respect to each Plan of the Company and to the extent
applicable:</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each
Plan has been maintained and operated in compliance in all material respects
with its terms and with the applicable provisions of ERISA, the Code, including
Section&nbsp;408 thereof, all regulations, rulings and other authority issued
thereunder, and all other applicable governmental laws and regulations,
including all tax rules for which favorable tax treatment is intended;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All
contributions required by Law or any Plan or applicable collective bargaining
agreement (including all employer contributions and employee salary reduction
contributions for any period on or before the Closing Date) have been made
under any such Plan (without regard to any waivers granted under Section&nbsp;412
of the Code to any fund, trust, or account established thereunder or in
connection therewith) have been made or will have been made by the due date
thereof. All accrued contributions, premiums and other payments that would be
(without regard to the transactions contemplated hereby), but are not yet, due
from any of the Company or associates to (or under) any Plan have been
adequately and properly provided for on the Preliminary Balance Sheet;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
SEP IRA Plan set forth on SCHEDULE&nbsp;3.16 qualified under Section&nbsp;401(a)
of the Code prior to its termination in 2004;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except
as set forth on SCHEDULE&nbsp;3.16, no Plan that is an Employee Welfare Benefit
Plan provides for continuing benefits or coverage for any participant or
beneficiary of a participant after such participant&#146;s termination of
employment, except to the extent required by law; and there</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">has
been no violation of Section&nbsp;4980B of the Code or Sections 601-608 of
ERISA with respect to any such Plan that could result in any material
liability;</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>With
respect to each such Plan, true, correct, and complete copies of the applicable
following documents have been filed or distributed appropriately and made
available to Merge: (i)&nbsp;all current Plan documents, and any amendment
thereto; (ii)&nbsp;Forms 5500, financial statements, and actuarial reports for
the last three (3)&nbsp;plan years; (iii)&nbsp;summary plan descriptions;
(iv)&nbsp;the most recent determination letter received from the IRS and
(v)&nbsp;the related trust agreements, insurance contracts and other funding
agreements that implement such Plans;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company has never contributed to or been required to contribute to any
Multiemployer Plan;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>SCHEDULE&nbsp;3.16
includes a workers&#146; compensation paid loss summary through October&nbsp;31,
2004 on an accident year basis. SCHEDULE&nbsp;3.16 additionally includes a
listing through the Closing Date of all open workers compensation claims
showing claimant name, claim number, description, paid loss and case reserve;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company has never been nor is a party to or otherwise bound by any advance
agreement or similar arrangement with any Governmental Entity or regulatory
body relating to the allowability, allocation or reimbursement of benefit costs
or other matters in connection with any Company Plan;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except
as provided on SCHEDULE&nbsp;3.16, no Plan contains any provision that would
prohibit the transactions contemplated by this Agreement and the Ancillary
Agreements or that would give rise to any severance, termination or other
payments solely as a result of the transactions contemplated by this Agreement
and the Ancillary Agreements;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Any
Plan (or prospective, unaccrued and unvested liability related thereto) is by
its terms able to be amended or terminated by the Company;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>There
are no liabilities or obligations relating to any individual&#146;s current or
former employment with the Company or its Affiliates arising in connection with
any violation of any applicable Law prior to the Closing Date;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>There
have been no Prohibited Transactions with respect to such Plans, no fiduciary
has any liability for breach of fiduciary duty or any other failure to act or
comply in connection with the administration or investment of the assets of
such Plans, and no action, suit, proceeding, hearing or investigation with
respect to the administration or the investment of the assets of such Plans
(other than routine claims for benefits) is pending or threatened.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>Neither
the Company nor the Principal Shareholder has communicated to any employee
(excluding internal memoranda to management) any plan or commitment, whether or
not legally binding, to create any additional material Plan or materially
modify or change any Plan that would affect any employee or terminated employee
of the Company or any of its Affiliates in a material manner;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>No
individual classified as a non-employee for purposes of receiving employee
benefits (such as an independent contractor, leased employee, consultant or
special consultant), regardless of treatment for other purposes, is eligible to
participate in or receive benefits under any Plan which does not specifically
provide for their participation. A list of all non-employees is set forth on SCHEDULE&nbsp;3.16.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except
for the SEP IRA Plan set forth on SCHEDULE&nbsp;3.16, the Company has never
sponsored an Employee Pension Benefit Plan.</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company has never self insured any employee benefit, including employees&#146;
health insurance program, except as disclosed in SCHEDULE&nbsp;3.16.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A317laborrelationsemployees"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.17</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>LABOR RELATIONS; EMPLOYEES.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>None
of the Company&#146;s employees are represented by a labor union or similar
collective bargaining organization in connection with their employment by the
Company. There are no controversies pending or, to the knowledge of the Company
and the Principal Shareholder, threatened between the Company and any current
or former employee of the Company or any labor or other collective bargaining
unit representing any current or former employee of the Company that could
reasonably be expected to result in a labor strike, lockout, dispute, slow-down
or work stoppage or otherwise have a material adverse effect on the financial
condition, operations or prospects of the Company. To the knowledge of the
Company and the Principal Shareholder, there is no organizational effort
presently being made or threatened by or on behalf of any labor union or
collective bargaining organization with respect to employees of the Company.
The Company is and has been in material compliance with all Laws regarding
employment practices, terms and conditions of employment, and wages and hours
(including ERISA, the Workers Adjustment and Retraining and Notification Act or
any similar state or local law).</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>SCHEDULE&nbsp;3.17(b)
contains a complete and accurate list of the following information for each
employee or director of the Company, including each employee on leave of
absence or layoff status: name; job title; current compensation paid or payable
and any change in compensation since December&nbsp;31, 2003; vacation accrued;
and service credited for purposes of vesting and eligibility to participate
under the Company&#146;s pension, retirement, profit-sharing, thrift-savings,
deferred compensation, stock bonus, stock option, cash bonus, employee stock
ownership (including investment credit or payroll stock ownership), severance
pay, insurance, medical, welfare, or vacation plan, other Employee Pension
Benefit Plan or Employee Welfare Benefit Plan, or any other employee benefit
Plan or any director plan.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>No
employee or director of the Company is a party to, or is otherwise bound by,
any agreement or arrangement, including any confidentiality, noncompetition, or
Intellectual Property or proprietary rights agreement, between such employee or
director and any other Person that in any way adversely affects or will affect
the performance of his or her duties as an employee or director of the Company
or the ability of the Company to conduct its business. To the knowledge of the
Company and the Principal Shareholder, no director, officer, key employee or
group of employees of the Company intends to terminate his or her employment
with the Company.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Neither
the Principal Shareholder nor the Company has guaranteed or promised continuing
employment to any employee, and the Principal Shareholder and the Company
understand that business conditions will dictate appropriate employment levels
after the Closing.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>SCHEDULE&nbsp;3.17(e)
contains a complete and accurate list of the following information for each
retired employee or director of the Company, or their dependents, receiving
benefits or scheduled to receive benefits in the future: name; pension benefit;
pension option election; retiree medical insurance coverage; retiree life
insurance coverage; and other benefits.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A318environmentalmatters"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.18</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>ENVIRONMENTAL MATTERS.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company is, and at all times has been, in full compliance with, and has not
been and is not in violation of or liable under, any Environmental Law. Neither
the Company nor the Principal Shareholder has any basis to expect, nor has
either of them or any Person for whose conduct they are or may be held to be responsible,
received any actual or threatened order, notice or other communication from
(i)&nbsp;any Governmental Entity or private citizen acting in the public
interest, or (ii)&nbsp;the current or prior owner or operator of any facilities
used, owned or operated by the Company or the property on which such facilities
are, or were located, of any actual or</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">potential
violation or failure to comply with any Environmental Law, or of any actual or
threatened obligation to undertake or bear the cost of any Environmental,
Health, and Safety Liabilities with respect to any of the facilities or any
other properties or assets (whether real, personal, or mixed) in which the
Company has or had an interest, or with respect to any property or facility at
or to which Hazardous Materials were generated, manufactured, refined,
transferred, imported, used or processed by the Company or any Person for whose
conduct it is found to be responsible, or from which Hazardous Materials have
been transported, treated, stored, handled, transferred, disposed, recycled or
received.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>There
are no pending or threatened claims, encumbrances, or other restrictions of any
nature, resulting from any Environmental, Health and Safety Liabilities or
arising under or pursuant to any Environmental Law, with respect to or
affecting any of the facilities or any other properties and assets (whether
real, personal, or mixed) in which the Company has or had an interest.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Neither
the Principal Shareholder nor the Company has any basis to expect, nor has
either of them or any Person for whose conduct they are or may be held
responsible, received, any citation, directive, inquiry, notice, order,
summons, warning or other communication that relates to Hazardous Materials,
Hazardous Activity or any alleged, actual or potential violation or failure to
comply with any Environmental Law, or of any alleged, actual or potential
obligations to undertake or bear the cost of any Environmental, Health, and
Safety Liabilities with respect to any of the facilities or any other
properties or assets (whether real, personal, or mixed) in which the Company
has or had an interest, or with respect to any property or facility to which
Hazardous Materials generated, manufactured, refined, transferred, imported,
used or processed by the Company or any Person for whose conduct it is found to
be responsible, have been transported, treated, stored, handled, transferred,
disposed, recycled or received.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Neither
the Principal Shareholder nor the Company, or any Person for whose conduct they
are or may be held responsible, has Environmental, Health, and Safety
Liabilities with respect to the facilities or with respect to any other
properties and assets (whether real, personal, or mixed) in which the Company
(or any predecessor) has or had an interest, or any such other property or
assets.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>There
are no Hazardous Materials, except as properly stored in compliance with
Environmental Laws in commercial containers also in compliance therewith for
day-to-day use in the ordinary and usual course of the Company&#146;s business,
present on or in the environment at the facilities, including any Hazardous
Materials contained in barrels, above or underground storage tanks, landfills,
land deposits, dumps, equipment (whether moveable or fixed) or other
containers, either temporary or permanent, and deposited or located in land,
water, sumps or any other part of the facilities or such adjoining property, or
incorporated into any structure therein or thereon. Neither the Principal
Shareholder nor the Company, or any Person for whose conduct they are or may be
held responsible, or any other Person, has permitted or conducted, or is aware
of, any Hazardous Activity conducted with respect to the facilities or any
other properties or assets, (whether real, personal, or mixed) in which the
Company has or had an interest.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>There
has been no Release or, to the knowledge of the Company and the Principal
Shareholder, threat of Release of any Hazardous Materials at or from the
facilities or at any other locations where any Hazardous Materials were
generated, manufactured, refined, transferred, produced, imported, stored,
distributed, handled, managed, Released, treated, used or processed from or by
the facilities, or from or by any other properties and assets (whether real,
personal, or mixed) in which the Company has or had an interest, whether by the
Company or any Person.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company has delivered to Merge true and complete copies and results of any reports,
studies, analyses, tests, or monitoring possessed or initiated by the Company
pertaining to</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hazardous
Materials or Hazardous Activities in, on, or under the facilities, or
concerning compliance by the Company, or by any Person for whose conduct it are
or may be held responsible, with Environmental Laws.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A319legalcompliance"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.19</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>LEGAL
COMPLIANCE.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except as set forth on SCHEDULE&nbsp;3.19,
the Company has fully complied with all applicable Laws and no action, suit,
proceeding, hearing, investigation, charge, complaint, claim, demand or notice
has been filed or commenced against or, to the knowledge of the Principal
Shareholder, has been threatened against the Company alleging any failure to so
comply. No investigation or review by any Governmental Entity is pending or
threatened against the Company and no Governmental Entity has indicated in
writing or orally, an intention to conduct the same. There is no agreement,
judgment, injunction, order or decree binding upon the Company, which has or
could reasonably be expected to have the effect of prohibiting or impairing
(i)&nbsp;any business practice of the Company, (ii)&nbsp;any acquisition by or
property of the Company or (iii)&nbsp;the conduct of business by the Company.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A320permits"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.20</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>PERMITS.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SCHEDULE&nbsp;3.20 contains
a true and complete list and brief description of all of the Permits required
to allow, in accordance with the Laws of any Governmental Entity, the continued
operation of the business as now conducted (or proposed to be conducted under
existing Contracts), and the Company is the authorized legal holder of the
Permits. Each of the Permits is valid and in full force and effect, the Company
is in compliance with all the provisions of the Permits in all material
respects. The Company has not received notice that any Governmental Entity has
instituted any proceedings for the cancellation, non-renewal or modification of
any of the Permits; there is no reason why any of such Permits will, upon their
scheduled expiration or as a result of the Closing, not be renewable or
reissuable in the ordinary course or will be issuable or reissuable only with
the imposition of a material condition.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A321affiliateagreements"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.21</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>AFFILIATE AGREEMENTS</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SCHEDULE&nbsp;3.21 sets
forth: (i)&nbsp;a list of each and every written Contract or arrangement;
(ii)&nbsp;a brief description in reasonable detail of all oral Contracts or
arrangements in effect that relate to, in either case (x)&nbsp;the provision of
products or services to the Company by any Principal Shareholder of the
Company, officer, director or employee, or any Related Person or Affiliate of
the Company or any Principal Shareholder of the Company or (y)&nbsp;the
provision of products or services by the Company to the Principal Shareholder,
officer, director or employee, or any Related Person or Affiliate of any
Principal Shareholder of the Company, officer, director or employee. The
Company has delivered to Merge correct and complete copies of each such written
Contract or arrangement, as amended to date. Except as set forth on SCHEDULE&nbsp;3.21,
all such Contracts and arrangements with Related Parties are on terms no less
favorable than those that could be obtained in arms-length transactions with
non-related parties. Except as set forth on SCHEDULE&nbsp;3.21, no Shareholder
of the Company, officer, director or employee of the Company has any interest
in any property, real or personal, tangible or intangible, used in or
pertaining to the business of the Company.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A322insurance"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.22</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>INSURANCE.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SCHEDULE&nbsp;3.22 contains
a correct and complete list and description by type of all policies of fire,
liability, directors&#146; and officers&#146;, errors and omissions, workers&#146;
compensation and other forms of insurance, including all group insurance
programs, owned or held by the Company. All such policies are in full force and
effect, and no written notice of cancellation or termination has been received
with respect to any such policy. Except as noted on SCHEDULE&nbsp;3.22, all
premiums with respect to all insurance policies covering all periods up to and including
the date hereof have been paid. Such policies, (a)&nbsp;are sufficient for
compliance with all material requirements of Law and of all material Contracts
to which the Company is a party, (b)&nbsp;are valid, outstanding and
enforceable policies as against the Company, (c)&nbsp;provide insurance
coverage for the assets and operations of the Company that, in the reasonable
judgment of the Principal Shareholder and the management of the Company, is
adequate in light of risks of the Company&#146;s business as heretofore conducted,
(d)&nbsp;will remain in full force and effect through the respective dates set
forth in SCHEDULE&nbsp;3.22 without the payment of additional premiums and
(e)&nbsp;will not in any way be affected by, or terminate or lapse by reason
of, the transactions contemplated by this Agreement or the Ancillary
Agreements. The Company has not been refused any insurance with respect to its
assets or operations, nor has any insurance carrier to which it has applied for
any such insurance or with which it has carried insurance limited its coverage.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A323bankaccountsandpowers"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.23</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>BANK ACCOUNTS AND POWERS.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SCHEDULE&nbsp;3.23 lists
each bank, trust company, savings institution, brokerage firm, mutual fund or
other financial institution with which the Company has an account or safe
deposit box relating to the Company and the names and identification of all
Persons authorized to draw thereon or to have access thereto. SCHEDULE&nbsp;3.23
lists the names of each Person holding powers of attorney or agency authority
from the Company and a summary of the terms thereof.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A324brokersfees"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.24</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>BROKERS&#146;
FEES.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Principal Shareholder,
the Company and their agents have not, nor will they incur, directly or
indirectly, any liability or obligation to pay any fees or commissions to any
broker, finder or agent with respect to this Agreement or any Ancillary
Agreement or of any of the transactions contemplated hereby or thereby.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A325certainpayments"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.25</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CERTAIN
PAYMENTS.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Neither the Company nor any
director, officer, agent, or employee of the Company, or to the knowledge of
the Company and the Principal Shareholder, any Person associated with or acting
for or on behalf of the Company, has directly or indirectly (a)&nbsp;made any
contribution, gift, bribe, rebate,</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">26</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">payoff, influence payment, kickback or other payment
to any Person, private or public, regardless of form, whether in money,
property or services (i)&nbsp;to obtain favorable treatment in securing
business, (ii)&nbsp;to pay for favorable treatment for business secured,
(iii)&nbsp;to obtain special concessions or for special concessions already
obtained, for or in respect of the Company or any Affiliate of the Company, or
(iv)&nbsp;in violation of any Law, or (b)&nbsp;established or maintained any
fund or asset that has not been recorded in the books and records of the Company.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A326customerrelationships"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.26</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CUSTOMER RELATIONSHIPS.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except as set forth in SCHEDULE&nbsp;3.26,
there has not been, and neither the Company nor the Principal Shareholder has
knowledge of circumstances giving rise to cause either of them to reasonably
believe that there will be, any adverse change in the Company&#146;s relations with
any of its customers since December&nbsp;31, 2003, whether as a result of the
transactions contemplated by this Agreement or the Ancillary Agreements, or
otherwise. SCHEDULE&nbsp;3.26 sets forth a true and complete list of the Company&#146;s
ten (10)&nbsp;largest customer accounts as of the date hereof. No current
customer of the Company has advised the Company that, as a result of the
transactions contemplated by this Agreement or any of the Ancillary Agreements,
it is terminating the handling of its business by the Company, as a whole or in
part, or reducing its future spending with the Company. Except as set forth in SCHEDULE&nbsp;3.26,
the Company is not involved in any material claim or controversy with any
customer.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A327vendors"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.27</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>VENDORS.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SCHEDULE&nbsp;3.27 contains
an accurate and complete list of the Company&#146;s ten (10)&nbsp;largest vendors as
of the date hereof. No vendor has canceled or otherwise terminated, modified or
threatened to cancel or otherwise terminate, or to modify, its relationship
with the Company. Except as set forth on SCHEDULE&nbsp;3.27, the Company is not
involved in any material claim or controversy with any vendor.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A328boardapproval"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.28</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>BOARD
APPROVAL.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Board of Directors of
the Company has determined that the transactions contemplated by this Agreement
are fair to, and in the best interests of, the Company and the Shareholders,
and the Board of Directors of the Company has approved this Agreement and the
Voting Agreement and the transactions contemplated thereby.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A329booksandrecords"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.29</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>BOOKS
AND RECORDS.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except as set forth on Schedule&nbsp;3.29,
all accounts, stock record books, ledgers and other records related to the
business of the Company have been properly and accurately kept and completed in
all material respects in accordance with reasonable business practices, and there
are no material inaccuracies or discrepancies of any kind contained or
reflected therein. Except as set forth on Schedule&nbsp;3.29, the minute books
of the Company contain accurate and complete records of all material corporate
actions taken by the Shareholders of the Company, the Board of Directors and
committees of the Board of Directors which are required to be approved by them.
To the extent that any records related to the Company are missing from or not
included in the minute books of the Company (the &#147;Missing Records&#148;), the
Company represents and warrants that the Missing Records contain or reflect no
action, decisions or practices in any way inconsistent with the business of the
Company as currently conducted or with the representations of the Company and
the Principal Shareholder contained in this Agreement.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A330antitrustlawcompliance"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.30</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>ANTITRUST LAW COMPLIANCE.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company has not violated
in any respect, received a notice or charge asserting any violation, or engaged
in conduct that may be construed as price fixing or any other violation of the
Sherman Act,</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">27</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the Clayton Act, the Robinson-Patman Act or the
Federal Trade Commission Act, each as amended, or any other federal or state
Law related to antitrust or competition.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A331productliability"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.31</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>PRODUCT
LIABILITY.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company has no
liability, whether known or unknown, whether absolute or contingent, whether
liquidated or unliquidated and whether due or to become due, and there exists
no past or present fact, situation, circumstance, status, condition, activity,
practice, occurrence, event, incident, action, failure to act or transaction
that forms or could form the basis for any present or future liability, charge,
complaint, action, suit, proceeding, hearing, investigation, claim or demand
against the Company arising out of any injury to persons or property as a
result of the ownership, possession or use of any product manufactured, sold,
leased or delivered by the Company or as a result of any service provided by
the Company.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A332fulldisclosure"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.32</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>FULL
DISCLOSURE.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All documents and other
papers delivered by or on behalf of the Company or the Principal Shareholder in
connection with this Agreement are true, complete, correct and authentic in all
respects. No representation or warranty of any of the Principal Shareholder or
the Company contained in this Agreement, and no statement contained in any
document or certificate required to be delivered by the Company or the
Principal Shareholder to Merge or any of its representatives pursuant to the
terms of this Agreement or the Ancillary Agreements (including the Schedules
hereto and thereto), contains any untrue statement of a material fact or omits
to state on an appropriate schedule&nbsp;a material fact necessary to make the
representation, warranty or statements contained herein or therein not
misleading. There is no fact that the Company or the Principal Shareholder have
not disclosed to Merge in writing that the Company or Principal Shareholder
reasonably believe has or will have a material adverse effect on the financial
conditions, operations or prospects of the Company or a material adverse effect
on the ability of the Company or the Principal Shareholder of the Company to
perform this Agreement or any other agreements contemplated hereby to which any
of them is a party.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A333internalcontroloverfinancialrep"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.33</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>INTERNAL CONTROL OVER FINANCIAL REPORTING.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company maintains books
of account which accurately and validly reflect all loans, mortgages,
collateral, and other business transactions and maintain proper and adequate
internal control over financial reporting which provide assurance that
(a)&nbsp;receipts and expenditures are made and access to the Company&#146;s assets
is permitted only in accordance with management&#146;s authorization; (b)&nbsp;the
books and records of the Company accurately and fairly reflect in reasonable
detail the transactions and dispositions of the assets of the Company;
(c)&nbsp;the reporting of the assets of the Company is compared with existing
assets at regular intervals; (d)&nbsp;transactions are recorded as necessary to
permit preparation of financial statements of the Company in accordance with
GAAP and to maintain accountability for the assets of the Company;
(e)&nbsp;unauthorized acquisition, use, or disposition of the assets of the
Company is prevented; and (f)&nbsp;accounts, notes, and other transactions are
recorded accurately, and proper and adequate procedures are implemented to
effect the collection thereof on a current and timely basis. Schedule&nbsp;3.33
identifies all significant deficiencies or material weaknesses in the internal
control over financial reporting of the Company.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A334compliancewithsox"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.34</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>COMPLIANCE WITH SOX.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company is in compliance
with the provisions of SOX applicable to it as of the date hereof and has
implemented such programs and has taken reasonable steps, upon the advice of
the Company&#146;s independent auditors and outside counsel, respectively, to ensure
the Company&#146;s future compliance (not later than the relevant statutory and
regulatory deadlines therefor) with all provisions of SOX which shall become
applicable to the Company after the date hereof.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">28</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><a name="Section4_RepresentationsAndWarrantie"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION&nbsp;4. REPRESENTATIONS AND WARRANTIES OF MERGE</font></b></a></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Merge and Acquisition Sub
represent and warrant to, and covenant with, the Company and the Principal
Shareholder as of the date of this Agreement and as of the Closing Date, as
follows:</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A41organization"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.1</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>ORGANIZATION.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Merge and Acquisition Sub
are each a corporation duly organized, validly existing and in good standing
under the laws of the State of Wisconsin and the State of Nevada, respectively.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A42authorizationoftransaction"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.2</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>AUTHORIZATION OF TRANSACTION.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The execution and delivery
of this Agreement and the consummation of the transactions contemplated hereby
have been duly authorized by all necessary action on the part of the Board of
Directors of Merge and Acquisition Sub. Merge and Acquisition Sub have the
absolute and unrestricted right, power, authority and capacity (including full
corporate power and authority) or have taken all requisite action to enable
Merge and Acquisition Sub to execute and deliver this Agreement and to perform
their obligations hereunder. This Agreement has been duly executed and
delivered by Merge and Acquisition Sub. When duly executed and delivered, this
Agreement constitutes the valid and legally binding obligation of Merge and
Acquisition Sub, enforceable in accordance with its terms, subject to
(i)&nbsp;laws of general application relating to bankruptcy insolvency, and the
relief of debtors, and (ii)&nbsp;general equitable principles.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A43noncontraventionconsents"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.3</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>NONCONTRAVENTION; CONSENTS.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Neither the execution and
the delivery of this Agreement, nor the consummation by Merge and Acquisition
Sub of the transactions contemplated hereby, will violate any Law to which
Merge or Acquisition Sub is subject or any provision of the charter or bylaws
of Merge or Acquisition Sub. Neither the execution and delivery of this
Agreement or any of the Ancillary Agreements by Merge and Acquisition Sub, nor
the consummation by Merge and Acquisition Sub of the transactions contemplated
hereby or thereby, will constitute a violation of, be in conflict with or
constitute or create a default under, any agreement or commitment to which
Merge or Acquisition Sub is a party or by which Merge, Acquisition Sub or any
of their properties is bound or to which Merge, Acquisition Sub or any of such
properties is subject. Merge and Acquisition Sub have given all required notice
and obtained all Permits, consents, approvals, authorizations, qualifications
and orders of Governmental Entities as are required in order to enable Merge
and Acquisition Sub to perform their obligations under this Agreement and each
of the Ancillary Agreements.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><a name="Section5_PreclosingCovenants"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION&nbsp;5.
PRE-CLOSING COVENANTS</font></b></a></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The parties agree as follows
with respect to the period between the date of this Agreement and the Closing
Date:</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A51general"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.1</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>GENERAL.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each of Merge, the Company
and the Principal Shareholder will use its reasonable best efforts to take all
actions and to do all things necessary, proper or advisable to consummate and
make effective the transactions contemplated by this Agreement (including
satisfying the closing conditions set forth in Section&nbsp;7).</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A52noticesandconsents"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.2</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>NOTICES AND CONSENTS.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Beginning on the date
hereof, the Company will give all required notices to third parties and will
obtain all third party consents that are required in connection with the
transactions contemplated by this Agreement, each in form and substance
reasonably acceptable to Merge. A copy of such notice or consent shall be
provided to Merge as soon as practicable.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">29</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A53carryoninordinarycourse"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.3</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CARRY ON IN ORDINARY COURSE.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Between
the date of this Agreement and the Closing Date, the Company will conduct and
carry on its business only in the ordinary course consistent with past
practices. Until such time, the Company also shall use its commercially
reasonable efforts to preserve the Company&#146;s assets, relationships, customers,
clients and employees and to preserve for Merge the integrity and reputation of
the Company, and shall not take any of the following actions without the prior
written consent of Merge, which consent shall not be unreasonably withheld:</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>form or cause to be formed any subsidiary;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>make any change in any executive management personnel;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>enter
into any contract of employment with, or increase the compensation paid or
payable to, or enter into any new arrangements with, any of its officers,
directors, employees or agents or pay or become committed to pay any of the
foregoing any bonuses or other special compensation except for non-management
employees in the ordinary course of business;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>amend
its charter or bylaws;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>authorize,
issue or sell, repurchase, or become committed to authorize, issue or sell, or
repurchase, any shares of capital stock or any rights or options to acquire
capital stock except pursuant to the acceleration or exercise of rights or
options previously granted by the Company;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>make
any single expenditure in an amount exceeding ten thousand dollars ($10,000),
or expenditures which in the aggregate exceed twenty-five thousand dollars
($25,000), or agree to sell, transfer, assign or encumber, any of the Company&#146;s
assets except in the ordinary course of business;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>pay
or declare any dividends to its shareholders; or</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(viii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>pay,
declare or announce any capital distribution.</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Between
the date of the Agreement and the Closing Date, the Company and the Principal
Shareholder further agree to:</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>use their reasonable best efforts to preserve intact the current
business of the Company, keep available the services of the current officers,
employees and agents of the Company, and maintain the relations and goodwill
with customers, vendors, landlords, creditors, employees, agents and others
having business relationships with the Company;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>confer with Merge concerning operational matters of a material nature;
and</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>otherwise
report periodically to Merge concerning the status of the business, operations,
finances and prospects of the Company.</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Neither
the Company, the Principal Shareholder nor Merge shall take any action that
could reasonably be expected to adversely affect its ability to perform this
Agreement.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Principal Shareholder will not transfer, pledge or otherwise dispose of any of
his Shares owned on the date hereof.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company will not make a voluntary bankruptcy filing, an assignment for the
benefit of creditors or take any other similar action.</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">30</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A54nodefault"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.4</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>NO
DEFAULT.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company will not commit
or omit to take any act which will cause a termination of or material breach or
default under any Contract or obligation to which the Company is a party or by
which its assets are bound.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A55fullaccess"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.5</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>FULL
ACCESS.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Until the Closing Date and
the consummation of the transactions contemplated by this Agreement, the
Company and the Principal Shareholder agree to give reasonable access to Merge
and Merge&#146;s agents and representatives to all assets, properties, contracts,
personnel, key customers, suppliers, agents, books and records of the Company
and/or any other data and information related to the Company as Merge and/or
its agents or representatives may reasonably deem necessary, and further agree
to cause Company&#146;s executive employees and legal and financial representatives
to meet with Merge at mutually agreeable times and locations and answer Merge&#146;s
questions to the best of their ability, including but not limited to their
assessment of all pending, threatened or contingent claims or lawsuits against
the Company. The Company shall also afford unrestricted access to all its audit
papers and allow Merge and its representatives the opportunity to ask questions
and receive answers, to the best of their ability, of the appropriate officers
and agents of the Company.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A56noticeofdevelopments"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.6</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>NOTICE OF DEVELOPMENTS.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company and the
Principal Shareholder will each give prompt written notice to Merge of any
material development affecting the Company. Each party will give prompt written
notice to the other of any material development affecting the ability of the
parties to consummate the transactions contemplated by this Agreement or any of
the Ancillary Agreements. No such written notice of a material development will
be deemed to have amended the Schedules, to have qualified the representations
and warranties contained herein or in the Ancillary Agreements, or to have cured
any misrepresentation or breach of warranty that otherwise might have existed
hereunder by reason of such material development.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A57nosolicitationoftransactions"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.7</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>NO SOLICITATION OF TRANSACTIONS.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company agrees that it shall not, and shall not authorize or permit any of its
directors, officers, employees or representatives to, directly or indirectly:</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>solicit, initiate, encourage, knowingly facilitate or induce any
inquiry with respect to, or the making, submission or announcement of, any
Acquisition Proposal;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>participate or engage in any discussions or negotiations regarding, or
furnish to any Person any nonpublic information with respect to, or take any
other action to facilitate any inquiries or the making of any proposal that
constitutes or may reasonably be expected to lead to, any Acquisition Proposal,
except to notify such Person as to the existence of these provisions (except to
the extent permitted pursuant to this Section&nbsp;5.7);</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>approve,
endorse or recommend any Acquisition Proposal with respect to the Company
(except to the extent permitted by this Section&nbsp;5.7); or</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>enter
into any letter of intent or similar document or any agreement, commitment or
understanding contemplating or otherwise relating to any Acquisition Proposal
or a transaction contemplated thereby (except for confidentiality agreements
permitted pursuant to Section&nbsp;5.7(c)).</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company shall
immediately terminate all discussions or negotiations, if any, with any third
party with respect to, or any that could reasonably be expected to lead to or
contemplate the possibility of, an Acquisition Proposal. The Company shall as
soon as practicable demand that each Person which has executed, since January&nbsp;1,
2003, a confidentiality agreement with the Company or any of its</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">31</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Affiliates or any of its or their representatives
with respect to such Person&#146;s consideration of a possible Acquisition Proposal
to immediately return or destroy (which destruction shall be certified in
writing by such Person to the Company) all confidential information heretofore
furnished by the Company or any of its Affiliates or subsidiaries or any of its
or their representatives to such Person or any of its Affiliates or any of its
or their representatives.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Promptly
(but in any event within 36&nbsp;hours) after receipt of any Acquisition
Proposal or any request for nonpublic information or inquiry which it
reasonably believes could lead to an Acquisition Proposal, the Company shall
provide Merge with written notice of the material terms and conditions of such
Acquisition Proposal, request or inquiry, and the identity of the Person or
group making any such Acquisition Proposal, request or inquiry, and a copy of
all written materials provided in connection with such Acquisition Proposal,
request or inquiry. After receipt of the Acquisition Proposal, request or
inquiry, the Company shall promptly keep Merge informed in all material
respects of the status and details (including material amendments or proposed
material amendments) of any such Acquisition Proposal, request or inquiry and
shall promptly provide to Merge a copy of all written materials subsequently
provided in connection with such Acquisition Proposal, request or inquiry.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If
the Company receives an Acquisition Proposal which (i)&nbsp;constitutes a
Superior Proposal or (ii)&nbsp;which the Board of Directors of the Company in
good faith concludes could reasonably be expected to result in a Superior
Proposal, the Company shall promptly provide to Merge written notice that shall
state expressly (A)&nbsp;that it has received an Acquisition Proposal which
constitutes a Superior Proposal or which could reasonably be expected to result
in a Superior Proposal, and (B)&nbsp;the identity of the party making such
Acquisition Proposal and the material terms and conditions of the Acquisition
Proposal (the &#147;Superior Proposal Notice&#148;) and may then take the following
actions (either directly or through its subsidiaries or any of their respective
directors, officers, employees or representatives):</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>furnish nonpublic information to the third party making such
Acquisition Proposal, provided, that (A)&nbsp;prior to so furnishing, the
Company receives from the third party an executed confidentiality agreement
containing customary standstill provisions and other terms and conditions that
are no less restrictive to such third party than the terms and conditions of
the nondisclosure agreement entered into between Merge and the Company dated September&nbsp;22,
2004 and (B)&nbsp;contemporaneously with furnishing any such nonpublic
information to such third party, the Company furnishes a copy of such nonpublic
information to Merge (to the extent such nonpublic information has not been
previously so furnished); and</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">32</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>participate or engage in any discussions or negotiations with the third
party with respect to the Acquisition Proposal.</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>For a
period of not less than five Business Days after Merge&#146;s receipt from the
Company of each Superior Proposal Notice, the Company shall, if requested by
Merge, negotiate in good faith with Merge to revise this Agreement so that the
Acquisition Proposal that constituted a Superior Proposal no longer constitutes
a Superior Proposal.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Notwithstanding
anything in this Agreement to the contrary, in response to the receipt of a
Superior Proposal that has not been withdrawn and continues to constitute a
Superior Proposal after the Company&#146;s compliance with Section&nbsp;5.7(d), the
Board of Directors of the Company may withhold, withdraw or modify the Company
Recommendation and, in the case of a Superior Proposal that is a tender or
exchange offer made directly to its stockholders, may recommend that its
stockholders accept the tender or exchange offer (any of the foregoing actions,
whether by the Board of Directors or a committee thereof, a &#147;Change of
Recommendation&#148;) and, pursuant to Section&nbsp;9.1(d), may terminate this
Agreement, if both of the following conditions in Sections 5.7(e)(i)&nbsp;and
5.7(e)(ii)&nbsp;are met:</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the approval of the Merger by the Company&#146;s stockholders has not been
obtained; and</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Board of Directors of the Company has concluded in good faith,
following the receipt of advice of its outside legal counsel, that, in light of
such Superior Proposal, the failure of the Board of Directors to effect a
Change of Recommendation would result in a breach of its fiduciary obligations
to its stockholders under applicable Law.</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Nothing
contained in this Agreement shall be deemed to restrict the Company from
complying with Rules&nbsp;14d-9 or 14e-2.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A58taxmatters"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.8</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>TAX
MATTERS.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No new elections with
respect to Taxes, or any changes in current elections with respect to Taxes,
relating to or affecting the Company will be made by the Company after the date
of this Agreement without the prior written consent of Merge.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A59newoemcontracts"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.9</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>NEW
OEM CONTRACTS.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company and the
Principal Shareholder shall have used their best efforts to secure new OEM and
distribution contracts, upon such terms as shall be approved by Merge in its
reasonable discretion.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A510proxystatement"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.10</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>PROXY
STATEMENT.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>As
promptly as practicable after the execution of this Agreement, the Company
shall prepare a proxy statement relating to the Company Stockholders&#146; Meeting
(as defined herein) (together with any amendments thereof or supplements
thereto, the &#147;Proxy Statement&#148;). The Company shall use reasonable best efforts
to cause the Proxy Statement to comply with any requests of the SEC and to be
mailed to the Company&#146;s stockholders as promptly as practicable after the Proxy
Statement shall have been cleared by the SEC. No filing of, or amendment or
supplement to, the Proxy Statement shall be made by the Company without
providing Merge a reasonable opportunity to review and comment thereon, which
comments shall be considered in good faith. The Company shall advise Merge,
promptly after it receives notice thereof, of any request by the SEC for
amendment of the Proxy Statement or comments thereon and responses thereto or
requests by the SEC for additional information.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
information supplied by Merge to the Company for inclusion in the Proxy
Statement shall not, at (i)&nbsp;the time the Proxy Statement (or any amendment
thereof or supplement thereto) is first mailed to the stockholders of the
Company, and (ii)&nbsp;the time of the Company Stockholders&#146;</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">33</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Meeting,
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 not misleading. If at any time prior to the Closing any event or
circumstance relating to Merge or any of its Subsidiaries, or their respective
officers or directors, should be discovered by Merge which should be set forth
in an amendment or a supplement to the Proxy Statement, Merge shall promptly
inform the Company and, to the extent required by applicable Law, an
appropriate amendment or supplement describing such event or circumstance shall
be promptly filed with the SEC and disseminated to stockholders of the Company.
All documents that Merge is responsible for filing with the SEC in connection
with the transactions contemplated herein will comply as to form and substance
in all material respects with the applicable requirements of the Securities Act
and the rules and regulations thereunder and the Exchange Act and the rules and
regulations thereunder.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
information supplied by the Company for inclusion in the Proxy Statement shall
not, at (i)&nbsp;the time the Proxy Statement (or any amendment thereof or
supplement thereto) is first mailed to the stockholders of the Company, and
(ii)&nbsp;the time of the Company Stockholders&#146; Meeting, 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 not
misleading. If at any time prior to the Closing any event or circumstance
relating to the Company or any of its Subsidiaries, or their respective
officers or directors, should be discovered by the Company which should be set
forth in an amendment or a supplement to the Proxy Statement, the Company shall
promptly inform Merge, and, to the extent required by applicable Law, an
appropriate amendment or supplement describing such event or circumstance shall
be promptly filed with the SEC and disseminated to stockholders of the Company.
All documents that the Company is responsible for filing with the SEC in
connection with the transactions contemplated herein will comply as to form and
substance in all material respects with the applicable requirements of the
Securities Act and the rules and regulations thereunder and the Exchange Act
and the rules and regulations thereunder.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A511companyshareholdersmeeting"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.11</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>COMPANY SHAREHOLDERS&#146; MEETING.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company shall duly call and hold a meeting of its stockholders (the &#147;Company
Stockholders&#146; Meeting&#148;) as promptly as practicable in accordance with
applicable Law following the date the Proxy Statement is cleared by the SEC and
after coordination with Merge, provided that the meeting shall be held not
later than March&nbsp;20, 2005, for the purpose of voting upon the adoption of
this Agreement and approval of the Merger. In connection with the Company
Stockholders&#146; Meeting and the transactions contemplated hereby, the Company
will (i)&nbsp;subject to applicable Law, use its reasonable best efforts (including
postponing or adjourning the Company Stockholders&#146; Meeting to obtain a quorum
or to solicit additional proxies) to obtain the necessary approvals by its
stockholders of this Agreement and the Merger and (ii)&nbsp;otherwise comply
with all legal requirements applicable to the Company Stockholders&#146; Meeting.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Board of Directors of the Company shall recommend adoption of this Agreement
and approval of the Merger by the stockholders of the Company (the &#147;Company
Recommendation&#148;). Subject to Section&nbsp;5.7, the Company shall not withdraw
or adversely modify (or propose to withdraw or adversely modify) such
recommendation, and the Proxy Statement shall contain such recommendation.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A512missingrecords"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.12</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>MISSING
RECORDS.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company shall use its
best efforts to locate and deliver to Merge the Missing Records.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.13</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>OPTIONS; WARRANTS.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company shall use its
best efforts to resolve, in a manner reasonably satisfactory to Merge, any
outstanding options and warrants for Shares.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">34</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><a name="Section6_PostclosingCovenants"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION&nbsp;6.
POST-CLOSING COVENANTS</font></b></a></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The parties agree as follows
with respect to the period following the Closing Date:</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A61general"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.1</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>GENERAL.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In case at any time after
the Closing Date any further action is necessary or desirable to carry out the
purposes of this Agreement, each of the parties will take such further action
(including the execution and delivery of such further instruments and
documents) as the other parties reasonably may request, at the sole cost and
expense of the requesting party (unless the requesting party is entitled to
indemnification therefor under Section&nbsp;8).</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A62litigationsupport"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.2</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>LITIGATION
SUPPORT.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In
the event and for so long as any party hereto is actively contesting or
defending against any charge, complaint, action, audit, suit, proceeding, hearing,
investigation, claim or demand in connection with (i)&nbsp;any transaction
contemplated under this Agreement, or (ii)&nbsp;any fact, situation,
circumstance, status, condition, activity, practice, plan, occurrence, event,
incident, action, failure to act or transaction on or prior to the Closing Date
involving the Company, the other parties will cooperate with the contesting or
defending parties and its counsel in the contest or defense, make available its
personnel and provide such testimony and access to its books and records as may
be necessary in connection with the contest or defense, at the sole cost and
expense of the contesting or defending party (unless the contesting or
defending party is entitled to indemnification therefor under Section&nbsp;8).</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Merge
will cause the Surviving Corporation or its successor to maintain all original
books, records, files, documents, papers and agreements pertaining to the
operations of the Company as conducted prior to the Closing Date for at least
four years following the Closing Date or such longer period as may be required
by Law.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A63agreementsregardingtaxmatters"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.3</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>AGREEMENTS REGARDING TAX MATTERS.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Merge
shall prepare or cause to be prepared and file or cause to be filed all Tax
Returns for the Company for all periods ending on or prior to the Closing Date
which are filed after the Closing Date. The Company will ensure that there is
an adequate accrual for the liability set forth in such Tax Returns, including
the cost of preparation thereof, on the Closing Balance Sheet.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Merge,
the Company and the Principal Shareholder shall cooperate fully, as and to the
extent reasonably requested by the other parties, in connection with the filing
of Tax Returns pursuant to this Section&nbsp;and any audit, litigation or other
proceeding with respect to Taxes. Such cooperation shall include the retention
and (upon request by one of the other parties) the provision of records and
information which are reasonably relevant to any such audit, litigation or
other proceeding.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All
tax sharing agreements or similar agreements with respect to or involving the
Company shall be terminated as of the Closing Date, and after the Closing Date,
the Company shall not be bound thereby or have any liability thereunder.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A64confidentialinformation"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.4</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CONFIDENTIAL INFORMATION.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For a period of ten years
after the Closing Date, the Principal Shareholder and his Affiliates will treat
and hold as such, and will not use for the benefit of himself or others, any
confidential information, in whatever form or medium, concerning the operations
and affairs of the Company, except as required by them to bring or defend any
lawsuit or other proceeding relating to the Company&#146;s operations prior to the
Closing Date or relating to the transactions contemplated herein in accordance
with the provisions of this Section&nbsp;6.4 and Section&nbsp;8.4. In the event
that the Principal Shareholder or his Affiliates is requested or required (by
oral request or written request for</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">35</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">information or documents in any legal proceeding,
interrogatory, subpoena, civil investigative demand or similar process) to
disclose any confidential information, then the Principal Shareholder will
notify Merge promptly in writing of the request or requirement so that Merge
may seek an appropriate protective order or waive compliance with this Section&nbsp;6.4.
If, in the absence of a protective order or receipt of a waiver hereunder, the
Principal Shareholder or his Affiliates is, on the advice of outside counsel,
compelled to disclose any confidential information to any Governmental Entity
or else stand liable for contempt, then the Principal Shareholder or Affiliate
may disclose such confidential information to such Governmental Entity,
provided that the Principal Shareholder or his Affiliates will use their reasonable
best efforts to obtain, at the request of Merge, an order or other assurance
that confidential treatment will be accorded to such confidential information.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A65covenantnottocompetesolicitatio"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.5</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>COVENANT NOT TO COMPETE; SOLICITATION.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Principal Shareholder
agrees that for a period of five years from and after the Closing Date, he will
not engage directly or indirectly in the Business that the Company conducts.
The &#147;Business&#148;, for purposes of this Agreement, is defined in Recital A set
forth at the beginning of this Agreement. In addition, for such five
(5)&nbsp;year period, the Principal Shareholder will not solicit the employment
of or hire any current employee of the Company.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A66paymentofprincipalshareholdersn"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.6</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>PAYMENT OF PRINCIPAL SHAREHOLDER&#146;S NOTE.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">At the Closing, Merge will
cause the Company to repay the $1,000,000 aggregate principal amount demand
notes issued by the Company to the Principal Shareholder, including all accrued
and unpaid interest thereon.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><a name="Section7_ClosingConditions"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION&nbsp;7.
CLOSING CONDITIONS</font></b></a></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A71conditionstoobligationofmerge"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.1</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CONDITIONS TO OBLIGATION OF MERGE.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The obligation of Merge and
Acquisition Sub to consummate the transactions to be performed by it in
connection with the Closing is subject to satisfaction, or waiver, in Merge&#146;s
sole discretion, at or prior to Closing, of each of the following conditions:</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>There
being no material adverse change in the Company&#146;s business, operations or
prospects.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>There
being no uncovered material adjustments in the Company&#146;s 2003 financial
performance (revenues and net income) or the Company&#146;s year to date 2004.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>There
being no uncovered material changes in the Company&#146;s balance sheet between the
date hereof and the Closing Date, including but not limited to Accounts
Receivable collections, increases in debt other than debt to finance working
capital needs, and the like.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company obtaining all required consents to change in control of the Company and
assignment as it relates to all client, product, licensing, service and asset
Contracts of the Company as set forth on SCHEDULE&nbsp;3.3.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Merge
securing employment agreements with those employees of the Company set forth on
the schedule&nbsp;previously delivered by Merge to the Company at a
compensation level consistent with similarly situated employees of Merge.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Merge
shall have satisfied itself that all employees of the Company have executed
confidentiality and employee invention agreements in form satisfactory to Merge
consistent with Merge&#146;s current form of agreement.</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">36</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>At the
Closing, the Principal Shareholder or the Company, as the case may be, shall
deliver to Merge the following agreements, instruments or documents
(collectively the &#147;Closing Documents&#148;):</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Certified
Articles and Bylaws.</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Certificate
of Chief Executive Officer of the Company as to representations and warranties.</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Certificate
of the Principal Shareholder as to representations and warranties.</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Certificate
of Merger for filing in Nevada.</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(5)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Good
Standing Certificates from the Secretaries of State of Nevada and California.</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(6)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>A
consent from the Company&#146;s independent accountants to include the Company&#146;s
financial statements with any and all filing by Merge after the Closing.</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(7)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Consulting Agreement with Principal Shareholder.</p>

<p style="margin:0in 0in .0001pt .85in;text-indent:.3in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(8)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Certified
resolutions of the Board of Directors and the Shareholders of the Company,
approving the merger and other transactions contemplated herein.</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(9)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a
certificate executed by the Company and the Principal Shareholder, dated as of
the Closing Date, to the effect that each of the conditions specified above,
are satisfied in all respects;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .85in;text-indent:.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(10)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160; </font>the Company
shall have delivered to Merge an opinion of counsel dated as of the Closing
Date from Morris Manning&nbsp;&amp; Martin LLP, with respect to the matters set
forth in EXHIBIT D attached hereto;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
representations and warranties of the Company and the Principal Shareholder set
forth in this Agreement will, individually and collectively, be true and
correct in all material respects at and as of the Closing Date and such parties
shall have delivered a certificate to such effect;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Company and the Principal Shareholder will have performed and complied with all
of their covenants and obligations hereunder in all material respects through
the Closing Date;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>there
will not be any action, suit or proceeding pending or threatened before any
court or quasi-judicial or administrative agency of any federal, state, local
or foreign jurisdiction or before any arbitrator wherein an unfavorable
injunction, judgment, order, decree, ruling or charge would (i)&nbsp;prevent
consummation of any of the transactions contemplated by this Agreement,
(ii)&nbsp;cause any of the transactions contemplated by this Agreement to be
interfered with, prevented, delayed or rescinded following consummation,
(iii)&nbsp;affect materially and adversely the right of Merge following the
Closing Date to control the Company as survivor of the merger with Acquisition
Sub or (iv)&nbsp;affect materially and adversely, including through the
imposition of any divestiture requirement, the right of the Company to own its
assets or to operate its business as presently operated and as presently
proposed to be operated (and no such injunction, judgment, order, decree,
ruling or charge will be in effect);</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>there
must not have been made or threatened by any Person other than as disclosed on
the stock transfer records of the Company, any claim asserting that such Person
(i)&nbsp;is the holder or the beneficial owner of or has the right to acquire
or to obtain beneficial ownership of, any stock of, or any other equity, voting
or ownership interest in, the Company, or (ii)&nbsp;is entitled to all or any
portion of the Merger Consideration payable for any Shares if the amount in
controversy exceeds $25,000;</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">37</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>all
actions to be taken by the Company and the Principal Shareholder in connection
with consummation of the transactions contemplated by this Agreement, and all
certificates, instruments and other documents required to effect the
transactions contemplated hereby and thereby, will be reasonably satisfactory
in form and substance to Merge;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>holders
of no more than five percent (5%) of the outstanding Shares shall have
exercised dissenters&#146; rights under the Nevada Statute and not waived such
rights prior to Closing;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>all
outstanding options and warrants for Shares (other than in the Voting
Agreement) shall have been resolved in a manner reasonably satisfactory to
Merge;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>that
certain Consulting Arrangement between the Company and Health Care Technology
Group dated January&nbsp;28, 2004 shall have been terminated on or before December&nbsp;15,
2004; and</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Company shall have entered into a consulting or similar agreement with Leon
Kaufman covering the period since expiration of his prior agreement with the
Company on the same terms and conditions as such prior agreement.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A72conditionstoobligationofthecomp"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.2</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CONDITIONS TO OBLIGATION OF THE COMPANY
AND ITS SHAREHOLDERS.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The obligation of the
Company and the Principal Shareholder to consummate the transactions to be
performed in connection with the Closing is subject to satisfaction of the
following conditions (any of which may be waived, in whole or in part, by the
Company and the Principal Shareholder):</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
representations and warranties of Merge set forth in Section&nbsp;4 will be
true and correct in all material respects at and as of the Closing Date;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Merge
will have performed and complied with all of its covenants hereunder in all
respects through the Closing Date;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>there
will not be any action, suit or proceeding pending or threatened before any
court or quasi-judicial or administrative agency of any federal, state, local
or foreign jurisdiction or before any arbitrator wherein an unfavorable
injunction, judgment, order, decree, ruling or charge would (i)&nbsp;prevent
consummation of any of the transactions contemplated by this Agreement or
(ii)&nbsp;cause any of the transactions contemplated by this Agreement to be
rescinded following consummation;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Merge
will have delivered a certificate to the effect that each of the conditions
specified above is satisfied in all respects;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Merge
will have delivered the Merger Consideration (other than the portion for
Dissenting Shareholders and any amount deducted due to a deficiency in Net
Asset Value set forth in the Preliminary Balance Sheet) due at Closing to the
Transfer Agent and the Holdback to the Escrow Agent;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Merge
shall have delivered to the Company and the Principal Shareholder an opinion of
counsel dated as of the Closing Date from counsel for Merge with respect to the
matters set forth in EXHIBIT E attached hereto;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Certificate of Merger as provided in Section&nbsp;2.3 hereof; and</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Merge
shall have executed and delivered the Consulting Agreement.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>holders
of no more than five percent (5%) of the outstanding Shares shall have
exercised dissenters&#146; rights under the Nevada Statute and not waived such
rights prior to Closing.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Company
Shareholder approval shall be obtained.</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">38</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><a name="Section8_RemediesForBreachesOfThis"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION&nbsp;8.
REMEDIES FOR BREACHES OF THIS AGREEMENT</font></b></a></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A81survival"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.1</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>SURVIVAL</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except as otherwise set
forth in Section&nbsp;8.5(c), all of the representations and warranties of the
Company and the Principal Shareholder contained in Section&nbsp;3 of this
Agreement or in any certificate delivered by the Company or the Principal
Shareholder pursuant to this Agreement will survive the Closing and continue in
full force and effect until the fourth anniversary of the Closing Date in the
case of the representations and warranties set forth in Sections 3.9 (Tax
Matters), 3.14 (Intellectual Property), 3.15 (Litigation) and 3.17 (Labor
Relations; Employees). All other representations and warranties will continue
in full force and effect until the first anniversary of the Closing Date.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A82indemnificationprovisionsforbenef"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.2</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>INDEMNIFICATION PROVISIONS FOR BENEFIT OF
MERGE</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Prior to the Closing, the
Company and the Principal Shareholder and following the Closing, the Principal
Shareholder will indemnify and hold harmless Merge, its representatives,
shareholders, and controlling persons and, after the Closing, the Acquisition
Sub and its representatives, shareholders, and controlling persons
(collectively, the &#147;INDEMNIFIED BUYERS&#148;) for, and will pay to the Indemnified
Buyers the amount of, any loss, liability, claim, damage, expense (including
costs of investigation and defense and reasonable attorneys&#146; fees) or
diminution of value, whether or not involving a third-party claim
(collectively, &#147;DAMAGES&#148;), arising, directly or indirectly, from or in
connection with: (i)&nbsp;any breach of any representation or warranty or
covenant made by the Company or Principal Shareholder in this Agreement, the
Schedules, or any other certificate or document delivered by the Company or the
Principal Shareholder pursuant to this Agreement; (ii)&nbsp;any amounts paid to
the holders of Dissenting Shares in excess of their proportionate share of the
Merger Consideration and the costs of all proceedings, including attorneys&#146; and
expert witness fees, in resolving the claim of any Dissenting Shareholder,
(iii)&nbsp;any amount by which the Net Asset Value is less than the Target
Amount (which payments shall be made pursuant to Section&nbsp;2.8(a) and not
otherwise subject to this Section&nbsp;8.2 if made in accordance with Section&nbsp;2.8(a)),
(iv)&nbsp;any outstanding options or warrants for securities of the Company
that are not identified or resolved to the satisfaction of Merge as of the
Closing, (v)&nbsp;the termination of any employees of the Company occurring at
any time prior to the Closing including any failure to provide or deficiency in
providing post-employment benefits and/or insurance, (vi)&nbsp;any rights of
any landlord of any property leased or used by the Company to recapture such
property or impose any penalty or charge in connection with the Company&#146;s
performance of it&#146;s obligations under this Agreement, or (vii)&nbsp;any claim
by any Person for brokerage or finder&#146;s fees or commissions or similar payments
based upon any agreement or understanding alleged to have been made by any such
Person with any of the Principal Shareholder or the Company (or any Person
acting on their behalf) in connection with the transactions set forth herein.
The remedies set forth in Section&nbsp;8 are exclusive of any other remedy
available to Merge and the other Indemnified Persons for a breach of this
Agreement or a claim under Section&nbsp;8.2 other than an injunction for
violation of Section&nbsp;6.4 (Confidentiality) and Section&nbsp;6.5
(Non-Competition) and Section&nbsp;9 (Termination), and other than in the case
of fraud or a willful breach by the Company or the Principal Shareholder of any
representations, warranties or covenants under this Agreement or the Ancillary
Agreements.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A83indemnificationprovisionsforbenef"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.3</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>INDEMNIFICATION PROVISIONS FOR BENEFIT OF THE
COMPANY</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Merge will indemnify and
hold harmless the Company, and its successors, assigns, and the Principal
Shareholder, and will pay to the Company or the Principal Shareholder, as the case
may be, the amount of any Damages of the Company or the Principal Shareholder
arising, directly or indirectly, from or in connection with any breach of any
representation or warranty or covenant made by Merge or Acquisition Sub in this
Agreement or in any certificate or document delivered by Merge or Acquisition
Sub pursuant to this Agreement. Such representations and warranties shall not
survive the Closing. The indemnification provisions of this Section&nbsp;8 are
the exclusive remedy available to the Company and the Principal Shareholder for
breaches of representations or warranties contained in this</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">39</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Agreement, except in the case of fraud or a willful
breach by Merge or Acquisition Sub of any representations, warranties or
covenants under this Agreement.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A84indemnificationprocedures"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.4</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>INDEMNIFICATION PROCEDURES</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Promptly
after discovery or receipt of notice by an Indemnified Buyer or the Company or
the Principal Shareholder (in each case an &#147;INDEMNIFIED PERSON&#148;) under this Section&nbsp;8
of a claim for which indemnity may be sought, such Indemnified Person will, if
a claim is to be made against an indemnifying party, give notice to the
indemnifying party of the commencement of such claim, but the failure to notify
the indemnifying party will not relieve the indemnifying party of any liability
that it may have to any Indemnified Person, except to the extent that the
indemnifying party demonstrates that the defense of such action is prejudiced
by the Indemnified Person&#146;s failure to give such notice.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If any
proceeding referred to in Section&nbsp;8 is brought against an Indemnified
Person and it gives notice to the indemnifying party of the commencement of
such proceeding, the indemnifying party will pay the costs of defending such
proceeding including costs of counsel selected by the Indemnified Person, which
counsel shall be reasonably satisfactory to the indemnifying party. The
Indemnified Person shall control the defense and settlement of the proceeding
provided that the Indemnified Person shall consult with the indemnifying party.
The indemnifying party will, unless the claim involves Taxes, be entitled to
participate in such proceeding unless the indemnifying party is also or could
become a party to such proceeding and the Indemnified Person determines in good
faith that such participation would be inappropriate.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A85basketcapsolesourcesofindemni"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.5</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>BASKET; CAP; SOLE SOURCES OF INDEMNIFICATION</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>No
Indemnified Person will be entitled to indemnification pursuant to Sections 8.2
or 8.3 unless and until the aggregate amount of Damages with respect to which
such Indemnified Person would otherwise be entitled to assert thereunder
exceeds $10,000 (the &#147;BASKET AMOUNT&#148;). When the aggregate amount of Damages
exceeds the Basket Amount, the indemnified party will be entitled to
indemnification for all Damages, including those within the Basket Amount.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except
as otherwise set forth in Section&nbsp;8.5(c), the aggregate amount of all
payments made by the Principal Shareholder to all Indemnified Buyers in
satisfaction of claims hereunder after Closing shall not exceed the aggregate
of (i)the Holdback, (ii)an additional $1,000,000 (not part of the Holdback),
and (iii)&nbsp;any amounts paid or payable by Merge under the Consulting
Agreement (collectively the &#147;Cap&#148;). Principal Shareholder will assume 100% of
Damages in all cases, up to the amount of the Cap, except in the case of
Damages for a breach of Section&nbsp;3.14 (Intellectual Property), Merge and
the Principal Shareholder shall assume Damages in the ratio of 80% for the
Principal Shareholder and 20% for Merge until the amounts under (i)&nbsp;and
(ii)&nbsp;above have been exhausted, and thereafter 100% for the Principal
Shareholder up to the remainder of the Cap until Principal Shareholder has paid
the <i><font style="font-style:italic;">entire</font></i> Cap. Once Principal
Shareholder has paid the <i><font style="font-style:italic;">entire</font></i>
Cap, Principal Shareholder thereafter will have no further liability, other
than in the case of fraud or a willful breach by the Company or the Principal
Shareholder of any representations, warranties or covenants under this
Agreement or the Ancillary Agreements.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In
addition to all other indemnification by the Principal Shareholder hereunder,
Principal Shareholder agrees that the indemnification for damages incurred in
connection with the matters set forth in Section&nbsp;8.2(iv)&nbsp;shall:
(i)&nbsp;survive for a period of five years following the date on which the
final payment is made to Principal shareholder under the Consulting Agreement
(the &#147;Final Payment&#148;) and (ii)&nbsp;the indemnification obligation therefor
shall not exceed the amount of the Final Payment once the Company&#146;s obligations
under the Cap have expired in accordance with Section&nbsp;8.1.</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A86rightofsetoff"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.6</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>RIGHT
OF SET-OFF</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During or after the
expiration of the Holdback referred to in Section&nbsp;2.9, Merge upon written
notice to a Principal Shareholder specifying in reasonable detail the basis for
such set-off, Merge may set off any amount to which it reasonably believes in
good faith to be entitled under this Agreement against amounts otherwise
payable to the Principal Shareholder under this Agreement or the Ancillary
Agreements.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A87disputeresolution"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.7</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>DISPUTE
RESOLUTION</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Arbitration.&nbsp;&nbsp;</font></i>Any controversy, dispute or claim arising out
of or relating to this Agreement (including, but not limited to, any claim
regarding the scope or effect of this Section&nbsp;and any claim that this Section&nbsp;is
invalid or unenforceable) or the Ancillary Agreements, or the breach hereof or
thereof, shall be settled by a single arbitrator in binding arbitration
conducted in Milwaukee, Wisconsin in accordance with the Commercial Arbitration
Rules of the American Arbitration Association (&#147;<i><font style="font-style:italic;">AAA</font></i>&#148;), and judgment upon the award rendered by the
arbitrator may be entered in any court having jurisdiction thereof. The
arbitrator&#146;s decision shall be in writing.</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The arbitrator&#146;s authority
shall include the ability to render equitable types of relief and, in such
event, any aforesaid court may enter an order enjoining and/or compelling such
actions or relief ordered or as found by the arbitrator. The arbitrator also
shall make a determination regarding which party&#146;s legal position in any such
controversy or claim is the more substantially correct (the &#147;<i><font style="font-style:italic;">Prevailing Party</font></i>&#148;) and the arbitrator
shall require the other party to pay the legal and other professional fees and
costs incurred by the Prevailing Party in connection with such arbitration
proceeding and any necessary court action. However, notwithstanding the
foregoing, the parties expressly agree that a court of competent jurisdiction
may enter a temporary restraining order or an order enjoining a breach of this
Agreement (including a breach of Sections 6.4 and 6.5) pending a final award or
further order by the arbitrator. Such remedy, however, shall be cumulative and
nonexclusive, and shall be in addition to any other remedy to which the parties
may be entitled.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><a name="Section9_Termination"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION&nbsp;9.
TERMINATION</font></b></a></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A91termination"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.1</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>TERMINATION</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement may be
terminated at any time prior to the Closing, by action taken or authorized by
the Board of Directors of the terminating party or parties, whether before or
after approval of the matters presented in connection with the Merger by the
stockholders of the Company:</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>by
mutual written consent of Merge and the Company;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>by
written notice of either the Company or Merge, if the Merger shall not have been
consummated prior to March&nbsp;31, 2005; provided, however, the right to
terminate this Agreement under this Section&nbsp;9.1(b) shall not be available
to any party whose failure to fulfill any obligation under this Agreement has
been the cause of, or results in, the failure of the Merger to occur on or
before such date; provided, further, that in the event the failure of the
Merger to be consummated by such date is caused by a pending investigation or
review by a Governmental Entity, either Merge or the Company (unless such
extending party or such extending party&#146;s failure to fulfill any obligation
under this Agreement has been the cause of, or results in, the existence or
continuance of the pending investigation or review) may extend such date to April&nbsp;30,
2005;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>by
written notice of either the Company or Merge, if any Governmental Entity shall
have issued an order, decree or ruling or taken any other action permanently
restraining, enjoining or otherwise prohibiting the Merger, and such order,
decree, ruling or other action shall have become final and nonappealable;</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">41</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>by
written notice of either the Company or Merge, if (i)&nbsp;the Board of
Directors of the Company shall have withdrawn or adversely modified, or shall
have adopted resolutions to withdraw or adversely modify, the Company
Recommendation; or (ii)&nbsp;the Board of Directors of the Company shall have
approved or recommended, or shall have adopted resolutions to approve or
recommend, to the stockholders of the Company, an Acquisition Proposal other
than that contemplated by this Agreement;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>by
written notice of Merge, if there has been a breach by the Company or the
Principal Shareholder of any representation, warranty, covenant or agreement
contained in this Agreement which (i)&nbsp;would result in a failure of the
condition set forth in Section&nbsp;7.1(a) or 7.1(b) and (ii)&nbsp;cannot be
cured prior to March&nbsp;31, 2005, provided that Merge shall have given the
Company written notice, delivered at least ten days prior to such termination,
stating Merge&#146;s intention to terminate this Agreement pursuant to this Section&nbsp;9.1(e)
and the basis for such termination;</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>by
written notice of the Company, if there has been a breach by Merge of any
representation, warranty, covenant or agreement contained in this Agreement
which (i)&nbsp;would result in a failure of a condition set forth in Section&nbsp;7.2(a)
or 7.2(b) and (ii)&nbsp;cannot be cured prior to the March&nbsp;31, 2005,
provided that the Company shall have given Merge written notice, delivered at
least ten days prior to such termination, stating the Company&#146;s intention to
terminate this Agreement pursuant to this Section&nbsp;9.1(f) and the basis for
such termination; or</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>by
written notice of either Merge or the Company if the Company Stockholder
Approval shall not have been obtained at the Company Stockholders&#146; Meeting duly
convened therefor (or at any adjournment or postponement thereof) at which a
quorum is present and the vote to adopt and approve this Agreement is taken.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A92effectoftermination"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.2</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>EFFECT OF TERMINATION.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Limitation
on Liability. In the event of termination of this Agreement by either the
Company or Merge as provided in Section&nbsp;9.1, this Agreement shall
forthwith become void and there shall be no liability or obligation on the part
of Merge, Merger Sub or the Company or their respective Subsidiaries, officers
or directors, except with respect to Articles 8 and 9 and with respect to any
liabilities or damages incurred or suffered by a party as a result of the
willful and material breach by the other party of any of its representations,
warranties, covenants or other agreements set forth in this Agreement.</p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Termination
Fee. In the event that this Agreement is terminated pursuant to Section&nbsp;9.1(d),
(e)&nbsp;or (g), and an Acquisition Proposal with respect to the Company is
consummated or the Company enters into a definitive agreement with respect to
an Acquisition Proposal, in either case, within twenty-four months following
the termination of this Agreement, then the Company shall pay an amount equal
to the greater of (x)&nbsp;five percent (5%) of the aggregate consideration
received in such Acquisition Proposal; or (y)&nbsp;twenty-five percent (25%) of
the difference between the aggregate consideration received in such Acquisition
Proposal and Six Million Dollars ($6,000,000) (such amount, the &#147;Termination
Fee&#148;) to Merge within two Business Days after the earlier of the consummation
of such Acquisition Proposal or execution of a definitive agreement with
respect to such Acquisition Proposal. In addition to the foregoing, if
(i)&nbsp;this Agreement is terminated pursuant to Section&nbsp;9.1(e) or
(ii)&nbsp;this Agreement is terminated pursuant to Sections 9.1 (b),(d) or
(g)&nbsp;under circumstances in which a Termination Fee is not due pursuant to
the preceding sentence, then the Company shall pay Merge an amount equal to the
sum of Merge&#146;s reasonable documented expenses incurred in connection with the
Merger. Payment of expenses pursuant to the foregoing sentence shall be made
not later than two Business Days after delivery of notice of demand for payment
and a documented itemization setting forth in reasonable detail all expenses
(which itemization may be supplemented and updated from time to</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">42</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">time by such party until the ninetieth day after such party delivers
such notice of demand for payment).</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All
payments under this Section&nbsp;9.2 shall be made by wire transfer of
immediately available funds to an account designated by Merge. The Company
acknowledges that the agreements contained in this Section&nbsp;9.2 are an
integral part of the transactions contemplated by this Agreement and that,
without these agreements, Merge would enter into this Agreement. Accordingly,
if the Company fails promptly to pay any amount due pursuant to this Section&nbsp;9.2
and, in order to obtain such payment, Merge commences a suit which results in a
judgment against the other party for the fee and expenses set forth in this Section&nbsp;9.2,
such defaulting party shall pay to the prevailing party its costs and expenses
(including reasonable attorneys&#146; fees and expenses) in connection with such
suit, together with interest on the amount of the fee at eight percent (8%) per
annum from the date such payment was required to be made.</p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><a name="Section10_Miscellaneous"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECTION&nbsp;10.
MISCELLANEOUS</font></b></a></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A101pressreleasesandannouncements"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>PRESS RELEASES AND ANNOUNCEMENTS</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No party will issue any
press release or announcement relating to the subject matter of this Agreement
prior to the Closing Date without the prior approval of the other party (which
approval will not be unreasonably withheld); PROVIDED, HOWEVER, that any party
may make any public disclosure it believes in good faith is required by Law (in
which case the disclosing party will advise the other parties prior to making
such disclosure).</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A102expensestransfertaxes"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.2</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>EXPENSES; TRANSFER TAXES</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except as otherwise set
forth in Sections 8 and 9 hereof, the parties hereto will each bear all their
own legal, accounting, investment banking and other expenses incurred by them
or on their behalf in connection with the transactions contemplated by this
Agreement, whether or not such transactions are consummated. The Principal
Shareholder will pay and hold Merge harmless from payment of all sales, use,
transfer, documentary or stamp taxes and recording and filing fees applicable
to the assignment of the their Shares to Merge or to any other transaction
contemplated by this Agreement or any of the Ancillary Agreements. No expenses
incurred by or on behalf of the Principal Shareholder or any of their
Affiliates (including the Company) in connection with the transactions
contemplated by this Agreement will be paid by or charged to the Company.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A103waiver"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.3</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>WAIVER</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The rights and remedies of
the parties to this Agreement are cumulative and not alternative. Neither the
failure nor any delay by any party in exercising any right, power or privilege
under this Agreement or the documents referred to in this Agreement will
operate as a waiver of such right, power or privilege, and no single or partial
exercise of any such right, power or privilege will preclude any other or
further exercise of such right, power or privilege or the exercise of any other
right, power or privilege. To the maximum extent permitted by applicable Law,
(a)&nbsp;no claim or right arising out of this Agreement or the documents
referred to in this Agreement or the Ancillary Agreements can be discharged by
one party, in whole or in part, by a waiver or renunciation of the claim or
right unless in writing signed by the other party; (b)&nbsp;no waiver that may
be given by a party will be applicable except in the specific instance for
which it is given; and (c)&nbsp;no notice to or demand on one party will be
deemed to be a waiver of any obligation of such party or of the right of the
party giving such notice or demand to take further action without notice or
demand as provided in this Agreement, the Ancillary Agreements or the documents
referred to herein or therein.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">43</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A104furtherassurances"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.4</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>FURTHER ASSURANCES</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The parties agree
(a)&nbsp;to furnish upon request to each other such further information, (b)&nbsp;to
execute and deliver to each other such other documents, and (c)&nbsp;to do such
other acts and things, all as the other party may reasonably request for the
purpose of carrying out the purposes and intent of this Agreement, the
Ancillary Agreements and the documents referred to herein and therein.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A105nothirdpartybeneficiaries"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.5</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>NO THIRD-PARTY BENEFICIARIES</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement will not
confer any rights or remedies upon any Person other than the Company, the
Shareholders and Merge, and their respective successors and permitted assigns.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A106successorsandassigns"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.6</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>SUCCESSORS AND ASSIGNS</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No party hereto may assign
or delegate any of such party&#146;s rights or obligations under or in connection
with this Agreement or any Ancillary Agreement without the written consent of
the other parties hereto; PROVIDED, HOWEVER, that Merge may without consent
assign its rights under this Agreement after the Closing to any Person
acquiring all or substantially all of the stock or assets of Acquisition Sub
from Merge. Except as otherwise expressly provided herein, all covenants and agreements
contained in this Agreement or in any Ancillary Agreement by or on behalf of
any of the parties hereto or thereto will be binding upon and enforceable
against the respective successors and assigns of such party and will be
enforceable by and will inure to the benefit of the respective successors and
permitted assigns of such party.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A107severability"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.7</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>SEVERABILITY</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Whenever possible, each
provision of this Agreement and any of the Ancillary Agreements, respectively,
will be interpreted in such manner as to be effective and valid under
applicable Law, but if any provision hereof or thereof is held to be prohibited
by or invalid under applicable Law, such provision will be ineffective only to
the extent of such prohibition or invalidity, without invalidating the remainder
of this Agreement or the particular Ancillary Agreement, respectively.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A108counterpartsfacsimilesignatures"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.8</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>COUNTERPARTS; FACSIMILE SIGNATURES</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement may be
executed simultaneously in two or more counterparts, any one of which need not
contain the signatures of more than one party, but all such counterparts taken
together will constitute one and the same Agreement. Facsimile signatures shall
be deemed to be original signatures for all purposes under this Agreement.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A109descriptiveheadingsconstruction"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.9</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>DESCRIPTIVE HEADINGS; CONSTRUCTION</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The parties have
participated jointly in the negotiation and drafting of this Agreement. In the
event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the parties and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Agreement. The descriptive
headings of this Agreement are inserted for convenience only and do not
constitute a part of this Agreement. The language used in this Agreement will
be deemed to be the language chosen by the parties to express their mutual
intent and no rule of strict construction will be applied against any party.
The use of the word &#147;including&#148; in this Agreement means &#147;including without limitation&#148;
and is intended by the parties to be by way of example rather than limitation.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;"><a name="A1010notices"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">10.</font>10</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>NOTICES</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All notices, demands or
other communications to be given or delivered under or by reason of the
provisions of this Agreement will be in writing and will be deemed to have been
given (i)&nbsp;when delivered personally to the recipient or when sent to the
recipient by telecopy (receipt confirmed), (ii)&nbsp;one business day after the
date sent, when sent to the recipient by reputable express courier service</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">44</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(charges prepaid) or (iii)&nbsp;three business days
after the date mailed, when mailed to the recipient by certified or registered
mail, return receipt requested and postage prepaid. Such notices, demands and
other communications will be sent to the parties at the addresses indicated
below:</font></p>

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

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If
to the Company or Principal Shareholder:</font></p>

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

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">AccuImage
Diagnostics Corporation<br>
400 Oyster Point Boulevard, Suite 201<br>
South San Francisco, CA 94080<br>
Fax: (650)&nbsp;875-0194</font></p>

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

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With
a copy (which shall not constitute notice) to:<br>
Robert M. Donlon<br>
Morris Manning&nbsp;&amp; Martin LLP<br>
201 S. College Street<br>
Suite 2300<br>
Charlotte, North Carolina 28244<br>
Fax: (704)&nbsp;554-5050</font></p>

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

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If
to the Merge Companies:<br>
Merge Technologies Incorporated<br>
1126 S. 70<sup>th</sup> Street, Suite 107B<br>
Milwaukee Wisconsin 53217<br>
Attn: Richard A. Linden, CEO<br>
Fax: (414)&nbsp;977-4202</font></p>

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

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With
copies (which shall not constitute notice)to:</font></p>

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

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael
Best&nbsp;&amp; Friedrich<br>
Attn: Geoffrey Morgan, Esq.<br>
100 East Wisconsin Avenue, Suite 3300<br>
Milwaukee, Wisconsin 53202<br>
Fax: (414)&nbsp;277-0656</font></p>

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

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

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

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">George
S. Rosic, Esq.<br>
Suite 800<br>
1603 Orrington Avenue<br>
Evanston, IL 60201<br>
Fax: 847-328-1928</font></p>

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

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or to such other address or to the attention of such
other party as the recipient party has specified by prior written notice to the
other parties.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A1011entireagreement"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.11</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>ENTIRE
AGREEMENT</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement (including
the Exhibits and Schedules referred to herein) constitutes the entire agreement
among the parties and supersedes any prior understandings, agreements or
representations by or among the parties, written or oral, that may have related
in any way to the subject matter hereof.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="A1012amendments"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.12</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>AMENDMENTS</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The provisions of this
Agreement may be amended or waived only by a written agreement executed and
delivered by each of the parties hereto. No course of dealing between the
parties to this Agreement or any delay in exercising any rights hereunder will
operate as a waiver of any rights of such parties.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">45</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></b></div>

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

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;"><a name="A1013timeofessence"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.13</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>TIME
OF ESSENCE</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With regard to all dates and
time periods set forth or referred to in this Agreement, time is of the
essence.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;"><a name="A1014incorporationofexhibitsandsche"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.14</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>INCORPORATION OF EXHIBITS AND SCHEDULES</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Exhibits and Schedules
identified in this Agreement are incorporated herein by reference and made a
part hereof.</font></p>

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

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;"><a name="A1015attorneysfeesgoverninglaw"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.15</font></a><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>ATTORNEYS&#146; FEES; GOVERNING LAW</p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except as otherwise
specifically provided herein, the prevailing party in any action or proceeding
shall be entitled to receipt of reasonable attorneys&#146; fees from the
non-prevailing party in such action or proceeding seeking to enforce any
provision of, or based on any right arising out of, this Agreement. ALL
QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY AND INTERPRETATION OF THIS
AGREEMENT AND THE EXHIBITS AND SCHEDULES HERETO WILL BE GOVERNED BY THE
INTERNAL LAW, AND NOT THE LAW OF CONFLICTS, OF THE STATE OF WISCONSIN.</font></p>

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

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the
parties hereto have executed and deliver this Agreement on the date first
written above. </font></p>

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

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

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="52%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:52.54%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ACCUIMAGE DIAGNOSTICS<br>
  CORP.</font></b></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:47.46%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">MERGE TECHNOLOGIES<br>
  INCORPORATED</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.34%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="48%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:48.2%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.76%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="42%" valign="top" style="padding:0in 0in 0in 0in;width:42.7%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="41%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:41.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="42%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:42.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:48.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Aviel Faliks, President and CEO</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="42%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:42.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Richard Linden, President and CEO</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:48.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="42%" valign="top" style="padding:0in 0in 0in 0in;width:42.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:4.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:41.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="42%" valign="top" style="padding:0in 0in 0in 0in;width:42.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="52%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:52.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Aviel Faliks, as</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:47.46%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="52%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:52.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Principal Shareholder</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:47.46%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ADI ACQUISITION CORP.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="52%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:52.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:47.46%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="52%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:52.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="42%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:42.7%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:48.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="42%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:42.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Richard Linden, President</font></p>
  </td>
 </tr>
</table>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">46</font></p>

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

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</font></div>

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

</div>
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<TYPE>EX-99.2
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<FILENAME>a04-14465_1ex99d2.htm
<DESCRIPTION>EX-99.2
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 99.2</font></b></p>

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

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

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">VOTING, PROXY AND OPTION AGREEMENT</font></b></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS VOTING, PROXY AND OPTION AGREEMENT (this &#147;Agreement&#148;) is made and
entered into as of November&nbsp;24, 2004 by and between <i><font style="font-style:italic;">Aviel Faliks</font></i> (&#147;Shareholder&#148;) and Merge
Technologies Incorporated, a Wisconsin corporation (&#147;Merge&#148;).</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, concurrently herewith, Merge, ADI Acquisition Corp., a Nevada
corporation (&#147;Merger Sub&#148;), AccuImage Diagnostics Corp., a Nevada corporation
(together with its subsidiaries, the &#147;Company&#148;), and Shareholder have entered
into a merger agreement (as amended from time to time, the &#147;Merger Agreement&#148;)
and, unless otherwise defined herein, capitalized terms used herein shall have
the meanings ascribed thereto in the Merger Agreement; and</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, as of the date hereof, Shareholder is the record and
beneficial owner of that number of shares of common stock of the Company set
forth on the signature page hereof (such shares, together with any other shares
of capital stock of the Company acquired by Shareholder after the date hereof,
being collectively referred to herein as the &#147;Shares; and</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, obtaining appropriate shareholder approval is a condition to
the consummation of the transactions contemplated by the Merger Agreement; and</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, in the event the Merger Agreement is terminated in accordance
with certain provisions of the Merger Agreement, Shareholder desires to grant
Merge an option to purchase the Shares from Shareholder.</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, as an inducement to Merge to enter into the Merger Agreement,
Merge and Shareholder have agreed to enter into this Agreement;</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, in consideration of the foregoing, the mutual covenants
and agreements set forth herein, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:</font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;1.<i><font style="font-style:italic;">&#160; No Shop</font></i></font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)<i><font style="font-style:italic;">&#160; General.</font></i>&#160; Shareholder will not, and will not permit any
of his Affiliates, attorneys, representatives or agents (collectively, the &#147;Representatives&#148;)
to, directly or indirectly, (i)&nbsp;discuss, negotiate, undertake, authorize,
recommend, propose or enter into, either as the proposed surviving, merged,
acquiring or acquired corporation, any transaction involving a merger,
consolidation, business combination or similar transaction involving the Company
or any purchase or disposition of any amount of the assets of the Company
outside the ordinary course of business or (ii)&nbsp;any purchase or
disposition of any capital stock of the Company in each case other than the
transactions contemplated by the Merger Agreement (an &#147;Alternative Transaction&#148;),
(ii)&nbsp;facilitate, encourage, solicit or initiate discussions, negotiations
or submissions of proposals or offers in respect of an Alternative Transaction,
(iii)&nbsp;furnish or cause to be furnished, to any Person, any information
concerning the business, operations, properties or assets of the Company in
connection with an Alternative Transaction, or (iv)&nbsp;otherwise cooperate in
any way with, or assist or participate in, facilitate or encourage, any effort
or attempt by any other Person to do or seek any of the foregoing.</font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)<i><font style="font-style:italic;">&#160; Notification.</font></i>&#160; Shareholder shall notify Merge orally and in
writing promptly (but in no event later than twenty-four (24)&nbsp;hours) after
receipt of any proposal or offer from any Person to effect an Alternative
Transaction or any request for non-public information relating to the Company
or for access to the properties, books or records of the Company by any Person
other than Merge. Such notice shall indicate the identity of the Person making
the proposal or offer, or intending to make a proposal or offer or requesting
non-public information or access to the books and records of the Company, the
material terms of any such proposal or offer, or modification or amendment to
such proposal or offer and copies of any written proposals or offers or
amendments or supplements thereto. The Shareholder shall keep Merge informed,
on a current basis, of any </font></p>

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">material changes in the status and any material changes or
modifications in the material terms of any such proposal, offer, indication or
request.</font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)<i><font style="font-style:italic;">&#160; Ongoing Discussions.</font></i>&#160; Shareholder shall (and shall cause his
Representatives to) immediately cease and cause to be terminated any existing
discussions or negotiations with any Persons conducted heretofore with respect
to any of the foregoing. The Shareholder agrees not to (and to cause his
Representatives not to) release any third party from the confidentiality and
standstill provisions of any agreement relating to the Company.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.<i><font style="font-style:italic;">&#160; Agreement to Vote; Dispositions; Irrevocable
Proxy; Options.</font></i></font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)<i><font style="font-style:italic;">&#160; Agreement to Vote.</font></i>&#160; Shareholder hereby agrees to vote the Shares
or execute a written consent in respect thereof (i)&nbsp;for approval and
adoption of the Merger Agreement (as amended from time to time) and the transactions
contemplated by the Merger Agreement, as applicable, at any meeting or meetings
of the shareholders of the Company at which the Merger Agreement or the
transactions contemplated thereunder are submitted for the vote of such
Shareholder or in any written consent in respect thereof, (ii)&nbsp;against any
Alternative Transaction, without regard to any Board recommendation to
shareholders concerning such Alternative Transaction, and without regard to the
terms of such Alternative Transaction, (iii)&nbsp;against any agreement,
amendment of any agreement (including the Company&#146;s Articles of Incorporation
or By-Laws), or any other action that is intended or could reasonably be
expected to prevent, impede, interfere with, delay, postpone, or discourage the
transactions contemplated by the Merger Agreement, other than those
specifically permitted by this Agreement or the Merger Agreement, or
(iv)&nbsp;against any action, agreement, transaction or proposal that would
result in a breach of any representation, warranty, covenant, agreement or
other obligation of the Company in the Merger Agreement. Any such vote shall be
cast (or consent shall be given) by Shareholder in accordance with the
procedures relating thereto so as to ensure that it is duly counted, including
for purposes of determining that a quorum is present and for the purposes of
recording such vote (or consent).</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)<i><font style="font-style:italic;">&#160; Restrictions on Dispositions.</font></i>&#160; Shareholder hereby agrees that, without the
prior written consent of Merge, Shareholder shall not, directly or indirectly,
sell, offer to sell, give, pledge, encumber, assign, grant any option for the
sale of or otherwise transfer or dispose of, or enter into any agreement,
arrangement or understanding to sell, any Shares (collectively, &#147;Transfer&#148;),
and as a condition to any such Transfer which is consented to by Merge, such
transferee shall execute an agreement that is identical to this Agreement
(except to reflect the change of the identity of the holder of Shares).</font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)<i><font style="font-style:italic;">&#160; Irrevocable Proxy.</font></i>&#160; Subject to the last two sentences of this subsection&nbsp;(c),
Shareholder hereby irrevocably appoints Merge or its designee as Shareholder&#146;s
agent, attorney and proxy, to vote (or cause to be voted) the Shares owned by
Shareholder in favor of approval of the Merger Agreement and the transactions
contemplated by the Merger Agreement, as applicable. This proxy is irrevocable
and coupled with an interest and is granted in consideration of the Company,
Merge and Merger Sub entering into the Merger Agreement. In the event that the
Shareholder fails for any reason to vote the Shares in accordance with the
requirements of Section&nbsp;2(a) hereof, then the proxyholder shall have the
right to vote the Shares in accordance with the provisions of the first
sentence of this subsection&nbsp;(c). The vote of the proxyholder shall control
in any conflict between the vote by the proxyholder of the Shares and a vote by
Shareholder of the Shares.</font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)<i><font style="font-style:italic;">&#160; Inconsistent Agreements.</font></i>&#160; Shareholder hereby agrees that, he shall not
enter into any agreement, contract or understanding with any Person prior to
the termination of the Merger Agreement directly or indirectly to vote, grant a
proxy or power of attorney or give instructions with respect to the voting of
the Shares in any manner which is inconsistent with this Agreement.</font></p>

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

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

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.<i><font style="font-style:italic;">&#160; Representations and Warranties of
Shareholder.</font></i>&#160; Shareholder
represents and warrants to Merge as follows: (i)&nbsp;Shareholder has all
necessary power and authority to execute and deliver this Agreement and to
perform his obligations hereunder; (ii)&nbsp;this Agreement has been duly
executed and delivered by Shareholder; (iii)&nbsp;assuming the due
authorization, execution and delivery of this Agreement by Merge, this
Agreement constitutes the legal, valid and binding agreement of Shareholder,
enforceable against Shareholder in accordance with its terms; (iv)&nbsp;the
execution and delivery of this Agreement by Shareholder does not conflict with
or violate any law or agreement binding upon him, nor require any consent,
notification, regulatory filing or approval; (v)&nbsp;except for restrictions
in favor of Merge pursuant to this Agreement, Shareholder owns, beneficially
and of record, all of the Shares free and clear of any proxy, voting
restriction, adverse claim or other lien and has sole voting power and sole
power of disposition with respect to all of the Shares, with no restrictions on
Shareholder&#146;s rights of voting or disposition pertaining thereto and no Person
other than Shareholder has any right to direct or approve the voting or
disposition of any of the Shares; and (vi)&nbsp;as of the date hereof,
Shareholder does not own beneficially or of record any securities of the
Company other than the shares of common stock and Options with an aggregate
exercise price all as set forth on the signature page hereof.</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;4.<i><font style="font-style:italic;">&#160; Representations and Warranties of Merge.</font></i>&#160; Merge represents and warrants to Shareholder
as follows: (i)&nbsp;Merge has all necessary power and authority to execute and
deliver this Agreement and to perform its obligations hereunder; (ii)&nbsp;this
Agreement has been duly executed and delivered by Merge; (iii)&nbsp;assuming
the due authorization, execution and delivery of this Agreement by Shareholder,
this Agreement constitutes the legal, valid and binding agreement of Merge,
enforceable against Merge in accordance with its terms; (iv)&nbsp;the execution
and delivery of this Agreement by Merge does not conflict with or violate any
law or agreement binding upon it, nor require any consent, notification,
regulatory filing or approval; and (v)&nbsp;Merge has filed all reports and
proxy and other statements with the Securities and Exchange Commission (the &#147;SEC&#148;)
which are required by the Exchange Act to be filed since January&nbsp;1, 2004
(collectively, and in each case including all exhibits and schedules thereto
and documents incorporated by reference therein, the &#147;Merge SEC Documents&#148;).</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;5.<i><font style="font-style:italic;">&#160; Further Assurances.</font></i>&#160; At the request of Merge, Shareholder shall
execute and deliver such additional instruments and other documents and shall
take such further actions as may be necessary or appropriate to effectuate,
carry out and comply with all of his obligations under this Agreement.</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;6.<i><font style="font-style:italic;">&#160; Termination.</font></i>&#160; Except for the provisions of Section&nbsp;7
hereof, this Agreement shall terminate upon the termination of the Merger
Agreement in accordance with its terms. The foregoing shall not relieve
Shareholder of any liability for breach of this Agreement.</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;7.<i><font style="font-style:italic;">&#160; Option.</font></i>&#160; In the event the Merger Agreement is
terminated pursuant to Sections 9.1 (b), (d), (e)&nbsp;or (g)&nbsp;of the
Merger Agreement, Shareholder hereby grants to Merge an option to purchase all,
but not fewer than all, of the Shares, exercisable for a period of two years
from the date of termination of the Merger Agreement, at an aggregate purchase
price of 0.95x the Merger Consideration per Share (the &#147;Option&#148;).</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;8.<i><font style="font-style:italic;">&#160; Miscellaneous.</font></i></font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)<i><font style="font-style:italic;">&#160; Expenses.</font></i>&#160; Except as may be otherwise provided in this
Agreement or the Merger Agreement, each party shall bear his or its own
expenses incurred in connection with this Agreement and the transactions
contemplated hereby.</font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)<i><font style="font-style:italic;">&#160; Notices.</font></i>&#160; All notices and other communications under
this Agreement shall be in writing and shall be deemed given (i)&nbsp;when
delivered personally. (ii)&nbsp;on the third business day after being mailed by
certified mail, return receipt requested. (iii)&nbsp;the next business day
after delivery to a recognized overnight courier, or (iv)&nbsp;upon
transmission and confirmation of receipt by a facsimile</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">operator if sent by facsimile (and shall also be transmitted by
facsimile to the Persons receiving copies thereof), to the parties at the
following addresses or facsimile numbers (or to such other address and
facsimile number as a party may have specified by notice given to the other
party pursuant to this provision):</font></p>

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

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to the Shareholder:</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24 Rozmus Ct.</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Allendale, NJ 07401</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax: (212)&nbsp;750-1525</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With a copy (which shall not constitute notice) to:</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Robert M. Donlon</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Morris Manning&nbsp;&amp; Martin LLP</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">201 S. College Street</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Suite 2300</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Charlotte, North Carolina 28244</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax: (704)&nbsp;554-5050</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to Merge:</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Merge Technologies Incorporated</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1126 S. 70<sup>th</sup> Street, Suite 107B</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Milwaukee Wisconsin 53217</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attn: Richard A. Linden, CEO</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax: (414)&nbsp;977-4202</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With copies (which shall not constitute notice)to:</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael Best&nbsp;&amp; Friedrich</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attn: Geoffrey Morgan, Esq.</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">100 East Wisconsin Avenue, Suite 3300</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Milwaukee, Wisconsin 53202</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax: (414)&nbsp;277-0656</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">George S. Rosic, Esq.</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Suite 800</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1603 Orrington Avenue</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Evanston, IL 60201</font></p>

<p style="margin:0in 0in .0001pt 1.1in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax: 847-328-1928</font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)<i><font style="font-style:italic;">&#160; Amendments, Waivers, Etc.</font></i>&#160; This Agreement may not be amended, changed,
supplemented, waived or otherwise modified or terminated except by an
instrument in writing signed by Merge and Shareholder.</font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)<i><font style="font-style:italic;">&#160; Successors and Assigns.</font></i>&#160; No party may assign any of its or his rights
or delegate any of its or his obligations under this Agreement without the
prior written consent of the other party, except that Merge may, without the
consent of Shareholder, assign any of its rights and delegate any of its
obligations under this Agreement to any Affiliate of Merge. Subject to the
preceding sentence, this Agreement shall be binding upon and shall inure to the
benefit of and be enforceable by the parties and their respective successors
and assigns, including without limitation any corporate successor by Merger or
otherwise. Notwithstanding any Transfer of Shares consistent with this
Agreement, the transferor shall remain liable for the performance of all
obligations of transferor under this Agreement.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)<i><font style="font-style:italic;">&#160; No Third Party Beneficiaries.</font></i>&#160; Nothing expressed or referred to in this
Agreement will be construed to give any Person, other than the parties to this
Agreement, any legal or equitable right, remedy or claim under or with respect
to this Agreement or any provision of this Agreement, except to a successor or
permitted assignee under Section&nbsp;5(d).</font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)<i><font style="font-style:italic;">&#160; Entire Agreement.</font></i>&#160; This Agreement embodies the entire agreement
and understanding between the parties relating to the subject matter hereof and
supersedes all prior agreements and understandings relating to such subject
matter other than the Merger Agreement and any other agreement, document or
instrument expressly referenced therein.</font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)<i><font style="font-style:italic;">&#160; Severability.</font></i>&#160; The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or unenforceability
of any other provisions of this Agreement.</font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)<i><font style="font-style:italic;">&#160; Specific Performance; Remedies Cumulative.</font></i>&#160; The parties hereto acknowledge that money
damages are not an adequate remedy for violations of this Agreement and that
any party, in addition to any other rights and remedies which the parties may
have hereunder or at law or in equity, may, in his or its sole discretion,
apply to a court of competent jurisdiction for specific performance or
injunction or such other relief as such court may deem just and proper in order
to enforce this Agreement or prevent any violation hereof and, to the extent
permitted by applicable law, each party waives any objection to the imposition
of such relief. All rights, powers and remedies provided under this Agreement
or otherwise available in respect hereof at law or in equity shall be
cumulative and not alternative, and the exercise or beginning of the exercise
of any thereof by any party shall not preclude the simultaneous or later
exercise of any other such rights, powers or remedies by such party.</font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)<i><font style="font-style:italic;">&#160; No Waiver.</font></i>&#160; The failure of any party hereto to exercise
any right, power or remedy provided under this Agreement or otherwise available
in respect hereof at law or in equity, or to insist upon compliance by any
other party hereto with his or its obligations hereunder, and any custom or
practice of the parties at variance with the terms hereof, shall not constitute
a waiver by such party of his or its right to exercise any such or other right,
power or remedy or to demand such compliance.</font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)<i><font style="font-style:italic;">&#160; Governing Law.</font></i>&#160; This Agreement shall be governed by and
construed in accordance with the laws of the State of Wisconsin without giving
effect to the principles of conflict of laws thereof.</font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)<i><font style="font-style:italic;">&#160; Jurisdiction.</font></i>&#160; Each of the parties hereto submits to the
exclusive jurisdiction of any state or federal court of the United States
located in the State of Wisconsin with respect to any claim or cause of action
arising out of this Agreement or the transactions contemplated hereby (and
agrees that no such action, suit or proceeding relating to this Agreement or
any transaction contemplated hereby shall be brought by him or it except in
such courts). Each of the parties hereto, irrevocably and unconditionally,
waives (and agrees not to plead or claim) any objection to the laying of venue
of any action, suit or proceeding arising out of this Agreement or the
transactions contemplated hereby in any state or federal court of the United
States located in the State of Wisconsin, or that any such action, suit or
proceeding brought in any such court has been brought in an inconvenient forum.
Shareholder also agrees that any final and unappealable judgment against such
party in connection with any such action, suit or other proceeding shall be
conclusive and binding on such party and that such award or judgment may be
enforced in any court of competent jurisdiction, either within or outside of
the United States. A certified or exemplified copy of such award or judgment
shall be conclusive evidence of the fact and amount of such award or judgment.</font></p>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)<i><font style="font-style:italic;">&#160; Waiver of Jury Trial.</font></i>&#160; The parties hereto hereby waive, to the
fullest extent permitted by applicable law, any right he or it may have to a
trial by jury in respect of any litigation directly or indirectly arising out
of, under or in connection with this Agreement.</font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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


<div>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)<i><font style="font-style:italic;">&#160; Counterparts.</font></i>&#160; This Agreement may be executed by facsimile
and in any number of counterparts, each of which shall be deemed to be an
original, but all of which together shall constitute one instrument. Each
counterpart may consist of a number of copies each signed by less than all, but
together signed by all, the parties hereto.</font></p>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the parties hereto have duly executed and delivered
this Agreement as of the date and year first written above.</font></p>

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

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.42%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="34%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:34.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Merge Technologies Incorporated</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in 0in 0in 0in;width:15.34%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.42%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="34%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:34.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in 0in 0in 0in;width:15.34%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.42%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="45%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:45.82%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.42%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="45%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:45.82%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.42%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="45%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:45.82%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.42%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="45%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:45.82%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.42%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:49.58%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Shareholder</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.42%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:49.58%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.42%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="34%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:34.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Number of Shares Owned: 34,050,000</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in 0in 0in 0in;width:15.34%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="377" style="border:none;"></td>
  <td width="28" style="border:none;"></td>
  <td width="228" style="border:none;"></td>
  <td width="115" style="border:none;"></td>
 </tr>
</table>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>

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

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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

</div>
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