Document:

EXECUTION COPY 

ASSET PURCHASE
AGREEMENT 

among 

BANTA CORPORATION, 

BANTA HEALTHCARE
GROUP, LTD. 

and 

BHG ACQUISITION LLC 

dated as of 

February 12, 2005 

TABLE OF CONTENTS 

				Page  
				
	
1	PURCHASE AND SALE	2 
		1.1	Purchased Assets	2 
		1.2	Excluded Assets	3 
		1.3	Assumed Liabilities	4 
		1.1	Excluded Liabilities	5 
		1.4	Nonassignable Contracts and Rights	6 
	
2	PURCHASE PRICE; PAYMENT	7 
		2.1	Purchase Price	7 
		2.2	Payment	7 
		2.3	Determination of Net Working Capital	8 
	
3	REPRESENTATIONS AND WARRANTIES	10 
		3.1	Representations and Warranties of Parent	10 
		3.2	Representations and Warranties of Buyer	26 
		3.3	Expiration of Representations and Warranties	28 
		3.4	No Other Representations or Warranties	28 
	
4	COVENANTS PRIOR TO CLOSING	29 
		4.1	Access to Information Concerning Properties and Records; Confidentiality	29 
		4.2	Conduct of Business Pending the Closing	29 
		4.3	Further Actions	30 
		4.4	Certain Filings	31 
		4.5	Notification	31 
		4.6	Transfer of Subsidiary Shares	31 
		4.7	Exclusivity	32 
		4.8	Title Insurance	32 
		4.9	[Intentionally Omitted]	32 
		4.10	Expiration of Covenants to be Performed Before Closing	32 
	
5	ADDITIONAL COVENANTS	32 
		5.1	Tax Matters	32 
		5.2	Employee Matters	34 
		5.3	Post-Closing Access to Information	37 
		5.4	Corporate Name	38 
		5.5	Insurance	38 
		5.6	Further Assurances	39 
		5.7	Non-Competition and Confidentiality	39 
		5.8	Accounts Receivable	40 

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				Page  
				
	
6	CONDITIONS PRECEDENT TO BUYER'S OBLIGATIONS	41 
		6.1	Accuracy of Representations and Warranties	41 
		6.2	Performance of Obligations	41 
		6.3	No Injunction, Etc	41 
		6.4	Delivery of Documents	41 
		6.5	Competition Law Clearance	41 
		6.6	Financing	41 
		6.7	Government Consents; Licenses and Permits	41 
		6.8	Third Party Consents; Assignments; Other Documents	42 
	
7	CONDITIONS PRECEDENT TO PARENT'S AND COMPANY'S OBLIGATIONS	42 
		7.1	Accuracy of Representations and Warranties	42 
		7.2	Performance of Obligations	42 
		7.3	No Injunction, Etc	42 
		7.4	Delivery of Purchase Price and Documents	42 
		7.5	Competition Law Clearance	42 
		7.6	Financing	42 
	
8	INDEMNIFICATION	43 
		8.1	Indemnification by Parent	43 
		8.2	Indemnification By Buyer	44 
		8.3	Procedures Relating to Indemnification Among Parent and Buyer	44 
		8.4	Procedures Relating to Indemnification for Third Party Claims	45 
		8.5	Insurance and Tax Effect	46 
		8.6	No Offset	46 
		8.7	Exclusive Remedy	46 
	
9	CLOSING	46 
		9.1	Closing Date	46 
		9.2	Items to be Delivered by Parent	47 
		9.3	Items to be Delivered by Buyer	48 
	
10	TERMINATION	48 
		10.1	General	48 
		10.2	Post-Termination Obligations; Deliverables	49 
		10.3	No Liabilities in Event of Termination	49 

ii  

				Page  
				
	
11	MISCELLANEOUS	49 
		11.1	Publicity	49 
		11.2	Assignment	50 
		11.3	Parties in Interest	50 
		11.4	Law Governing Agreement	50 
		11.5	Amendment	50 
		11.6	Waiver	51 
		11.7	Notice	51 
		11.8	Expenses	52 
		11.9	Schedules	52 
		11.10	Interpretive Provisions	52 
		11.11	Section Headings; Table of Contents	53 
		11.12	Severability	53 
		11.13	No Strict Construction	53 
		11.14	Jurisdiction; Venue; Waiver of Jury Trial	53 
		11.15	Bulk Transfer Laws	53 
		11.16	Entire Agreement	54 
		11.17	Counterparts	54 
		11.18	Definitions	54 

iii 

	SCHEDULES

	Schedule 2.3(b)	-	Preliminary Closing Statement
	Schedule 3.1(a)(ii)	-	Qualification To Do Business
	Schedule 3.1(c)	-	Subsidiaries
	Schedule 3.1(e)	-	No Violation
	Schedule 3.1(f)	-	Financial Statements
	Schedule 3.1(g)	-	Tax Matters
	Schedule 3.1(h)	-	Absence of Certain Changes
	Schedule 3.1(i)	-	No Litigation
	Schedule 3.1(j)	-	Compliance with Laws and Orders
	Schedule 3.1(k)(i)	-	Compliance with Licenses and Permits
	Schedule 3.1(k)(ii)	-	Material Licenses and Permits
	Schedule 3.1(l)	-	Absence of Undisclosed Liabilities
	Schedule 3.1(m)	-	Environmental Matters
	Schedule 3.1(n)	-	Title to Assets; Liens
	Schedule 3.1(o)	-	Real Property
	Schedule 3.1(p)	-	Material Contracts
	Schedule 3.1(q)	-	Employee Matters
	Schedule 3.1(r)	-	Intellectual Property Rights
	Schedule 3.1(t)	-	Inventory
	Schedule 3.1(u)	-	Accounts Receivable
	Schedule 3.1(v)	-	Major Customers
	Schedule 3.1(w)	-	Major Suppliers
	Schedule 3.1(x)	-	Product Warranty and Product Liability
	Schedule 3.1(y)	-	Insurance
	Schedule 3.1(z)	-	Affiliates' Relationships
	Schedule 4.2	-	Conduct of Business Pending the Closing
	Schedule 11.10	-	Knowledge of Parent

	EXHIBITS

	Exhibit 5.8	-	Lock Box
	Exhibit 6.8	-	Third Party Consents; Assignments; Other Documents
	Exhibit 9.2(d)	-	Transition Services Agreement
	Exhibit 9.2(e)	-	Services Agreement
	Exhibit 11.18	-	Rialto Employees

ASSET PURCHASE
AGREEMENT 

        THIS
ASSET PURCHASE AGREEMENT (this “Agreement”) is made and effective as
of February 12, 2005 among BANTA CORPORATION, a Wisconsin corporation with its
principal place of business located at 225 Main Street, Menasha, Wisconsin 54952
(“Parent”), BANTA HEALTHCARE GROUP, LTD., a Wisconsin corporation
with its principal place of business located at 570 Enterprise Drive, Neenah, Wisconsin
54956 (“Company”), and BHG ACQUISITION LLC, a Delaware limited
liability company with its principal place of business located at  82 Devonshire
Street, Boston, Massachusetts 02109 (“Buyer”). 

        WHEREAS,
Parent owns all of the outstanding capital stock of Company; 

        WHEREAS,
Parent and Company own all of the outstanding capital stock of Banta Hong Kong Ltd., a
Hong Kong company with its principal place of business located at Room 2904,
29th Floor, China Resources Building, #26 Harbour Road, Wanchai, Hong Kong
(“Subsidiary” and, together with Company, the “BHG
Companies”), and prior to the Closing, Parent will transfer all of its right,
title and interest in and to such capital stock to Company; 

        WHEREAS,
the BHG Companies are engaged in the research and development, design, manufacture,
assembly, production, marketing, distribution and sale within the medical, dental,
healthcare and selected other industries of (a) exam room table paper, drape sheets,
capes, gowns, tray covers, headrest covers, bibs, towels, promotional print paper and
similar disposable paper products, (b) microscope and equipment drapes, thermometer
sheaths, camera and instrument covers, x-ray envelopes, bedside bags and similar specialty
products, (c) blown, cast and similar polyethylene film products, (d) gauze pads, gauze
sponges, dental rolls, cotton and rayon balls and similar gauze-related products, (e)
aprons, gloves (non-latex), storage bags and similar sanitary products, (f) dental cups,
saliva ejectors, medical shroud kits and similar products and (g) surgical gowns,
orthopedic shorts and similar nonwoven apparel products (the “Business”); 

        WHEREAS,
Parent acquired the stock of several predecessor entities that are now part of the BHG
Companies pursuant to that certain Stock Purchase Agreement dated September 24, 1997 by
and among Parent, Chemed Corporation and OCR Holding Company (the “Chemed
Agreement”); 

        WHEREAS,
the BHG Companies carry on the Business at facilities located at 570 Enterprise Drive,
Neenah, Wisconsin 54956; 360 South Lilac Avenue, Rialto, California 92376; Room 2904,
29th Floor, China Resources Building, #26 Harbour Road, Wanchai, Hong Kong;
3125 Drane Field Road, Unit 22, Lakeland, Florida 33811; and 711 Old Ballas Building,
Suite 105, St. Louis, Missouri 63141; 

        WHEREAS,
Buyer desires to purchase from Company, and Company desires to sell to Buyer,
substantially all of the assets and, except as specifically excluded herein, substantially
all of the liabilities of Company, upon the terms and subject to the conditions set forth
in this Agreement; and 

        WHEREAS,
capitalized terms used but not defined in the context of the Sections in which such terms
first appear shall have the meanings ascribed thereto in Section 11.18. 

        NOW,
THEREFORE, in consideration of the foregoing and the representations, warranties,
covenants, agreements and conditions set forth in this Agreement, and intending to be
legally bound, the Parties agree as follows: 

        1.     
PURCHASE AND SALE  

                 1.1     
Purchased Assets. Subject to the satisfaction or waiver of the conditions set
forth in this Agreement on the Closing Date, Company shall sell and transfer to Buyer,
and Buyer shall purchase and accept from Company, all of Company’s right, title and
interest in the assets, rights, properties, claims, contracts, business and goodwill of
Company at the Closing Date of every kind, nature, character and description, tangible
and intangible, real, personal or mixed, wherever located, including (without limitation)
the following (except to the extent specifically otherwise provided in Section 1.2,
collectively, the “Purchased Assets”) but specifically excluding, in
each case, the Excluded Assets:  

	 	                 (a)     All
real property that is owned by Company, including all leases, easements and
          other interests in, and improvements upon, such real property;  

	 	                 (b)     
         All tangible personal property that is owned by Company, including all
          machinery, equipment, tools, furniture, office equipment, computer hardware,
          supplies, materials, vehicles and other items of tangible personal property;  

	 	                 (c)     
         All intangible personal property and intellectual property rights owned by
          Company;  

	 	                 (d)     
         All written and oral indentures, mortgages, deeds of trust, leases, licensing
          agreements, contracts, agreements, purchase orders, sales orders or other
          instruments of Company and all outstanding offers and solicitations made by
          Company to enter into any such instruments (collectively, the “Assumed
          Contracts”);  

	 	                 (e)     
         All licenses, permits, approvals, authorizations and consents of Governmental
          Entities held by Company listed on Schedule 3.1(k)(ii), except for those
          related to any Excluded Assets (collectively, the “Business Permits”);  

	 	                 (f)     
         All Inventory that is owned by Company;  

	 	                 (g)     
         All of Company’s rights in trade accounts receivable and other rights to
          payment from Company’s customers, including all trade accounts receivables
          of Company representing amounts receivable in respect of goods shipped or
          products sold or services rendered to Company’s customers;  

	 	                 (h)     
         All of Company’s right, title and in the capital stock of Subsidiary;  

	 	                 (i)     
         All books, records and other documentation that are owned by Company;  

2 

	 	                 (j)     
         All goodwill associated with the foregoing; and  

	 	                 (k)     
         All claims of Company against third parties relating to the Purchased Assets,
          whether choate or inchoate, known or unknown, contingent or noncontingent.  

        Notwithstanding
the foregoing, prior to the Closing Date, Buyer may, upon Prior written notice to Parent,
assign its rights and obligations, in whole or in part, under this Agreement to one or
more of its wholly-owned Affiliates (each such entity, a “Designated Purchaser”)
for the purpose of carrying out the transactions contemplated hereby; provided, however,
that Buyer shall be and remain jointly and severally liable for all obligations of Buyer
and any such Designated Purchaser under this Agreement and under all documents and
instruments to be executed and delivered by Buyer or any such Designated Purchaser
pursuant hereto.  

                 1.2     
Excluded Assets. Notwithstanding anything to the contrary in Section 1.1,
Company shall not sell, convey, assign, transfer or deliver to Buyer, and Buyer shall not
purchase or acquire from Company (and the Purchased Assets shall not include), the
following assets of Company (collectively, the “Excluded Assets”):  

	 	                 (a)     
         Any rights in Company’s franchise to be a corporation, its charter,
          corporate seal, minute books, stock books and other corporate records relating
          to its corporate existence and capitalization;  

	 	                 (b)     
         Any equity interest in Company;  

	 	                 (c)     
         Any of Company’s assets that are consumed, sold or disposed of in the
          ordinary course of business consistent with past practice prior to the Closing
          Date;  

	 	                 (d)     
         Any rights of Company under this Agreement or related to the transactions
          contemplated by this Agreement;  

	 	                 (e)     
         Any cash and cash equivalents of Company at Closing (except as otherwise
          contemplated by Section 4.3(c));  

	 	                 (f)     
         Any intercompany receivables of Company;  

	 	                 (g)     
         Any rights of Company in the real property located at 360 South Lilac, Rialto,
          California, including rights under that certain Lease Agreement, dated July 1,
          2004, between Parent and Company, together with all improvements and fixtures
on           or related to such real property;  

	 	                 (h)     
         Any refunds or credits with respect to any Taxes paid or incurred by Company,
          together with any related interest received or due from the relevant taxing
          authority, any prepaid Taxes of Company and any other rights to Taxes of
          Company;  

	 	                 (i)     
         Any rights of Company in or to the use of any name, tradename, trade mark,
          service name or service mark incorporating the word “Banta” or any
          derivation thereof and any corporate symbols or logos related thereto, except
to           the extent expressly otherwise set forth in Section 5.4(b);  

3 

	 	                 (j)     
         Any insurance policies, or rights under such policies, held by or on behalf of
          Company, subject to Buyer’s rights under Section 5.5(b) hereof;  

	 	                 (k)     
         Any rights of Company under the Chemed Agreement;  

	 	                 (l)     
         Any prepaid items, claims for contribution, indemnity rights and similar claims
          and causes of action and other intangible rights to the extent any of the
          foregoing relate to the other Excluded Assets described in this Section 1.2 or
to the liabilities described in Section 1.4, and all privileges related
thereto; and  

	 	                 (m)     
         Any books, records and other documentation relating primarily to any of the
          other Excluded Assets described in this Section 1.2 or to the
liabilities           described in Section 1.4 (provided that Buyer shall have
access to such           books, records and other documentation as described in Section
5.3).  

                 1.3     
Assumed Liabilities. Subject to the satisfaction or waiver of the conditions set
forth in this Agreement (and except to the extent specifically otherwise provided in Section
1.4 or Section 5.2), on the Closing Date, Buyer shall assume and agree to pay,
perform and discharge, as and when due, all of the Liabilities of Company, whether
arising before or after the Closing Date, to the extent the same are unpaid, undelivered
or unperformed on the Closing Date (collectively, the “Assumed Liabilities”),
including (without limitation) the following:  

	 	                 (a)     
         All Liabilities arising under the Assumed Contracts;  

	 	                 (b)     
         All Liabilities arising under the Business Permits;  

	 	                 (c)     
         All current Liabilities, accrued Liabilities and contingent Liabilities,
          including all Liabilities arising in connection with any Environmental Action
          where any such Environmental Action or Liability (i) is related in any way to
          Company’s or any previous owner’s or operator’s ownership,
          operation or occupancy of Company or its business, any real property or the
          Purchased Assets, and (ii) occurred, existed, arose out of conditions or
          circumstances that existed, or was caused, in whole or in part on or before the
          Closing Date, whether or not known to Buyer; the Liabilities assumed pursuant
to           this Section 1.3(c) include (without limitation) Liabilities arising
          under any applicable Environmental Law; provided, however, that Buyer’s
          agreement to assume such liabilities shall not be deemed an admission of any
          action or omission giving rise to such liabilities;  

	 	                 (d)     
         All Liabilities relating to or arising out of any employment action or practice
          in connection with persons previously employed, employed or seeking to be
          employed by Company, including Liabilities based upon breach of employment or
          labor contract, employment discrimination, wrongful termination, wage and hour
          or health and safety requirements, workers compensation, the Worker Adjustment
          Retraining Notification Act of 1988, as amended (to the extent provided for in
Section 5.2(i)), the Occupational Safety and Health Act of 1970, as
          amended, or the National Labor Relations Act, constructive termination,
wrongful           termination, failure to give reasonable notice or
pay-in-lieu-of-notice,           severance pay or termination pay; provided, however,
that Buyer’s agreement           to assume such liabilities shall not be deemed an
admission of any action or           omission giving rise to such liabilities;  

4 

	 	                 (e)     
         All Liabilities under any Benefit Plan or Employee Agreement that is
          specifically assumed pursuant to Section 5.2;  

	 	                 (f)     
         All Liabilities relating to pending or threatened actions, suits, arbitrations,
          proceedings, disputes, claims or investigations;  

	 	                 (g)     
         All Liabilities that arise on account of Buyer’s conduct of the business of
          Company, use of the Purchased Assets, sale of any products manufactured and/or
          sold by Buyer and/or delivery of services by Buyer on or after the Closing
Date;  

	 	                 (h)     
         All Liabilities in the nature of product liability, including any Liability for
          claims made for injury to person, damage to property or other damage arising
          from, caused by or arising out of any product designed, manufactured,
assembled,           installed, sold, leased or licensed, or any service rendered, prior
to the           Closing Date;  

	 	                 (i)     
         All Liabilities for warranty obligations (express, implied or statutory)
          relating to any product installed, sold, leased or licensed or any services
          rendered or for returns of products sold prior to the Closing Date;  

	 	                 (j)     
         All Liabilities of Company for any violation of or failure to comply with any
          Laws or Orders; and  

	 	                 (k)     
         All other Liabilities arising out of or related to the conduct of the business
          of Company or the Purchased Assets (but specifically excluding the Excluded
          Liabilities).  

        The
Parties acknowledge that the provisions of this Section 1.3 shall not affect,
mitigate or limit Parent’s indemnity obligations under this Agreement or Buyer’s
rights under Section 5.5(b). For further clarity, it is expressly agreed that,
with respect to Buyer’s assumption of the Assumed Liabilities, Parent and Company
shall have the same obligations of notice and cooperation as an Indemnified Party under
Section 8.4 hereof.  

                 1.4     
Excluded Liabilities. It is expressly understood and agreed that Assumed
Liabilities shall not include the following Liabilities of Company (collectively, the
"Excluded Liabilities"):  

	 	                 (a)     
         Any intercompany Liabilities involving Company and an Affiliate of Company other
          than Subsidiary, except for those intercompany Liabilities arising from
          Company’s purchase or sale of goods or services in the ordinary course of
          its business;  

	 	                 (b)     
         Any Liabilities of Company under that certain Loan Agreement, dated as of July
          1, 1991, between Company and the City of Neenah, Wisconsin;  

5 

	 	                 (c)     
         Any Liabilities of Company relating to any of the Excluded Assets, including any
          Liabilities of Company (i) for any Taxes of Company (except as otherwise
          contemplated by Section 5.1(c)), (ii) resulting from Company’s use
          or occupation of the Real Property located at 360 South Lilac, Rialto,
          California, including, without limitation, any Environmental Action or
Liability           including any costs, fees, fires or penalties associated with
notification,           investigation or remediation related thereto, or (iii) under the
Chemed           Agreement;  

	 	                 (d)     
         Any Liabilities for any Taxes of Subsidiary (i) for any period ending on or
          prior to the Closing Date and (ii) for any period that begins before and ends
          after the Closing Date (i.e., a straddle period), based on a
          closing-of-the-books methodology;  

	 	                 (e)     
         Any Liability for any outstanding and unpaid checks of the BHG Companies; and  

	 	                 (f)     
         All Liabilities under any Benefit Plan or Employee Agreement, except those
          obligations specifically assumed by Buyer pursuant to Section 5.2.  

                 1.5     
Nonassignable Contracts and Rights. Notwithstanding anything to the contrary in
this Agreement, no Contracts, properties, rights or other assets of Company shall be
deemed sold, transferred or assigned to Buyer pursuant to this Agreement if (a) the
attempted sale, transfer or assignment thereof to Buyer without the consent or approval
of another party or Governmental Entity would be ineffective or would constitute a breach
of Contract or a violation of any Law or would in any other way materially adversely
affect the rights of Company (or Buyer as transferee or assignee) and (b) such consent or
approval is not obtained on or prior to the Closing Date. In such case, to the extent
possible, (i) the beneficial interest in or to such Contracts, properties, rights or
other assets (collectively, the “Beneficial Rights”) shall in any event
pass as of the Closing Date to Buyer under this Agreement; and (ii) pending such consent
or approval, Buyer shall assume or discharge the Liabilities of Company under such
Beneficial Rights (to the extent such obligations are Assumed Liabilities) as agent for
Company, and Company shall act as Buyer’s agent in the receipt of any benefits,
rights or interest received from the Beneficial Rights. Notwithstanding the foregoing,
before and after the Closing, Buyer and Company shall use their respective best efforts
(and bear their respective costs of such efforts), without any requirement of Company to
pay any significant sum of money beyond customarily reasonable amounts in connection with
the transfer of permits, contracts or other material agreements of the BHG Companies, to
assume any material liability from or commence any litigation against any person or
entity, to obtain and secure any and all consents and approvals that may be necessary to
effect the legal and valid sale, transfer or assignment of the Contracts, properties,
rights or other assets underlying the Beneficial Rights, including their formal
assignment or novation, if advisable. Buyer and Company shall make or complete such
transfers as soon as reasonably possible and cooperate with each other in any other
reasonable arrangement designed to provide for Buyer the Beneficial Rights and to provide
for the discharge of any Liability arising under such Contracts, properties, rights or
other assets, to the extent such Liability constitutes an Assumed Liability.  

6 

        2.     
PURCHASE PRICE; PAYMENT  

                 2.1     
Purchase Price. The purchase price payable for the Purchased Assets (the “Purchase
Price”) shall be (a) the assumption of the Assumed Liabilities as described in
Section 1.3and (b) cash consideration equal to Sixty Seven Million Dollars (U.S.
$67,000,000), minus the amount, if any, by which the Net Working Capital as
reflected on the Final Closing Statement is less than Eleven Million Two Hundred Fifty
Thousand Dollars (U.S. $11,250,000) (the “Working Capital Target”) or plus the
amount, if any, by which the Net Working Capital as reflected on the Final Closing
Statement exceeds the Working Capital Target.  

                 2.2     
Payment. The Purchase Price shall be paid as follows:  

	 	                 (a)     Assumption
of Liabilities. At the Closing, Buyer shall deliver to Company           such
documents as Company reasonably requests to evidence assumption by Buyer of           the
Assumed Liabilities.  

	 	                 (b)     Cash
Payment to Parent. At the Closing, Buyer shall deliver to Company an           amount
equal to Sixty Seven Million Dollars (U.S. $67,000,000), minus the           amount, if
any, by which the Net Working Capital as reflected on the Estimated           Closing
Statement is less than the Working Capital Target or plus the amount, if           any,
by which the Net Working Capital as reflected on the Estimated Closing
          Statement exceeds the Working Capital Target.  

	 	                 (c)     Payment
of Adjustment Amount. Within five (5) Business Days after the           final
determination of the Final Closing Statement pursuant to Section           2.3,
either (i) Company or Parent shall pay to Buyer the amount, if any, by           which
the Net Working Capital as reflected on the Final Closing Statement is           less
than the Net Working Capital as reflected on the Estimated Closing           Statement,
together with interest on the amount being paid from the Closing Date           to the
date of the payment at a rate per annum equal to the U.S. prime interest           rate
of lending as set forth in The Wall Street Journal as of the Closing
          Date, or (ii) Buyer shall pay to Company or Parent the amount, if any, by which
          the Net Working Capital as reflected on the Final Closing Statement exceeds the
          Net Working Capital as reflected on the Estimated Closing Statement, together
          with interest on the amount being paid from the Closing Date to the date of the
          payment at a rate per annum equal to the U.S. prime interest rate of lending as
          set forth in The Wall Street Journal as of the Closing Date. Any Party
          may, in its discretion, make a payment pursuant to this Section 2.2(c)          prior
to the final determination of the Final Closing Statement for the purpose           of
reducing the interest that it may be obligated to pay hereunder.  

	 	                 (d)     Method
of Payment. All payments under this Section 2.2 shall be           made by
wire transfer of immediately available funds free of costs and charges           to an
account that the recipient, at least forty-eight (48) hours prior to the           time
for payment specified hereunder, has designated.  

7 

                 2.3     
Determination
of Net Working Capital. 

	 	                 (a)     Estimated
Closing Statement. For purposes of determining the Purchase           Price payable
by Buyer at the Closing, not less than ten (10) Business Days           prior to the
Closing Date, Parent shall prepare, or cause to be prepared, and           deliver to
Buyer an unaudited statement of the Adjusted Current Assets and           Adjusted
Current Liabilities as of the close of business on the Closing Date,           which
shall represent Parent’s reasonable estimate of the Final Closing
          Statement. If Buyer objects to any of the information set forth on such
          unaudited statement as presented by Parent, then Buyer and Parent shall
          negotiate in good faith and agree upon appropriate adjustments such that such
          unaudited statement reflects a reasonable estimate of the Final Closing
          Statement and the Net Working Capital to be reflected on the Final Closing
          Statement, but in the absence of such agreement, such unaudited statement shall
          be prepared based on the most recent unaudited month-end balance sheet of the
          BHG Companies (the estimated balance sheet as agreed to by the Parties pursuant
          to this Section 2.3(a), or in the absence of such agreement, an
unaudited           statement based on the most recent unaudited month-end balance sheet
of the BHG           Companies, is referred to as the “Estimated Closing Statement”).
In connection with the determination of the Estimated           Closing Statement, Parent
shall provide to Buyer such information and detail as           Buyer reasonably
requests.  

	 	                 (b)     Preliminary
Closing Statement. Within ninety (90) calendar days after the           Closing Date,
Buyer shall prepare, or cause to be prepared, and deliver to           Parent an
unaudited statement of the Adjusted Current Assets and Adjusted           Current
Liabilities as of the close of business on the Closing Date (the           “Preliminary
Closing Statement”), which shall set forth           the Net Working
Capital as of the Closing Date and shall be prepared as set           forth on Schedule
2.3(b).  

	 	                 (c)     Objection
to Preliminary Closing Statement. Within thirty (30) calendar           days after
the Preliminary Closing Statement is delivered to Parent pursuant to Section 2.3(b),
Parent shall complete its review of the Net Working           Capital derived from the
Preliminary Closing Statement. If Parent determines           that the Preliminary
Closing Statement has not been prepared in accordance with Section 2.3(b), then
Parent shall inform Buyer on or prior to the last           day of such thirty (30)
calendar day period by delivering a written notice to           Buyer (a “Closing
Statement Objection”) setting forth a           specific description of the
basis of the Closing Statement Objection and the           adjustments to Net Working
Capital that Parent believes should be made. If no           Closing Statement Objection
is delivered to Buyer within such thirty (30)           calendar day period, then Parent
shall be deemed to have accepted the           Preliminary Closing Statement.  

	 	                 (d)     Response
to Closing Statement Objection. If a Closing Statement Objection           is
delivered to Buyer pursuant to Section 2.3(c), then Buyer shall have
          thirty (30) calendar days to review and respond to the Closing Statement
          Objection by delivering written notice to Parent specifying the scope of its
          disagreement with the information contained in it. If no such written notice is
          delivered to Parent within such thirty (30) calendar day period, then Buyer
          shall be deemed to have accepted the Closing Statement Objection.  

8 

	 	                 (e)     Dispute
Resolution Following Closing Statement Objection.  

	 	                 (i)     Negotiation.
If Buyer delivers a written notice to Parent in response to           a Closing Statement
Objection pursuant to Section 2.3(d), then Parent and           Buyer shall
promptly meet and attempt in good faith to resolve any dispute or           disagreement
relating to the Preliminary Closing Statement and the calculation           of Net
Working Capital as of the Closing Date (the “Balance Sheet           Dispute”).  

	 	                 (ii)    Resolution
by CPA Firm. If Parent and Buyer are unable to resolve the           Balance Sheet
Dispute within sixty (60) calendar days after the delivery of a           Closing
Statement Objection to Buyer, then at any time thereafter Parent or           Buyer may
elect to have the Balance Sheet Dispute resolved by Deloitte &          Touche,or
another nationally recognized firm of independent public           accountants as to
which Parent and Buyer mutually agree (the “CPA           Firm”), who
shall, acting as experts and not as arbitrators, determine           on the basis of the
standards set forth in Section 2.3(b), and only with           respect to the
remaining accounting-related differences so submitted to the CPA           Firm (and not
by independent review), whether and to what extent, if any, the           Net Working
Capital as derived from the Preliminary Closing Statement requires           adjustment.
In connection with the engagement of the CPA Firm, each Party shall           execute
reasonable engagement letters in the reasonable discretion of the           respective
parties and supply such other documents and information as the CPA           Firm
reasonably requires. Without limitation, each Party may submit such data           and
information to the CPA Firm as such Party deems appropriate. The CPA Firm           shall
be instructed to use every reasonable effort to perform its services           within
fifteen (15) calendar days after submission of the Balance Sheet Dispute           to it
and, in any case, as soon as practicable after such submission. In           resolving
the Balance Sheet Dispute, the CPA Firm (A) shall utilize the criteria           set
forth in Section 2.3(b) and (B) shall not assign a value to any item
          greater than the greatest value for such item claimed by any Party, or less
than           the smallest value for such item claimed by any Party, as presented to the
CPA           Firm pursuant hereto.  

	 	                 (iii)   Payment
of Fees of CPA Firm. If the Net Working Capital as reflected on           the Final
Closing Statement is closer in amount to the Net Working Capital as           reflected
in the Closing Statement Objection than to the Net Working Capital as           reflected
on the Preliminary Closing Statement, then Buyer shall pay all fees           and
expenses of the CPA Firm in connection with the services provided pursuant           to
Section 2.3(e)(ii). If the Net Working Capital as reflected on
          the Final Closing Statement is closer in amount to the Net Working Capital as
          reflected on the Preliminary Closing Statement than to the Net Working Capital
          as reflected in the Closing Statement Objection, then Parent shall pay all fees
          and expenses of the CPA Firm in connection with the services provided pursuant
          to Section 2.3(e)(ii).  

	 	                 (f)     Cooperation.
Each Party agrees that, from and after the Closing Date, it           will not take any
actions with respect to the accounting books, records,           policies and procedures
of Buyer or any BHG Company that would obstruct or           prevent the preparation,
review or evaluation of the Preliminary Closing           Statement. Each Party shall
cooperate, and shall cause its Affiliates and           designees to cooperate, with the
other in the preparation, review and evaluation           of the Preliminary Closing
Statement, including the provision on a timely basis           of all information
reasonably necessary or useful in connection with the           preparation, review and
evaluation of the Preliminary Closing Statement. Parent           and its accountants
shall have reasonable access to all information used by           Buyer in preparing the
Preliminary Closing Statement, including the work papers           of its accountants.  

9 

        3.     
REPRESENTATIONS
AND WARRANTIES  

                 3.1     
Representations and Warranties of Parent. To induce Buyer to enter into this
Agreement, and acknowledging that Buyer has relied upon the representations and
warranties contained herein, Parent and Company make the following representations and
warranties to Buyer, each of which is true and correct on the date hereof, shall be
unaffected by any investigation heretofore or hereafter made by Buyer, or any knowledge
of Buyer other than as may be disclosed in the Schedules delivered to Buyer at the time
of the execution of this Agreement, which Schedules may be updated by Parent and Company
at any time prior to closing in accordance with Section 11.9 hereof.  

	 	                 (a)     Due
Organization and Power.  

	 	                 (i)     Parent.
Parent is a corporation duly organized and validly existing under           the laws of
the State of Wisconsin. Parent has all requisite corporate power to           enter into
this Agreement and the other documents and instruments to be executed           and
delivered by Parent pursuant hereto and to carry out the transactions
          contemplated hereby and thereby.  

	 	                 (ii)    BHG
Companies. Each BHG Company is a corporation duly organized and           validly
existing under the laws of its jurisdiction of organization. Each BHG           Company
has all requisite corporate power and authority to own, operate and           lease its
properties and to carry on the Business as and where such is currently
          conducted. Each BHG Company is duly qualified or licensed to do business as a
          foreign corporation in each jurisdiction wherein the character of the
properties           owned by it, or the nature of the Business, makes such licensing or
          qualification necessary, except where the failure to so qualify would not,
          individually or in the aggregate, have a Material Adverse Effect. The
          jurisdictions in which the BHG Companies are qualified to do business are
listed           in Schedule 3.1(a)(ii).  

	 	                 (b)     Authority.
The execution and delivery by Parent and Company of this           Agreement and the
other documents and instruments to be executed and delivered           by Parent or
Company pursuant hereto and the consummation by Parent and Company           of the
transactions contemplated hereby and thereby have been duly authorized           by, in
the case of Parent, the Board of Directors of Parent and, in the case of
          Company, the Board of Directors and sole shareholder of Company. No other
          corporate act or proceeding on the part of Parent, Company or their respective
          shareholders is necessary to authorize this Agreement or the other documents
and           instruments to be executed and delivered by Parent or Company pursuant
hereto or           the consummation of the transactions contemplated hereby and thereby.
This           Agreement constitutes, and when executed and delivered, the other
documents and           instruments to be executed and delivered by Parent or Company
pursuant hereto           will constitute, valid and binding agreements of Parent or
Company, as the case           may be, enforceable in accordance with their respective
terms, except as such           may be limited by bankruptcy, insolvency, reorganization
or other Laws affecting           creditors’ rights generally, and by general
equitable principles.  

10 

	 	                 (c)     Subsidiaries.
Schedule 3.1(c) sets forth the capitalization and           ownership of
Subsidiary. Except as set forth in Schedule 3.1(c), Company           does not
own, directly or indirectly, any capital stock or other securities of           any
corporation or have any direct or indirect equity or other ownership           interest
in any other entity. All of the outstanding shares of capital stock of
          Subsidiary (collectively, the “Subsidiary  Shares”) owned by
          Parent and Company are validly issued. There are no (i) securities convertible
          into or exchangeable for capital stock or other equity securities of
Subsidiary;           (ii) options, warrants or other rights to purchase or subscribe to
capital stock           or other equity securities of Subsidiary or securities that are
convertible into           or exchangeable for capital stock or other equity securities
of Subsidiary; or           (iii) contracts, commitments or agreements relating to the
issuance, sale,           transfer or voting of any capital stock or other equity
securities of           Subsidiary, any such convertible or exchangeable securities or
any such options,           warrants or other rights.  

	 	                 (d)     
         [Intentionally Omitted]  

	 	                 (e)     No
Violation. Except as set forth in Schedule 3.1(e), neither the
          execution and delivery by Parent or Company of this Agreement or the other
          documents and instruments to be executed and delivered by Parent or Company
          pursuant hereto nor the consummation by Parent or Company of the transactions
          contemplated hereby and thereby (i) will violate any Law or Order applicable to
          Parent or either BHG Company, except for such violations, the occurrence of
          which would not, individually or in the aggregate, have a Material Adverse
          Effect or a material adverse effect on Parent’s or Company’s ability
          to perform its obligations hereunder or any of the other transactions
          contemplated hereby, (ii) will require any authorization, consent or approval
          by, filing with or notice to any Governmental Entity, except for (A) the
          requirements of any Competition Law applicable to the transactions contemplated
          hereby, (B) such authorizations, consents, approvals, filings or notices, the
          failure of which to obtain or make would not, individually or in the aggregate,
          have a Material Adverse Effect or a material adverse effect on Parent’s or
          Company’s ability to perform its obligations hereunder or any of the other
          transactions contemplated hereby and (C) such authorizations, consents,
          approvals, filings or notice requirements that become applicable solely as a
          result of the specific regulatory status of Buyer or any of its Affiliates, or
          (iii) subject to obtaining the consents referred to in Schedule 3.1(e),
          will violate or conflict with, or constitute a default (or an event that, with
          notice or lapse of time, or both, would constitute a default) under, or will
          result in the termination of, or accelerate the performance required by, or
          result in the creation of any Liens (other than Permitted Liens) upon any of
the           Purchased Assets or Subsidiary Shares under (A) any term or provision of
the           corporate charter, bylaws or similar organizational documents of Parent or
          either BHG Company, (B) any of the express terms of any Contract to which
Parent           or Subsidiary is a party or by which Parent or Subsidiary or any of
their           respective assets or properties are bound or affected or (C) any of the
express           terms of any Material Contract to which any BHG Company is a party or
by which           any BHG Company or any of its assets or properties are bound or
affected, except           (in each of the cases described in subclauses (A), (B) and
(C) of this clause (iii)), for such violations, conflicts, defaults,
          terminations, accelerations or Liens that would not, individually or in the
          aggregate, have a Material Adverse Effect or a material adverse effect on
          Parent’s or Company’s ability to perform its obligations hereunder or
          any of the other transactions contemplated hereby. Parent, Company and Buyer
          agree that no event, occurrence or circumstance that would constitute a breach
          of a representation or warranty contained in Section 3.2(c) will, on its
          own, be a basis for a breach of a representation or warranty contained in this
Section 3.1(e).  

11 

	 	                 (f)     Financial
Statements. Schedule 3.1(f) contains (i) an unaudited           balance sheet
of the BHG Companies as of January 1, 2005 (the “Recent           Balance Sheet”)
and an unaudited statement of income and cash flows for           the fiscal year then
ended and (ii) unaudited balance sheets of the BHG           Companies as of January 3,
2004 and December 28, 2002 and unaudited statements           of income and cash flows of
the BHG Companies for the fiscal years then ended           (collectively, the “Financial
Statements”). Except as set forth           in Schedule 3.1(f), the
Financial Statements were prepared in accordance           with GAAP, as in effect on the
date of such Financial Statements and applied on           a consistent basis in such
Financial Statements (except for the absence of           footnote disclosure), and such
Financial Statements fairly present, in all           material respects, the financial
position and results of operations of the BHG           Companies as of their respective
dates and for the respective periods covered           thereby after giving effect to
certain estimated allocations and charges for           services described in Schedule
3.1(f).  

	 	                 (g)     Tax
Matters.  

	 	                 (i)     Tax
Returns Filed. Except as set forth on Schedule 3.1(g) and
               except for matters that will not result in any Tax liability or Loss to
any BHG                Company, all Tax Returns required to be filed by or on behalf of
each of the BHG                Companies on or prior to the date of this Agreement have
been timely filed and,                when filed, were complete and accurate, except for
any failures to file Tax                Returns or any inaccuracies in filed Tax Returns
that would not, individually or                in the aggregate, have a Material Adverse
Effect. All Taxes due and owing by                each of the BHG Companies as of the
date of the Recent Balance Sheet have been                paid or adequately accrued by
the BHG Companies, except for any failures to pay                or adequately accrue
such Taxes that would not, individually or in the                aggregate, have a
Material Adverse Effect. True and complete copies of all                income Tax
Returns (or relevant portions of consolidated, combined or unitary                income
tax returns) (and any examination reports and/or statements of deficiency
               related thereto) filed by each of the BHG Companies for each of the five
(5)                most recent fiscal years have been made available to Buyer. Each of
the BHG                Companies has withheld all Taxes and remitted all Taxes withheld
which it is                required to withhold and remit, except for any such failures
to comply that                would not, individually or in the aggregate, have a
Material Adverse Effect.  

12 

	 	                 (ii)    Audits.
Except as set forth in Schedule 3.1(g) or applicable to                any BHG
Company solely by reason of it being a member of a consolidated                (combined)
income (or franchise) Tax Return, as of the date of this Agreement,                (A)
there is no audit examination, deficiency or proposed adjustment pending or,
               to the knowledge of Parent, threatened with respect to any Taxes due and
owing                relating to any BHG Company, and (B) there are no outstanding
Contracts or                waivers extending the statutory period of limitations for a
Tax assessment                applicable to any Tax Returns relating to an BHG Company
with respect to a                taxable period for which such statute of limitations is
still open.  

	 	                 (iii)   Consolidated
Group. Schedule 3.1(g) lists, for each of the BHG                Companies,
every year such BHG Company was a member of an affiliated group of
               corporations that filed a consolidated federal Tax Return or a combined or
               unitary state income Tax Return on which the statute of limitations does
not bar                a federal or state Tax assessment. No affiliated group of
corporations of which                either of the BHG Companies has been a member has
discontinued filing                consolidated federal income Tax Returns during the
past five (5) years.  

	 	                 (iv)    Other.
Except as set forth in Schedule 3.1(g), neither of the BHG
               Companies has (A) applied for any Tax ruling, (B) entered into a closing
               agreement with any taxing authority, (C) made any payments, or been a
party to                an agreement (including this Agreement) that under any
circumstances could                obligate it to make payments, that will not be
deductible because of Section                280G or 162(m) of the Code, or (D) been a
party to any Tax allocation or Tax                sharing agreement. Company is a “United
States Person” within the                meaning of Section 1445 of the Code. None
of the BHG Companies was a                distributing corporation or a controlled
corporation in a transaction intended                to be governed by Section 355 of the
Code.  

	 	                 (v)     No
Claim for Other Taxes. Since January 1, 2001, no written claim has
               been received by Parent or either BHG Company from any Governmental Entity
               asserting that an BHG Company is or may be subject to a particular Tax in
a                state, territory, or jurisdiction where such BHG Company does not
already file                Tax Returns for that particular Tax.  

	 	                 (h)     Absence
of Certain Changes. Except as set forth in Schedule           3.1(h), since
the date of the Recent Balance Sheet, there has not been (i)           any material
adverse change in the financial condition, assets, liabilities or           results of
operations of Company and Subsidiary taken as a whole, other than           changes
arising solely from acts or omissions by Parent or any BHG Company with           the
written consent, or pursuant to the written request, of Buyer (collectively,
          “Transaction Changes”); (ii) any material increase in the
          compensation, salaries or wages payable or to become payable to any Transferred
          Employee, except in the ordinary course of business or as required under
          employment agreements in effect as of the date of the Recent Balance Sheet;
          (iii) any entry by Company or Subsidiary into any employment, severance or
          termination Contract with any Transferred Employee, or any amendment thereto;
          (iv) any sale, lease or other transfer or disposition of any material
properties           or assets of Company or Subsidiary, except for the sale of Inventory
items in           the ordinary course of business; or (v) any indebtedness for borrowed
money           incurred or guaranteed by Company or Subsidiary other than intercompany
          borrowings from Parent or an Affiliate of Parent.  

13

	 	                 (i)     
No Litigation. Except as set forth in Schedule 3.1(i), as of the
               date of this Agreement, there is no action, suit, arbitration, proceeding
or                investigation pending or, to the knowledge of Parent, threatened
against Company                or Subsidiary, and there is no outstanding Order against
or adversely affecting                Company or Subsidiary.  

	 	                 (j)     
Compliance With Laws and Orders. Except as set forth in Schedule
               3.1(j) neither Company nor Subsidiary is conducting the Business in
               violation of any Laws or Orders applicable to Company or Subsidiary, as
the case                may be, except for violations that would not, individually or in
the aggregate,                have a Material Adverse Effect.  

	 	                 (k)     
Licenses and Permits. Except as set forth in Schedule 3.1(k)(i),
               Company and Subsidiary have all licenses, permits, approvals,
authorizations and                consents of all Governmental Entities required for the
conduct of the Business                as currently conducted by Company and Subsidiary,
as the case may be, and the                operation of the facilities located at the
Real Property owned or leased by                Company and Subsidiary as currently
operated by Company and Subsidiary, as the                case may be, except for
failures to have such licenses, permits, approvals,                authorizations or
consents that would not, individually or in the aggregate,                have a Material
Adverse Effect. All of such licenses and permits are listed on Schedule 3.1(k)(ii).
Company and Subsidiary are in compliance with all                such permits and
licenses, approvals, authorizations and consents, except for                such
instances of noncompliance as would not, individually or in the aggregate,
               have a Material Adverse Effect.  

	 	                 (l)     
Absence of Undisclosed Liabilities. Except set forth in Schedule
               3.1(f) or Schedule 3.1(l), all liabilities, commitments and
               obligations (secured or unsecured and whether accrued, absolute,
contingent,                direct, indirect or otherwise) of Company that GAAP requires
to be set forth on                the face of the Recent Balance Sheet are set forth on
the face of the Recent                Balance Sheet. Company does not have any other
liability, commitment or                obligation that will result, individually or in
the aggregate, in a Material                Adverse Effect.  

	 	                 (m)     
Environmental Matters. Except as set forth in Schedule 3.1(m):  

	 	                 (i)     
               Except in compliance with Environmental Laws, and except for contamination
that                is emanating solely from an off-site source and for which the Company
or                Subsidiary could have no liability under any Environmental Law, no
Hazardous                Materials are present on or under any Real Property, or were
present on or under                any other real property at the time it ceased to be
owned, operated or leased by                Company, Subsidiary or any predecessor or
former subsidiary of Company or                Subsidiary for which Company or Subsidiary
could have liability under any                Environmental Law, in concentrations that
exceed the least stringent applicable                industrial or use-restricted cleanup
levels where such use restrictions have                been lawfully adopted.  

14 

	 	                 (ii)    
               Parent has no knowledge of Company, Subsidiary or any Person for whose
conduct                they are or may be held responsible, having permitted or
conducted, except in                compliance with Environmental Laws, the distribution,
generation, handling,                importing, management, manufacturing, processing,
production, refinement,                Release, storage, transfer, transportation,
treatment, disposal or use of                Hazardous Materials at the Real Property, at
real property in which Company or                Subsidiary has or had an interest, or in
connection with operation of the                Business.  

	 	                 (iii)   
               During the time that Parent, Company, Subsidiary or any predecessor or
former                subsidiary of Company or Subsidiary could have liability under any
Environmental                Law has owned, operated or leased any Real Property, no
Hazardous Materials have                been transported from the Real Property to any
site or facility now listed or                proposed for listing on the National
Priorities List, 40 C.F.R. Part 300, or on                any list with a similar scope
or purpose published by any state authority, and                no such listing has been
proposed in the Federal Register or a comparable state                publication.  

	 	                 (iv)    
               There is no outstanding litigation, proceeding or administrative action
and,                since January 1, 1998, there has been no litigation, proceeding or
               administrative action brought or, to Parent’s knowledge, threatened
against                Parent, Company or Subsidiary, by any party or parties alleging
the Disposal,                Release or Threat of Release of any Hazardous Materials on,
from or under any                Real Property, or alleging a violation of any
Environmental Law. To                Parent’s knowledge (A) there is no outstanding
litigation, proceeding or                administrative action and (B) since January 1,
1998, there has been no                litigation, proceeding or administrative action
brought or threatened against                any predecessor or former subsidiary of
Company or Subsidiary for which Company                or Subsidiary could have liability
under any Environmental Law, by any party or                parties alleging the
Disposal, Release or Threat of Release of any Hazardous                Materials on, from
or under any Real Property, or alleging a violation of any                Environmental
Law.  

	 	                 (v)     
               Parent has no knowledge of any Disposals, Releases or Threatened Releases
of                Hazardous Materials on, from or under the Real Property that have
occurred prior                to Parent, Company, Subsidiary or any predecessor or former
subsidiary of                Company or Subsidiary having taken possession of any of such
Real Property, for                which Company or Subsidiary could have liability under
any Environmental Law.  

	 	                 (vi)    
               Parent has delivered to Buyer true and complete copies and results of all
               reports, studies, analyses, tests, or monitoring information (the
               “Information”) pertaining to Hazardous Materials in, on,
or                under the Real Property and, in each case, relating to potential
compliance                with, or liability or standards arising under, any
Environmental Laws where the                Information was prepared or initiated and
received within the twelve (12) month                period preceding the date of this
Agreement by (a) Parent, Company or Subsidiary                or (b) any predecessor or
former subsidiary of Company or Subsidiary to the                extent that Parent has
knowledge of, and access to, the Information.  

15 

	 	                 (vii)   
               The operations of Company and Subsidiary in, on or at the Real Property
comply                with all applicable Environmental Laws, and all permits, licenses,
registrations                and other authorizations required to be obtained by Company
and Subsidiary under                applicable Environmental Laws to operate the Real
Property as it is currently                operated have been so obtained, except for any
failures to comply with such                Environmental Laws or with such permits,
licenses, registrations or                authorizations that would not, individually or
in the aggregate, have a Material                Adverse Effect.  

	 	                 (viii)  
               None of Parent, Company or Subsidiary is engaged in any legal proceeding
with                respect to alleged violations of, or noncompliance with, any
Environmental Law                by Company or Subsidiary requiring disclosure under 17
C.F.R. Section 229.103.                None of Parent, Company or Subsidiary has engaged
in any legal proceeding with                respect to alleged violations of, or
noncompliance with, any Environmental Law                by Company or Subsidiary
requiring disclosure under 17 C.F.R. Section 229.103                within the eighteen
(18) month period preceding the date of this Agreement.  

	 	                 (ix)    
               None of Parent, Company or Subsidiary has received notice from any
Governmental                Entity which is still outstanding or yet to be resolved and
which provides that                any Real Property, or any other real property at the
time it ceased to be owned,                operated or leased by Company or Subsidiary is
or was in violation or allegedly                in violation of, out of compliance with
or allegedly out of compliance with any                applicable Environmental Law, or
that Company or Subsidiary is or was liable, or                allegedly or potentially
liable under any Environmental Law.  

	 	                 (n)     
Title to Assets; Liens. Except as set forth in Schedule 3.1(n),
               (i) Company or Subsidiary owns (with record and marketable fee simple
title in                the case of the Real Property) or leases all of the properties
and assets                reflected in the Recent Balance Sheet (including the Purchased
Assets) (except                for properties and assets sold since the date of the
Recent Balance Sheet in the                ordinary course of business), and (ii) such
properties and assets owned by                Company or Subsidiary are held free and
clear of any Liens other than Permitted                Liens. Except as set forth in Schedule
3.1(n), the properties and assets                owned or leased by Company or
Subsidiary (including the Purchased Assets)                comprise all of the material
assets and rights of Company and Subsidiary,                tangible and intangible
(including Intellectual Property Rights), that are used                by Company or
Subsidiary in the conduct of the Business as conducted by Company                or
Subsidiary, as the case may be, on the date of this Agreement. Such material
               assets and rights are sufficient for the conduct of the Business as
conducted by                Company and Subsidiary on the date of this Agreement. Except
as set forth in Schedule 3.1(n), all tangible assets (real and personal) owned by
Company                are in good operating condition and repair except for such defects
which                resulted from normal wear and tear in the ordinary course.  

16 

	 	                 (o)     
Real Property.  

	 	                 (i)     
Schedule 3.1(o) sets forth a list of all real property owned, used or
               occupied by each of the BHG Companies (the “Real Property”).
               Except as set forth in Schedule 3.1(o), there are no encumbrances,
               easements or rights of way, zoning classifications, or restrictions,
limitations                or other matters of record that would materially and adversely
affect the use of                any leased Real Property by the BHG Company which is the
tenant with respect to                such leased Real Property. There are now in full
force and effect required duly                issued certificates of occupancy permitting
the Real Property and improvements                located thereon to be legally used and
occupied as the same are now constituted.                Except as set forth in Schedule
3.1(o), all of the owned Real Property                has permanent rights of access
to dedicated public highways. To the knowledge of                Parent, no fact or
condition exists which would prohibit or materially adversely                affect the
ordinary rights of access to and from the owned Real Property from                and to
the existing highways and roads and there is no pending or threatened
               restriction or denial, governmental or otherwise, upon such ingress and
egress.                Except as set forth in Schedule 3.1(o), to the knowledge of
Parent, there                is not (i) any claim of adverse possession or prescriptive
rights involving any                of the owned Real Property, (ii) any structure
located on any owned Real                Property which encroaches on or over the
boundaries of neighboring or adjacent                properties, (iii) any structure of
any other party which encroaches on or over                the boundaries of any of such
owned Real Property, or (iv) any other matter                adversely affecting the
owned Real Property that would be disclosed by an                accurate ALTA survey of
such owned Real Property, except with respect to this                clause (iv) for any
such matters that will not, individually or in the                aggregate, have a
Material Adverse Effect.Except as set forth in Schedule 3.1(o), none of the
Real Property is located in a flood plain,                flood hazard area, wetland or
lakeshore erosion area within the meaning of any                Law, regulation or
ordinance. To the knowledge of Parent, no public improvements                have been
commenced and none are planned which may result in special assessments
               against or otherwise materially adversely affect any Real Property. Except
as                set forth in Schedule 3.1(o), Parent has not received any notice
of and                does not have any knowledge of any (i) planned or proposed increase
in assessed                valuations of any Real Property other than any such planned or
proposed                increases arising in the ordinary course of business consistent
with past                practices, (ii) Order requiring repair, alteration, or
correction of any                existing condition affecting any Real Property or the
systems or improvements                thereat, (iii) underground storage tanks, or any
structural, mechanical, or                other defects of material significance
affecting any Real Property or the                systems or improvements thereat
(including, but not limited to, inadequacy for                normal use of mechanical
systems or disposal or water systems at or serving the                Real Property), or
(iv) work that has been done or labor or materials that has                or have been
furnished to any Real Property during the period of six (6) months
               immediately preceding the date of this Agreement for which Liens have been
or                are reasonably likely to be filed against any of the Real Property.
Except as                set forth in Schedule 3.1(o), Parent has no knowledge of
any violations                of building, health, traffic, sewer/septic, flood control,
fire safety, handicap                ordinances or other applicable Laws (but excluding
zoning Laws) with respect to                the Real Property. Except as set forth in Schedule
3.1(o), each parcel of                Real Property owned by the BHG Companies is in
compliance with all aspects of                applicable zoning requirements, including
without limitation, the following: (i)                usage; (ii) dimensional
requirements; (iii) parking; (iv) loading; (v) signage;                (vi) flood plain
district; (vii) site plan approval; (viii) subdivision control;                (ix)
variances; (x) special permits; and (xi) overlay districts.  

17 

	 	                 (ii)    
Brokerage Agreements. There are no brokerage agreements or tenant
               representation agreements affecting the Real Property which could give
rise to                any liability on behalf of the BHG Companies.  

	 	                 (iii)   
Condition of Other Improvements. Parent knows of no material latent or
               other defects in the buildings located on the Real Property owned by the
BHG                Companies, including but not limited to, defects regarding the roofs,
               electrical, plumbing, drainage, septic/sewerage and HVAC systems and other
               mechanical systems at or servicing such Real Property.  

	 	                 (iv)    
Unrecorded or Equitable Interests. Except as set forth in Schedule
               3.1(o), Parent has no knowledge of any unrecorded or undisclosed legal
or                equitable interest in the Real Property owned by the BHG Companies.  

	 	                 (v)     
Utility Services. All Utility Services are of sufficient capacity for the
               unimpeded operation of the Real Property at full capacity. Except as set
forth                in Schedule 3.1(o), to Parent’s knowledge (without any
obligation to                undertake or complete any due inquiry), such Utility
Services are obtained via                connections directly in the public ways abutting
the Real Property without the                need for any easements, rights of way or
licenses from any third party. As used                herein, the term “Utility
Services” means all water,                sewer, storm sewer or other
stormwater discharge, telephone and other                telecommunications, gas, fuel,
oil, cable and other utility services for the                Real Property.  

	 	                 (vi)    
Municipal Sewer. Except as set forth in Schedule 3.1(o), all
               sewage at the Real Property owned by the BHG Companies is disposed of via
the                municipal sewer system, and there is no septic tank in operation at
the Real                Property.  

	 	                 (vii)   
Parties in Possession. Except as set forth in Schedule 3.1(o),
               there are no parties (other than Company or Subsidiary) in possession of
the                Real Property owned by the BHG Companies.  

	 	                 (p)     
Material Contracts. Schedule 3.1(p) sets forth a list, as of the
               date of this Agreement, of each of the following types of Contracts to
which                Company or Subsidiary is a party (each, a “Material Contract”):  

18 

	 	                 (i)     
               Any Contract involving the future performance of services or the future
delivery                of goods by Company or Subsidiary of an amount in excess of
Seventy-Five                Thousand Dollars (U.S. $75,000) or its foreign currency
equivalent as of the                date of this Agreement;  

	 	                 (ii)    
               Any Contract involving future annual expenditures of Company or Subsidiary
in                excess of Seventy-Five Thousand Dollars (U.S. $75,000) or its foreign
currency                equivalent as of the date of this Agreement;  

	 	                 (iii)   
               Any collective bargaining Contract or other Contract to or with any labor
union                or other employee representative of a group of employees;  

	 	                 (iv)    
               Any employment Contract with any Transferred Employee or Former Employee
               involving future liability for payment of wages or salaries which may be
               outstanding on the date of this Agreement;  

	 	                 (v)     
               Any joint venture or partnership Contract;  

	 	                 (vi)    
               Any Contract containing covenants that materially restrict the future
business                activity of Company or Subsidiary;  

	 	                 (vii)   
               Any Contract relating to the borrowing of money in excess of Seventy-Five
               Thousand Dollars (U.S. $75,000) or its foreign currency equivalent as of
the                date of this Agreement;  

	 	                 (viii)  
               Any real or personal property lease Contract involving future liability
for                rental payments in excess of Seventy-Five Thousand Dollars (U.S.
$75,000) or its                foreign currency equivalent as of the date of this
Agreement;  

	 	                 (ix)    
               all sales, agency or distributorship contracts involving future
expenditures of                Company or Subsidiary in excess of Seventy-Five Thousand
Dollars (U.S. $75,000)                or its foreign currency equivalent as of the date
of this Agreement;  

	 	                 (x)     
               all Contracts or purchase orders providing for the manufacture,
processing,                packaging, storage or distribution of Products or the
performance of                manufacturing, processing, packaging, storage or
distribution services by or for                Company or Subsidiary that, in each case,
involve future expenditures of Company                or Subsidiary in excess of
Seventy-Five Thousand Dollars (U.S. $75,000) or its                foreign currency
equivalent as of the date of this Agreement;  

	 	                 (xi)    
               all Contracts providing for the services of consultants or independent
               contractors, including, but not limited to, Contracts relating to design,
               development, advertising or promotion, that, in each case, involve future
               expenditures of Company or Subsidiary in excess of Seventy-Five Thousand
Dollars                (U.S. $75,000) or its foreign currency equivalent as of the date
of this                Agreement;  

19 

	 	                 (xii)   
               Any Contract involving the licensing by Company or Subsidiary of
Intellectual                Property Rights to any person or entity and any Contract
involving the licensing                by any person or entity of Intellectual Property
Rights to Company or                Subsidiary, except for “shrink-wrap” licenses
and similar licenses                associated with computer software;  

	 	                 (xiii)  
               all Contracts relating to the lease of personal property located at the
Real                Property involving future annual expenditures of Company or
Subsidiary in excess                of Ten Thousand Dollars ($10,000) or its foreign
currency equivalent as of the                date of this Agreement;  

	 	                 (xiv)   
               all Contracts for leases, subleases, rental agreements, contracts of sale
               tenancies or licenses of real property; and  

	 	                 (xv)    
               all other Contracts that both (A) are not cancelable by Company or
Subsidiary on                notice of sixty (60) calendar days or less without liability
and (B) are                otherwise material to the business of Company and Subsidiary,
taken as a whole.  

Except as set forth in Schedule
3.1(p), each Material Contract is in full force and effect and is valid and
enforceable against Company or Subsidiary, as the case may be, and, to the knowledge of
Parent, the other party or parties thereto in accordance with its terms, except as such
may be limited by bankruptcy, insolvency, reorganization or other Laws affecting creditors’ rights
generally, and by general equitable principles. Except as set forth in Schedule 3.1(p),
each of Company and Subsidiary is in compliance in all material respects with all terms
and requirements of each Material Contract and no material breach or default by Company
or Subsidiary of any provision thereof, nor any condition or event that, with notice of
lapse of time or both, would constitute such a breach or default, has occurred.
Furthermore, except as set forth in Schedule 3.1(p), to Parent’s knowledge,
no material breach or default by any other party to any such Material Contract of any
provision thereof, nor any condition or event that, with notice or lapse of time or both,
would constitute such a breach or default, has occurred. Except as set forth in Schedule
3.1(p), none of Parent, Company or Subsidiary has received any notice of any
materially adverse modification, termination, cancellation or nonrenewal (but excluding
expiration in accordance with its terms) of any such Material Contract and knows of no
intent to effect the same. Except as set forth in Schedule 3.1(p), to Parent’s
knowledge, there is no current dispute with any party under any such Material Contract
that, if decided in a manner adverse to Company, would have a Material Adverse Effect.
Parent, Company or Subsidiary have delivered to Buyer true, correct and complete copies
of each written Material Contract.  

	 	                 (q)     
Employee Matters.  

	 	                 (i)     
Schedule 3.1(q) contains a true and complete list of (A) each plan,
               program, policy, payroll practice, contract, agreement or other
arrangement, or                commitment therefor, providing for compensation,
severance, termination pay,                performance awards, share or share-related
awards, fringe benefits or other                employee benefits of any kind, whether
formal or informal, funded or unfunded,                written or oral, and whether or
not legally binding, which is now sponsored,                maintained, contributed to or
required to be contributed to by Company,                including but not limited to,
any “employee benefit plan” within the                meaning of ERISA Section
3(3), but excluding any de minimis fringe                benefits (each, a “Benefit
Plan”); and (B) each management,                employment, bonus, option,
equity (or equity related), severance, consulting,                non-compete,
confidentiality or similar agreement or contract (each, an “Employee Agreement”),
pursuant to which Parent or any BHG                Company has any liability, contingent
or otherwise, between Parent or any BHG                Company and any current, former or
retired employee, officer, consultant,                independent contractor, agent or
director of any BHG Company.  

20 

	 	                 (ii)    
               Parent or Company has provided to Buyer current, accurate and complete
copies of                all documents embodying or relating to each Benefit Plan
(including written                summaries of any unwritten Benefit Plan or similar
arrangement) and each                Employee Agreement, including all amendments
thereto.  

	 	                 (iii)   
               With respect to each Benefit Plan, to the knowledge of Parent:  

	 	                 (A)     each
of Parent, each BHG Company and each ERISA Affiliate has performed all
               material obligations required to be performed by it under each Benefit
Plan and                Employee Agreement, and neither Parent, any BHG Company nor any
ERISA Affiliate                is in default under or in violation of any Benefit Plan;  

	 	                 (B)     each
Benefit Plan has been established and maintained in accordance with its
               terms and in compliance with all applicable laws, statutes, orders, rules
and                regulations, including but not limited to, ERISA and the Code,
including the                timely filing of all required reports, documents and
notices, where applicable,                with the IRS, Pension Benefit Guaranty
Corporation (the “PBGC”)                and the U.S. Department of Labor
(the “DOL”);  

	 	                 (C)     each
Benefit Plan intended to qualify under Code Section 401(a) is, and since
               its inception has been, so qualified and a determination letter has been
issued                by the IRS to the effect that each such Benefit Plan is so
qualified and that                each trust forming a part of any such Benefit Plan is
exempt from tax pursuant                to Code Section 501(a) and no circumstances have
occurred or currently exist                which would adversely affect this
qualification or exemption;  

	 	                 (D)     no
action or failure to act and no transaction or holding of any asset by, or
               with respect to, any Benefit Plan has or may subject Parent, any BHG
Company or                any ERISA Affiliate or any fiduciary of any Benefit Plan to any
tax, penalty or                other liability, whether by way of indemnity or otherwise;  

21 

	 	                 (E)     there
are no actions, proceedings, arbitrations, suits or claims pending or
               threatened or anticipated (other than routine claims for benefits) against
               Parent or any BHG Company or any ERISA Affiliate or any administrator,
trustee                or other fiduciary of any Benefit Plan with respect to any Benefit
Plan or                Employee Agreement, or against any Benefit Plan or against the
assets of any                Benefit Plan;  

	 	                 (F)     no
Benefit Plan is under audit or investigation by the IRS, DOL or PBGC and no
               such audit or investigation is pending or threatened or anticipated;  

	 	                 (G)     except
as disclosed in Schedule 3.1(q), the execution, delivery and
               performance of this Agreement and the transactions contemplated herein
shall not                (either alone or upon the occurrence of any additional or
subsequent events)                constitute an event under any Benefit Plan or Employee
Agreement that shall or                may result in any payment (whether of severance
pay or otherwise), acceleration,                forgiveness of indebtedness, vesting,
distribution, increase in benefits or                obligations to fund benefits with
respect to any employee;  

	 	                 (H)     Parent
is in full compliance with, and has provided all notices required under,
               and has made all payments to any former employees of the BHG Companies
required                by federal, state, local or foreign Law (including the Worker
Adjustment                Retraining Notification Act of 1988, as amended) relating to
any plant closings                of the BHG Companies or their Affiliates prior to the
date hereof.  

	 	                 (iv)    
               With respect to any Benefit Plan which is an “employee pension
benefit                plan” within the meaning of ERISA Section 3(2) (“Pension
Plan”)                maintained or contributed to by Parent or any BHG Company, (A)
no steps have                been taken to terminate such Pension Plan; (B) no
termination of any Pension                Plan has occurred at any time under which all
liabilities have not been fully                satisfied; (C) no liability under Title IV
of ERISA has been incurred by Parent,                any BHG Company or any ERISA
Affiliate which has not been fully satisfied; (D)                no event has occurred
and no condition exists that could reasonably be expected                to result in
Parent, any BHG Company or any ERISA Affiliate incurring a                liability under
Title IV of ERISA or that could constitute grounds for                terminating any
such Pension Plan; (E) no proceeding has been initiated by the                PBGC to
terminate any Pension Plan or to appoint a trustee to administer any
               Pension Plan; and (F) no Affiliate has incurred withdrawal liability under
any                such plan which is a multiemployer plan (as defined in ERISA Section
3(37))                which has not been paid.  

	 	                 (v)     
               With respect to Company and Subsidiary, except as set forth in Schedule
               3.1(q), each of the following is true as of the date hereof:  

22 

	 	                 (A)     
               Company and Subsidiary are in compliance with all applicable laws,
individual                and collective bargaining agreements respecting employment and
employment                practices, terms and conditions of employment and wages and
hours (including                without limitation the Fair Labor Standards Acts and
applicable state law                requirements regarding classification of employees
and the payment of minimum                wage and overtime compensation) and
occupational safety and health laws and                regulations, worker’s
compensation, unemployment and employment taxation,                and is not engaged in
any unfair labor practice within the meaning of Section 8                of the National
Labor Relations Act, except in each case for such instances of
               noncompliance or unfair labor practices that would not, individually or in
the                aggregate, have a Material Adverse Effect. There is no action, suit or
legal,                administrative, arbitration, grievance or other proceeding pending
or, to                Parent’s knowledge, threatened or, to Parent’s knowledge,
any                investigation pending or threatened against Company or Subsidiary
relating to                any thereof. To the Parent’s knowledge, no reasonable
basis exists for any                such action, suit or legal, administrative,
arbitration, grievance or other                proceeding or governmental investigation;  

	 	                 (B)     
               there is no labor strike, dispute (other than disputes with individual
               employees), slowdown or stoppage actually pending or, to Parent’s
               knowledge, threatened against Company or Subsidiary;  

	 	                 (C)     
               none of the employees of Company or Subsidiary is a member of or
represented by                any labor union and, to Parent’s knowledge, there are
no attempts of                whatever kind and nature being made to organize any of such
employees;  

	 	                 (D)     
               without limiting the generality of paragraph (C) above, no certification
or                decertification is pending or was filed within the past twelve months
respecting                the employees of Company or Subsidiary and, to the Parent’s
knowledge, no                certification or decertification petition is being or was
circulated among the                employees of Company or Subsidiary within the past
twelve months;  

	 	                 (E)     
               no agreement (including any collective bargaining agreement), arbitration
or                court decision, decree or order or governmental order which is binding
on                Company or Subsidiary in any way limits or restricts Company or
Subsidiary from                relocating or closing any of its operations;  

	 	                 (F)     
               neither Company nor Subsidiary have experienced any organized work
stoppage in                the last five years; and  

23 

	 	                 (G)     
               there are no charges, administrative proceedings or complaints of
               discrimination, retaliation or harassment (including but not limited to
               discrimination, retaliation or harassment based upon sex, age, marital
status,                race, national origin, sexual orientation, handicap and/ or
accommodation,                religion, veteran status or other category protected by
federal, state or local                law) pending or, to the Parent’s knowledge,
threatened, or to the                Parent’s knowledge, any investigation pending
or threatened before the                Equal Employment Opportunity Commission or any
federal, state or local agency or                court against Company or Subsidiary.
Since January 1, 1998, there have been no                audits of the equal employment
opportunity practices of Company or Subsidiary.  

	 	                 (r)     
Intellectual Property Rights. Schedule 3.1(r) sets forth a list,
               as of the date of this Agreement, of all United States or foreign patents,
               registered trademarks, registered copyrights and applications therefor and
               internet domain names used by Company or Subsidiary in, and material to,
the                conduct of the Business as currently conducted by Company or
Subsidiary, as the                case may be, (the “Intellectual Property Rights”)
and the                entity that owns such Intellectual Property Rights. Company or
Subsidiary owns                or possesses adequate licenses or other valid rights to
use all such                Intellectual Property Rights, and to the knowledge of Parent,
the conduct of the                Business by Company and Subsidiary as currently
conducted does not conflict with                any valid patents, trademarks, tradenames
or copyrights of others, except for                such conflicts that would not,
individually or in the aggregate, have a Material                Adverse Effect.  

	 	                 (s)     
Fees. Except for the fees payable to Robert W. Baird & Co.
               Incorporated, which shall be paid by Parent, neither Parent nor any of its
               Affiliates has paid or become obligated to pay any fee or commission to
any                broker or finder in connection with the transactions provided for
herein or in                connection with the negotiation thereof.  

	 	                 (t)     
Inventory. Except as set forth in Schedule 3.1(t), all Inventory
               reflected on the Recent Balance Sheet is valued in accordance with GAAP at
the                lower of cost (on a FIFO basis) or market and consists of a quality
and quantity                usable and saleable in the ordinary course of business. All
slow moving, damaged                or obsolete Inventory items existing as of the date
of the Recent Balance Sheet                are set forth on Schedule 3.1(t), which
schedule also sets forth the                write down or reserve and treatment of
intercompany profit or other mark-up with                respect to such items. Except as
set forth in Schedule 3.1(t), all                Inventory purchased since the
date of the Recent Balance Sheet consists of a                quality and quantity usable
and saleable in the ordinary course of business.  

	 	                 (u)     
Accounts Receivable. All accounts receivable of Company reflected on the
               Recent Balance Sheet, and as incurred in the ordinary course of business
since                the date of the Recent Balance Sheet, represent arm’s length
sales actually                made in the ordinary course of business and are collectible
(net of the reserves                shown on the Recent Balance Sheet for doubtful
accounts) in the ordinary course                of business. Except as set forth on Schedule
3.1(u), neither Company nor                Subsidiary has any accounts receivable
from any Affiliate of Parent, Company or                Subsidiary or from any director,
officer or employee of any of them.  

24 

	 	                 (v)     
Major Customers. Schedule 3.1(v) contains a list of the ten (10)
               largest customers of Company for each of the two (2) most recent fiscal
years                (determined on the basis of the total dollar amount of net sales)
showing the                total dollar amount of gross sales to each such customer
during each such year.                Except as set forth on Schedule 3.1(v), as
of the date of this Agreement,                Company has not received notice from, nor
does Parent have any knowledge that,                any customer listed on Schedule
3.1(v) that it will not continue to be a                customer of the Business or
that it will otherwise materially and adversely                modify its relationship
with Company by decreasing or limiting its purchase or                distribution of
Products after the Closing.  

	 	                 (w)     
Major Suppliers. Schedule 3.1(w) contains a list of the ten (10)
               largest suppliers to Company for each of the two (2) most recent fiscal
years                (determined on the basis of the total dollar amount of purchases)
showing the                total dollar amount of purchases from each such supplier
during each such year.                As of the date of this Agreement, Company has not
received notice from, nor does                Parent have any knowledge that, any
supplier listed on Schedule 3.1(w)               that it will not continue to be a
supplier to the Business of Company or that it                will materially and
adversely modify its relationship with Company after the                Closing.  

	 	                 (x)     
Product Warranty and Product Liability. Schedule 3.1(x) contains a
               description of Company’s standard warranty or warranties for sales of
               Products, and except as described therein, there are no material
warranties,                commitments or obligations with respect to the return, repair
or replacement of                Products. Schedule 3.1(x) contains a description
of all product liability                claims relating to Products that are pending or,
to the knowledge of Parent, are                threatened against Company or Subsidiary
as of the date of this Agreement or                that have been asserted or commenced
against Company or Subsidiary within the                three (3) year period immediately
preceding the date of this Agreement, except                for such product liability
claims that would not, individually or in the                aggregate, have a Material
Adverse Effect.  

	 	                 (y)     
Insurance. Set forth in Schedule 3.1(y) is a complete and accurate
               list of all policies of fire, liability, product liability, workers
               compensation, health and other forms of insurance presently in effect with
               respect to the business and properties of each of the BHG Companies, true
and                correct copies of which have heretofore been delivered to Buyer. Schedule
               3.1(y) includes, without limitation, the carrier, the description of
               coverage, the limits of coverage, retention or deductible amounts, amount
of                annual premiums, date of expiration and any pending claims in excess of
$50,000.                All such polices currently in effect are valid, outstanding and
enforceable                policies and provide insurance coverage for the properties,
assets and                operations of each of the BHG Companies, and no such policy
provides for or is                subject to any currently enforceable retroactive rate
or premium adjustment,                loss sharing arrangement or other actual or
contingent liability arising wholly                or partially out of events arising
prior to the date hereof. No notice of                cancellation or termination has
been received by either BHG Company with respect                to any such policy, and
Parent does not have any knowledge of any act or                omission which could
reasonably be expected to result in cancellation of any                such policy prior
to its scheduled expiration date. To the knowledge of Parent,                each of the
BHG Companies has duly and timely made all claims it has been                entitled to
make under each policy of insurance during the last three (3) years,                or in
the case of products liability insurance, during the last six (6) years.
               Since September 24, 1997, all general liability policies maintained by or
for                the benefit of any BHG Company have been “occurrence” policies
and not                “claims made” policies. To the knowledge of Parent,
there is no claim                by either BHG Company pending under any such policies as
to which coverage has                been questioned, denied or disputed by the
underwriters of such policies, and                Parent has no knowledge of any basis
that could reasonably be expected to result                in a denial of any claim under
any such policy. Schedule 3.1(y)               describes any self-insurance
arrangements affecting the BHG Companies. Except                for reserves established
for and relating to workers’ compensation claims                and except as
disclosed in Schedule 3.1(y), the reserves established by                the BHG
Companies are adequate to dispose of any liability under such
               self-insurance arrangements.  

25 

	 	                 (z)     
Affiliates’ Relationships.  

	 	                 (i)     
Contracts With Affiliates. All leases, contracts, agreements,
               transactions or other arrangements (whether written or oral) between
either BHG                Company and any Affiliate of any BHG Company (including Parent)
are listed on Schedule 3.1(z).  

	 	                 (ii)    
No Adverse Interests. Except as set forth in Schedule 3.1(z), no
               Affiliate of Company or Subsidiary or, to Parent’s knowledge (without
any                obligation to undertake or complete any due inquiry), any of their
officers or                directors has any direct or indirect interest in (A) any
entity that does                business with either BHG Company, (B) any property, asset
or right that is used                by the BHG Companies in the conduct of the Business
or (C) any customer or                supplier of the Business.  

	 	                 (iii)   
Obligations. All obligations of any Affiliate of Company or Subsidiary to
               either BHG Company, and all obligations of either BHG Company to any
Affiliate                of Company or Subsidiary, are listed on Schedule 3.1(z).  

                 3.2     
Representations and Warranties of Buyer. To induce Parent to enter into this
Agreement, and acknowledging that Parent has relied upon the representations and
warranties contained herein, Buyer makes the following representations and warranties to
Parent:  

	 	                 (a)     Due
Organization and Power. Buyer is a limited liability company duly           organized
and validly existing under the laws of its jurisdiction of           incorporation or
organization. Buyer has all requisite limited liability company           power to enter
into this Agreement and the other documents and instruments to be           executed and
delivered by Buyer pursuant hereto and to carry out the           transactions
contemplated hereby and thereby.  

	 	                 (b)     Authority.
The execution and delivery by Buyer of this Agreement and the           other documents
and instruments to be executed and delivered by Buyer pursuant           hereto and the
consummation by Buyer of the transactions contemplated hereby and           thereby have
been duly authorized by the Board of Managers of Buyer. No other           corporate act
or proceeding on the part of Buyer or its shareholders is           necessary to
authorize this Agreement or the other documents and instruments to           be executed
and delivered by Buyer pursuant hereto or the consummation of the           transactions
contemplated hereby and thereby. This Agreement constitutes, and           when executed
and delivered, the other documents and instruments to be executed           and delivered
by Buyer pursuant hereto will constitute, valid and binding           agreements of
Buyer, enforceable in accordance with their respective terms,           except as such
may be limited by bankruptcy, insolvency, reorganization or other           Laws
affecting creditors’ rights generally, and by general equitable
          principles.  

26 

	 	                 (c)     No
Violation. Neither the execution and delivery by Buyer of this           Agreement or
the other documents and instruments to be executed and delivered by           Buyer
pursuant hereto nor the consummation by Buyer of the transactions           contemplated
hereby and thereby (i) will violate any Law or Order applicable to           Buyer,
except for such violations, the occurrence of which would not,           individually or
in the aggregate, have a material adverse effect on Buyer’s           ability to
perform its obligations hereunder or any of the other transactions           contemplated
hereby, (ii) will require any authorization, consent or approval           by, filing
with or notice to any Governmental Entity, except for (A) the           requirements of
any Competition Law applicable to the transactions contemplated           hereby and (B)
such authorizations, consents, approvals, filings or notices, the           failure of
which to obtain or make would not, individually or in the aggregate,           have a
material adverse effect on Buyer’s ability to perform its           obligations
hereunder or any of the other transactions contemplated hereby, or           (iii) will
violate or conflict with, or constitute a default (or an event that,           with
notice or lapse of time, or both, would constitute a default) under, or           will
result in the termination of, or accelerate the performance required by,           any
term or provision of the corporate charter, bylaws or similar organizational
          documents of Buyer or of the express terms of any Contract to which Buyer is a
          party or by which Buyer or any of its assets or properties may be bound or
          affected, except for such violations, conflicts, defaults, terminations or
          accelerations that would not, individually or in the aggregate, have a material
          adverse effect on Buyer’s ability to perform its obligations hereunder or
          any of the other transactions contemplated hereby.  

	 	                 (d)     Litigation.
As of the date of this Agreement, there is no action, suit,           arbitration,
proceeding or investigation pending or, to the knowledge of Buyer,           threatened
(in a reasonably serious manner and in writing) against Buyer, and           there is no
outstanding Order against or affecting Buyer that, individually or           in the
aggregate, would be reasonably expected to have the effect of preventing,
          delaying, making illegal or otherwise interfering with any of the transactions
          contemplated hereby.  

	 	                 (e)     Financing.
Buyer has received executed and delivered commitment letters,           dated as of
February 11, 2005, from AmSouth Capital Corp. and Ableco Finance LLC           (the “Lenders”),
pursuant to which the Lenders have committed,           subject to the terms and
conditions set forth therein, to provide up to Fifty           Seven Million Dollars
(U.S. $57,000,000) to Buyer (the “Commitment           Letters”). Except
for the Commitment Letters, Buyer and the Lenders are           not party to any contract
or agreement relating to such financing. True and           complete copies of the
Commitment Letters as in effect on the date of this           Agreement have been
furnished to Parent. As of the date of this Agreement, each           Commitment Letter
is valid and in full force and effect. To the knowledge of           Buyer, no event has
occurred that (with or without notice, lapse of time, or           both) would constitute
a default under any Commitment Letter on the part of           Buyer or any of its
Affiliates. Buyer has paid all commitment and other fees           required to be paid
under the Commitment Letters on or prior to the date of this           Agreement (and
will pay all such fees that are required to be paid after the           date of this
Agreement).  

27 

	 	                 (f)     Fees.
Neither Buyer nor any of its Affiliates has paid or become           obligated to pay any
fees or commissions to any broker or finder in connection           with the transactions
provided for herein or in connection with the negotiation           thereof.  

	 	                 (g)     
         Designated Purchasers. The representations and warranties contained in Sections
3.2(a)-(e) are true and correct with respect to each Designated           Purchaser
to which Buyer has assigned or hereafter assigns any of its rights or
          obligations under this Agreement in accordance with Section 1.2 (for purposes
of           this Section 3.2(g), the term “Buyer” in each of the
          representations and warranties contained in Sections 3.2(a)-(e)  shall
be           deemed to be replaced with the term “Designated Purchaser”).  

                 3.3     
Expiration of Representations and Warranties. None of the respective
representations and warranties of Parent and Buyer contained in this Agreement or in any
certificate or other document delivered pursuant hereto on or prior to the Closing Date
shall survive the Closing, except that:  

	 	                 (a)     
         the representations and warranties as to the matters set forth in Section
          3.1 and as to Parent’s compliance with its obligations and covenants
to           be performed or complied with prior to the Closing under Article 4  that
          Parent makes on the date of this Agreement and at the Closing, by delivering
the           certificate described in Section 6.1 (the “Surviving
          Representations”), shall survive the Closing until the date that is
          eighteen (18) months after the Closing Date, provided that (i) the
          representations and warranties set forth in Sections 3.1(b), 3.1(c) and
3.1(d) shall survive the Closing indefinitely, (ii) the           representations
and warranties set forth in Sections 3.1(g) and 3.1(q) (with respect to any
claims under ERISA filed with respect to a           Retiree Health Plan or a Parent
Pension Plan) shall survive the Closing until           the underlying obligation is time
barred by the applicable statute of           limitations and (iii) the representations
and warranties set forth in Section           3.1(m) shall survive the Closing
until the date that is thirty six (36)           months after the Closing Date; and  

	 	                 (b)     
         the representations and warranties as to the matters set forth in Section
          3.2 and as to Buyer’s compliance with its obligations and covenants to
          be performed or complied with prior to the Closing under Article 4  that
          Buyer makes on the date of this Agreement and at the Closing, by delivering the
          certificate described in Section 7.1, shall survive the Closing until
the           date that is eighteen (18) months after the Closing Date.  

                 3.4     
No Other Representations or Warranties. Buyer acknowledges that the detailed
representations and warranties contained in this Agreement have been negotiated at arm’s
length among sophisticated business entities. Except for the representations and
warranties contained in Section 3.1, Buyer acknowledges that none of Parent, the
BHG Companies or any person or entity acting on their behalf makes or has made any other
express or any implied representation or warranty to Buyer as to the accuracy or
completeness of any information regarding Parent, any BHG Company, the Business or any
other matter.  

28 

        4.     
COVENANTS PRIOR TO CLOSING  

                 4.1     
Access to Information Concerning Properties and Records; Confidentiality. Except
for information that, if provided, would adversely affect the ability of Parent or any
BHG Company to assert attorney-client or attorney work product privilege or a similar
privilege, Parent shall cause each BHG Company, during the period commencing on the date
of this Agreement and ending on the Closing Date, to furnish or cause to be furnished to
Buyer and its representatives, at reasonable times and upon reasonable notice, (a)
subject to Parent’s prior written consent, such access, during normal business
hours, to the Real Property as Buyer from time to time reasonably requests with due
regard to minimizing disruption of the conduct of the Business and (b) such access to the
books, records and other information and data of each BHG Company as Buyer from time to
time reasonably requests. Buyer shall treat all information obtained from Parent, any BHG
Company or otherwise as “Evaluation Material” under the Confidentiality
Agreement, dated July 31,2004, between Parent and Fidelity Capital Investors, Inc.
(the “Confidentiality Agreement”) subject to any exceptions set forth
therein, and Fidelity Capital Investors, Inc. and Buyer shall continue to honor, and
cause their representatives to honor, their obligations thereunder.  

                 4.2     
Conduct of Business Pending the Closing. From the date of this Agreement until the
Closing Date, except as required or contemplated by the transactions contemplated by this
Agreement, including the Services Agreement, and for any actions taken by any BHG Company
of the type set forth in Schedule 4.2 or otherwise consented to by Buyer in
writing, Parent shall cause each of the following to occur:  

	 	                 (a)     
         Company and Subsidiary shall operate the Business only in the usual, regular and
          ordinary manner, on a basis consistent with past practice;  

	 	                 (b)     
         Neither Company nor Subsidiary shall incur or guarantee any indebtedness for
          borrowed money other than through intercompany borrowings from Parent or an
          Affiliate of Parent in the ordinary course of business;  

	 	                 (c)     
         Neither Company nor Subsidiary shall grant any increase in the compensation,
          salaries or wages payable to any Transferred Employees, except for reasonable
          increases in the ordinary course of business or as a result of contractual
          arrangements or sales compensation plans existing on the date of this
Agreement;  

	 	                 (d)     
         Neither Company nor Subsidiary shall issue or authorize the issuance of, or
          agree to issue or sell, any shares of its capital stock of any class;  

29 

	 	                 (e)     
         Neither Company nor Subsidiary shall sell, lease or otherwise transfer or
          dispose of any material properties or assets of Company or Subsidiary, except
          for the sale of properties and assets in the ordinary course of business; and  

	 	                 (f)     
         Neither Company nor Subsidiary shall make any material change in the accounting
          methods used by Company or Subsidiary.  

                 4.3     
Further Actions.  

	 	                 (a)     General.
Parent and Buyer shall use their best efforts to take, or cause           to be taken,
all action and to do, or cause to be done, and to cooperate fully           with each
other with respect to, all things necessary, proper or advisable to           consummate
and make effective the transactions contemplated hereby, including           using all
best efforts to obtain prior to the Closing Date all licenses,           permits,
consents, approvals, authorizations, qualifications and orders of           Governmental
Entities and parties to Contracts with the BHG Companies that are           necessary for
the consummation of the transactions contemplated hereby;           provided, however,
that such assistance shall not include any requirement of           Parent or its
Affiliates to pay any significant sum of money beyond customarily           reasonable
amounts in connection with the transfer of permits, contracts or           other material
agreements of the BHG Companies, to assume any material liability           from or
commence any litigation against any person or entity (except for the           payment of
the filing and similar fees described in Section  4.4).  

	 	                 (b)     Financing.
Without limiting Buyer’s obligations under Section           4.3(a), Buyer
shall use commercially reasonable efforts to arrange the           financing on
substantially similar terms and conditions as described in the           Commitment
Letters, including commercially reasonable efforts to           (i) negotiate
definitive agreements with respect thereto on substantially           similar terms and
conditions as contained therein and (ii) satisfy all           conditions applicable to
Buyer in such definitive agreements that are within its           reasonable control. If
any portion of the financing becomes unavailable on the           terms and conditions
described in the Commitment Letters, then Buyer shall use           commercially
reasonable efforts to obtain any such portion from alternative           sources on
comparable or more favorable terms to Buyer (the “Alternative           Financing”).
Buyer shall provide Parent with prompt written notice of           any notice it receives
from Lenders of a material breach of any Commitment           Letter (by any party) of
which Buyer is aware or any termination of any           Commitment Letter. Buyer shall
keep Parent informed on a reasonably current           basis in reasonable detail of the
status of its efforts to arrange the financing           and shall provide Parent with
copies of any material amendment or modification           made to, or any waiver of any
material provision or remedy under, any Commitment           Letter.  

	 	                 (c)     Outstanding
Checks. Exclusive of any amounts used in the calculation of           the Net Working
Capital as described in Section 2, Parent shall ensure           that the BHG
Companies have adequate cash to pay any outstanding and unpaid           checks issued by
the BHG Companies as of the Closing Date.  

30 

	 	                 (d)     Employee
Schedule. Within three (3) days prior to Closing, Parent shall           prepare and
deliver to Buyer a schedule listing all employees of the BHG           Companies who are
not actively working at the time such schedule is delivered.  

                 4.4     
Certain Filings. Each of Parent and Buyer shall make or cause to be made, as
promptly as practicable (which filing shall be made in any event within five (5) Business
Days after the date of this Agreement), all filings with Governmental Entities that are
necessary to obtain all authorizations, consents, orders and approvals for the execution
and delivery of this Agreement and the consummation of the transactions contemplated
hereby, including all filings required under applicable Competition Laws. Buyer and
Parent shall share equally the cost ofall filing and similar fees arising in
connection such filings; provided, however, that at the Closing, Buyer shall reimburse or
cause to be reimbursed Parent for the entire portion of such filing and similar fees paid
by Parent with respect to applicable Competition Laws. Parent and Buyer shall use
commercially reasonable efforts to respond to any requests for additional information
made by any Governmental Entities with respect to all filings required under applicable
Competition Laws, to take all actions necessary to obtain any required approvals of any
Governmental Entities under applicable Competition Laws and to resist in good faith, at
each of their respective cost and expense (including through the institution or defense
of legal proceedings), any assertion that the transactions contemplated hereby constitute
a violation of the Competition Laws, all to the end of expediting consummation of the
transactions contemplated hereby. Each of Parent and Buyer shall consult with the other
prior to any meetings, by telephone or in person, with the staff of any Governmental
Entity regarding the transactions contemplated hereby, and each of Parent and Buyer shall
have the right to have a representative present at any such meeting.  

                 4.5     
Notification.  

	 	                 (a)     Litigation
or Material Adverse Change. Prior to the Closing, Parent shall           promptly
notify Buyer (in writing after Parent has notice thereof), and Buyer           shall
promptly notify Parent (in writing after Buyer has notice thereof), and           keep
such other Party advised, as to any litigation or administrative proceeding
          pending and known to such Party or, to its actual knowledge, threatened against
          such Party that challenges the transactions contemplated hereby or that affects
          or relates to the Purchased Assets in any manner.  

	 	                 (b)     Error
or Omission. Prior to the Closing, Buyer shall promptly notify           Parent in
writing if Buyer obtains knowledge that any representation or warranty           of
Parent contained in this Agreement is not true and correct in all material
          respects, or if Buyer obtains knowledge of any material errors in, or omissions
          from, the Schedules to this Agreement or of any other condition or circumstance
          that would excuse Buyer from its timely performance of its obligations
hereunder           or give rise to a claim hereunder; provided, however, that any
failure by Buyer           to notify Parent with respect to any such error, omission,
condition or           circumstance will not reduce Parent’s indemnification
obligations or           Buyer’s other rights and remedies hereunder.  

                 4.6     
Transfer of Subsidiary Shares. On or prior to the Closing Date, Parent shall
transfer all of its right, title and interest in and to the Subsidiary Shares to Company.  

31 

                 4.7     
Exclusivity. During the period commencing on the date of this Agreement and
expiring on the earlier of the Closing Date or the date on which this Agreement is
terminated, neither Parent nor any of its Affiliates shall, directly or indirectly,
solicit, make, respond to (other than to decline), discuss with any third party or
negotiate the terms of any offer or proposal from or to any person or entity (other than
from or to Buyer) relating to any acquisition of direct or indirect control of Company,
any purchase of any of Company’s securities or of any material amount of Company’s
assets (other than in the ordinary course of business consistent with past practice) or
businesses or any business combination or similar transaction involving Company,
including any merger, consolidation, acquisition, purchase, re-capitalization or other
transaction that would have a similar result as the transactions contemplated by this
Agreement.  

                 4.8     
Title Insurance. Not less than ten (10) calendar days prior to the Closing, Parent
shall provide Buyer with title insurance commitments, issued by a title insurance company
or companies reasonably satisfactory to Parent and Buyer, agreeing to issue to Buyer
standard form owner’s policies of title insurance with respect to all real property
owned by Company. Such policies shall be standard ALTA Form 1992 owner’s policies in
an amount mutually agreed upon by Parent and Buyer, insuring title thereto in accordance
with the representations and warranties set forth herein. Parent and Buyer shall equally
share the cost of the title insurance commitments obtained by Parent pursuant to this Section
4.8 and the title insurance policies issued pursuant to such title insurance
commitments.  

                 4.9     
[Intentionally Omitted]  

                 4.10    
Expiration of Covenants to be Performed Before Closing. None of the respective
covenants of Parent and Buyer contained in this Article 4 shall survive the
Closing. Claims with respect to breaches of such covenants must be made prior to the date
that is eighteen (18) months after the Closing Date. Claims made against Parent may be
made solely on the basis of the representations and warranties of Parent as to compliance
with such covenants that Parent makes by delivering the certificate contemplated by Section
6.1.  

        5.     
ADDITIONAL COVENANTS  

                 5.1     
Tax Matters.  

	 	                 (a)     Cooperation.
After the Closing Date, Parent, Company and Buyer shall, and           Buyer shall cause
Subsidiary to, make available to the other, as reasonably           requested, and to any
taxing authority (which such authority is legally           permitted to receive pursuant
to its subpoena power or its equivalent) all           information, records or documents
relating to Tax liabilities or potential Tax           liabilities of the BHG Companies
for all periods prior to or including the           Closing Date and shall preserve all
such information, records and documents           until the expiration of any applicable
statute of limitations for assessment or           refund of Taxes or extensions thereof.
Buyer shall prepare and provide to Parent           such Tax information packages
consistent with Company’s past practice as           Parent shall reasonably request
for Parent’s use in preparing any Tax           Return that relates to any BHG
Company. Such Tax information packages shall be           completed by Buyer and provided
to Parent within the earlier of (i) forty-five           (45) calendar days after Parent’s
request therefor or (ii) thirty (30)           calendar days prior to the due date of the
Tax Return for which they relate, in           the latter case, if less than thirty (30)
days notice of the relevant Tax Return           is provided to Buyer, Buyer shall
provide such Tax information packages within a           reasonable time. After the
Closing Date, Parent, Company and Buyer shall, and           Buyer shall cause Subsidiary
to, cooperate fully, as and to the extent           reasonably requested by the other, in
connection with the filing of Tax Returns           and any audit, litigation, appeal,
hearing, or other proceeding with respect to           Taxes. Such cooperation shall
include providing the information, records, and           documents described above and
making employees available on a mutually           convenient basis to provide additional
information and explanation of any           material provided. Each Party shall bear its
own expenses in complying with the           foregoing provisions. Notwithstanding the
provisions of this Section           5.1(d), while the existence of an adversarial
proceeding between the Parties           will not abrogate or suspend the provisions of
this Section 5.1(d), as to such records or other information directly
pertinent to           such dispute, the Parties may not utilize this Section 5.1(d) but
rather,           absent agreement, must utilize the rules of discovery.  

32 

	 	                 (b)     Tax
Sharing Agreements. Parent shall terminate any Tax allocation or Tax
          sharing agreement between or among Parent, Company and Subsidiary (other than
          this Agreement) if and to the extent such agreement relates to Taxes payable by
          such Subsidiary, effective as of the Closing Date.  

	 	                 (c)     Transfer
Taxes. Any sales Tax, use Tax, real property transfer Tax,           documentary
stamp Tax, transfer Tax, motor vehicle Tax, registration Tax or           similar Tax or
recording expense or notarial fee attributable to, imposed upon           or arising from
the transactions contemplated hereby shall be paid by Buyer.           Buyer shall file
all Tax Returns with respect to such Taxes and Parent shall           provide reasonable
assistance in connection with such filings. Buyer shall           timely execute and
deliver to Parent such certificates or forms as may be           necessary and
appropriate for Buyer to establish an exemption from (or otherwise           reduce) such
Taxes.  

	 	                 (d)     Purchase
Price Allocation. The amount of the aggregate Purchase Price           shall be
allocated among the assets of Company (or groups of such assets) for           all
purposes (including all tax and financial accounting purposes) in accordance
          with the applicable provisions of Section 1060 of the Code and the Treasury
          Regulations promulgated thereunder. During the period beginning on the date
          hereof and ending on the date that is sixty (60) calendar days following the
          final determination of the Final Closing Statement pursuant to Section
          2.3, the Parties shall cooperate in the preparation of a mutually
acceptable           written list of the fair market value of the Purchased Assets (or
groups of such           assets) as of the Closing Date (the “Purchase Price Allocation”).
To the extent a mutually acceptable agreement is           reached relative to the
Purchase Price Allocation, (a) each Party shall file all           Tax Returns (including
amended returns and claims for refund) in a manner           reflecting the Purchase
Price Allocation, and (b) the Parties shall each execute           and timely file a Form
8883 consistent with the Purchase Price Allocation after           exchanging mutually
acceptable drafts of such form (and any equivalent state,           local, foreign, or
other Tax forms). Notwithstanding the foregoing, Buyer’s           cost for the
Purchased Assets may differ to the extent necessary to reflect           Buyer’s
capitalized acquisition costs for such assets.  

33 

	 	                 (e)     Proration
of Personal Property Taxes and Real Property Taxes. Personal           property Taxes
and real property Taxes relating to the Purchased Assets shall be           pro rated as
of the Closing Date, with Company liable to the extent such items           relate to any
time period (or portion thereof) up to and including the Closing           Date (“Pre-Closing
personal property Taxes and real property Taxes”)           if not already reflected
on the face of the Final Closing Statement and Buyer           liable to the extent such
items relate to periods (or any portion thereof)           subsequent to the Closing
Date. Because such personal property Taxes and real           property Taxes involve a
period that begins before and ends after the Closing           Date (a “Straddle
Period”), such Pre-Closing personal property           Taxes and real property
Taxes shall be calculated by multiplying the amount of           such Taxes for the
entire Straddle Period by a fraction, the numerator of which           is the number of
days in the Straddle Period from the first day of the Straddle           Period through
and including the Closing Date, and the denominator of which is           the number of
days in the entire Straddle Period. Buyer shall furnish Company           and Parent with
such documents and other records as Company and/or Parent           reasonably requests
to confirm such proration calculations. Any amounts owed by           Company pursuant to
this Section 5.1(e) shall be paid by Company within           ten (10) calendar
days of receipt by Company and/or Parent of a written request           therefor and the
documents and other records reasonably requested or two (2)           calendar days prior
to the date on which such Tax liability is due, whichever is           later.  

                 5.2     
Employee Matters.  

	 	                 (a)     General.
Buyer agrees to offer employment with Buyer on and after the           Closing Date to
all Company and Subsidiary employees (except for the Rialto           Employees) who are
actively at work on the Closing Date. Buyer also agrees to           offer employment
with Buyer to all Company and Subsidiary employees (except for           the Rialto
Employees) who are not actively at work on the Closing Date because           such
employee is on an approved leave of absence, provided that for other than           an
approved military leave under USERRA, such employee reports for active work
          with Buyer within six (6) months after the Closing Date. All Company or
          Subsidiary employees who are offered, in connection with the transaction
          contemplated by this Agreement, and accept employment with Buyer on or after
the           Closing Date shall cease their employment status with Company or Subsidiary
as           of the Closing Date (or subsequent date if applicable) and simultaneously
          therewith shall become a “Transferred Employee.” Buyer
          shall make the offers of employment provided for in this Section 5.2 on
          terms and conditions that are, in the aggregate, substantially similar to those
          in effect for the Company or Subsidiary employee immediately prior to the
          Closing Date; provided, however, that nothing in this Agreement shall obligate
          Buyer to offer participation in a defined benefit pension plan or retiree
          medical plan to any such employee. From and after the Closing Date, Buyer shall
          assume sponsorship only of (i) those Benefit Plans and Employee Agreements that
          are listed on Schedule 3.1(q) and marked with an asterisk and (ii) all
          other Benefit Plans and Employee Agreements, whether or not listed on Schedule
3.1(q), that are reflected in the Financial Statements           (excluding all
Benefit Plans and Employee Agreements listed on Schedule           3.1(q) that are
not marked with an asterisk), and shall be responsible for           the payment of
benefits under such plans on and after the Closing Date, except           as specifically
provided for herein. Parent shall comply with its obligations           under those
retention Contracts between Parent and Transferred Employees listed           on Schedule
3.1(q). Parent shall take whatever action is           necessary or
appropriate to terminate, as of the Closing Date, the participation           of Company
(or, if appropriate, Subsidiary) in all of the Benefit Plans or           Employee
Agreements, except for those specifically assumed by Buyer pursuant to           this
Agreement, or as otherwise provided for herein. From and after the Closing
          Date, Transferred Employees shall be eligible to participate in any employee
          benefit plan sponsored by Buyer or Subsidiary in accordance with the terms of
          each such plan and the provisions of this Section 5.2.  

34 

	 	                 (b)     Health
Plans. Parent shall be liable for any and all costs or expenses           incurred
under a Benefit Plan that is a welfare benefit plan under ERISA Section           3(1) by
a Company or Subsidiary employee (including any Transferred Employee)           before
the Closing Date (including expenses incurred but unpaid as of the           Closing
Date). Parent shall be responsible for obligations under the           Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended           (“COBRA”)
and the Health Insurance Portability and           Accountability Act of 1996 (“HIPAA”)
with respect to any           Company or Subsidiary employee whose employment terminated
before the Closing           Date or who is not offered or does not accept Buyer’s
offer of employment.           Buyer shall be responsible for all costs or expenses
associated with the           provision of benefits under a welfare benefit plan to a
Transferred Employee           effective as of the date a Transferred Employee commences
employment with Buyer           and shall offer participation in such plans that do not
impose a pre-existing           condition limitation or waiting period that did not apply
to the Transferred           Employee prior to the Closing Date under a Benefit Plan.
Buyer shall assume           liability to comply with COBRA and HIPAA with respect to any
Transferred           Employee who terminates employment on or after the Closing Date.
Parent shall           indemnify Buyer and relieve Buyer of any and all liabilities with
respect to any           claim by a Transferred Employee that relates to periods before
the Closing Date.  

	 	                 (c)     Retiree
Health Plans. Parent shall be liable for any and all costs or           expenses
incurred under any Benefit Plan that provides continued health care           coverage
after a Company or Subsidiary employee retires (a “Retiree Health Plan”),
except COBRA coverage for Transferred Employees as           provided for in Section
5.2(b) above. Buyer shall not be liable for or           obligated to provide, in any
form, retiree health coverage for any Company or           Subsidiary employee, including
Transferred Employees. Parent shall indemnify           Buyer and relieve Buyer of any
and all liabilities with respect to any claim by           any Company or Subsidiary
employee or Transferred Employee under a Retiree           Health Plan. Parent shall
allow a Transferred Employee who, as of the Closing           Date, satisfies the
eligibility requirements under a Retiree Health Plan (a           “Retiree Health
Transferred Employee”), to elect           coverage under the applicable
Retiree Health Plan within ninety (90) days of the           date such Transferred
Employee retires from employment with Buyer; provided,           however, that the
foregoing shall not otherwise limit any right that Parent may           have to amend or
terminate, in whole or in part, a Retiree Health Plan. If a           Retiree Health
Transferred Employee elects coverage under a Retiree Health Plan,           such coverage
shall commence as of the employee’s retirement date. Parent           agrees to
reflect in Parent Pension Plan records that each Retiree Health           Transferred
Employee is entitled to elect coverage under a Retiree Health Plan           in
accordance with the terms of this section. Parent also shall notify each
          Retiree Health Transferred Employee within thirty (30) days after the Closing
          Date of (1) such employee’s eligibility to elect coverage under a Retiree
          Health Plan in accordance with the terms of this section; (2) the process for
          electing coverage under the applicable Retiree Health Plan; and (3) the contact
          information for the individual or position responsible for enrolling such
          employee in the applicable Retiree Health Plan. Parent agrees to send
additional           notices to each Retiree Health Transferred Employee if the process
for electing           coverage under a Retiree Health Plan or the appropriate contact
information           disclosed in the notice is modified in any way.  

35 

	 	                 (d)     Pension
Plan. Parent shall be liable for any and all obligations and           benefits
payable to Company or Subsidiary employees, including Transferred           Employees,
under the Banta Corporation Employees Pension Plan (the           “Parent Pension
Plan”) and Buyer shall have no obligations           whatsoever with respect to
the Parent Pension Plan at any time.  

	 	                 (e)     Banta
Corporation Incentive Savings Plan. Buyer shall have no obligations           with
respect to the Banta Corporation Incentive Savings Plan (the           “Parent
401(k) Plan”). Buyer shall adopt a defined contribution           plan as soon
as practicable after the Closing Date, but no later than sixty (60)           days
thereafter, that is intended to be qualified under Code Section 401(k) (the
          “Buyer 401(k) Plan”). Buyer shall take steps to ensure that
the           Buyer 401(k) Plan credits service for eligibility and vesting purposes that
was           recognized under the Parent 401(k) Plan with respect to Transferred
Employees.           Buyer also shall take steps to ensure that the Buyer 401(k) Plan
accepts, as           rollovers, amounts elected by Transferred Employees to be rolled
over to the           Buyer 401(k) Plan (including participant loans) and that constitute
an eligible           rollover distribution under Code Section 402(c).  

	 	                 (f)     Short
Term Incentive Payments. Any payments due to any Company or           Subsidiary
employee, including any Transferred Employee, under any short term           Incentive
Plan administered by Parent (i.e., that are not accrued by           Company or
Subsidiary) attributable to services performed during the 2004 plan           year which
ended on January 1, 2005, shall be the sole responsibility of Parent.  

	 	                 (g)     Further
Assurances Regarding Employee Plans. Before and following the           Closing,
Parent shall make itself and its representatives reasonably available           in
assisting Buyer in transitioning the Transferred Employees to any Buyer
          employee benefit plan and shall assist Buyer as may be reasonably requested by
          Buyer in connection with such transition including, but not limited to,
          facilitating discussions with current fiduciaries, service providers,
          third-party administrators, brokers or insurers, with respect to matters
          involving the establishment or maintenance of a benefit plan adopted as a
result           of this Agreement.  

	 	                 (h)     No
Third Party Beneficiaries. Nothing herein, express or implied, is           intended
to confer on any active or retired employee of Parent or any BHG           Company or his
or her legal or other representatives or beneficiaries any rights           or remedies
of any nature or kind whatsoever under or by reason of this           Agreement
including, without limitation, any right to continued employment or to           any
severance or other benefits from Parent, Buyer, or any of their respective
          ERISA Affiliates.  

36 

	 	                 (i)     Required
Notice. Parent and/or Company shall provide any plant closing           notices as
required under federal, state, local or foreign Law (including the           Worker
Adjustment Retraining Notification Act of 1988, as amended) as a result           of the
transactions contemplated hereby, and shall be solely responsible for any
          liability arising under federal, state, local or foreign plant closing laws as
a           result of the transactions contemplated hereby, in each case to the extent
any           employees of the BHG Companies are terminated before the Closing. Buyer
shall           provide any plant closing notices as required under federal, state, local
or           foreign Law (including the Worker Adjustment Retraining Notification Act of
          1988, as amended) as a result of the transactions contemplated hereby, and
shall           be solely responsible for any liability arising under federal, state,
local or           foreign plant closing laws as a result of the transactions
contemplated hereby,           in each case to the extent any employees of Buyer or
Subsidiary are terminated           after the Closing.  

	 	                 (j)     Certain
Company Employees. Parent and/or Company shall continue to           provide coverage
under a Benefit Plan to any Company employee who is not           actively at work on the
Closing Date because such employee is on an approved           leave of absence in
accordance with the terms of such Benefit Plan and any           applicable policy or
procedure until such employee either becomes a Transferred           Employee or
terminates employment. With respect to any Company employee who is           not actively
at work on the Closing Date because such employee is on an approved           leave of
absence and who is entitled to certain rights under the Uniformed           Services
Employment and Reemployment Rights Act of 1994, as amended           (“USERRA”),
Parent and/or Company shall be responsible for           complying with USERRA with
respect to such employee until such employee either           becomes a Transferred
Employee or terminates employment. In addition, Parent           and/or Company is
responsible for the payment of all workers’ compensation           payments and
liabilities relating to any Transferred Employee who is not           actively at work on
the Closing Date due to any event or occurrence that occurs           prior to the
Closing Date (“Retained Workers’          Compensation”),
except to the extent such liabilities are included in           the calculation of
Adjusted Current Liabilities. For any Company or Subsidiary           employee who is not
actively at work on the Closing Date and is eligible to           become a Transferred
Employee, Buyer shall be responsible for satisfying any           rights such employee
may have to return to work following such absence.  

                 5.3     
Post-Closing Access to Information. For a period of seven (7) years after the
Closing Date, each Party shall provide, and shall cause its appropriate personnel to
provide, when reasonably requested to do so by the other Party, access to all tax,
financial and accounting records of or relating to the Purchased Assets, the Assumed
Liabilities, the Business or Subsidiary and the right to make copies or extracts
therefrom at its expense. During such seven (7) year period, no Party shall, nor shall it
permit its Affiliates to, intentionally dispose of, alter or destroy any such books,
records and other data without giving thirty (30) calendar days’ prior written
notice to the other Party and permitting the other Party, at its expense, to examine,
duplicate or repossess such records, files, documents and correspondence. Notwithstanding
the provisions of this Section 5.3, while the existence of an adversarial
proceeding between the Parties will not abrogate or suspend the provisions of this Section
5.3, as to such records or other information directly pertinent to such dispute, the
Parties may not utilize this Section 5.3 but rather, absent agreement, must
utilize the rules of discovery.  

37 

                 5.4     
Corporate Name.  

	 	                 (a)     Ownership.
Buyer acknowledges that Parent and/or its Affiliates have the           absolute and
exclusive proprietary right to all names, tradenames, trade marks,           service
names and service marks incorporating the word “Banta” or any
          derivation thereof and any corporate symbols or logos related thereto. Except
to           the extent contemplated by Section 5.4(b), Buyer shall not, and shall
          cause its Affiliates (including Subsidiary) not to, use the word
          “Banta” or any symbol or logo incorporating any such word in
          connection with the sale of any goods or services or otherwise in the conduct
of           its or their businesses. As soon as possible following the Closing, Buyer
shall           cause Subsidiary to file with an appropriate Governmental Entity an
amendment to           its charter or other organizational documents eliminating the word
          “Banta” from its name.  

	 	                 (b)     Limited
Use. Promptly and in any event within twelve (12) months after           the Closing
Date, Buyer shall, and Buyer shall cause Subsidiary to, remove,           obliterate or
cover up the name “Banta” and any derivation thereof and           any
corporate symbols or logos related thereto from the Purchased Assets and           from
Buyer’s signs, purchase orders, invoices, sales orders, labels,
          letterheads, shipping documents, business cards and other materials. Buyer
shall           not, and Buyer shall cause Subsidiary not to, put into use after the
Closing           Date any such materials not in existence on the Closing Date that bear
any such           reference. Notwithstanding the foregoing, Company shall grant and
deliver to           Buyer at Closing a limited license to such intellectual property for
the purpose           of allowing Buyer and Subsidiary to use such intellectual property
in a manner           consistent with Buyer’s and Subsidiary’s rights under
this Section           5.4(b).  

                 5.5     
Insurance. After the Closing:  

	 	                 (a)     Responsibility
to Maintain Insurance. Except as set forth in Section           5.5(b) below,
neither Buyer nor Subsidiary shall have any right to make           claims under
insurance policies issued by third parties that may have provided           coverage to
any BHG Company as an Affiliate of Parent prior to the Closing Date,           whether
the incident giving rise to any such claim occurs prior to, on or after           the
Closing Date. As of the Closing Date, insurance requirements of Buyer and
          Subsidiary with respect to events occurring on or after the Closing will be the
          sole responsibility of Buyer and Subsidiary.  

	 	                 (b)     Pre-Closing
Events. To the extent, however, that any claims arise under           any insurance
policies issued by third-party insurers and owned by or covering           Company or
Subsidiary with respect to occurrences arising prior to the Closing           Date, Buyer
or Subsidiary may make claims, through Parent or Company only, under           such
policies without regard to any other provision hereof, but subject to such
          conditions contained in any such policies, including all reporting and notice
          requirements thereof. Parent shall be responsible for, and shall have the sole
          right to undertake, reporting and administrative handling of all claims under
          such policies; provided, however, that Parent shall notify the applicable
          third-party insurer of a claim within five (5) Business Days after receipt of
          written notice of such claim from Buyer or Subsidiary. Buyer and Subsidiary
          shall be jointly and severally responsible for and shall pay all expenses
          (including costs of administration by Parent as well as fees and expenses of
          third parties attributable to the handling of such claims) relating to services
          for claims administration, investigation, appraisals and claim review incurred
          on or after the Closing with respect to claims under such insurance policies.
          Neither Buyer nor Subsidiary shall have the right to claim directly against
          Parent or Company for any “self-insured” program of risk management
or           the amount of any deductible or self-insured retention for any loss suffered
by           Subsidiary prior to, on or after the Closing Date, regardless of the date on
          which the claim is made.  

38 

	 	                 (c)     Insurance
Proceeds. Company and Parent shall indemnify Buyer for all           Losses asserted
against, resulting to, imposed upon or incurred or suffered by           Buyer by reason
of or resulting from Assumed Liabilities if and to the extent           both (i) such
Assumed Liabilities relate to acts or omissions of Company that           occurred prior
to the Closing Date and (ii) Company or Parent actually receives           insurance
proceeds with respect to such Losses from third-party insurers under
          occurrence-based insurance policies as a result of claims made pursuant to Section
5.5(b). For the avoidance of doubt, Buyer acknowledges that           Company’s
and Parent’s obligations under this Section 5.5(c)          shall be limited
to the amount of any such insurance proceeds actually received           by Company or
Parent. Company or Parent, as the case may be, shall effect any           such
indemnification payment within five (5) Business Days after it receives           such
insurance proceeds.  

                 5.6     
Further Assurances. From time to time after the Closing Date, upon request of the
other Party and without further consideration, each Party shall execute and deliver to
the requesting Party such documents and take such action as the requesting Party
reasonably requests to consummate more effectively the intent and purpose of the Parties
under this Agreement and the transactions contemplated hereby.  

                 5.7     
Non-Competition and Confidentiality.  

	 	                 (a)     
Non-Competition. Subject to the Closing, Parent agrees that, for a period
               of five (5) years after the Closing Date, neither Parent nor any of its
               Affiliates will, directly or indirectly:  

	 	                 (i)     
               engage in, continue in or carry on any business that competes in any
aspect of                the Business as conducted by Company as of the Closing Date,
including owning or                controlling any financial interest in any Competitor;
or  

	 	                 (ii)    
               consult with, advise or assist in any way, whether or not for
consideration, any                Competitor in any aspect of the Business as conducted
by Company as of the                Closing Date, including endorsing the products or
services of any such                Competitor, soliciting customers or otherwise serving
as an intermediary for any                such Competitor or loaning money or rendering
any other form of financial                assistance to any such Competitor;  

	 	
provided,
however, that the foregoing shall not prohibit the ownership of not more than five
percent (5%) of the securities of any corporation or other entity that is listed on a
national securities exchange or traded in the national over-the-counter market. The
geographic scope of this covenant not to compete shall extend throughout the United
States.  

39 

	 	                 (b)     Confidentiality.
Subject to the Closing, Parent agrees that, at any time           subsequent to the
Closing Date, neither Parent nor any of its Affiliates will,           directly or
indirectly, use any Confidential Information for any purpose, or           disclose any
Confidential Information to any person or entity other than Buyer           or its
Affiliates (including Subsidiary), except in each case to the extent           necessary
to comply with the terms of any agreement between Parent or any of its
          Affiliates on the one hand and Buyer or any of its Affiliates (including
          Subsidiary) on the other hand or to comply with a request by Buyer.
          Notwithstanding the foregoing, Parent and its Affiliates may disclose the
          Confidential Information at such times, in such manner and to the extent such
          disclosure may be required by applicable law, provided that Parent provides
          Buyer with prior written notice of such disclosure so as to permit such other
          party to seek a protective order or other appropriate remedy and limits such
          disclosure to what is strictly required.  

	 	                 (c)     Remedies.
Parent agrees that (i) any breach by Parent or any of its           Affiliates of the
provisions of Sections 5.7(a) and 5.7(b) may           result in
irreparable injury to Buyer for which a remedy at law may be           inadequate, and
(ii) in addition to any relief at law that may be available to           Buyer for such
breach and regardless of any other provision contained in this           Agreement, Buyer
shall be entitled to seek such injunctive and other equitable           relief as a court
may grant in respect of such breach.  

	 	                 (d)     Turnkey
Services. Notwithstanding anything to the contrary in this           Agreement,
including in this Section  5.7, nothing in this Agreement           shall
prohibit, restrict or otherwise affect the ability of Parent or any of its
          Affiliates, whether now existing or hereafter acquired or created (including
the           Banta Turnkey Affiliates which currently provide Turnkey Services), from
(i)           providing Turnkey Services anywhere in the world and in any industry or
field or           (ii) acquiring or investing in any entity or business that, as part of
its           overall business activities, engages in any aspect of the Business,
provided           that the amount of revenues derived by such acquired entity or
business from           such activities (other than Turnkey Services), during the twelve
(12) month           period immediately preceding the date of acquisition, does not
exceed ten           percent (10%) of the total revenues of such acquired company or
business.           Without limitation, nothing in this Agreement shall prohibit,
restrict or           otherwise affect the ability of Parent or any of its Affiliates to
perform its           obligations and exercise its rights under any written agreement
with Buyer or           any of its Affiliates, including the Services Agreement.  

                 5.8     
Accounts Receivable. Promptly after the Closing Date, Buyer and Company shall
complete such actions as are reasonably necessary to transfer rights in the cash
deposited in the lock box account described in Exhibit 5.8, which transfer shall
be effective as of the close of business on the Closing Date. Buyer acknowledges that
Company shall be entitled to receive and retain all cash and other funds deposited in
such lock box account prior to and on the Closing Date. Parent and Company acknowledge
that Buyer shall be entitled to receive and retain all cash and other funds deposited in
such lock box account from and after the close of business on the Closing Date. From and
after the close of business on the Closing Date, Parent and Company agree that they will
remit to Buyer all other checks or payments received by them that constitute Purchased
Assets under Section 1.1(g) hereof within ten (10) days of the receipt of such
checks or payments.  

40 

        6.     
CONDITIONS PRECEDENT TO BUYER’S OBLIGATIONS  

                 Each
and every obligation of Buyer to be performed on or after the Closing Date under this
Agreement is subject to the satisfaction (or written waiver by Buyer) prior to or at the
Closing Date of each of the following conditions:  

                 6.1     
Accuracy of Representations and Warranties. Each of therepresentations and
warranties of Parent made in this Agreement that is qualified as to materiality shall be
true and correct in all respects when made and shall be true and correct in all respects
atand as of the Closing Date as though such representations and warranties were
made or given on and as of the Closing Date, and each of such representations and
warranties that is not qualified as to materiality shall be true and correct in all
respects when made and shall be true and correct in all material respects at and as of
the Closing Date as though such representations and warranties were made or given on and
as of the Closing Date,except (a) to the extent of changes or developments
contemplated by the Services Agreement, (b) to the extent resulting out of Transaction
Changes and (c) for representations and warranties that speak as of a specific date or
time (which need be true and correct only as of such date or time); and Parent shall have
delivered to Buyer a certificate dated the Closing Date and signed by an officer of
Parent in the officer’s capacity as such confirming the foregoing to the best of
such officer’s knowledge.  

                 6.2     
Performance of Obligations. Each of Parent and Company shall have in all respects
performed and complied with its agreements and obligations under this Agreement that are
to be performed or complied with by Parent prior to or on the Closing Date.  

                 6.3     
No Injunction, Etc. No preliminary or permanent injunction or other Order issued
by any Governmental Entity or other legal restraint or prohibition that restrains,
enjoins or otherwise prohibits the transactions contemplated hereby shall be in effect.  

                 6.4     
Delivery of Documents. Parent shall have delivered, or caused to have been
delivered, to Buyer the documents described in Section 9.2.  

                 6.5     
Competition Law Clearance. All relevant waiting periods under any Competition Law
applicable to the transactions contemplated hereby shall have expired or terminated, and
all actions required by, or filings required to be made with, any Governmental Entity
under any such Competition Law that are necessary to permit the consummation of the
transactions contemplated hereby shall have been taken or made.  

                 6.6     
Financing. The financing contemplated by the Commitment Letters, or in the
agreements evidencing the Alternative Financing, shall have closed.  

                 6.7     
Government Consents; Licenses and Permits. There shall have been obtained at or
prior to the Closing Date transfers of such material licenses, permits or authorizations
required for the conduct of the Business as currently conducted by Company and
Subsidiary, or if necessary, Buyer shall have obtained such material licenses or permits
on a de novo basis.  

41 

                 6.8     
Third Party Consents; Assignments; Other Documents. Buyer shall have received duly
executed copies of the third-party consents, approvals, assignments, waivers,
authorizations, permits or other certificates described in Exhibit 6.8.  

        7.     
CONDITIONS PRECEDENT TO PARENT’S AND COMPANY’S OBLIGATIONS  

                 Each
and every obligation of Parent and Company to be performed on or after the Closing Date
under this Agreement is subject to the satisfaction (or written waiver by Parent) prior
to or at the Closing Date of each of the following conditions:  

                 7.1     
Accuracy of Representations and Warranties. Each of therepresentations and
warranties of Buyer made in this Agreement that is qualified as to materiality shall be
true and correct in all respects when made and shall be true and correct in all respects
atand as of the Closing Date as though such representations and warranties were
made or given on and as of the Closing Date, and each of such representations and
warranties that is not qualified as to materiality shall be true and correct in all
respects when made and shall be true and correct in all material respects at and as of
the Closing Date as though such representations and warranties were made or given on and
as of the Closing Date, except (a) to the extent of changes or developments contemplated
by the Services Agreement, and (b) for representations and warranties that speak as of a
specific date or time (which need be true and correct only as of such date or time); and
Buyer shall have delivered to Parent a certificate dated the Closing Date and signed by
an officer of Buyer in the officer’s capacity as such confirming the foregoing to
the best of such officer’s knowledge.  

                 7.2     
Performance of Obligations. Buyer shall have in all material respects performed
and complied with its agreements and obligations under this Agreement that are to be
performed or complied with by Buyer prior to or on the Closing Date.  

                 7.3     
No Injunction, Etc. No preliminary or permanent injunction or other Order issued
by any Governmental Entity or other legal restraint or prohibition that restrains,
enjoins or otherwise prohibits the transactions contemplated hereby shall be in effect.  

                 7.4     
Delivery of Purchase Price and Documents. Buyer shall have delivered, or caused to
have been delivered, to Parent the wire transfer of the Purchase Price as contemplated by
Section 2.2(a) and the documents described in Section 9.3.  

                 7.5     
Competition Law Clearance. All relevant waiting periods under any Competition Law
applicable to the transactions contemplated hereby shall have expired or terminated, and
all actions required by, or filings required to be made with, any Governmental Entity
under any such Competition Law that are necessary to permit the consummation of the
transactions contemplated hereby shall have been taken or made.  

                 7.6     
Financing. The financing contemplated by the Commitment Letters, or in the
agreements evidencing the Alternative Financing, shall have closed or Buyer shall
otherwise have adequate funds to consummate the transactions contemplated hereby.  

42 

        8.     
INDEMNIFICATION  

                 8.1     
Indemnification by Parent.  

	 	                 (a)     
General. If the Closing occurs, and subject to the terms and conditions
               of this Article 8, Parent shall indemnify and hold harmless Buyer
and its                Affiliates (including Subsidiary), and their respective directors,
officers,                employees and controlling persons (collectively, the “Buyer
Indemnified                Parties”),from and against all Losses asserted
against,                resulting to, imposed upon or incurred by any such entity or
person, directly or                indirectly, by reason of or resulting from any (i)
breach as of the Closing Date                of the Surviving Representations, (ii)
subject to Section 4.10, breach of                any covenant or agreement made
by Parent contained in this Agreement, or (iii)                any and all Excluded
Liabilities.  

	 	                 (b)     
Limitations. Parent’s obligations under Section 8.1(a) shall
               be subject to the following limitations:  

	 	                 (i)     
               Except for any liability for Losses arising from (A) fraud committed by
Parent                or Company in connection with this Agreement, (B) any breach of the
               representations and warranties made by Parent in Sections 3.1(b),
3.1(c), 3.1(d), 3.1(g) or 3.1(q) (with respect to
               any claims under ERISA filed with respect to a Retiree Health Plan or a
Parent                Pension Plan) or (C) any Losses described in Section 8.1(a)(iii),
               Parent shall not have any liability for Losses for any breach of the
Surviving                Representations unless and until the aggregate of all Losses
relating thereto                for which Parent would otherwise be liable exceeds on an
aggregate basis                $670,000, at which point Parent shall indemnify Buyer for
such Losses, but only                to the extent such Losses exceed $670,000;  

	 	                 (ii)    
               Except for any liability for Losses arising from (A) fraud committed by
Parent                or Company in connection with this Agreement, (B) any breach of the
               representations and warranties made by Parent in Sections 3.1(b),
3.1(c), 3.1(d), 3.1(g) and 3.1(q) (with respect to
               claims under ERISA filed with respect to a Retiree Health Plan or a Parent
               Pension Plan) or (C) any Losses described in Section 8.1(a)(iii),
Parent                shall not have any liability for Losses for any breach of the
Surviving                Representations to the extent the aggregate amount of Losses for
which Parent                would otherwise be liable exceeds $13,400,000.  

	 	                 (iii)   
               Parent shall not have any liability for Losses for any breach of the
Surviving                Representations to the extent Buyer requested a reduction in the
Net Working                Capital based on the contents of the Preliminary Closing
Statement on account of                any matter forming the basis for such Losses (A)
to the extent such reduction                was actually effected or (B) if Buyer’s
request for a reduction in the Net                Working Capital is denied by the CPA
Firm, to the extent that the Losses arose                specifically from the failure to
incorporate the denied adjustment in Net                Working Capital. In any case, no
Losses related to this subclause (iii)               shall be aggregated for
purposes of subclause (ii) of this Section 8.1(b);  

43 

	 	                 (iv)    
               If a reserve (in the form of an accrued liability or an offset to an asset
or                similar item) was reflected in the Final Closing Statement relating to
any                matter for which Buyer would otherwise be entitled to indemnification
under Section 8.1(a), then the calculation of Buyer’s Losses in respect of
               such matter shall be reduced by the full amount of the reserve as
reflected in                the Final Closing Statement; and  

	 	                 (v)     
               Parent’s obligations under subclause (i) of Section 8.1(a)               shall
terminate as to each Surviving Representation when such Surviving
               Representation terminates pursuant to Section 3.3; provided,
however,                that such obligations shall not terminate with respect to any
item as to which                Buyer shall have, prior to the expiration of the
applicable period, previously                made a claim by delivering a notice that
constitutes an Indemnification Notice                and complies with the requirements
therefor, but only with respect to the                content of, and on the basis set
forth in, such Indemnification Notice.  

                 8.2     
Indemnification By Buyer. Subject to the terms and conditions of this Article 8,
Buyer shall indemnify and hold harmless Parent and its Affiliates (including Company),
and their respective directors, officers, employees and controlling persons, from and
against all Losses asserted against, resulting to, imposed upon or incurred by any such
person, directly or indirectly, by reason of or resulting from any (a) breach of the
representations and warranties of Buyer described in subclause (b) of Section
3.3, (b) breach of any covenant or agreement of Buyer contained in this Agreement,
(c) Assumed Liabilities or (d) operation or ownership of the Purchased Assets, the
Business or Subsidiary before, on or after the Closing Date, including claims arising
from the use of the “Banta”name by Buyer or Subsidiary after the Closing Date
pursuant to Section 5.4(b)(except in each case to the extent Buyer is entitled to
indemnification for such Losses under Section 8.1(a)). Notwithstanding the
foregoing, Buyer’s obligations under subclause (a) of this Section 8.2 shall
terminate as to each representation or warranty of Buyer when such representation or
warranty terminates pursuant to Section 3.3; provided, however, that such
obligations shall not terminate with respect to any item as to which Parent shall have,
prior to the expiration of the applicable period, previously made a claim by delivering a
notice that constitutes an Indemnification Notice and complies with the requirements
therefor, but only with respect to the content of, and on the basis set forth in, such
Indemnification Notice. The provisions of this Section 8.2 shall not affect, limit
or otherwise restrict Buyer’s ability to exercise its rights under Section 5.5.  

                 8.3     
Procedures Relating to Indemnification Among Parent and Buyer. Following the
discovery of any facts or conditions that could reasonably be expected to give rise to a
Loss or Losses for which indemnification under this Article 8 can be obtained, the
Party seeking indemnification under this Article 8 (the “Indemnified Party”)
shall, reasonably promptly thereafter, provide written notice to the Party from whom
indemnification is sought (the “Indemnifying Party”), setting forth the
specific facts and circumstances, in reasonable detail, relating to such Loss or Losses,
the amount of Loss or Losses (or a non-binding, reasonable estimate thereof if the actual
amount is not known or not capable of reasonable calculation) and the specific Section(s)
of this Agreement upon which the Indemnified Party is relying in seeking such
indemnification (an “Indemnification Notice”); provided however, that
any delay or failure in providing the Indemnification Notice shall not preclude the
Indemnified Party from seeking indemnification, provided that the Indemnifying Party is
not prejudiced thereby.  

44 

                 8.4     
Procedures Relating to Indemnification for Third Party Claims.  

	 	                 (a)     Notice.
In order for an Indemnified Party to be entitled to any           indemnification
provided for under this Agreement arising out of or involving a           claim or demand
made by any third party, including any Governmental Entity (a           “Third
Party Claim”), the Indemnified Party must provide an           Indemnification
Notice to the Indemnifying Party relating to the Third Party           Claim reasonably
promptly after the Indemnified Party’s receipt of notice           of the Third
Party Claim, but in no event more than five (5) Business Days after           being
served with any summons, complaint or similar legal process; provided,           however,
failure to give timely notice shall not release the Indemnifying Party           of its
obligations hereunder except if, and only to the extent that, the           Indemnifying
Party suffers actual prejudice as a proximate result of such           failure.
Thereafter, the Indemnified Party shall deliver to the Indemnifying           Party,
within five (5) Business Days after the Indemnified Party’s receipt
          thereof, copies of all notices and documents, including all court papers,
          received by the Indemnified Party relating to the Third Party Claim.  

	 	                 (b)     Defense.
If a Third Party Claim is made against the Indemnified Party,           then the
Indemnifying Party shall be entitled to participate in the defense           thereof and,
if the Indemnifying Party so chooses, to assume the defense thereof           with
counsel selected by the Indemnifying Party and reasonably satisfactory to           the
Indemnified Party. The Indemnifying Party shall be liable for the reasonable
          fees and expenses of counsel employed by the Indemnified Party for any period
          during which the Indemnifying Party has not assumed the defense thereof. If the
          Indemnifying Party so elects to assume the defense of a Third Party Claim, then
          the Indemnifying Party shall not be liable to the Indemnified Party for the
          reasonable fees and expenses of counsel subsequently incurred by the
Indemnified           Party in connection with the defense thereof; provided, however,
that (i) prior           to assuming the defense of such Third Party Claim, the
Indemnifying Party shall           provide to the Indemnified Party an undertaking
stating that such Indemnifying           Party is able to and will assume the payment of
all defense fees and costs and           (ii) the Indemnifying Party’s assumption of
the defense of such Third Party           Claim shall not signify any agreement,
obligation or commitment on the part of           the Indemnifying Party to assume or pay
any amount awarded to a claimant in           respect of such Third Party Claim. If the
Indemnifying Party assumes such           defense, then the Indemnified Party shall have
the right to participate in the           defense thereof and to employ counsel, at its
own expense, separate from the           counsel employed by the Indemnifying Party, it
being understood, however, that           the Indemnifying Party shall control such
defense. If the Indemnifying Party           chooses to defend any Third Party Claim,
then the Parties shall cooperate in the           defense or prosecution of such Third
Party Claim. Such cooperation shall include           the retention and (upon the
Indemnifying Party’s request) the provision to           the Indemnifying Party of
records that are reasonably relevant to such Third           Party Claim, and making
employees available on a mutually convenient basis to           provide additional
information and explanation of any material provided           hereunder. If the
Indemnifying Party, within a reasonable time after receipt of           an
Indemnification Notice relating to a Third Party Claim, chooses not to assume
          defense of a Third Party Claim or fails to defend such Third Party Claim
          actively and in good faith, then the Indemnified Party shall (upon further
          notice) have the right to defend, compromise or settle of such Third Party
Claim           or consent to the entry of judgment with respect to such Third Party
Claim.  

45 

                 8.5     
Insurance and Tax Effect. The obligation of the Indemnifying Party to indemnify
the Indemnified Party against any Losses under this Article 8 shall be reduced by
(a) the amount of any insurance proceeds received by the Indemnified Party from third
party insurers with respect to such Losses or the underlying factors with respect thereto
and (b) the amount of any Tax benefit actually realized by the Indemnified Party or its
Affiliates arising in connection with the accrual, incurrence, or payment of any such
Losses. The Indemnified Party and any of its Affiliates shall be deemed to have “actually
realized” a Tax benefit to the extent that that the amount of Taxes payable by such
Indemnified Party or its Affiliate currently or over time (as determined on a present
value basis in the taxable year in which such indemnity payment is made using a discount
rate of 5%) is reduced below the amount of Taxes that such Indemnified Party or its
Affiliate would be required to pay but for the accrual, incurrence, or payment of such
indemnified amount.  

                 8.6     
No Offset. An Indemnified Party shall have no right to satisfy, in whole or in
part, any amounts owing to the Indemnified Party under this Article 8 by setting
off any amounts owed to the Indemnifying Party by the Indemnified Party.  

                 8.7     
Exclusive Remedy. Except for the rights expressly provided in Article 6, Article
7, Section 5.7(c) and Article 10 and except that Buyer shall retain the
right to bring a tort claim based on fraud grounds if Parent or Company has committed
fraud in connection with this Agreement, the indemnification provisions of this Article
8 shall be the sole and exclusive remedy with respect to any and all claims arising
out of or relating to Buyer’s investigation of the BHG Companies, the Business, the
Purchased Assets, this Agreement, the negotiation and execution of this Agreement or any
Contract entered into pursuant hereto (except to the extent otherwise expressly set forth
therein) or the performance by the Parties of its or their terms, and no other remedy
shall be had by Parent or Buyer and their respective officers, directors, employees,
agents, affiliates, attorneys, consultants, insurers, successors and assigns, all such
remedies being hereby expressly waived to the fullest extent permitted under applicable
Law.  

        9.     
CLOSING  

                 9.1     
Closing Date. Unless this Agreement shall have been terminated and the
transactions contemplated hereby shall have been abandoned pursuant to Section 10.1,
and provided that the conditions to the Closing set forth in Article 6 and Article
7 are satisfied or waived, the closing with respect to the transactions contemplated
hereby (the “Closing”) shall take place at the Milwaukee, Wisconsin
offices of Foley & Lardner LLP, at 10:00 a.m., local time, on the second (2nd)
Business Day immediately following the satisfaction or waiver of the conditions to the
Closing set forth in Sections 6.5, 6.6, 7.5 and 7.6 or at
such other time and place as the Parties shall agree upon. The actual date of the Closing
is referred to in this Agreement as the “Closing Date.” 

46 

                 9.2     
Items to be Delivered by Parent and Company. At the Closing, Parent and Company
shall deliver to Buyer the following documents, in each case duly executed or otherwise
in proper form:  

	 	                 (a)     Compliance
Certificate. The certificate described in Section 6.1,           duly executed
by Parent;  

	 	                 (b)     Certified
Resolutions. Certified copies of the resolutions of the Board           of Directors
of Company authorizing and approving this Agreement and the           consummation of the
transactions contemplated hereby;  

	 	                 (c)     Instruments
of Conveyance and Transfer. Such deeds, bills of sale,           endorsements,
consents, assignments and other good and sufficient instruments of           conveyance
and assignment as shall be effective to vest in Buyer all right,           title and
interest of Company in and to the Purchased Assets;  

	 	                 (d)     Transition
Services Agreement. A Transition Services Agreement, in form           and substance
reasonably acceptable to Parent and Buyer (the “Transition           Services
Agreement”), duly executed by Parent, with respect to the           categories
of services set forth on Exhibit 9.2(d), which Transition           Services
Agreement shall include the payment of arms’ length fees (as set           forth
therein) by Buyer to Parent in consideration of the services provided
          thereunder;  

	 	                 (e)     Services
Agreement. A Services Agreement, in the form attached hereto as Exhibit 9.2(e) (the
“Services Agreement”), duly           executed by Banta Global
Turnkey, Ltd.;  

	 	                 (f)     Title
Insurance Documents. Such affidavits as are reasonably required by           the
title insurance company chosen by Parent to issue at the Closing a title
          insurance policy (or an irrevocable “mark-up” title insurance
          commitment equivalent to a title insurance policy) with respect to the real
          property owned by Company, with standard exceptions regarding recording gaps,
          mechanics liens and rights of parties in possession deleted therefrom;  

	 	                 (g)     Opinion
of Counsel. To the extent required by the Lenders as a condition           to
providing the financing described in the Commitment Letters to Buyer, a legal
          opinion rendered by Foley & Lardner LLP, legal counsel to Parent, in form
          and substance reasonably acceptable to Parent and Buyer;  

	 	                 (h)     
         a customary bill of sale for all of the Purchased Assets which are Tangible
          Personal Property duly executed by Company;  

	 	                 (i)     
         a customary assignment of all of the Purchased Assets which are intangible
          personal property, which assignment shall also contain Buyer’s undertaking
          and assumption of the Assumed Liabilities executed by Company;  

47 

	 	                 (j)     
         for each interest in Real Property, a recordable quitclaim deed, a customary
          assignment and assumption of lease or such other appropriate document or
          instrument of transfer, as the case may require;  

	 	                 (k)     
         a limited license to the name Banta as more particularly set forth in Section
          5.4(b) hereof;  

	 	                 (l)     Other
Documents. All other documents, instruments or writings required to           be
delivered to Buyer at or prior to the Closing pursuant to this Agreement and
          such other certificates of authority and documents as Buyer reasonably
requests.  

                 9.3     
Items to be Delivered by Buyer. At the Closing, Buyer shall deliver to Parent or
Company, as the case may be, the wire transfer as required by Section 2.3(b) and
the following documents, in each case duly executed or otherwise in proper form:  

	 	                 (a)     Compliance
Certificate. The certificate described in Section 7.1,           duly executed
by Buyer;  

	 	                 (b)     Certified
Resolutions. A certified copy of the resolutions of the Board           of Directors
of Buyer authorizing and approving this Agreement and the           consummation of the
transactions contemplated hereby;  

	 	                 (c)     Instruments
of Assumption. Such documents as Parent reasonably requests           to evidence
assumption by Buyer of the Assumed Liabilities;  

	 	                 (d)     Transition
Services Agreement. The Transition Services Agreement, duly           executed by the
Surviving Entity; and  

	 	                 (e)     Services
Agreement. The Services Agreement, duly executed by the           Surviving Entity;
and  

	 	                 (f)     Other
Documents. All other documents, instruments or writings required to           be
delivered to Parent at or prior to the Closing pursuant to this Agreement and
          such other certificates of authority and documents as Parent reasonably
          requests.  

        10.     
TERMINATION  

                 10.1    
General. This Agreement may be terminated, and the transactions contemplated
hereby may be abandoned, only as follows:  

	 	                 (a)     By
the written agreement of Parent and Buyer; or  

	 	                 (b)     By
Parent or Buyer if the Closing shall not have occurred on or prior to April           1,
2005 or such other date as the Parties agreed to in writing, provided that           (i)
such date shall be extended for a period not to exceed sixty (60) calendar           days
to the extent necessary to obtain required approvals of Governmental           Entities
and (ii) such date shall be extended to April 15, 2005 upon the written           consent
of Parent and Buyer (which consent shall not be unreasonably withheld);           or  

48 

	 	                 (c)     By
Parent or Buyer if any Governmental Entity shall have enacted, issued,
          promulgated, enforced or entered any Law or Order, or refused to grant any
          required consent or approval, that has the effect of making the consummation of
          the transactions contemplated hereby illegal or that otherwise prohibits
          consummation of such transactions;  

provided, however, that if a Party
seeking termination pursuant to subclause (b) of this Section 10.1 is in
breach in any material respect of any of its representations, warranties, covenants or
agreements contained in this Agreement including without limitation such Party’s
failure to satisfy any condition to the Closing that is solely within the control of such
Party, then such Party may not terminate this Agreement pursuant to subclause (b)of
this Section 10.1.  

                 10.2    
Post-Termination Obligations; Deliverables. To terminate this Agreement as
provided in subclause (b) or (c) of Section 10.1, the terminating
Party shall provide the other Party with written notice of its election to terminate this
Agreement, and upon delivery of such written notice in accordance with Section 11.7:  

	 	                 (a)     The
transactions contemplated hereby shall be terminated, without further action           by
any Party;  

	 	                 (b)     Buyer
shall return all documents and copies and other materials received from or           on
behalf of Parent relating to the transactions contemplated hereby, whether so
          obtained before, on or after the execution and delivery of this Agreement, to
          Parent; and  

	 	                 (c)     All
information received or accumulated by Buyer or its representatives relating           to
Parent or any BHG Company shall be treated as “Evaluation Material”          in
accordance with the Confidentiality Agreement (as modified or supplemented by
          this Agreement), which shall remain in full force and effect, as modified or
          supplemented by this Agreement, notwithstanding the termination of this
          Agreement.  

                 10.3     
No Liabilities in Event of Termination. If this Agreement is terminated as
provided in Section 10.1, then this Agreement shall forthwith become wholly void
and of no further force and effect, and there shall be no liability under this Agreement
on the part of Parent or Buyer, except that the respective obligations of Parent or
Buyer, as the case may be, under the last sentence of Section 4.1 and Sections
10.2, 11.1 and 11.8 shall remain in full force and effect, and except
that termination shall not preclude any Party from suing the other Party for breach of
such other Party’s obligations to consummate the transactions contemplated hereby or
impair the right of any Party to compel specific performance by the other Party of its
obligations to consummate the transactions contemplated hereby.  

49 

        11.     
MISCELLANEOUS  

                 11.1    
Publicity. Parent and Buyer agree that, from and after the date of this Agreement,
no public release, written statement or announcement concerning the transactions
contemplated hereby shall be issued or made by or on behalf of any Party without the
prior written consent of the other Party (which consent shall not be unreasonably
withheld, delayed or conditioned), except (a) for the content of any such release or
announcement that is, in the reasonable judgment of the releasing Party, required by Law
or any rule or regulation of any United States securities exchange on which securities of
the releasing Party are listed, which release or announcement shall be made available to
the other Party for its review as soon as reasonably practicable prior to such
disclosure, and (b) that Parent and each BHG Company may make such announcements to their
respective employees. Notwithstanding the foregoing, Parent and Buyer may each issue a
press release at the time of the signing of this Agreement and on the Closing Date,
provided that the Party issuing the release shall allow the other Party reasonable time
to comment on such release in advance of, and approve, such issuance (which approval
shall not be unreasonably withheld, delayed or conditioned). For purposes of subclause
(a) above, Parent shall not be required to provide Buyer with an opportunity to
review a proposed release or announcement if Buyer previously reviewed and approved a
release or announcement that contained a disclosure that is the same as or substantially
similar to the new disclosure to be made by Parent. For purposes of the preceding
sentence, if Buyer does not provide written notice of the results of its review of a
proposed release or announcement by Parent within five (5) Business Days after Parent
delivered the proposed release or announcement to Buyer, then Buyer shall be deemed to
have approved the proposed release or announcement. For the avoidance of doubt, the
preceding two sentences establish certain rights and obligations in respect of Buyer’s
right to review and approve the language in public releases or announcements proposed by
Parent; such sentences do not provide Buyer with the right to approve the actual filing
of any release or announcement proposed by Parent, the content or filing of which is
required by Law or any rule or regulation of any United States securities exchange on
which securities of the releasing Party are listed. Buyer shall not disclose to any third
party, or use for any purpose, the contents of any proposed release or announcement
delivered by Parent to Buyer for Buyer’s review in accordance with subclause (a)
above, unless and until such contents are generally available to the public for a
reason other than a disclosure by Buyer.  

                 11.2    
Assignment. Except to the extent otherwise expressly set forth in this Agreement,
neither Party shall assign, transfer or encumber this Agreement, or its rights or
obligations hereunder, in whole or in part, voluntarily or by operation of Law, without
the prior written consent of the other Party, and any attempted assignment, transfer or
encumbrance without such consent shall be void and without effect.  

                 11.3    
Parties in Interest. This Agreement shall be binding upon, inure to the benefit
of, and be enforceable by the Parties and their respective permitted successors and
permitted assigns.  

                 11.4    
Law Governing Agreement. This Agreement shall be construed and interpreted
according to the internal laws of the State of Wisconsin, excluding any choice of law
rules that may direct the application of the Laws of another jurisdiction. This Agreement
shall be construed and interpreted in accordance with the English language only, which
language shall be controlling in all respects. No translation, if any, of this Agreement
shall have any force or effect in the interpretation hereof or in the determination of
the intent of the Parties hereunder.  

                 11.5    
Amendment. No modifications, amendments or supplements to this Agreement shall be
valid and binding unless set forth in a written agreement executed and delivered by the
Parties.  

50 

                 11.6    
Waiver. No waiver by any Party of any of the provisions of this Agreement shall be
effective unless set forth in a written instrument executed and delivered by the Party so
waiving. Except as provided in the preceding sentence, no action taken pursuant to this
Agreement shall be deemed to constitute a waiver by the Party taking such action of
compliance with any representations, warranties, covenants or agreements contained in
this Agreement and in any documents delivered or to be delivered pursuant to this
Agreement and in connection with the Closing under this Agreement. The waiver by any
Party of a breach of any provision of this Agreement shall not operate or be construed as
a waiver of any subsequent breach.  

                 11.7    
Notice. All notices, requests, demands and other communications under this
Agreement shall be given in writing and shall be personally delivered; sent by telecopier
or facsimile transmission to the number below; or sent to the Parties at their respective
addresses indicated below by registered or certified U.S. mail, return receipt requested
and postage prepaid, or by private overnight mail courier service, as follows:  

	 	(a)	If
to Buyer, to: 

	 	
BHG
Acquisition LLC
82 Devonshire Street

Boston, Massachusetts 02109
Attention:  President
Facsimile:
 (617) 476-4057 

	 	
(with
a copy to) 

	 	
McDermott
Will & Emery LLP
28 State Street
Boston, Massachusetts 02109-1775

Attention:  Mark B. Stein
Facsimile:  (617) 535-3800 

	 	(b)	If
to Parent, to: 

	 	
Banta
Corporation
225 Main Street
Box
8003
Menasha, Wisconsin 54952-3186
Attention:       Ronald D. Kneezel

                 Vice President, General Counsel
and Secretary
Facsimile:       (920) 751-7792 

51 

	 	
(with
a copy to) 

	 	
Foley
& Lardner LLP
777 East Wisconsin Avenue

Milwaukee, Wisconsin  53202-5367
Attention:       Jay O. Rothman
Facsimile:       (414) 297-4900 

or to such other person or address as
any Party shall have specified by notice in writing to the other Party. If personally
delivered, then such communication shall be deemed delivered upon actual receipt; if sent
by telecopier or facsimile transmission, then such communication shall be deemed delivered
the day of the transmission or, if the transmission is not made on a Business Day, the
first Business Day after transmission (and sender shall bear the burden of proof of
delivery); if sent by overnight courier, then such communication shall be deemed delivered
upon receipt; and if sent by U.S. mail, then such communication shall be deemed delivered
as of the date of delivery indicated on the receipt issued by the relevant postal service
or, if the addressee fails or refuses to accept delivery, as of the date of such failure
or refusal. 

                 11.8    
Expenses. Regardless of whether or not the transactions contemplated hereby are
consummated and except to the extent otherwise expressly set forth in this Agreement, all
expenses incurred by the Parties shall be borne solely and entirely by the Party that has
incurred such expenses.  

                 11.9    
Schedules. Any fact or item disclosed on any Schedule to this Agreement shall be
deemed disclosed on all other Schedules to this Agreement to which such fact or item may
reasonably apply so long as such disclosure with respect to such fact or item is in
sufficient detail to enable a reasonable reader to identify its applicability to the
relevant representation and warranty in this Agreement. Any fact or item disclosed on any
Schedule to this Agreement shall not by reason only of such inclusion be deemed to be
material and shall not be employed as a point of reference in determining any standard of
materiality under this Agreement. Prior to the Closing, Parent shall promptly supplement
or amend the Schedules to this Agreement with respect to any matter hereafter arising or
discovered that, if existing or known as of the date of this Agreement, would have been
required to be set forth or described in such Schedules (a “Schedule Update”).
In the case that such Schedule Update would constitute a breach of the corresponding
representation but for such supplement or amendment, (i) if such Schedule Update pertains
to an event or condition occurring or existing prior to the date of this Agreement, Buyer
may (A) terminate this Agreement or (B) proceed to Closing and seek indemnification under
(and subject to the limitations set forth in) Article 8 for the Loss resulting
from such event or condition, or (ii) if such Schedule Update pertains to an event or
condition occurring or arising subsequent to the date of this Agreement, Buyer may (A)
terminate this Agreement or (B) proceed to Closing without the right to seek
indemnification under Article 8.  

                 11.10   
Interpretive Provisions. The term “knowledge” when used in the phrases
“to the knowledge of Parent” or “Parent has no knowledge” or words of
similar import shall mean, and shall be limited to, the actual knowledge of the
individuals listed in Schedule 11.10 and shall include only their actual present
knowledge obtained in their respective capacities with Parent and/or the applicable BHG
Company and, except as otherwise expressly set forth in this Agreement, after due
inquiry. The terms “including” and “include” shall mean “including
without limitation” and “include without limitation,” respectively.  

52 

                 11.11   
Section Headings; Table of Contents. The Section headings contained in this
Agreement and the Table of Contents to this Agreement are for reference purposes only and
shall not affect the meaning or interpretation of this Agreement.  

                 11.12   
Severability. If any provision of this Agreement shall be declared by any court of
competent jurisdiction to be illegal, void or unenforceable, then such provisions shall
be construed so that the remaining provisions of this Agreement shall not be affected,
but shall remain in full force and effect, and any such illegal, void or unenforceable
provisions shall be deemed, without further action on the part of any person or entity,
to be modified, amended and/or limited, but only to the extent necessary to render the
same valid and enforceable in the applicable jurisdiction.  

                 11.13   
No Strict Construction. Notwithstanding the fact that this Agreement has been
drafted or prepared by one of the Parties, each Party confirms that both it and its
counsel have reviewed, negotiated and adopted this Agreement as the joint agreement and
understanding of the Parties. The language used in this Agreement shall be deemed to be
the language chosen by the Parties to express their mutual intent, and no rule of strict
construction shall be applied against any Party.  

                 11.14   
Jurisdiction; Venue; Waiver of Jury Trial. The Parties hereto irrevocably and
unconditionally submit to the exclusive jurisdiction of any Federal court sitting in the
City of Chicago, Illinois over any suit, action or proceeding arising out of or relating
to this Agreement. To the extent federal jurisdiction is lacking for any particular
claim, the Parties hereto will accept the jurisdiction of any State court sitting in the
City of Chicago, Illinois. Without limitation of other means of service, the Parties
hereto agree that service of any process, summons, notice or document with respect to any
action, suit or proceeding may be served on it in accordance with the notice provisions
set forth in Section 11.7. The Parties hereto irrevocably and unconditionally
waive any objection to the laying of venue of any such suit, action or proceeding brought
in any such court and any claim that such suit, action or proceeding brought in any such
court has been brought in an inconvenient forum. The Parties hereto each agrees that a
final judgment in any such suit, action or proceeding brought in an appropriate court
pursuant to this Section 11.14shall be conclusive and binding upon the Parties
hereto, as the case may be, and may be enforced in any other courts to whose jurisdiction
the Parties hereto, as the case may be, is or may be subject, by suit upon such judgment.
The Parties hereto hereby waive their respectiverights to a trial by jury of any
claim or cause of action arising out of or relating to Buyer’s investigation of the
BHG Companies, the Business, the Purchased Assets, this Agreement, the negotiation and
execution of this Agreement or any Contract entered into pursuant hereto (except to the
extent otherwise expressly set forth therein) or the performance by the Parties of its or
their terms in any suit, action or proceeding of any type brought by one Party against
the other, regardless of the basis of the claim or cause of action.  

                 11.15   
Bulk Transfer Laws. Each Party hereby waives compliance by the other Parties with
the provisions of the bulk transfer Law, bulk sales Law or similar Law of any
jurisdiction with respect to the transactions contemplated by this Agreement.  

53 

                 11.16   
Entire Agreement. This Agreement (including the Schedules and Exhibits to this
Agreement) and the Confidentiality Agreement constitute the entire agreement between the
Parties, and supersede all prior agreements and understandings, oral and written, between
the Parties, with respect to the subject matter hereof; there are no conditions to this
Agreement that are not expressly stated in this Agreement.  

                 11.17   
Counterparts. This Agreement may be executed by facsimile signatures and in one or
more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.  

                 11.18   
   Definitions.  For purposes of this Agreement, the term: 

                               “BHG
Companies” shall have the meaning set forth in the recitals of this Agreement.  

                               “Adjusted
Current Assets” shall mean all of the current assets of the BHG Companies as
reflected on the Recent Balance Sheet, the Estimated Closing Statement, the Preliminary
Closing Statement or the Final Closing Statement, as the case may be, but excluding (a)
all receivables payable to Company by Parent or any Affiliate of Parent other than
Subsidiary, (b) all cash, (c) all notes receivable and (d) all prepaid items that
constitute Excluded Assets.  

                               “Adjusted
Current Liabilities” shall mean all of the current liabilities of the BHG
Companies as reflected on the Recent Balance Sheet, the Estimated Closing Statement, the
Preliminary Closing Statement or the Final Closing Statement, as the case may be, but
excluding (i) all liabilities payable by Subsidiary to Parent or any Affiliate of Parent,
(ii) all obligations of Company relating to the current portion of all indebtedness for
borrowed money, (iii) all obligations for Taxes, (iv) the Retained Workers’Compensation
and (v) the Chemed Liability (as it relates to the Chemed Liability, to the extent
reflected on the Recent Balance Sheet).  

                               “Affiliate”shall
have the meaning ascribed to such term in Rule 12b-2 of the Securities Exchange Act of
1934, as amended, and the rules and regulations promulgated thereunder.  

                               “Agreement”shall
have the meaning set forth in the preamble of this Agreement and Plan of Merger. 

                               “Alternative
Financing” shall have the meaning set forth in Section 4.3(b).  

                               “Assumed
Contracts” shall have the meaning set forth in Section 1.1(d).  

                               “Assumed
Liabilities”shall have the meaning set forth in Section 1.3.  

                               “Balance
Sheet Dispute” shall have the meaning set forth in Section 2.3(e)(i).  

54 

                               “Banta
Turnkey Affiliates” shall mean (i) Banta Global Turnkey, Ltd., a Texas partnership; (ii)     Banta
Global Turnkey B.V., a Netherlands company; (iii) Banta Global Turnkey Ltd., an
Ireland company; (iv) Banta Global Turnkey Ltd., a Scotland company; (v) Banta
Global Turnkey (Singapore) Pte. Ltd., a Singapore company; (vi) Banta Global
Turnkey — Guadalajara Sde RL de CV, a Mexican company; and (vii) Banta
Global Turnkey Kft, a Hungarian company.  

                               “Beneficial
Rights” shall have the meaning set forth in Section 1.5.  

                               “Benefit
Plans” shall have the meaning set forth in Section 3.1(q)(i).  

                               “Business”shall
have the meaning set forth in the recitals of this Agreement.  

                               “Business
Day” shall mean any day other than Saturday, Sunday or other day on which
commercial banks in the State of New York are authorized or required by Law to be closed.  

                               “Business
Permits” shall have the meaning set forth in Section 1.1(e).  

                               “Buyer”shall
have the meaning set forth in the preamble of this Agreement.  

                               “Buyer
401(k) Plan” shall have the meaning set forth in Section 5.2(e).  

                               “Buyer
Indemnified Party” shall have the meaning set forth in Section 8.1(a).  

                               “CERCLA”shall
mean the federal Comprehensive Environmental Response, Compensation and Liability Act, 42
U.S.C. §§ 9601 et seq., as amended.  

                               “Chemed
Agreement” shall have the meaning set forth in the recitals of this Agreement.  

                               “Chemed
Liability” shall mean any amount that Parent is required to pay to Chemed
Corporation and/or OCR Holding Company under the Chemed Agreement.  

                               “Closing”shall
have the meaning set forth in Section 9.1.  

                               “Closing
Date” shall have the meaning set forth in Section 9.1.  

                               “Closing
Statement Objection” shall have the meaning set forth in Section 2.3(b).  

                               “COBRA”shall
have the meaning set forth in Section 5.2(b).  

                               “Code”shall
mean the Internal Revenue Code of 1986, as amended, and the regulations promulgated
thereunder.  

55 

                               “Commitment
Letter” shall have the meaning set forth in Section 3.2(e).  

                               “Company”shall
have the meaning set forth in the preamble of this Agreement.  

                               “Competition
Law” shall mean any federal, state and foreign Law or Order that is designed or
intended to prohibit, restrict or regulate actions having the purpose or effect of
monopolization or restraint of trade or lessening of competition, including the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.  

                               “Competitor”shall
mean any person or entity that now or hereafter engages in or attempts to engage in any
aspect of the Business as conducted by Company as of the Closing Date.  

                               “Confidential
Information” shall mean all ideas, information, knowledge and discoveries that are
not generally known in the trade or industry and about which Parent has knowledge solely
as a result of its participation in, or beneficial ownership of, any BHG Company.
Notwithstanding the foregoing, “Confidential Information” shall not mean or
include any idea, information, knowledge or discovery that is or becomes generally
available to the public other than as a result of a disclosure by Parent or its
Affiliates after the Closing Date.  

                               “Confidentiality
Agreement” shall have the meaning set forth in Section 4.1.  

                               “Contract”shall
mean any written indenture, mortgage, deed of trust, lease, licensing agreement,
contract, instrument or other agreement.  

                               “CPA
Firm” shall have the meaning set forth in Section 2.3(d)(ii).  

                               “Disposal”shall
have the meaning as set forth in CERCLA.  

                               “DOL”shall
have the meaning set forth in Section 3.1(q)(iii)(B).  

                               “Effective
Time” shall have the meaning set forth in Section 1.2.  

                               “Employee
Agreement” shall have the meaning set forth in Section 3.1(q)(i).  

                               “Environmental
Law” shall mean any Legal Requirement existing as of the date hereof related to
the protection of the environment.  

                               “ERISA”shall
mean the Employee Retirement Income Security Act of 1974, as amended.  

                               “ERISA
Affiliate” shall mean (i) any entity that is a member of a controlled group with
Company, as described in Code Section 414(b), or that is under common control with
Company, for the purposes of Code Section 414(c); (ii) any entity that is part of an
affiliated service group with Company as described in Code Section 414(m); or (iii) any
entity that is required to be aggregated with Company pursuant to Code Section 414(o).  

56 

                               “Estimated
Closing Statement” shall have the meaning set forth in Section 2.3(a).  

                               “Evaluation
Material”shall have the meaning set forth in Section 4.1.  

                               “Environmental
Action” shall mean any pollution, threat to the environment, or exposure to, or
manufacture, processing, distribution, use, treatment, generation, existence, transport,
handling, holding, removal, abatement, remediation, recycling, reclamation, management,
presence, disposal, emission, discharge, storage, escape, seepage, leakage or release of,
or threatened release of, any Hazardous Substances in any location.  

                               “Excluded
Assets” shall have the meaning set forth in Section 1.2.  

                               “Final
Closing Statement” shall mean: (i) the Preliminary Closing Statement if (A) no
Closing Statement Objection is delivered to Parent during the thirty (30) calendar day
period specified in Section 2.3(c) or (B) Parent and Buyer so agree in writing;
(ii) the Preliminary Closing Statement, adjusted in accordance with the Closing Statement
Objection, if Parent does not provide Buyer with a written notice of disagreement in
response to the Closing Statement Objection within the thirty (30) calendar day period
specified in Section 2.3(d); or (iii) the Preliminary Closing Statement, as
adjusted by (A) the written agreement of Parent and Buyer and/or (B) the CPA Firm in
accordance with Section 2.3(e)(ii).  

                               “Financial
Statements” shall have the meaning set forth in Section 3.1(f).  

                               “Former
Employee” shall mean an individual other than a Transferred Employee who has
worked for Company or Subsidiary at any time beforethe Closing Date.  

                               “GAAP”shall
mean generally accepted accounting principles in the United States.  

                               “Governmental
Entity” shall mean any court, arbitrator, department, commission, board, bureau,
agency, authority, instrumentality or other body, whether federal, state, local, foreign
or other.  

                               “Hazardous
Material” means any pollutant, contaminant, toxic substance, hazardous waste,
hazardous material, or hazardous substance, or any oil, petroleum, or petroleum product,
which is or becomes prior to the Closing regulated under, or defined as a “hazardous
substance,” “pollutant,” “contaminant,” “toxic chemical,” “hazardous
material,” “toxic substance” or “hazardous chemical” under any
Environmental Law, including: (i) CERCLA; (ii) the Emergency Planning and Community
Right-to-Know Act, 42 U.S.C. Section 11001 etseq.; (iii) the
Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, etseq.;
(iv) the Toxic Substances Control Act, 15 U.S.C. Section 2601 etseq.;
(v) the Solid Waste Disposal Act, 42 U.S.C. Section 6901 et seq.; (vi) regulations
promulgated under any of the above statutes; or (vii) any other applicable federal, state
or local statute, ordinance, rule or regulation that has a scope or purpose similar to
those identified above. as amended, or any other federal, state, local or foreign
environmental law, regulation, ordinance, rule, or by law, existing as of the date
hereof.  

57 

                               “HIPPA”shall
have the meaning set forth in Section 5.2(b).  

                               “Indemnification
Notice”shall have the meaning set forth in Section 8.3.  

                               “Indemnified
Party” shall have the meaning set forth in Section 8.3.  

                               “Indemnifying
Party” shall have the meaning set forth in Section 8.3.  

                               “Information”shall
have the meaning set forth in Section 3.1(m)(vi).  

                               “Intellectual
Property Rights” shall have the meaning set forth in Section 3.1(r).  

                               “Inventory”shall
mean all inventories of raw materials, work in process and finished goods (including all
such in transit), and service and repair parts, supplies and components held for sale,
together with related packaging materials.  

                               “Laws”shall
mean any federal, state, local, foreign or other statute, law, ordinance, rule or
regulation.  

                               “Legal
Requirement” shall mean any applicable federal, state, local, municipal, foreign,
international, multinational, or other constitution, law, ordinance, by-law, principle of
common law, regulation, statute, or treaty.  

                               “Liability”or
“Liabilities” shall mean and include any direct or indirect liability or
obligation that a person owes to or at the behest of any other party, fixed or unfixed,
known or unknown, asserted or unasserted, liquidated or unliquidated, secured or
unsecured, whether called a liability, obligation, indebtedness, guaranty, endorsement,
claim or responsibility or otherwise.  

                               “Lien”shall
mean any mortgage, lien, pledge, charge, security interest or encumbrance of any kind.  

                               “Loss”
shall mean (i) all debts, liabilities and obligations owed to or at the behest of any
other person or entity; (ii) all losses, damages, judgments, awards, penalties and
settlements; (iii) all demands, claims, suits, actions, causes of action, proceedings and
assessments, whether or not ultimately determined to be valid; and (iv) all costs and
expenses (including interest (but excluding prejudgment interest in any litigated or
arbitrated matter other than that payable to a third party), court costs and reasonable
fees and expenses of attorneys and expert witnesses) of investigating, defending or
asserting any of the foregoing but shall exclude, in each of subclauses (i) through
(iv) above, incidental damages, consequential damages, lost profits, damages based
upon diminution in the value of any BHG Company, the Purchased Assets, the Subsidiary
Shares or the Business or any multiple thereof, punitive damages and damages arising from
changes in any Law occurring after the date of this Agreement. Further, in calculating
Losses, the materiality qualifiers set forth in any representations, warranties, or any
updated disclosure provided with respect thereto between execution of this Agreement and
Closing, or any other sections of this Agreement, shall not be included for the purposes
of such calculations.  

58 

                               “Material
Adverse Effect” shall mean a material adverse effect on the results of
operations or financial condition of Company and Subsidiary taken as a whole.  

                               “Material
Contract” shall have the meaning set forth in Section 3.1(p).  

                               “Net
Working Capital” shall mean the amount in U.S. Dollars by which the aggregate
book value of the Adjusted Current Assets exceeds the aggregate book value of the
Adjusted Current Liabilities, in each case, as reflected on the Recent Balance Sheet, the
Estimated Closing Statement, the Preliminary Closing Statement or the Final Closing
Statement, as the case may be, all in accordance with Section 2.3.  

                               “Orders”shall
mean any order, writ, injunction, judgment, plan or decree of any Governmental
Entity. 

                               “Parent” shall
have the meaning set forth in the preamble of this Agreement.  

                               “Parent
401(k) Plan” shall have the meaning set forth in Section 5.2(e).  

                               “Parent
Pension Plan” shall have the meaning set forth in Section 5.2(d).  

                               “Party”or
“Parties” shall mean Parent, Company and/or Buyer, as the case may be.  

                               “PBGC”shall
have the meaning set forth in Section 3.1(q)(iii)(B).  

                               “Permitted
Liens” shall mean (a) Liens for current Taxes and assessments not yet due and
payable or being contested in good faith by appropriate proceedings, (b) Liens as
reflected in title records relating to real property owned or leased by Company, (c)
Liens that, individually or in the aggregate, do not materially detract from the value,
or impair in any material manner the use, of the properties or assets subject thereto and
(d) those Liens set forth in Schedule 3.1(n).  

                               “Person”shall
mean any individual, corporation, partnership, limited liability company, joint venture,
trust or unincorporated organization or any government or any agency or political
subdivision thereof.  

                               “Preliminary
Closing Statement” shall have the meaning set forth in Section 2.3(a).  

                               “Products”shall
mean all products currently or at any time previously manufactured by  Company. 

                               “Purchased
Assets” shall have the meaning set forth in Section 1.1.  

59 

                               “Purchase
Price” shall have the meaning set forth in Section 2.1.  

                               “Purchase
Price Allocation” shall have the meaning set forth in Section 5.1(d).  

                               “Real
Property” shall have the meaning set forth in Section 3.1(o).  

                               “Recent
Balance Sheet” shall have the meaning set forth in Section 3.1(f).  

                               “Release”shall
have the meaning set forth in CERCLA.  

                               “Retained
Workers’ Compensation” shall mean all Liabilities related to workers’compensation
obligations of Parent pursuant to Section 5.2(j).  

                               “Retiree
Health Plan” shall have the meaning set forth in Section 5.2(c).  

                               “Retiree
Health Transferred Employee” shall have the meaning set forth in Section
5.2(c).  

                               “Rialto
Employees” shall mean those employees of Company listed on Exhibit 11.18.  

                               “Schedule
Update” shall have the meaning set forth in Section 11.9.  

                               “Services
Agreement”shall have the meaning set forth in Section 9.2(e).  

                               “Straddle
Period” shall have the meaning set forth in Section 5.1(a)(iii).  

                               “Subsidiary”shall
have the meaning set forth in the recitals of this Agreement.  

                               “Subsidiary
Shares” shall have the meaning set forth in Section 3.1(c)(ii).  

                               “Surviving
Representations” shall have the meaning set forth in Section 3.3.  

                               “Taxes”shall
mean any and all federal, state, local, foreign or other taxes of any kind (together with
any and all interest, penalties, additions to tax and additional amounts imposed with
respect thereto) imposed by any taxing authority, including taxes or other charges on or
with respect to income, franchises, windfall or other profits, gross receipts, property,
sales, use, capital stock, payroll, employment, social security, workers’compensation,
unemployment compensation, or net worth, and taxes or other charges in the nature of
excise, withholding, ad valorem or value added including any interest, penalty or
addition thereto, whether or not disputed.  

                               “Tax
Return” shall mean any return, declaration, report, estimate, claim for refund,
or information return or statement relating to, or required to be filed in connection
with, any Taxes, including any schedule, form, attachment or amendment.  

60 

                               “Third
Party Claim” shall have the meaning set forth in Section 8.4(a).  

                               “Threat
of Release” shall mean a substantial likelihood of a Release which requires
action under Environmental Law to prevent or mitigate damage to the environment which may
result from such Release.  

                               “Transaction
Changes” shall have the meaning set forth in Section 3.1(h).  

                               “Transferred
Employees”shall have the meaning set forth in Section 5.2(a).  

                               “Transition
Services Agreement” shall have the meaning set forth in Section 9.2(d).  

                               “Turnkey
Services” shall mean any materials management or assembly (including kit
assembly, product configuration and packaging assembly) services, or the provision of
testing, quality assurance, logistics, order fulfillment, distribution or sourcing
services in connection with any such materials management or assembly services.  

                               “USERRA”shall
have the meaning set forth in Section 5.2(j).  

                               “Utility
Services” shall have the meaning set forth in Section 3.1(o)(v).  

                               “Working
Capital Target” shall have the meaning set forth in Section 2.1.  

Where any group or category of items
or matters is defined collectively in the plural number, any item or matter within such
definition may be referred to using such defined term in the singular number, and vice
versa.  

[The next page is the
signature page.]  

61 

        IN
WITNESS WHEREOF, the Parties have caused their duly authorized officers to execute and
deliver this Asset Purchase Agreement as of the day and year first written above. 

		BANTA CORPORATION

                                                    ("Parent")

		By:   	/s/  Ronald D. Kneezel 

			Ronald D. Kneezel

Vice President, General Counsel and Secretary

		BANTA HEALTHCARE GROUP, LTD.

                                                    ("Company")

		By:   	/s/  Ronald D. Kneezel 

			Ronald D. Kneezel

Vice President, General Counsel and Secretary

		BHG ACQUISITION LLC

                                                    ("Buyer")

		By:   	/s/  David B. Wilson 

			David B. Wilson

President

62<PAGE>
                                                                     EXHIBIT 4.9

                         ECU Facility Agreement
                         MSV Resources Inc.
                         Campbell Resources Inc.
                         Meston Resources Inc.
                         RMB International (Dublin) Limited

                         and

                         RMB RESOURCES LIMITED

                         (FREEHILLS LOGO)

                         QV.1 Building 250 St Georges Terrace Perth Western
                         Australia 6000 Australia
                         Telephone +61 8 9211 7777 Facsimile +61 8 9211 7878
                         www.freehills.com DX 104 Perth

                         SYDNEY MELBOURNE PERTH BRISBANE SINGAPORE
                         Correspondent Offices HANOI HO CHI MINH CITY JAKARTA
                         KUALA LUMPUR

                         Reference DAW:HTB:80736973

<PAGE>

TABLE OF CONTENTS

<TABLE>
<CAPTION>

Clause                                                                                             Page
                                                                                                   ----

<S>                                                                                                <C>
1       DEFINITIONS AND INTERPRETATION                                                               1
1.1      Definitions                                                                                 1
1.2      Interpretation                                                                             15
1.3      Accounting Principles                                                                      16

2       CONDITIONS PRECEDENT                                                                        16
2.1      Conditions Precedent to issue of first ECU                                                 16
2.2      Conditions Precedent to the issue of all ECUs                                              18
2.3      Waiver of Conditions Precedent                                                             18
2.4      Certified Copies                                                                           18

3       ECU Facility                                                                                18
3.1      ECU Facility                                                                               18
3.2      ECU Notice                                                                                 19
3.3      Provision of Issue Price                                                                   19
3.4      Use of proceeds                                                                            19

4       CONVERSION                                                                                  19
4.1      Conversion by Holder                                                                       19
4.2      Early Redemption of ECUs by MSV                                                            20
4.3      Interest Conversion                                                                        21
4.4      Issue of Shares                                                                            21
4.5      Current Market Price                                                                       22
4.6      Conversion Sum                                                                             22
4.7      Restrictions on Conversion and Redemption                                                  23
4.8      Conversion in excess of Allocated Number of Shares                                         23
4.9      Ranking of Shares                                                                          24

5       BONUS ISSUES, RECONSTRUCTIONS, ETC                                                          24
5.1      Bonus Issues                                                                               24
5.2      Reconstruction of Capital                                                                  24
5.3      Offers to holders of Shares                                                                24
5.4      ECUs to survive merger etc                                                                 25
5.5      Takeovers                                                                                  25
5.6      Issue of shares under Stock Incentive Plans                                                26
5.7      Approval of the Exchange                                                                   26

6       ASSIGNMENT                                                                                  26
6.1      Transfer of ECUs                                                                           26
6.2      Assignment by a Transaction Party                                                          26
6.3      Assignment by the Agent                                                                    27
6.4      Participation permitted                                                                    27
6.5      Additional costs                                                                           27
6.6      Lending Office                                                                             27

</TABLE>

                                       1
<PAGE>

<TABLE>
<CAPTION>

<S>                                                                                                  <C>
6.7      Disclosure                                                                                  27

7       REPAYMENT OF ISSUE PRICE, INTEREST AND RELATED MATTERS                                       27
7.1      Repayment of Issue Price and interest                                                       27
7.2      Interest                                                                                    28
7.3      Calculation of per annum interest rate                                                      28
7.4      Maximum interest payable                                                                    28
7.5      Payment of amounts - general                                                                29
7.6      Late payments                                                                               29
7.7      Place of payments                                                                           29
7.8      Taxes                                                                                       30
7.9      Return of ECU Certificates                                                                  30

8       REPRESENTATIONS AND WARRANTIES                                                               30
8.1      Representations and warranties                                                              30
8.2      Survival and Repetition                                                                     34
8.3      Reliance                                                                                    34
8.4      Term of representations and warranties                                                      34

9       UNDERTAKINGS                                                                                 34
9.1      Project related undertakings by MSV and the Guarantors                                      34
9.2      General undertakings by MSV and the Guarantors                                              37
9.3      Reporting                                                                                   39
9.4      Undertaking by Campbell in relation to Shares, listing, Securities Laws, etc                40
9.5      Post-closing registrations and other obligations                                            41
9.6      Term of covenants                                                                           42

10      EVENTS OF DEFAULT                                                                            42
10.1     Terms of Default                                                                            42
10.2     Effect of Default                                                                           44
10.3     Indemnity by MSV and the Guarantors                                                         44
10.4     Review events                                                                               44
10.5     Undertakings by Finance Parties on realization of Security                                  44

11      ILLEGALITY AND INCREASED COSTS                                                               45
11.1     Illegality                                                                                  45
11.2     Increased Cost                                                                              45

12      INDEMNITIES                                                                                  46
12.1     General indemnity                                                                           46
12.2     Foreign currency indemnity                                                                  46
12.3     Conversion of currencies                                                                    47
12.4     Continuing indemnities and evidence of loss                                                 47

13      FEES, TAX, COSTS AND EXPENSES                                                                48
13.1     Arrangement Fee                                                                             48
13.2     Commitment fee                                                                              48
13.3     Tax                                                                                         48

</TABLE>

                                       2
<PAGE>

<TABLE>
<CAPTION>

<S>                                                                                                  <C>
13.4     Costs and expenses                                                                          48

14      SAVING PROVISIONS                                                                            49
14.1     No merger of security                                                                       49
14.2     Exclusion of moratorium                                                                     49
14.3     Powers                                                                                      49
14.4     Consents                                                                                    49
14.5     Principal obligations                                                                       49
14.6     Non-avoidance                                                                               50
14.7     Set-off authorised                                                                          50
14.8     Certificates of Agent and Holder                                                            50
14.9     No reliance or other obligations and risk assumption                                        50
14.10    Attorney                                                                                    51
14.11    Opinion of the Agent and Holder                                                             51

15      GENERAL                                                                                      51
15.1     Confidential information                                                                    51
15.2     Performance by the Agent of obligations                                                     52
15.3     Transaction Parties to bear cost                                                            52
15.4     Notices                                                                                     52
15.5     Governing law and jurisdiction                                                              53
15.6     Prohibition and enforceability                                                              53
15.7     Waiver and variation                                                                        54
15.8     Attorneys                                                                                   54
15.9     Counterparts                                                                                54
15.10    Language                                                                                    54
15.11    Superior force                                                                              54

16      PROVISIONS IN RELATION TO THE AGENT                                                          54
16.1     Agent not liable                                                                            54
16.2     Agent indemnity                                                                             55
16.3     Quebec Security                                                                             56

</TABLE>

                                       3
<PAGE>

THIS AGREEMENT

                is made on                   2004 between the following parties:

                1.      MSV RESOURCES INC.
                        a company incorporated under the laws of the Province of
                        Quebec of 1155, University Street, Suite 1405 Montreal
                        H3B 3A7
                        Quebec, Canada
                        (MSV)

                2.      CAMPBELL RESOURCES INC.
                        a corporation incorporated under the federal laws of
                        Canada
                        (CAMPBELL)

                        MESTON RESOURCES INC.
                        a company incorporated under the laws of the Province of
                        Quebec
                        (MESTON)
                        both of 1155, University Street, Suite
                        1405 Montreal H3B 3A7 Quebec, Canada

                        (each a GUARANTOR, and together the GUARANTORS)

                4.      RMB INTERNATIONAL (DUBLIN) LIMITED
                        of 158 Shelbourne Road
                        Dublin 4 Ireland
                        (RMBI)

                5.      RMB RESOURCES LIMITED
                        a company incorporated under the laws of the United
                        Kingdom of Two London Bridge
                        London SE1 9RA
                        United Kingdom
                        (AGENT)

RECITAL
                MSV, the Guarantors, RMBI and the Agent have agreed to enter
                into this agreement to record the terms on which RMBI has agreed
                to provide to MSV a facility for up to 8 exchangeable capital
                units of C$500,000 each.

THE PARTIES AGREE

1        DEFINITIONS AND INTERPRETATION

         1.1      DEFINITIONS
                  In this agreement, unless the context otherwise
                  requires:

                  ALLOCATED NUMBER OF SHARES means:

                  (a)      7,834,074 Shares; less

                                       1
<PAGE>

                  (b)      the number of Shares that have been issued as a
                           result of a Conversion under the terms of this
                           agreement;

                  AMOUNT OWING means the Principal Conversion Amount and all
                  interest payable under this agreement which has not been
                  Converted or paid;

                  ARRANGEMENT FEE means C$200,000;

                  AURAMET TRANSACTION means the transaction set out in the
                  agreement entitled "Copper, Silver and Gold Purchase
                  Agreement" between Meston, Campbell and Auramet Trading, LLC
                  and the documents referred to in that agreement;

                  AUTHORISATION includes any consent, registration, filing,
                  agreement, certificate, licence, approval, permit, authority
                  or exemption from, by or with a Governmental Agency;

                  AUTHORISED OFFICERS means in relation to:

                  (a)      a Transaction Party, the President, the Vice
                           President, a director or a company secretary for the
                           time being;

                  (b)      a Holder, the Agent or RMBI, a director, an associate
                           director, a company secretary, a president, a
                           vice-president, an officer whose title contains the
                           word "director", "manager", "executive", "president"
                           or "vice-president" or a person performing the
                           functions of any of them,

                  or in either case a person appointed by a party to act as an
                  Authorised Officer for the purposes of the Facility or the
                  Transaction Documents;

                  AVAILABILITY PERIOD means the period commencing on the date of
                  satisfaction of the conditions precedent in clause 2.1 and
                  ending on the earlier of:

                  (a)      the First Conversion Date; and

                  (b)      the date the first Redemption Notice is given;

                  BONUS ISSUE means an issue of shares by way of capitalisation
                  of profits, reserves, share premium account or capital
                  redemption reserve fund or in any other manner;

                  BONUS SHARES means Shares issued under a Bonus Issue;

                  BUSINESS DAY means a day on which banks are open for general
                  banking business in London, Montreal, Toronto and Dublin
                  excluding Saturdays, Sundays and public holidays;

                  C$ and CANADIAN DOLLARS means the lawful currency of Canada;

                  CAMPBELL GROUP means Campbell, MSV, Meston and Corporation
                  Copper Rand Inc.;

                  CAMPBELL GROUP MEMBER means any member of the Campbell Group;

                  CAMPBELL HYPOTHEC means the hypothec granted by Campbell in
                  favour of the Agent and RMBI dated on or about the date of
                  this agreement;

                  CAMPBELL MILL means the gold processing plant owned by Meston
                  which processes ore from the Joe Mann Mine and is, among other
                  things, the subject of the Meston Hypothec;

                  CERTIFICATE means a share certificate or other document (which
                  conforms with the Listing Rules) evidencing the legal
                  ownership of a share listed on the Exchange;

                                       2
<PAGE>

                  COLLATERAL SECURITY means any present or future Encumbrance,
                  Surety Obligation or other document or agreement created or
                  entered into by MSV, another Transaction Party or another
                  person as security for the payment of the Amount Owing;

                  COMMITMENT means the obligation of RMBI to subscribe for up to
                  8 ECUs, as that obligation may be reduced or cancelled in
                  accordance with this agreement;

                  CONSTITUENT DOCUMENTS in relation to a company, means the
                  memorandum and articles of association or other constituent
                  documents of that company;

                  CONTROL in relation to Campbell includes having direct or
                  indirect power, by any means at all:

                  (a)      to control 20% or more of the total votes which might
                           be cast at its general meeting;

                  (b)      to elect or appoint a majority of its board of
                           directors; or

                  (c)      to direct its management and policies;

                  CONVENTIONAL SECURITY means a conventional hypothec, a
                  resolutory right, a right of redemption, a reservation of
                  ownership, a trust and any security device or other real
                  right, whether or not capable of registration, granted by
                  agreement for the purpose of securing the performance of an
                  obligation;

                  CONVERSION means conversion of the Issue Price of an ECU, or
                  any interest on that Issue Price, to Shares, in accordance
                  with the terms of this agreement, and CONVERT and like words
                  have corresponding meanings;

                  CONVERSION DATE means the date on which a Holder is to Convert
                  the Issue Price of an ECU, or any interest on that Issue
                  Price, to Shares in accordance with the terms of this
                  agreement, being the date nominated in a Conversion Notice
                  given under clauses 4.1,4.2 or 7.2(b)(l);

                  CONVERSION NOTICE means a notice substantially in the form
                  attached to the ECU Certificate;

                  CONVERSION PERIOD means the period beginning on the First
                  Conversion Date and ending on the Final Conversion Date;

                  CONVERSION PRICE means C$0,574 per Share;

                  CONVERSION SUM means the amount determined in accordance with
                  clause 4.6;

                  COPPER RAND PROJECT means the gold and copper project, located
                  in the McKenzie Township in the Province of Quebec, and
                  includes without limitation, all mining rights, all rights
                  with respect to the areas the subject of those mining rights,
                  Product, Authorisations, Environmental Approvals, mining
                  information, buildings, works, workshops, facilities,
                  improvements, structures, systems, fixtures, plant, machinery,
                  tools and other movable property at any time used or intended
                  for use in connection with or incidental to the exploration,
                  mining, storage, transporting, processing and marketing of
                  Product, and all associated facilities and infrastructure;

                  CURRENT MARKET PRICE means on a Conversion Date, the price
                  determined in accordance with clause 4.5;

                                       3
<PAGE>

                  DECEMBER 2002 AGREEMENT means a royalty agreement dated 30
                  December 2002 (as amended by a termination agreement dated 1
                  January 2003 between Meston, MSV, Campbell, Promittere and
                  others) between Meston, MSV, Campbell, Promittere and others
                  which came into force on 31 December 2002, and which is
                  referred to as the December 2002 Agreement in the MSV Titles
                  Opinion and the Meston Titles Opinion;

                  DEFAULT means any event of default described in part 10;

                  DISCLOSURE DOCUMENTS means, in respect of Campbell, its:

                  (a)      Annual Report for the fiscal year ended 31 December
                           2003;

                  (b)      Management Proxy Circular used in connection with the
                           solicitation of proxies from the shareholders of
                           Campbell in connection with the annual and special
                           meeting of the shareholders of Campbell held on 12
                           May 2004;

                  (c)      Annual Report on Form 20-F for the fiscal year ended
                           31 December 2003 including the documents incorporated
                           by reference;

                  (d)      the consolidated audited financial statements of
                           Campbell for the fiscal years ended 31 December 2003
                           and 2002;

                  (e)      the interim unaudited consolidated financial
                           statements of Campbell as at 30 June 2004 and 2003
                           and for the three month and six month periods
                           preceding those dates, together with the interim
                           Management's Discussion and Analysis which is
                           attached;

                  (f)      Management's Discussion and Analysis of Operating
                           Results for the year ended 31 December 2003; and

                  (g)      unaudited non-consolidated financial statements of
                           all Campbell Group Members for the fiscal year ended
                           31 December 2003;

                  DOCUMENTS means the Project Documents and the Transaction
                  Documents;

                  ECU means an exchangeable capital unit of C$500,000 issued on
                  the terms set out in this agreement;

                  ECU CERTIFICATE means a certificate substantially in the form
                  of schedule 2;

                  ECU NOTICE means a notice substantially in the form of
                  schedule 1;

                  ENCUMBRANCE means a legal cause of preference, a dismemberment
                  of the right of ownership, a special mode of ownership, a
                  restriction on the right to dispose or an interest or power:

                  (a)      reserved in an interest in any asset including any
                           retention of title: or

                  (b)      created or otherwise arising in any interest in any
                           asset under a Conventional Security, mortgage,
                           charge, bill of sale, lien, pledge, trust or power,

                  by way of security for the payment of a debt, another monetary
                  obligation or the performance of another obligation, and
                  includes an agreement to grant or create any of the above;

                  ENVIRONMENTAL APPROVALS means all permits, consents,
                  approvals, licences, certificates or other authorisations of
                  any kind required by an Environmental Law;

                                       4
<PAGE>

                  ENVIRONMENTAL LAW means any Law concerning environmental
                  matters, and includes but is not limited to Laws concerning
                  land use, development, pollution, restoration, waste disposal,
                  toxic and hazardous substances, conservation of natural or
                  cultural resources and resource allocation including any Law
                  relating to exploration for, and development or exploitation
                  of, any natural resource;

                  ENVIRONMENTAL LIABILITIES means any obligation, requirement,
                  expense, penalty or fine under an Environmental Law which
                  would or could be imposed on a Campbell Group Member, or an
                  Authorised Officer or employee of a Campbell Group Member, or
                  any occupier of the Project Area or other area now or in the
                  future owned or occupied by a Campbell Group Member;

                  EQUIPMENT FINANCE means Financial Indebtedness used by a
                  Transaction Party for the purpose of acquiring Movable Plant
                  and Equipment;

                  EXCHANGE means The Toronto Stock Exchange or, if the Shares
                  are not listed on that stock exchange, the stock exchange on
                  which the Shares are listed as may be selected by Campbell and
                  approved by the Finance Parties;

                  EXCHANGE APPROVAL means the approval of the Exchange in
                  connection with the transactions contemplated in the
                  Transaction Documents, including the issuance of the ECUs, the
                  issuance of Shares on Conversion and the listing of the Shares
                  required to be available for Conversion;

                  EXCHANGE BUSINESS DAYS means days on which trading of
                  securities takes place on the Exchange;

                  FACILITY means the ECU facility provided to MSV by RMBI in
                  accordance with part 3;

                  FINAL CONVERSION DATE means the date 24 months from the first
                  Issue Date;

                  FINANCE PARTY means either the Agent, RMBI or any other Holder
                  and FINANCE PARTIES means both of them;

                  FINANCIAL INDEBTEDNESS means any debt or other monetary
                  liability in respect of moneys borrowed or raised or financial
                  accommodation including, but not limited to, under or in
                  respect of any:

                  (a)      bill, bond, debenture, note, letter of credit, bank
                           guarantee or similar instrument;

                  (b)      acceptance, endorsement or discounting arrangement;

                  (c)      Surety Obligation;

                  (d)      finance lease;

                  (e)      deferred purchase price (for more than 90 days) of
                           any asset or service;

                  (f)      obligation to deliver goods or provide services paid
                           for in advance by any financier or in relation to
                           another financing transaction; or

                  (g)      amount of capital and premium payable on or in
                           connection with the redemption of preference shares
                           or an amount of purchase price payable for or in
                           connection with the acquisition of redeemable
                           preference shares,

                  and irrespective of whether the debt or liability:

                  (h)      is present or future;

                                       5
<PAGE>

                  (i)      is actual, prospective, contingent or otherwise;

                  (j)      is at any time ascertained or unascertained;

                  (k)      is owed or incurred alone or severally or jointly or
                           both with another person; or

                  (l)      is a combination of the above;

                  FIRST CONVERSION DATE means the date 6 months from the first
                  Issue Date;

                  FORCE MAJEURE EVENT means:

                  (a)      an act of God;

                  (b)      war, revolution, or any other unlawful act against
                           public order or authority;

                  (c)      a restraint by any Governmental Agency; or

                  (d)      any other event which a reasonable person could not
                           foresee or reasonably make provision for or insure
                           against,

                  which wholly or partially prevents, hinders, obstructs, delays
                  or interferes with the development or operation of the Mining
                  Assets or the sale of Product;

                  GOVERNMENTAL AGENCY means a government or a governmental,
                  quasi-governmental, administrative, fiscal or judicial body,
                  department, commission, authority, tribunal, agency or entity;

                  GUARANTEE means the guarantee and indemnity dated on or about
                  the date of this agreement between each Guarantor and the
                  Agent;

                  HOLDER means RMBI or a person who becomes entitled to the
                  benefit of an ECU under clause 6.1;

                  INSOLVENCY EVENT means the happening of any of the following
                  events with respect to a Campbell Group Member:

                  (a)      an application is made to a court for an order that a
                           Campbell Group Member be wound up and that
                           application is not discharged or removed within 10
                           Business Days of it being made, or an order is made
                           that a Campbell Group Member be wound up;

                  (b)      an application is made to a court for an order
                           appointing a liquidator or provisional liquidator in
                           respect of a Campbell Group Member and that
                           application is not discharged or removed within 10
                           Business Days of it being made, or one of them is
                           appointed, whether or not under an order;

                  (c)      a receiver, receiver and manager, official manager,
                           trustee, administrator, controller or similar
                           official is appointed over any of the assets or
                           undertaking of a Campbell Group Member;

                  (d)      except to reconstruct or amalgamate while solvent on
                           terms approved by the Agent, a Campbell Group Member
                           enters into, or resolves to enter into, a scheme of
                           arrangement, deed of company arrangement or
                           composition with, or assignment for the benefit of,
                           all or any class of its creditors, or it proposes a
                           reorganisation, moratorium or other administration
                           involving any of them;

                                       6
<PAGE>

                  (e)      a Campbell Group Member resolves to wind itself up,
                           or otherwise dissolve itself, or gives notice of
                           intention to do so, except to reconstruct or
                           amalgamate while solvent on terms approved by the
                           Agent or is otherwise wound up or dissolved;

                  (f)      a Campbell Group Member:

                           (1)      is insolvent or unable to pay its debts when
                                    they are due;

                           (2)      states that it is insolvent or unable to pay
                                    its debts when they are due;

                           (3)      is insolvent as defined in any applicable
                                    law; or

                           (4)      commits an act of bankruptcy under the
                                    Bankruptcy and Insolvency Act (Canada);

                  (g)      a Campbell Group Member suspends payment of its debts
                           generally;

                  (h)      a Campbell Group Member takes any step to obtain
                           protection or is granted protection from its
                           creditors under any applicable law, including under
                           the Bankruptcy and Insolvency Act (Canada) or under
                           the Companies' Creditors Arrangement Act (Canada);

                  (i)      a Campbell Group Member becomes an insolvent under
                           administration as defined in any applicable law or
                           action is taken which could result in that event;

                  (j)      a notice to deregister under any applicable law is
                           given to, or an application to deregister is made by,
                           or in respect of a Campbell Group Member; or

                  (k)      anything analogous or having a substantially similar
                           effect to any of the events specified above happens
                           under the law of any applicable jurisdiction,
                           including the laws of the Province of Quebec;

                  INTER-COMPANY CLAIMS means all debts and liabilities of each
                  Transaction Party to any other Transaction Party on any
                  account and in any capacity, irrespective of whether the debts
                  and liabilities:

                  (a)      are present or future;

                  (b)      are actual, prospective, contingent or otherwise;

                  (c)      are at any time ascertained or unascertained;

                  (d)      are owed or incurred by or on account of a
                           Transaction Party alone severally or jointly with
                           another person;

                  (e)      are owed to or incurred for the account of a
                           Transaction Party alone, or severally or jointly with
                           another person;

                  (f)      are owed to another person as agent (whether
                           disclosed or not) for or on behalf of a Transaction
                           Party; or

                  (g)      comprise a combination of the above;

                  INTEREST CONVERSION AMOUNT means:

                                       7
<PAGE>

                  (a)      with respect to a Conversion under clause 4.1,
                           interest which has accrued since the Interest Payment
                           Date which immediately precedes the Conversion Date
                           applicable to the Conversion; and

                  (b)      with respect to a Conversion under clause 4.3,
                           interest which MSV has elected to capitalise on the
                           Interest Payment Date to which that Conversion
                           relates and which is to be Converted under that
                           clause;

                  INTEREST PAYMENT DATE means:

                  (a)      each Quarterly Date occurring after the first Issue
                           Date; and

                  (b)      the Final Conversion Date;

                  ISSUE DATE means each date on which RMBI pays the Issue Price
                  for an ECU to MSV under part 3;

                  ISSUE PRICE means C$500,000 for each ECU;

                  JOE MANN PROJECT means the gold and copper mine and all
                  present and future associated immovable and movable property
                  and infrastructure known as the Joe Mann Mine located in the
                  Province of Quebec, Canada and includes the Campbell Mill;

                  JUNE 2002 AGREEMENT means a royalty agreement dated 30 April
                  2002 (as amended by a termination agreement dated 1 January
                  2003 between Meston, MSV, Campbell, Promittere and others)
                  between Meston, MSV, Campbell, Promittere and others which
                  came into force on 30 June 2002 and has been registered on the
                  MRN Register under number 50526 in respect of MSV and under
                  number 50527 in respect of Meston, and which is referred to as
                  the June 2002 Agreement in the MSV Titles Opinion and the
                  Meston Titles Opinion;

                  LAND REGISTER has the same meaning as that expression is given
                  in the MSV Titles Opinion and the Meston Titles Opinion;

                  LAVERY means Lavery de Billy LLC;

                  LAVERY OPINION means the opinion of Lavery as counsel for MSV
                  and the Guarantors in relation to matters under the laws of
                  the Province of Quebec and the federal laws of Canada
                  applicable in the Province of Quebec, including, without
                  limitation, the Securities Laws;

                  LAWS means all applicable
                  federal, provincial, municipal and regional statutes, laws,
                  rules, regulations, by-laws or orders;

                  LENDING OFFICE means the office of RMBI set out on page 1 of
                  this agreement or any other office notified in writing by the
                  Agent or a Holder to MSV in accordance with this agreement;

                  LIBO PAGE means the page entitled "LIBO" on the Reuters
                  Monitor Money Rates Service or any other page which may
                  replace the LIBO page for the purpose of displaying offered
                  rates for United States Dollar deposits;

                  LIBOR on any date, means the rate per cent per annum
                  determined by the Agent to be:

                  (a)      the average of the rates quoted on the LIBO Page at
                           about 11.00 am (London time) on that date as being
                           the rate per annum at which United States Dollar
                           deposits are offered for a period of 90 days,
                           eliminating the

                                       8
<PAGE>

                           highest rate or (where more than one bank quoting a
                           rate on the LIBO Page quotes, the highest rate) one
                           of the highest rates and eliminating the lowest rate
                           or (where more than one bank quoting a rate on the
                           LIBO Page quotes the lowest rate) one of the lowest
                           rates, and rounding up the resultant figure to 4
                           decimal places;

                  (b)      where 2 or less rates are quoted for the relevant
                           period on the LIBO Page at the relevant time, the
                           average of the rates notified to the Agent on that
                           date by each Reference Bank to be the rate per annum
                           at which United States Dollar deposits are offered to
                           that Reference Bank for a period of 90 days, rounding
                           up the resultant figure to 4 decimal places; or

                  (c)      if LIBOR cannot be determined in accordance with
                           paragraphs (a) or (b) of this definition, the rate
                           most nearly approximating the rate that would
                           otherwise have been calculated by the Agent in
                           accordance with paragraph (a) having regard to
                           comparable indices then available in the financial
                           markets;

                  LISTING RULES means the listing rules of the Exchange together
                  with any agreement between Campbell and the Exchange in
                  connection with the listing of the Shares;

                  MARGIN means 3.5% per annum;

                  MATERIAL ADVERSE CHANGE means a material adverse change in the
                  financial condition or property of a Campbell Group Member or
                  a Transaction Party which would have a Material Adverse
                  Effect;

                  MATERIAL ADVERSE EFFECT means a material adverse effect on:

                  (a)      the ability of a Transaction Party to perform an
                           obligation under a Transaction Document to which it
                           is a party;

                  (b)      the value of the Secured Property; or

                  (c)      the business or operations of a Campbell Group
                           Member;

                  MESTON HYPOTHEC means the hypothec granted by Meston in favour
                  of the Agent and RMBI on or about the date of this agreement;

                  MESTON NSR means the agreement between Meston and Repadre
                  Capital Corporation dated 23 April 1993, registered on the MRN
                  Register under registration number 47463 and at the Land
                  Register under registration number 2744965 (files number
                  90-A-241-1, 90-A-241-2 and 90-A-241-3, replaced respectively
                  by 90-A-1845, 90-A-1846 and 90-A-1847) which provides for a
                  net smelter return royalty in favour of Repadre Capital
                  Corporation;

                  MESTON TITLES OPINION means the opinion dated 26 October 2004
                  of Michel Lusignan as counsel for the Transaction Parties in
                  relation to certain Mineral Rights and Mining Tenements which
                  are owned by Meston;

                  MINERAL RIGHTS means:

                  (a)      the Mining Tenements;

                  (b)      all entitlements of any of the Transaction Parties to
                           carry out exploration, development or mining
                           activities in the Project Area;

                                       9
<PAGE>

                  (c)      any present or future interest from time to time held
                           by or on behalf of any of the Transaction Parties in
                           any present or future mineral right, mining lease,
                           right, lease, licence, claim, permit or other
                           authority which confers or may confer a right to
                           prospect or explore for or mine any metals or
                           minerals (including precious stones) in any part of
                           the of the Project Area;

                  (d)      any present or future renewal, extension,
                           modification, substitution, amalgamation or variation
                           of any of the mineral rights described above, whether
                           extending over the same or greater or lesser area;
                           and

                  (e)      any present or future application for or interest in
                           any of the above, which confers or which, when
                           granted, will confer the same or similar rights;

                  MINING ASSET means:

                  (a)      the Projects; and

                  (b)      to the extent not included in (a), the Secured
                           Property;

                  MINING LAW means the Mining Act (Quebec);

                  MINING TENEMENTS means the mining tenements described in the
                  Schedule "A" to both the MSV Hypothec and the Meston Hypothec;

                  MOBILE PLANT AND EQUIPMENT means:

                  (a)      mobile plant and equipment constituting:

                           (1)      vehicles; and

                           (2)      earth-moving equipment,

                  but excluding, for greater certainty:

                  (b)      items of plant or equipment or other corporeal
                           movable property which are capable of being moved but
                           are fixed to any part of the Project in the ordinary
                           course of their use or which are physically attached
                           or joined to any party of the Project including,
                           without limitation:

                           (1)      compressors; and

                           (2)      hoists;

                  MRN REGISTER has the same meaning as that expression is given
                  in the MSV Titles Opinion and the Meston Titles Opinion;

                  MSV HYPOTHEC means the hypothec granted by MSV in favour of
                  the Agent, as fonde de pouvoir, on or about the date of this
                  agreement;

                  MSV NSR means the agreement (as amended by a purchase and sale
                  agreement dated 16 December 1997) between Corner Bay Minerals
                  Inc., Corner Bay Resources Inc., SOQUEM Inc., MSV and
                  Explorations Cache Inc. dated 14 October 1994 and registered
                  on the MRN Register under registration number 447914 which
                  provides for a net smelter return royalty of 2% in favour of
                  Corner Bay Resources Inc. and SOQUEM Inc.;

                  MSV TITLES OPINION means the opinion dated 26 October 2004 of
                  Michel Lusignan as counsel for the Transaction Parties in
                  relation to certain Mineral Rights and Mining Tenements which
                  are owned by MSV;

                                       10
<PAGE>

                  1991 TRANSACTION means the debenture, preferred share and swap
                  transaction described in Notes 7 and 10 (a) to the financial
                  statements for the fiscal year ended 31 December 2003
                  contained in the Annual Report (Form 20-F) for Campbell lodged
                  with the United States Securities Exchange Commission;

                  1991 TRANSACTION OPINION means the opinion of Lavery as
                  counsel for Campbell in regard to liabilities of the
                  Transaction Parties with respect to the 1991 Transaction;

                  PAYMENT CURRENCY means the currency in which any payment is
                  actually made;

                  PERMITTED ENCUMBRANCES means the Encumbrances described in
                  schedule 4;

                  POTENTIAL DEFAULT means an event which with the giving of
                  notice, passing of time, fulfilment of some other condition or
                  any combination of these may become a Default;

                  POWER means any right, power, authority, discretion or remedy
                  conferred on a Finance Party by any Transaction Document or
                  any applicable Law;

                  PRINCIPAL CONVERSION AMOUNT means the Issue Price of an ECU
                  that has not been Converted;

                  PRIVATE PLACEMENT POLICY means the rules and policies of the
                  Exchange relating to the issuance of treasury securities
                  without prospectus disclosure in reliance on an exemption from
                  the prospectus requirement of applicable Canadian securities
                  legislation;

                  PRODUCT means the present and future right, title and interest
                  of a Campbell Group Member in and to all gold and copper
                  (including without limitation, gold and copper bearing
                  material, dore bullion, refined gold and copper concentrates)
                  and other metals and minerals mined, extracted or derived from
                  the Project Area and the Projects;

                  PROJECTS means each of:

                  (a)      the Joe Mann Project; and

                  (b)      the Copper Rand Project;

                  PROJECT AREA means:

                  (a)      the areas the subject of the Mining Tenements; and

                  (b)      any freehold, lease and other land and immovable
                           property in respect of which a Campbell Group Member
                           has a right, interest or servitude or right of access
                           to or entry upon for the purposes of the Joe Mann
                           Project;

                  PROJECT ASSETS means all the right, title and interest both
                  present and future of any of the Transaction Parties which is
                  attributable to the Joe Mann Project and includes all the
                  right, title and interest both present and future of any of
                  the Transaction Parties in, to, under or derived from any of:

                  (a)      the Mineral Rights in respect of the mining tenements
                           described in Schedule "A" to the Meston Hypothec;

                  (b)      Product derived from the Project Area;

                  (c)      the Project Area;

                                       11
<PAGE>

                  (d)      each Project Document;

                  (e)      any title to or interest in any land or immovable
                           property, lease, servitude, right of way or right to
                           occupy land or immovable property which is held now
                           or at a later time by a Transaction Party in respect
                           of the Joe Mann Project, including without limitation
                           the immovable property described in the schedule to
                           the Meston Hypothec and all present and future rents
                           produced by any of those immovables and all present
                           and future indemnities paid under any insurance
                           contracts covering those rents;

                  (f)      each Authorisation and Environmental Approval in
                           relation to the Joe Mann Project;

                  (g)      any other contract, agreement, permit, lease,
                           licence, consent, servitude, right of way and other
                           rights or interests in land or immovable property,
                           which relates to the exploration, prospecting,
                           appraisal, development, production, transportation
                           and processing of Product from the Joe Mann Project
                           and the sale of that Product;

                  (h)      all:

                           (1)      geological, geophysical or technical
                                    information in the custody or control of a
                                    Transaction Party and all other intellectual
                                    and industrial property of a Transaction
                                    Party that relates to the presence, absence,
                                    extent or production of deposits of the
                                    Product in the Project Area or which has
                                    been obtained from the exploration and
                                    prospecting for, or production or
                                    development of, Product within the Project
                                    Area or any area which may in the future
                                    form part of the Project Area; and

                           (2)      documents and records relating to the Joe
                                    Mann Project;

                  (i)      all buildings, works, workshops, facilities,
                           improvements, structures, systems, fixtures, plant,
                           furnaces, machinery barges, tools and other movable
                           property at any time used or intended for use in
                           connection with or incidental to the exploration,
                           mining, storage, transporting and processing of
                           Product extracted or derived from the Joe Mann
                           Project, and all associated facilities and
                           infrastructure (including any treatment or processing
                           plant); and

                  (j)      all present and future proceeds from any of the above
                           including under all present and future insurance
                           contracts and under any expropriation;

                  PROJECT CASHFLOW MODEL AND CAPITAL SCHEDULE means a 24 month
                  cashflow model for Campbell and its subsidiaries and the
                  Projects and a development and capital schedule in relation to
                  the Projects to be prepared by MSV or Campbell in a form
                  acceptable to the Agent, provided to the Agent under clause
                  2.1(i);

                  PROJECT DOCUMENTS means:

                  (a)      all instruments and indicia of title to the Mineral
                           Rights and all other documentation under which a
                           Transaction Party derives the right to prospect,
                           explore, develop or mine the Project Area;

                  (b)      all instruments or agreements relating to the supply
                           of utilities, including without limitation, water and
                           power, to the Joe Mann Project;

                                       12
<PAGE>

                  (c)      all surface leases and other instruments in respect
                           of the storage or use of tailings, effluent or other
                           materials in respect of the Joe Mann Project; and

                  (d)      each Sales Contract;

                  PROMITTERE means Promittere Asset Management Limited;

                  QUARTERLY DATE means each of 31 December, 31 March, 30 June
                  and 30 September in each year;

                  RATE means the aggregate of:

                  (a)      LIBOR; and

                  (b)      the Margin;

                  RECEIVABLES means any right of Meston to payment for Product
                  sold, including, but not limited to, the rights to receive
                  payment under a Sales Contract;

                  REDEMPTION means redemption of the Issue Price of an ECU, and
                  any interest on that Issue Price, by MSV in accordance clause
                  4.2, and REDEEM and like words have corresponding meanings;

                  REDEMPTION DATE means the date on which MSV Redeems an ECU,
                  being the date nominated in a Redemption Notice given under
                  clause 4.2(a);

                  REDEMPTION NOTICE means the notice substantially in the form
                  of schedule 3;

                  REFERENCE BANK means the principal London offices of Barclays
                  Bank PLC, JPMorgan Chase & Co. and National Westminster Bank
                  plc;

                  RELEVANT CURRENCY means the currency in which a payment must
                  be made under this agreement or any other Transaction
                  Document;

                  RESTORATION FLANS means any and all rehabilitation and
                  restoration plans required under the Mining Law (including any
                  modifications approved by the relevant Governmental Agencies
                  from time to time) with respect to the Mining Assets, and
                  includes all obligations to be performed in respect to the
                  rehabilitation of all tailings (if any) and any financial
                  guarantee and amount required to be placed on deposit with
                  Governmental Agencies in connection with those obligations;

                  ROYALTY means:

                  (a)      the Meston NSR;

                  (b)      the MSV NSR;

                  (c)      the 2001 Agreement as it relates to Meston;

                  (d)      the June 2002 Agreement as it relates to Meston; and

                  (e)      the December 2002 Agreement as it relates to Meston;

                  SALES CONTRACT means any contract, agreement or arrangement
                  for the sale, transfer or other disposal, or any contract,
                  agreement or arrangement for any agency for sale, exchange,
                  transfer or other disposal of Product derived or extracted
                  from the Joe Mann Project;

                  SAME DAY FUNDS means a bank draft, a certified cheque or other
                  immediately available funds by way of wire transfer;

                  SECURED PROPERTY means the property the subject of the
                  Security;

                                       13
<PAGE>

                  SECURITIES LAWS means all applicable securities laws in each
                  of the provinces and territories of Canada and the respective
                  regulations and rules under those laws together with
                  applicable published policy statements of the securities
                  regulatory authorities in those provinces and territories;

                  SECURITY means:

                  (a)      the Campbell Hypothec;

                  (b)      the Meston Hypothec;

                  (c)      the MSV Hypothec;

                  (d)      any Collateral Security;

                  SHARES means fully paid common shares in the capital of
                  Campbell;

                  STOCK INCENTIVE PLAN means each existing and any future stock
                  incentive plan approved by the shareholders of Campbell which
                  gives a person the option to purchase Shares on any terms;

                  SURETY OBLIGATION means a guarantee, suretyship, letter of
                  credit, letter of comfort or another obligation (whatever
                  called and of whatever nature):

                  (a)      to provide funds (whether by the advance or payment
                           of money, the purchase of or subscription for shares
                           or other securities, the purchase of assets or
                           services, or otherwise) for the payment or discharge
                           of;

                  (b)      to indemnify a person against the consequences of
                           default in the payment of; or

                  (c)      to be responsible for,

                  a debt or monetary liability of another person or the
                  assumption of any responsibility or obligation in respect of
                  the insolvency or the financial condition of another person;

                  TAXES means taxes, levies, imposts, deductions, charges,
                  withholdings and duties imposed by any authority (including,
                  but not limited to, stamp and transaction duties), (together
                  with any related interest, penalties, fines and expenses in
                  connection with them), except if imposed on the overall net
                  income of a Holder;

                  TRADING PERIOD means for the purposes of determining the
                  Current Market Price the period of 20 Exchange Business Days
                  ending on the date on which the Shares were last sold on the
                  Exchange before the date referred to in clauses 4.5(a)(l),
                  4.5(a)(2) or 4.5(a)(3) (as applicable);

                  TRANSACTION DOCUMENTS means:

                  (a)      this agreement;

                  (b)      the Security;

                  (c)      the Guarantee;

                  (d)      the ECU Certificates; and

                  (e)      any other document which the parties agree in writing
                           is a Transaction Document for the purposes of this
                           agreement;

                  TRANSACTION PARTIES means:

                                       14
<PAGE>

                  (a)      MSV;

                  (b)      Campbell;

                  (c)      Meston; and

                  (d)      any other person who MSV, the Guarantors and the
                           Agent agree is a Transaction Party for the purpose of
                           this agreement;

                  2001 AGREEMENT means a royalty agreement (as amended by a
                  termination agreement dated 1 January 2003 between Meston,
                  MSV, Campbell, Promittere and others) between Meston, MSV,
                  Campbell, Promittere and others which came into force on 31
                  December 2001 and has been registered on the MRN Register
                  under number 50327 in respect of MSV and 50326 in respect of
                  Meston, and which is referred to as the 2001 Agreement in the
                  MSV Titles Opinion and the Meston Titles Opinion;

                  VOLUME WEIGHTED AVERAGE TRADING PRICE or VWATP means the price
                  per Share calculated in accordance with clause 4.6(b).

         1.2      INTERPRETATION

                  In this agreement, headings and underlinings are for
                  convenience only and do not affect the interpretation of this
                  agreement and, unless the context otherwise requires:

                  (a)      words indicating the singular include the plural and
                           vice versa;

                  (b)      words indicating a gender include any gender;

                  (c)      other parts of speech and grammatical forms of a word
                           or phrase defined in this agreement have a
                           corresponding meaning;

                  (d)      an expression indicating a natural person includes
                           any company, partnership, trust, joint venture,
                           association, corporation or other body corporate and
                           any Governmental Agency;

                  (e)      a reference to any thing (including, but not limited
                           to, any right) includes a part of that thing;

                  (f)      a reference to a part, clause, party, annexure,
                           exhibit or schedule is a reference to a part and
                           clause of, and a party, annexure, exhibit and
                           schedule to, this agreement and a reference to this
                           agreement includes any annexure, exhibit or schedule;

                  (g)      a reference to a statute, regulation, proclamation,
                           ordinance or by-law includes all statutes,
                           regulations, proclamations, ordinances or by-laws
                           amending, consolidating or replacing it, and a
                           reference to a statute includes all regulations,
                           proclamations, ordinances and by-laws issued under
                           that statute;

                  (h)      a reference to a document, includes all amendments or
                           supplements to, or replacements or novations of, that
                           document, except when that reference is to a Royalty;

                  (i)      a reference to a party to a document includes that
                           party's successors and permitted assigns;

                                       15
<PAGE>

                  (j)      a reference to an agreement other than this agreement
                           includes an undertaking, deed, agreement or legally
                           enforceable arrangement or understanding whether or
                           not in writing;

                  (k)      a reference to an asset includes all property of any
                           nature, including, but not limited to, a business,
                           and all rights, revenues and benefits;

                  (1)      a reference to a document includes any agreement in
                           writing, or any certificate, notice, instrument or
                           other document of any kind;

                  (m)      a reference to liquidation includes official
                           management, appointment of an administrator,
                           compromise, arrangement, merger, amalgamation,
                           reconstruction, winding-up, dissolution, assignment
                           for the benefit of creditors, scheme, composition or
                           arrangement with creditors, insolvency, bankruptcy,
                           or any similar procedure or, where applicable,
                           changes in the constitution of any partnership or
                           person, or death;

                  (n)      a Default "continues" until it has been waived by the
                           Agent or rectified;

                  (o)      where the day on or by which any matter or thing is
                           to be done is not a Business Day, that matter or
                           thing must be done on or by the following Business
                           Day; and

                  (p)      a reference to MSV, the Guarantors, the Agent, RMBI
                           or a Holder, subject to part 6, is a reference to or
                           includes, as appropriate, their respective
                           successors, transferees and assigns.

         1.3      ACCOUNTING PRINCIPLES

                  In this agreement, unless the context otherwise requires:

                  (a)      all computations and determinations as to financial
                           matters, and all financial statements to be delivered
                           under this agreement, must be made or prepared in
                           accordance with generally accepted accounting
                           practices and principles determined with reference to
                           the Handbook of the Canadian Institute of Chartered
                           Accountants, as amended from time to time, as
                           applicable to public enterprises, consistently
                           applied; and

                  (b)      all accounting terms used in this agreement have the
                           meanings respectively given to those terms by those
                           practices and principles for the time being.

2        CONDITIONS PRECEDENT

         2.1      CONDITIONS PRECEDENT TO ISSUE OF FIRST ECU

                  RMBI is not obliged to pay the Issue Price for the first ECU
                  until the Agent has received all of the following in form and
                  substance satisfactory to it:

                  (a)      CONSTITUENT DOCUMENTS: a certified copy of the
                           Constituent Documents of MSV and each of the
                           Guarantors;

                  (b)      TRANSACTION DOCUMENTS: an original copy of each of
                           the Transaction Documents (other than any Collateral
                           Security), executed, stamped (if necessary) and,
                           where applicable, in registrable form together with
                           all fully

                                       16
<PAGE>

                           executed documents and other things necessary to
                           effect registration of them;

                  (c)      PROJECT DOCUMENTS: a certified copy of any Project
                           Documents requested by the Agent;

                  (d)      CORPORATE AUTHORISATION: a certified copy of a
                           resolution of the directors of MSV and each of the
                           Guarantors approving the issue of the ECU
                           Certificates and the transactions contemplated by the
                           Transaction Documents, authorising execution by MSV
                           and the Guarantors of the Transaction Documents to
                           which each is a party, and authorising a person or
                           persons (being Authorised Officers) to sign notices,
                           certificates or other documents in connection with
                           the Transaction Documents on behalf of MSV and the
                           Guarantors;

                  (e)      AUTHORISED SIGNATORIES: a certified copy of the
                           signatures of all Authorised Officers of MSV who are
                           authorised to sign notices, certificates or other
                           documents in connection with the Transaction
                           Documents on its behalf;

                  (f)      LEGAL OPINIONS: the:

                           (1)      Lavery Opinion;

                           (2)      1991 Transaction Opinion;

                           (3)      MSV Titles Opinion; and

                           (4)      Meston Titles Opinion;

                  (g)      ACCOUNTS: a certified copy of:

                           (1)      the consolidated financial statements of
                                    Campbell and its subsidiaries for the
                                    financial year ending on 31 December 2003;
                                    and

                           (2)      the consolidated unaudited financial
                                    statements of Campbell and its subsidiaries
                                    for the 6 month period ending on 30 June
                                    2004;

                  (h)      INSURANCE: evidence of compliance with clause 9.1(e);

                  (i)      PROJECT CASHFLOW MODEL AND CAPITAL SCHEDULE: of the
                           Project Cashflow Model and Capital Schedule;

                  (j)      AURAMET TRANSACTION: full particulars of the terms of
                           the Auramet Transaction;

                  (k)      ENQUIRIES: results of searches, enquiries and
                           requisitions concerning the Project, MSV and the
                           Guarantors and their capacity to enter into and
                           perform their obligations under the Transaction
                           Documents to which each is a party;

                  (1)      MINERAL RIGHTS: evidence that the Mineral Rights are
                           valid and in good standing;

                  (m)      AUTHORISATIONS: evidence that all Authorisations
                           required for the Transaction Documents and the
                           transactions contemplated by them have been obtained;

                  (n)      ARRANGEMENT FEE: evidence that MSV has paid or has
                           made satisfactory arrangements to pay the Arrangement
                           Fee to the Agent under clause 13.1;

                                       17
<PAGE>

                  (o)      EXCHANGE APPROVALS: evidence that all necessary
                           Exchange Approvals to this agreement and the
                           transactions contemplated by it have been obtained;

                  (p)      CONDITIONAL ALLOTMENT OF SHARES: evidence of the
                           conditional allotment to the Holders of the Shares
                           (assuming a Conversion Sum of C$0,574) required to be
                           issued to the Holders on Conversion;

                  (q)      OTHER APPROVALS: evidence that all other approvals
                           necessary for the transactions contemplated by the
                           Transaction Documents have been obtained; and

                  (r)      OTHER MATTERS: any other certificates,
                           Authorisations, documents, matters or things which
                           the Agent, in its discretion, requires.

         2.2      CONDITIONS PRECEDENT TO THE ISSUE OF ALL ECUS

                  RMBI is not obliged to pay the Issue Price for any ECU until
                  the Agent has received all of the following in form and
                  substance satisfactory to it:

                  (a)      COMMITMENT NOT EXCEEDED: evidence that the Commitment
                           under the Facility is not, nor will it be, exceeded
                           by the provision of the ECU;

                  (b)      CERTIFICATE REGARDING MATERIAL ADVERSE EFFECT: a
                           certificate stating that since the end of the
                           accounting period for the accounts referred to in
                           clause 2.1(g), no event has occurred (and is
                           continuing) which has or may have a Material Adverse
                           Effect;

                  (c)      NO DEFAULT: evidence that no Default or Potential
                           Default has occurred and is continuing; and

                  (d)      REPRESENTATIONS AND WARRANTIES: evidence that the
                           representations and warranties in clause 8.1 are true
                           and correct on and as of the proposed Issue Date as
                           if each had been made on and as of that date in
                           respect of the facts and circumstances existing at
                           that time.

         2.3      WAIVER OF CONDITIONS PRECEDENT

                  The conditions precedent set out in clauses 2.1 and 2.2 are
                  for the benefit of the Holders, and may only be waived by the
                  Agent.

         2.4      CERTIFIED COPIES

                  Where a certified copy of a document is to be given to the
                  Agent under clause 2.1, an Authorised Officer of the relevant
                  Transaction Party must certify the copy to be a true, complete
                  and up-to-date copy of the original document as at a date
                  acceptable to the Agent.

3        ECU Facility

         3.1      ECU FACILITY

                  (a)      Subject to part 2, RMBI agrees to subscribe for up to
                           8 ECUs and to pay the Issue Price under each ECU it
                           subscribes for to MSV.

                                       18
<PAGE>

                  (b)      If the Commitment has not or will not be exceeded by
                           RMBI subscribing for an ECU the subject of an ECU
                           Notice under this clause 2.1(b), MSV may at any time
                           during the Availability Period give an ECU Notice in
                           accordance with clause 3.2 to the Agent in respect of
                           an ECU.

                  (c)      Each ECU Notice given by MSV must request payment of
                           the Issue Price for at least 2 ECUs.

         3.2      ECU NOTICE

                  (a)      Each ECU Notice given under clause 3.1 must:

                           (1)      be substantially in the form of schedule 1
                                    and signed by an Authorised Officer of MSV;

                           (2)      specify the date (which must be a Business
                                    Day during the Availability Period) which
                                    MSV proposes to be the Issue Date in
                                    relation to the ECU or ECUs the subject of
                                    the ECU Notice; and

                           (3)      be received by RMBI and the Agent not later
                                    than 11.00 am (London time) on the day 3
                                    Business Days before the Issue Date proposed
                                    in the ECU Notice.

                  (b)      MSV must give to RMBI and the Agent on the Issue Date
                           the ECU Certificates for the ECU or ECUs the subject
                           of the ECU Notice.

                  (c)      An ECU Notice is irrevocable and effective on
                           receipt.

         3.3      PROVISION OF ISSUE PRICE

                  (a)      If MSV gives an ECU Notice and provides the ECU
                           Certificate or ECU Certificates in accordance with
                           clause 3.2, RMBI will, subject to clause 3.3(b) and
                           the other terms of this agreement, provide the Issue
                           Price for each ECU the subject of the ECU Notice on
                           the applicable Issue Date.

                  (b)      RMBI will not be obliged to provide the Issue Price
                           for an ECU in accordance with clause 3.3(a) if on the
                           date for payment of the Issue Price a Default or
                           Potential Default has occurred and is continuing.

         3.4      USE OF PROCEEDS

                  (a)      MSV must use the Issue Price for an ECU for the
                           re-development of the Copper Rand Mine and for
                           general working capital purposes of the Campbell
                           Group in accordance with the Project Cashflow Model
                           and Capital Schedule.

                  (b)      Neither RMBI nor the Agent has any responsibility in
                           respect of the application of the proceeds of the
                           Issue Price for an ECU.

4        CONVERSION

         4.1      CONVERSION BY HOLDER

                  (a)      At any time during the Conversion Period, or in the
                           circumstances described in clause 4.2(b), a Holder
                           may elect to Convert any of its ECUs

                                       19
<PAGE>

                           to Shares by giving a Conversion Notice to each of
                           the Agent, MSV and Campbell not less than 5 Business
                           Days before the proposed Conversion Date.

                  (b)      The number of Shares received by the Holder under
                           clause 4.1 (a) will be the sum of:

                           (1)      in relation to the Principal Conversion
                                    Amount of an ECU, the amount determined by
                                    dividing:

                                    (A)      the Principal Conversion Amount as
                                             at the Conversion Date; by

                                    (B)      the Conversion Sum; and

                           (2)      in relation to the Interest Conversion
                                    Amount of an ECU, the amount determined by
                                    dividing:

                                    (A)      the Interest Conversion Amount as
                                             at the Conversion Date; by

                                    (B)      the Current Market Price.

                  (c)      Before 11.00am (Toronto time) on the Conversion Date,
                           the Agent will give a written notice to MSV and
                           Campbell specifying:

                           (1)      the Principal Conversion Amount;

                           (2)      the Interest Conversion Amount; and

                           (3)      the number of Shares to be issued on
                                    Conversion of the relevant ECUs.

         4.2      EARLY REDEMPTION OF ECUS BY MSV

                  (a)      At any time before the First Conversion Date, MSV may
                           elect to Redeem one or more ECUs by giving a
                           Redemption Notice to the Agent not less than 20
                           Business Days before the proposed Redemption Date.

                  (b)      If the Agent receives a Redemption Notice in
                           accordance with clause 4.2(a) and as a result of the
                           Redemption there would be less than 2 ECUs
                           outstanding, the Agent may (on account of the Holder)
                           elect to Convert one ECU (if, as a result of the
                           Redemption, there would be one ECU outstanding) and
                           up to 2 ECUs (if, as a result of the Redemption,
                           there would be no ECUs outstanding) by giving MSV and
                           Campbell a Conversion Notice in accordance with
                           clause 4.1 before the proposed Redemption Date.

                  (c)      The number of Shares the Holder receives if it elects
                           to Convert under clause 4.2(b) will be determined
                           under 4.1(b).

                  (d)      If MSV gives the Agent a Redemption Notice in
                           accordance with clause 4.2(a) it must pay the Agent
                           (on account of the Holder) on the Redemption Date in
                           Same Day Funds:

                           (1)      the Issue Price for each of the ECUs to be
                                    Redeemed (other than any ECUs the Agent has
                                    elected to Convert under clause 4.2(b)); and

                                       20
<PAGE>

                           (2)      the interest which has accrued under the
                                    terms of this agreement on each of those
                                    ECUs.

         4.3      INTEREST CONVERSION

                  (a)      If a Holder elects to Convert the Interest Conversion
                           Amount on an Interest Payment Date by giving a
                           Conversion Notice in accordance with clause
                           7.2(b)(l), then the number of Shares the Holder will
                           receive will be determined by dividing:

                           (1)      the Interest Conversion Amount as at the
                                    relevant Interest Payment Date; by

                           (2)      the Current Market Price discounted by the
                                    maximum discount permitted by the Exchange
                                    in accordance with the Private Placement
                                    Policy for that Current Market Price.

                  (b)      On or as soon as practicable after the relevant
                           Interest Payment Date, the Agent will give a written
                           notice to MSV and Campbell specifying the Interest
                           Conversion Amount and the number of Shares to be
                           issued on Conversion of the Interest Conversion
                           Amount.

         4.4      ISSUE OF SHARES

                  (a)      If Conversion occurs under clauses 4.1, 4.2 or 4.3,
                           Campbell must issue to the Holders the number of
                           Shares determined in accordance with those clauses
                           within 5 Business Days following the Conversion Date.
                           In accordance with applicable Securities Law and
                           policies of the Exchange, the Shares that may be
                           delivered on Conversion may not be sold or otherwise
                           disposed of for a period of 120 days from the date of
                           issuance of the ECU in the absence of either a
                           prospectus or an exemption from the prospectus
                           requirements under the applicable Securities Law.

                  (b)      Campbell must give Certificates to the Holders in
                           respect of that number of Shares within 15 Business
                           Days of the Conversion Date.

                  (c)      On the issue to the Holders of the Certificates
                           referred to in clause 4.4(b), the Principal
                           Conversion Amount or Interest Conversion Amount, as
                           applicable, which is the subject of the relevant
                           Conversion is deemed to have been paid by Campbell to
                           the Holder. As between Campbell and MSV, MSV
                           acknowledges in favour of Campbell that it is
                           indebted to Campbell in the amount of any Principal
                           Conversion Amount and any Interest Conversion Amount
                           deemed to have been paid by Campbell.

                  (d)      MSV and Campbell must take all necessary steps to
                           ensure that all Shares to be issued under clause
                           4.4(a) are listed on the Exchange before they are
                           issued.

                  (e)      If a Conversion occurs under clauses 4.1 or 4.2 and
                           the number of Shares to be issued under clause
                           4.4(a), in aggregate with the number of Shares
                           already issued under this agreement, would exceed
                           7,834,074, Campbell will promptly take all necessary
                           steps to have an additional number of Shares listed
                           on the Exchange to fulfil its obligations under
                           clause 4.4(d).

                                       21
<PAGE>

         4.5      CURRENT MARKET PRICE

                  (a)      The Current Market Price for a Conversion under
                           clause 4.1(b), 4.2(b) or 4.3 is the Volume Weighted
                           Average Trading Price of the Shares, expressed in C$
                           and fractions of C$, sold on the Exchange during the
                           Trading Period last occurring before:

                           (1)      in the case of a Conversion under clause
                                    4.1(b), the Conversion Date specified in the
                                    Conversion Notice given under clause 4.1
                                    (a);

                           (2)      in the case of a Conversion under clause
                                    4.2(b), the Conversion Date specified in the
                                    Conversion Notice given under that clause;
                                    and

                           (3)      in the case of a Conversion under clause
                                    4.3, the Interest Payment Date in respect of
                                    which the Conversion Notice under clause
                                    7.2(b) is given.

                  (b)      The Volume Weighted Average Trading Price is
                           calculated as follows:

                                        [ CPi x Vi ]
                           VWATP  =   E   --------
                                        [    TV    ]

                           Where:

                           VWATP is the Volume Weighted Average Trading Price;

                           CPi is the weighted average trading price of Shares
                           traded on the Exchange for day i, as provided by the
                           Exchange;

                           Vi is number of Shares traded on the Exchange on day
                           i;

                           TV is total number of Shares traded on the Exchange
                           during the Trading Period; and

                           i = each of days 1 to 20 of the Trading Period.

                  (c)      The Volume Weighted Average Trading Price will be
                           determined by reference to the actual prices and
                           volumes of the Shares traded as published by the
                           Exchange, or if not published by the Exchange, as
                           determined by the Agent from any other available
                           source.

         4.6      CONVERSION SUM

                  For the purposes of clauses 4.1(b), 4.2(b) and 4.3(a):

                  (a)      if the Current Market Price as calculated under
                           clause 4.5(a) is greater than or equal to the
                           Conversion Price and less than C$1.70, the Conversion
                           Sum will be the Conversion Price; or

                  (b)      if the Current Market Price as calculated under
                           clause 4.5(a) is greater than or equal to C$1.70, the
                           Conversion Sum will be the Current Market Price
                           multiplied by the Conversion Price divided by the
                           C$1.70.

                                       22
<PAGE>

         4.7      RESTRICTIONS ON CONVERSION AND REDEMPTION

                  In the case of a Conversion by the Holder under clause 4.1, a
                  Holder may Convert all ECUs it holds at one time or may
                  Convert one or more ECUs at different times. In the case of a
                  Redemption by MSV under clause 4.2, MSV may Redeem all ECUs at
                  one time or may Redeem one or more ECUs at different times,
                  and clause 4.2(b) will apply for the benefit of the Agent in
                  relation to each Redemption. A Holder may only Convert the
                  whole of an ECU. MSV may only Redeem the whole of an ECU.

         4.8      CONVERSION IN EXCESS OF ALLOCATED NUMBER OF SHARES

                  (a)      If a Conversion takes place and the number of Shares
                           to be issued under this agreement would on Conversion
                           exceed the Allocated Number of Shares, the Agent will
                           request MSV and Campbell to apply to the Exchange for
                           an approval (RELEVANT APPROVAL) to list more than the
                           Allocated Number of Shares.

                  (b)      MSV and Campbell will as soon as possible make, sign
                           and do all acts, matters and things necessary in
                           order to apply for and obtain the Relevant Approval
                           and comply with any conditions imposed by the
                           Exchange as part of the Relevant Approval.

                  (c)      Conversion with respect to that part of the Amount
                           Owing as relates to the number of Shares for which no
                           Relevant Approval is required will take place in
                           accordance with clauses 4.1 (a), 4.2(b) and 4.3(a) so
                           that Conversion with respect to that part of the
                           Amount Owing will occur on the Conversion Date for
                           the relevant Shares.

                  (d)      Conversion with respect to that part of the Amount
                           Owing as relates to the number of Shares for which
                           Relevant Approval is required will, despite the time
                           at which the Relevant Approval is obtained or
                           anything to the contrary contained in this agreement,
                           be deemed to occur as at the Conversion Date for the
                           relevant Shares.

                  (e)      If MSV and Campbell have not, for any reason,
                           obtained all the Relevant Approvals by the date 3
                           months after the date Conversion was to have taken
                           place under clause 4.1(a), 4.2(b) or 4.3(a), then MSV
                           and Campbell must consult with the Agent with a view
                           to determining whether the Relevant Approval can be
                           obtained. MSV and Campbell must comply with the
                           directions of the Agent in relation to taking all
                           reasonable steps which may be available to MSV and
                           Campbell to obtain Relevant Approval,

                  (f)      If the Agent, in its absolute discretion, determines
                           that the Relevant Approval cannot be obtained, or if
                           the Relevant Approval has not been obtained by the
                           date 4 months after the date Conversion was to have
                           taken place under clause 4.1(a), 4.2(b) or 4.3(a),
                           then despite any other matter referred to in this
                           clause, the Agent may, by written notice to MSV,
                           cancel the Conversion (to the extent that it has not
                           taken effect under clause 4.8(b)), in which event the
                           remainder of the Amount Owing will be due and payable
                           by MSV to the Agent on demand.

                                       23
<PAGE>

         4.9      RANKING OF SHARES

                  Each Share issued to a Holder under this part will, from the
                  date on which it is issued, rank in all respects pari passu
                  with the other then existing issued Shares, but will not carry
                  any rights to any dividends or other distributions declared or
                  paid or made on the Shares (other than as provided for in part
                  5) before the relevant Conversion Date.

5        BONUS ISSUES, RECONSTRUCTIONS, ETC

         5.1      BONUS ISSUES

                  (a)      If at any time before a Conversion Date, Campbell
                           makes a Bonus Issue and allots to the holders of
                           Shares any Bonus Shares, then Campbell must in
                           addition to any Shares to be issued to the Holder
                           under part 4 issue to the Holders the number of
                           additional Bonus Shares as the Holders would have
                           been entitled to receive by way of participation in
                           the issue of Bonus Shares if they had Converted the
                           Principal Conversion Amount into Shares:

                           (1)      immediately before the issue of Bonus
                                    Shares; or

                           (2)      if before the Conversion of the Principal
                                    Conversion Amount there has been more than
                                    one issue of Bonus Shares, immediately
                                    before the first issue of Bonus Shares, and
                                    had retained all the shares issued on
                                    Conversion together with all the Bonus
                                    Shares which would have been issued to it
                                    under this clause 5.1 following the first
                                    issue.

                  (b)      Each Bonus Share issued to the Holders under this
                           clause ranks pari passu with the then existing
                           Shares. If Conversion of an ECU does not occur on or
                           before the Final Conversion Date the entitlement of
                           the Holder of that ECU to any Bonus Shares lapses.
                           Fractional entitlements are disregarded for the
                           purposes of this clause.

         5.2      RECONSTRUCTION OF CAPITAL

                  If any reconstruction of the issued share capital of Campbell
                  occurs before the Conversion Date, the entitlement of a Holder
                  to Shares under part 4 is reconstructed in the same proportion
                  and manner as the issued share capital of Campbell is
                  reconstructed (subject to the same provisions with respect to
                  rounding of entitlements which apply to the reconstruction of
                  capital), but in all other respects the terms of Conversion
                  and the Principal Conversion Amount will remain unchanged. For
                  the purposes of this clause, reconstruction includes a
                  subdivision, consolidation or other reconstruction of shares,
                  into any greater or lesser number.

         5.3      OFFERS TO HOLDERS OF SHARES

                  (a)      If before a Conversion Date an offer is made
                           generally to the holders of Shares in Campbell to
                           subscribe for Shares or other securities of Campbell
                           (whether by way of renounceable or non-renounceable
                           rights or otherwise),

                                       24
<PAGE>

                           Campbell must ensure that there is extended to the
                           Holders the same offer that they would have received
                           if, immediately before the date of that offer (or, if
                           the offer was made to shareholders of Campbell
                           registered on a particular day, then immediately
                           before that date), they had converted all their ECUs
                           to Shares under clause 4.1 and had become registered
                           as the holder of the same number of Shares which it
                           would have been entitled to have allotted and issued
                           to it on the basis provided in clause 4.1.

                  (b)      If before a Conversion Date Campbell issues to the
                           holders of Shares securities of Campbell on a pro
                           rata basis (other than under an offer to which 5.3(a)
                           relates), Campbell must ensure that on a subsequent
                           Conversion there is issued to the Holders the same
                           number of the relevant securities that they would
                           have received if, immediately before the date of the
                           issue to the holders of Shares (or, if the issue was
                           made to shareholders of Campbell registered on a
                           particular day, then immediately before that date),
                           they had converted all their ECUs to Shares in
                           Campbell under clause 4.1 and had become registered
                           as the holder of the same number of Shares which it
                           would have been entitled to have allotted and issued
                           to it on the basis provided in clause 4.1.

                  (c)      If the Holder has not exercised its Conversion right
                           on or before the Final Conversion Date, its
                           entitlement under clause 5.3(a) lapses. The
                           entitlement of the Holders to receive securities
                           under clause 5.3(b) terminates on the latest date on
                           which Conversion can take place under this agreement,
                           but without prejudice to any entitlements which may
                           have arisen before that date.

                  (d)      Fractional entitlements are disregarded for the
                           purposes of this clause.

         5.4      ECUS TO SURVIVE MERGER ETC

                  If:

                  (a)      Campbell merges with another company (THIRD PARTY);
                           or

                  (b)      Campbell enters into an arrangement (in whatever
                           form) under which its operations alone or with those
                           of another company are disposed of to a third company
                           (THIRD PARTY),

                  Campbell must ensure it is a condition of the merger or
                  arrangement that the right to Convert in relation to Campbell
                  is transferred to a right to Convert into common shares in the
                  third party at the strike price which in the reasonable
                  opinion of the Agent would put the Holders in the same
                  position after the merger or arrangement that they were in
                  before the merger or arrangement. Without limiting the
                  foregoing, for the purposes of this clause, a MERGER includes
                  the amalgamation or arrangement of Campbell with another
                  company under the Companies Act (Quebec), the disposal by
                  shareholders of their shareholding in Campbell or a disposal
                  by Campbell of all or substantially all of its assets.

         5.5      TAKEOVERS

                  (a)      If Campbell or MSV or the Holder becomes aware that
                           the power to control 20% or more of the issued Shares
                           will or may change from the ownership on the date of
                           this agreement, then despite any other provision

                                       25
<PAGE>

                           of this agreement, the Holder is entitled to exercise
                           its right of Conversion in accordance with clause 4.1
                           even if that Conversion would occur before the First
                           Conversion Date.

                  (b)      Where a takeover or other offer is made for all the
                           Shares, the Holder may, by giving a notice to the
                           Agent, MSV and Campbell within 21 days of the date
                           which the Agent after consultation with Campbell
                           reasonably determines to be the date the takeover or
                           offer became unconditional in all material respects,
                           elect to advance the Final Conversion Date to a date
                           nominated in the notice which is within that period
                           of 21 days.

                  (c)      If Campbell or MSV becomes aware that the power to
                           control more than 20% of the issued Shares will, or
                           is likely to, change MSV must give notice of this
                           fact to each Holder so that each Holder has the
                           opportunity to Convert in accordance with part 4.

         5.6      ISSUE OF SHARES UNDER STOCK INCENTIVE PLANS

                  Campbell must not without the prior written consent of the
                  Agent issue securities of Campbell to its officers, employees,
                  consultants or other service providers, but the Agent's
                  consent is not required for:

                  (a)      any grant by Campbell of incentive options under any
                           Stock Incentive Plan; or

                  (b)      the issue of securities pursuant to the exercise of a
                           stock option under a Stock Incentive Plan granted in
                           accordance with clause 5.6(a).

         5.7      APPROVAL OF THE EXCHANGE

                  Campbell will not proceed with an issue of Bonus Shares as
                  contemplated in clause 5.1, a reconstruction as contemplated
                  in clause 5.2 or an offer to holders of Shares as contemplated
                  in clause 5.3 unless it has first received Exchange Approval
                  to permit the adjustments or issues to Holders referred to in
                  those clauses.

6        ASSIGNMENT

         6.1      TRANSFER OF ECUS

                  A Holder may transfer an ECU to a related entity or to another
                  reputable bank or other reputable financial institution, but
                  will not transfer an ECU to any other person without the
                  consent of MSV (which consent will not be unreasonably
                  withheld or delayed).

         6.2      ASSIGNMENT BY A TRANSACTION PARTY

                  A Transaction Party must not transfer or assign any of its
                  rights or obligations under a Transaction Document without the
                  prior written consent of the Agent and each Holder.

                                       26
<PAGE>

         6.3      ASSIGNMENT BY THE AGENT

                  The Agent may not transfer or assign any of its rights or
                  obligations under this agreement without the prior written
                  consent of MSV, which must not be unreasonably withheld or
                  delayed.

         6.4      PARTICIPATION PERMITTED

                  A Holder may grant by way of sub-participation (being a right
                  to share in the financial effects of this agreement without
                  rights against a Transaction Party) all or part of the
                  Holder's rights and benefits under this agreement to another
                  person without having to obtain the consent, or to notify, a
                  Transaction Party.

         6.5      ADDITIONAL COSTS

                  The Transaction Parties will not be liable to pay any cost or
                  increased cost which arises as the result of a transfer of an
                  ECU under clause 6.1 or a sub-participation under clause 6.4.
                  For greater certainty, but without restricting this clause
                  6.5, cost or increased cost also includes any withholding tax
                  applicable which is greater than the applicable withholding
                  tax as provided in the tax treaty between Canada and Ireland
                  when an event described in clauses 6.1 or 6.4 occurs.

         6.6      LENDING OFFICE

                  A Holder may change its Lending Office at any time and must
                  promptly notify MSV of the change.

         6.7      DISCLOSURE

                  (a)      Subject to clause 6.7(b), the Agent and each Holder
                           may disclose to a proposed assignee, transferee or
                           sub-participant information relating to a Transaction
                           Party or the Transaction Documents whether or not
                           confidential and whether or not the disclosure would
                           be in breach of a law or of a duty owed to a
                           Transaction Party.

                  (b)      Before making a disclosure under clause 6.7(a), the
                           Agent or the Holder must obtain a written undertaking
                           from the assignee, transferee or sub-participant (as
                           applicable) in favour of MSV and the Agent or the
                           Holder (as the case may be) that it will keep
                           confidential all information disclosed to it.

7        REPAYMENT OF ISSUE PRICE, INTEREST AND RELATED MATTERS

         7.1      REPAYMENT OF ISSUE PRICE AND INTEREST

                  If the Principal Conversion Amount of an ECU is not Converted
                  in accordance with clause 4.1 or 4.2(b) or repaid under clause
                  4.2(d) on or before the Final Conversion Date, the Principal
                  Conversion Amount for that ECU is to be repaid to the Agent
                  for the account of the Holders on the Final Conversion Date.

                                       27
<PAGE>

         7.2      INTEREST

                  (a)      The Issue Price outstanding under each ECU bears
                           interest from the date of payment of the Issue Price
                           to MSV up to (but excluding) the date the Issue Price
                           is Converted or repaid (as the case may be).

                  (b)      Interest for each ECU is payable to each Holder
                           quarterly in arrears on each Interest Payment Date,
                           but MSV may, unless prevented from doing so under
                           clause 7.2(c), elect by notice in writing to the
                           Agent no later than 10 Business Days before a
                           particular Interest Payment Date (other than the
                           Final Conversion Date) not to pay interest on all
                           that Holder's ECUs on that Interest Payment Date, in
                           which event either:

                           (1)      the Holder may elect to Convert in
                                    accordance with clause 4.3 all of the then
                                    outstanding Interest Conversion Amount for
                                    its ECUs by giving to each of MSV, Campbell
                                    and the Agent a Conversion Notice not less
                                    than 5 Business Days before the Interest
                                    Payment Date; or

                           (2)      interest will be capitalised for all that
                                    Holder's ECUs on the relevant Interest
                                    Payment Date, from which time the
                                    capitalised interest will itself bear
                                    interest.

                  (c)      MSV may not without the written consent of the Agent
                           elect to capitalise interest in accordance with
                           clause 7.2(b) if in the opinion of the Agent any
                           Relevant Approval (as that term is defined in clause
                           4.8(a)) would be required if the Agent were to
                           Convert the whole of the Amount Owing on the relevant
                           Interest Payment Date.

                  (d)      MSV must repay to the Agent for the account of the
                           Holder on the Final Conversion Date any interest
                           which MSV elects to capitalise and the Holder does
                           not elect to Convert under clause 7.2(b).

                  (e)      Interest (including interest on capitalised
                           interest):

                           (1)      accrues from day to day on the basis of a
                                    360 day year and for the actual number of
                                    days elapsed; and

                           (2)      is calculated and payable at the Rate.

         7.3      CALCULATION OF PER ANNUM INTEREST RATE

                  For the purposes of compliance with the Interest Act (Canada),
                  the equivalent yearly rate of interest for a 365 (or 366) day
                  year to any rate expressed in this agreement based on a 360
                  day year is equal to that 360 day rate multiplied by 365 (or
                  366) divided by 360.

         7.4      MAXIMUM INTEREST PAYABLE

                  Despite any provision of this agreement, in no event will the
                  aggregate "interest" (as defined in section 347 of the
                  Criminal Code (Canada) (SECTION)) payable under this agreement
                  exceed the effective annual rate of interest on the "credit
                  advanced" (as defined in the Section) under this agreement
                  lawfully permitted by the Section and if any payment collected
                  or demanded under this agreement in respect of "interest" is
                  determined to be contrary to the provisions of the Section,
                  that payment, collection or demand is deemed to have been made
                  by mutual

                                       28
<PAGE>

                  mistake of MSV, RMBI and the Agent and the amount of that
                  payment or collection will be refunded to MSV. For the
                  purposes of this agreement, the effective annual rate of
                  interest will be determined in accordance with generally
                  accepted actuarial practices and principles over the relevant
                  term and, in the event of dispute, a certificate of a Fellow
                  of the Canadian Institute of Actuaries appointed by the Agent
                  after consultation with MSV, will be prima facie evidence of
                  that rate.

         7.5      PAYMENT OF AMOUNTS - GENERAL

                  MSV must pay in full to the Agent for the account of the
                  Finance Parties entitled to them, on the dates provided in the
                  Transaction Documents, all debts and monetary liabilities of
                  MSV and each other Transaction Party to a Finance Party under
                  or in relation to a Transaction Document in any capacity. All
                  those unpaid debts and liabilities of MSV and each other
                  Transaction Party must in all events be paid before the Final
                  Conversion Date or on any other date on which the Amount Owing
                  is or is required to be repaid in full.

         7.6      LATE PAYMENTS

                  (a)      If MSV fails to pay any moneys on the due date, MSV
                           must on demand by the Agent or the Holder pay
                           interest on that overdue amount (including interest
                           on overdue interest) from the due date up to but
                           excluding the date of actual payment (after as well
                           as before judgment) at the aggregate of the Rate and
                           4.0% per annum.

                  (b)      Interest on amounts due but unpaid accrues from day
                           to day and is computed on the basis of a 360 day year
                           and for the actual number of days elapsed.

         7.7      PLACE OF PAYMENTS

                  (a)      All amounts payable by MSV to the Agent or the Holder
                           under this agreement must be paid to the Holder in C$
                           and in Same Day Funds to the Holder's nominated
                           Toronto bank account (in the case of payments to a
                           Holder) or to an account nominated by the Agent (in
                           the case of payments to the Agent).

                  (b)      To effect a payment under clause 7.7(a), MSV must no
                           later than 11.00 am (Toronto time) on the date on
                           which payment is due:

                           (1)      instruct its bank to transfer the payment
                                    immediately to the Toronto bank account
                                    nominated by the Holder or the Agent under
                                    clause 7.7(a); and

                           (2)      provide to the Agent a copy of the
                                    instruction to the bank referred to in
                                    paragraph (1) by facsimile.

                  (c)      On the Business Day immediately preceding the day MSV
                           intends to make a payment to the Agent or a Holder
                           under this agreement, MSV must give a notice to the
                           Agent or the Holder (in the case of a notice to RMBI,
                           not later than 10.00 am (Dublin time) on the date the
                           notice is given) stating that MSV intends to make a
                           payment the following Business Day and confirming the
                           amount of the payment.

                                       29
<PAGE>

         7.8      TAXES

                  If a law requires MSV to withhold or deduct Taxes from a
                  payment to be made by MSV under this Agreement so that a
                  Finance Party would not actually receive for its own benefit
                  on the due date the full amount provided for under this
                  agreement, then:

                  (a)      the amount payable is increased (and for greater
                           certainty, in the case of interest the amount of
                           interest is increased) so that, after making that
                           deduction and deductions applicable to additional
                           amounts payable under this clause, the Finance Party
                           is entitled to receive the amount it would have
                           received if no deductions had been required;

                  (b)      MSV must make the deductions; and

                  (c)      MSV must pay the full amount deducted to the relevant
                           authority in accordance with applicable law and
                           deliver the original receipts to the Agent.

         7.9      RETURN OF ECU CERTIFICATES

                  Each ECU Certificate must be returned to MSV for cancellation
                  on Conversion of the ECU the subject of that ECU Certificate
                  or repayment of the Amount Owing in full.

8        REPRESENTATIONS AND WARRANTIES

         8.1      REPRESENTATIONS AND WARRANTIES

                  MSV and each of the Guarantors represent and warrant to the
                  Agent and each Holder that:

                  (a)      INCORPORATION: each Campbell Group Member is duly
                           incorporated and validly existing under the laws of
                           the Province of Quebec or the federal laws of Canada
                           (as applicable) and has done everything necessary to
                           keep its corporate existence in good standing;

                  (b)      CORPORATE POWER: each Campbell Group Member has the
                           corporate power and capacity to own its assets and to
                           carry on its business as it is now being conducted;

                  (c)      AUTHORITY: each Transaction Party has full capacity,
                           power and authority to enter into the Documents to
                           which it is a party and to perform its obligations
                           under them;

                  (d)      CORPORATE AUTHORISATIONS: each Transaction Party has
                           taken all necessary action to authorise the
                           execution, delivery and performance of the Documents
                           to which it is a party in accordance with their
                           terms;

                  (e)      BINDING OBLIGATIONS: the Documents to which each
                           Transaction Party is a party constitute its legal,
                           valid and binding obligations and, subject to any
                           necessary stamping and registration, are enforceable
                           in accordance with their terms;

                                       30
<PAGE>

                  (f)      TRANSACTIONS PERMITTED: the execution, delivery and
                           performance by each Transaction Party of the
                           Documents to which each Transaction Party is a party
                           do not and will not violate any law, regulation,
                           authorisation, ruling, consent, judgment, order or
                           decree of a Governmental Agency, each Transaction
                           Party's Constituent Documents, or an Encumbrance or
                           document which is binding on each Transaction Party
                           or on each Transaction Party's assets;

                  (g)      AUTHORISATIONS: any Authorisations required in
                           connection with the execution and performance by each
                           Transaction Party and the validity and the
                           enforceability against each Transaction Party of each
                           of the Documents to which a Transaction Party is a
                           party, and each Transaction Party's performance of
                           the transactions contemplated by those Documents,
                           have been obtained and are in fall force and effect
                           and there has been no material default by a
                           Transaction Party in the performance of any of the
                           terms and conditions of those Authorisations;

                  (h)      REPORTING ISSUER: Campbell is a reporting issuer (or
                           the equivalent) where applicable in good standing in
                           each of the provinces and territories of Canada under
                           the applicable Securities Laws, is not included in a
                           list of defaulting reporting issuers maintained by
                           the securities commissions (or similar regulatory
                           authorities) in any of the provinces and territories
                           of Canada and is not in default of any requirement of
                           the applicable Securities Laws relating to continuous
                           disclosure and is in compliance with the bylaws,
                           rules and regulations of the Exchange;

                  (i)      NO DEFAULT OR BREACH:

                           (1)      no Transaction Party or other Campbell Group
                                    Member is in breach in a material respect
                                    under a material agreement binding on that
                                    Transaction Party or Campbell Group Member;
                                    and

                           (2)      no Transaction Party or other Campbell Group
                                    Member is in default in the payment of a
                                    material sum, or in the compliance with a
                                    material obligation in respect of Financial
                                    Indebtedness or a Surety Obligation;

                  (j)      NO LITIGATION: no litigation, arbitration, dispute or
                           administrative proceeding involving a Transaction
                           Party or other Campbell Group Member has been
                           commenced, is pending or to any Transaction Party's
                           knowledge is threatened, which if adversely
                           determined would or may have a Material Adverse
                           Effect;

                  (k)      ACCOUNTS: the most recent accounts of Campbell and
                           its subsidiaries given to the Agent under this
                           agreement:

                           (1)      were prepared in accordance with applicable
                                    accounting standards; and

                           (2)      contain all information necessary to give a
                                    true and fair view of the financial
                                    condition and state of affairs of Campbell
                                    and its subsidiaries at the date to which
                                    they relate and the results of the
                                    operations of Campbell and its subsidiaries
                                    for the accounting period to which they
                                    relate;

                                       31
<PAGE>

                  (1)      NO CHANGE IN AFFAIRS: there has been no change in the
                           state of affairs of Campbell and its subsidiaries
                           since the end of the accounting period to which the
                           accounts referred to in clause 8.1(k) relate which
                           has or may have a Material Adverse Effect;

                  (m)      NO DEFAULT: no event has occurred which constitutes a
                           Default (which has not been remedied or waived in
                           writing);

                  (n)      DISCLOSURE:

                           (1)      all information provided to the Agent by or
                                    on behalf of each Transaction Party in
                                    respect of the Documents, the transactions
                                    contemplated by them, each Transaction Party
                                    or other Campbell Group Member and the
                                    assets, business and affairs of each
                                    Transaction Party and each other Campbell
                                    Group Member, is true and correct as at the
                                    time it is given in all material respects
                                    and is not, whether by omission of
                                    information or otherwise, misleading in a
                                    material respect;

                           (2)      the Disclosure Documents and any other
                                    filings made by Campbell with any securities
                                    commissions or regulatory authorities or the
                                    Exchange are at their respective dates, true
                                    and correct, contain or contained no
                                    misrepresentation and constitute full, true
                                    and plain disclosure of all material facts
                                    relating to Campbell and Campbell does not
                                    have any confidential filings with any
                                    securities commissions or regulatory
                                    authorities or the Exchange; and

                           (3)      Campbell has no knowledge of any material
                                    change (actual, anticipated, contemplated or
                                    threatened, whether financial or otherwise)
                                    in the business, affairs, operations, assets
                                    or liabilities (contingent or otherwise) or
                                    capital of Campbell or its subsidiaries,
                                    which has not been generally disclosed and
                                    reported to the applicable securities
                                    commissions or regulatory authorities or the
                                    Exchange and Campbell does not have any
                                    knowledge of any material adverse
                                    information in regard to the current and
                                    prospective operations of Campbell or its
                                    subsidiaries, which has not been generally
                                    disclosed;

                  (o)      LAWS: each Transaction Party and each other Campbell
                           Group Member has complied in all material respects
                           with all statutes and regulations which are
                           applicable to that Transaction Party or other
                           Campbell Group Member and the business carried on by
                           that Transaction Party or Campbell Group Member,

                  (p)      MINERAL RIGHTS:

                           (1)      the Mineral Rights held at the date of this
                                    agreement or when the representations and
                                    warranties under this part 8 are repeated
                                    under clause 8.2 are legal, valid and
                                    continuing; and

                           (2)      all obligations under or in respect of the
                                    Mineral Rights have been complied with to
                                    the extent required to date in all material
                                    respects;

                  (q)      AUTHORISATIONS: each Transaction Party and the other
                           Campbell Group Members have obtained all necessary
                           Authorisations which are currently

                                       32
<PAGE>

                           necessary for the conduct of each of the Projects and
                           have no reason to believe that they will not in due
                           course obtain all further necessary Authorisations in
                           connection with each of the Projects;

                  (r)      POWER TO ALLOT SHARES: the directors of Campbell have
                           all necessary power and authority to issue and allot
                           the Allocated Shares under this agreement;

                  (s)      SHARES IN MSV AND MESTON: Campbell either directly or
                           through a wholly owned subsidiary owns:

                           (1)      all the issued shares in MSV and Meston; and

                           (2)      76% of all the issued shares in Corporation
                                    Copper Rand Inc.;

                  (t)      NO ENCUMBRANCE: there is no Encumbrance over the
                           Project Assets other than an Encumbrance created by a
                           Transaction Document or a Permitted Encumbrance;

                  (u)      1991 TRANSACTION: no Transaction Party has any
                           present net Financial Indebtedness or other debt or
                           monetary liability, and based on legal advice
                           received, will not have any future net Financial
                           Indebtedness up to December 2006 or other debt or
                           monetary liability, under or in relation to the 1991
                           Transaction;

                  (v)      ENVIRONMENTAL LIABILITIES: there are:

                           (1)      no Environmental Liabilities affecting any
                                    Campbell Group Member or the Mining Assets
                                    which might reasonably be expected to have a
                                    Material Adverse Effect before 31 December
                                    2006; and

                           (2)      no factors affecting a Campbell Group Member
                                    or the Mining Assets which are likely to
                                    give rise to any Environmental Liability
                                    which might reasonably be expected to have a
                                    Material Adverse Effect before 31 December
                                    2006;

                  (w)      ENVIRONMENTAL APPROVALS: all Environmental Approvals
                           required to operate or conduct any exploration,
                           development and production activity on or in respect
                           to the Mining Assets have been obtained, are in full
                           force and effect and all operations, exploration,
                           development and production activities conducted on
                           them are in compliance with all Environmental
                           Approvals, except for any Environmental Approvals
                           which:

                           (1)      have been applied for but have not been
                                    granted; or

                           (2)      are not required having regard to the stage
                                    of development of a Mining Asset,

                           and in relation to these Environmental Approvals MSV
                           and the Guarantors have no reason to believe they
                           will not be obtained in due course;

                  (x)      MINING ASSETS: the Mining Assets and all operations,
                           exploration, development and production activities
                           conducted in respect of them are in compliance with
                           all Environmental Laws and the Mining Assets are in
                           compliance with their respective Restoration Plans
                           except for any non-compliance with Environmental Laws
                           or Restoration Plans which would not, individually or
                           in the aggregate, reasonably be expected to have a
                           Material Adverse Effect;

                                       33
<PAGE>

                  (y)      NO IMMUNITY: a Transaction Party or a Campbell Group
                           Member does not, nor do its assets, enjoy immunity
                           from suit or execution;

                  (z)      NOT A TRUSTEE: no Transaction Party or Campbell Group
                           Member is a trustee of a trust or settlement;

                  (aa)     NO INSOLVENCY EVENT: no event has occurred which
                           constitutes an Insolvency Event;

                  (bb)     COMMERCIAL BENEFIT: the entry into, and performance
                           by it of its obligations under, the Transaction
                           Documents to which it is a party is for its
                           commercial benefit and is in its commercial
                           interests;

                  (cc)     ASSETS: it is the sole beneficial owner of all assets
                           included in the accounts referred to in clause 8.1(k)
                           free of all Encumbrances other than the Permitted
                           Encumbrances; and

                  (dd)     TAXES: it has complied with all tax laws in all
                           applicable jurisdictions and it has paid all Taxes
                           due and payable by it.

         8.2      SURVIVAL AND REPETITION

                  The representations and warranties set out in clause 8.1
                  survive the execution of this agreement and are repeated on
                  the Issue Date and on each Quarterly Date with reference to
                  the facts and circumstances applicable from time to time.

         8.3      RELIANCE

                  MSV and the Guarantors acknowledge that the Agent and RMBI
                  have entered into the Transaction Documents in reliance on the
                  representations and warranties contained in clause 8.1 and the
                  provisions of clause 8.2.

         8.4      TERM OF REPRESENTATIONS AND WARRANTIES

                  The representations and warranties given by MSV and the
                  Guarantors under clause 8.1 and repeated under clause 8.2 will
                  continue to be given until all ECUs subscribed for have been
                  Converted or the Amount Owing has been paid in full.

9        UNDERTAKINGS

         9.1      PROJECT RELATED UNDERTAKINGS BY MSV AND THE GUARANTORS

                  MSV and each Guarantor must at all times, while the Amount
                  Owing remains outstanding, comply with or cause to be complied
                  with the following undertakings:

                  (a)      DEVELOPMENT OF THE MINING ASSETS: it and each other
                           Campbell Group Member, will ensure that the Mining
                           Assets are developed, operated and maintained (as
                           applicable) in accordance with good mining industry
                           practice;

                  (b)      MAINTENANCE OF MINING ASSETS: it and each other
                           Campbell Group Member, will ensure the maintenance
                           and protection of the Mining Assets

                                       34
<PAGE>

                           which includes, without limitation, ensuring that the
                           Mining Assets are kept in good condition and are free
                           from all material defects;

                  (c)      NOTICE TO THE AGENT: it and each other Campbell Group
                           Member, will notify the Agent as soon as reasonably
                           possible after it becomes aware of:

                           (1)      any pending or threatened material dispute
                                    in relation to any of the Mining Assets, or
                                    any material Project Document, including
                                    particulars of the dispute and the action
                                    (if any) proposed to be taken in respect of
                                    it;

                           (2)      any default notices given or received by a
                                    Campbell Group Member under any Project
                                    Document;

                           (3)      a Force Majeure Event affecting any of the
                                    Mining Assets or the operation or
                                    development of a Project;

                           (4)      a decision to depart materially from the
                                    level of production forecast in the Project
                                    Cashflow Model and Capital Schedule provided
                                    to the Agent under clause 2.1(i);

                           (5)      a proposed material change in mining or
                                    processing methods in respect of the
                                    development or operation of a Project;

                           (6)      a proposed material change in the
                                    development or operation of a Project;

                           (7)      a change in the proposed arrangements, terms
                                    or conditions for the sale of any Product
                                    from a Project; and

                           (8)      any matter which it may reasonably be
                                    anticipated will have a Material Adverse
                                    Effect;

                  (d)      AUTHORISATIONS: it and each other Campbell Group
                           Member, will obtain, when required having regard to
                           the stage of development of a Project and maintain
                           and observe all necessary Authorisations necessary
                           for:

                           (1)      it to enter into each of the Transaction
                                    Documents and the Project Documents;

                           (2)      the construction, development and operation
                                    of the relevant Project (including, without
                                    limitation, Environmental Approvals); and

                           (3)      the sale of any Product;

                  (e)      INSURANCE: it must:

                           (1)      insure all assets of an insurable nature and
                                    keep them insured with a reputable,
                                    responsible and solvent insurer on terms,
                                    against risks and in an amount acceptable to
                                    the Agent;

                           (2)      take out and maintain accident,
                                    consequential loss, force majeure and public
                                    liability insurances with respect to the
                                    Mining Assets with a reputable, responsible
                                    and solvent insurer on terms and in amounts
                                    acceptable to the Agent;

                           (3)      take out, within 3 months of the date of
                                    this agreement, and then maintain business
                                    interruption insurance with respect to the
                                    Mining

                                       35
<PAGE>

                                    Assets with a reputable, responsible and
                                    solvent insurer on terms and in amounts
                                    acceptable to the Agent;

                           (4)      ensure that each insurance policy has noted
                                    on it the name of the Agent and each Holder
                                    as first loss payee;

                           (5)      duly and punctually pay all premiums,
                                    commissions, stamp duties, charges and other
                                    expenses necessary for keeping in force each
                                    insurance policy;

                           (6)      on request give to the Agent certificates of
                                    currency in respect of all insurances and
                                    all other details as to the insurances the
                                    Agent requires;

                           (7)      not do or omit anything or permit anything
                                    to be done which may adversely affect any
                                    insurance policy; and

                           (8)      do all things necessary and provide all
                                    documents, evidence and information
                                    necessary to enable the Agent to collect or
                                    recover money due or to become due under an
                                    insurance policy relating to the Project
                                    Assets, where it is entitled to do so under
                                    this clause,

                           and, if a Campbell Group Member fails to keep in
                           force an insurance policy with respect to the Mining
                           Assets or if an insurance policy from any cause
                           becomes void or voidable, the Agent may (but is not
                           obliged to) effect or keep in force that insurance
                           policy at the cost of that Campbell Group Member;

                  (f)      VARIATION, ETC OF PROJECT DOCUMENTS: it will not, and
                           it will ensure that each other relevant Transaction
                           Party will not, waive any of its material rights
                           under, agree to any material variation or termination
                           of, terminate or take any action which affects the
                           ability of the Agent to enforce, any Project Document
                           to which it is a party without the Agent's consent;

                  (g)      PERFECTION OF SECURITY: it and each other Transaction
                           Party, will create, perfect and maintain in force the
                           Security to the greatest extent possible and will do
                           all other things necessary to ensure that the
                           Security is effective and enforceable in each
                           relevant jurisdiction;

                  (h)      ENVIRONMENTAL MATTERS: it and each other Campbell
                           Group Member must:

                           (1)      comply with all Environmental Laws and
                                    Restoration Plans with respect to each of
                                    the Mining Assets;

                           (2)      obtain and comply with all Environmental
                                    Approvals required in connection with the
                                    construction, development, operation,
                                    exploitation and exploration of the Mining
                                    Assets; and

                           (3)      immediately notify the Agent of all material
                                    claims, complaints or notices concerning
                                    each Campbell Group Member's compliance with
                                    any Environmental Law, Environmental
                                    Approval or Restoration Plan and of any fact
                                    which would give rise to an Environmental
                                    Liability;

                  (i)      COMPLIANCE WITH PROJECT DOCUMENTS: it and each other
                           Transaction Party will comply with all of the
                           material obligations under each of the Project
                           Documents to which it is a party;

                                       36
<PAGE>

                  (j)      NO DISPOSAL OF SHARES IN OTHER TRANSACTION PARTIES:
                           it will not, and it will ensure that each other
                           relevant Transaction Party will not, dispose of or
                           reduce its interest in another Campbell Group Member
                           without the prior written consent of the Agent;

                  (k)      SHARES AVAILABLE FOR ALLOTMENT: it will ensure that
                           the directors of Campbell have all necessary power
                           and authority to issue and allot the Allocated Shares
                           under this agreement; and

                  (1)      ENSURE COMPLIANCE BY OTHER TRANSACTION PARTIES: it
                           will, to the extent possible through any shareholders
                           rights, management control or other power or
                           influence it has from time to time over any other
                           Transaction Party, ensure that the relevant
                           Transaction Party complies with its obligations under
                           each of the Transaction Documents.

         9.2      GENERAL UNDERTAKINGS BY MSV AND THE GUARANTORS

                  MSV and each of the Guarantors covenants that:

                  (a)      DISPOSAL OF ASSETS: it will ensure that each Campbell
                           Group Member will not:

                           (1)      dispose of any Project Assets other than:

                                    (A)      Product; and

                                    (B)      Receivables the subject of the
                                             Auramet Transaction;

                           (2)      dispose of any assets which are not Project
                                    Assets having a value in excess of
                                    C$250,000; or

                           (3)      dispose of any assets other than in the
                                    ordinary course of business and at market
                                    value,

                           without the prior written consent of the Agent, not
                           to be unreasonably withheld;

                  (b)      FINANCIAL INDEBTEDNESS: it will ensure that the
                           Transaction Parties will not incur Financial
                           Indebtedness in excess of C$250,000 (in aggregate for
                           all Transaction Parties) without the prior written
                           consent of the Agent, except in respect of:

                           (1)      Equipment Finance;

                           (2)      Inter-Company Claims; and

                           (3)      Financial Indebtedness arising under the
                                    Auramet Transaction (if any);

                  (c)      ENCUMBRANCES: it will ensure that each Transaction
                           Party will not grant:

                           (1)      any Encumbrance over its assets (other than
                                    Permitted Encumbrances); or

                           (2)      any Surety Obligation in respect of money
                                    borrowed or raised, other than:

                           (3)      an Encumbrance or Surety Obligation in
                                    favour of the Agent;

                                       37
<PAGE>

                           (4)      the Surety Obligation given by Campbell
                                    under the Auramet Transaction; or

                           (5)      an Encumbrance or Surety Obligation given
                                    with the Agent's consent;

                  (d)      SUBORDINATION: it will ensure that:

                           (1)      all the Inter-Company Claims and payment
                                    (from whatever source) of, and the rights
                                    and claims of each Transaction Party in
                                    respect of, all the Inter-Company Claims are
                                    subordinated and postponed and made subject
                                    in right of payment to all the Amount Owing
                                    and payment (from whatever source) of, and
                                    the rights and claims of the Finance Parties
                                    in respect of, all the Amount Owing;

                           (2)      until all the Amount Owing have been paid in
                                    full:

                                    (A)      the Inter-Company Claims must not
                                             (without the prior written consent
                                             of the Agent) be paid or repaid;
                                             and

                                    (B)      Transaction Party may receive, and
                                             each Transaction Party must not pay
                                             or repay, any of the Inter-Company
                                             Claims to, or at the direction of,
                                             another Transaction Party or any
                                             person acting, or purporting to
                                             act, on behalf of a Transaction
                                             Party;

                           (3)      the subordination effected by this clause
                                    applies at all times including if and while
                                    a Transaction Party is in liquidation;

                           (4)      if, on liquidation of a Transaction Party,
                                    there is a distribution of a Transaction
                                    Party's assets including payment in cash,
                                    property or securities, to creditors of that
                                    Transaction Party on liquidation, all of the
                                    Amount Owing must be paid in Ml in cash
                                    before a payment is made for or on account
                                    of the Inter-Company Claims;

                           (5)      until the Amount Owing and all moneys due or
                                    owing under the Transaction Documents have
                                    been paid in full, until the subordination
                                    under this clause has been terminated and
                                    until this agreement has been fully
                                    discharged, no Transaction Party may:

                                    (A)      make a claim or exercise a right,
                                             power or remedy against another
                                             Transaction Party under any
                                             agreement, document or otherwise;

                                    (B)      accept, or ensure the grant of, or
                                             permit any Encumbrance or Surety
                                             Obligation from a Transaction Party
                                             or any surety in favour of another
                                             Transaction Party to exist; or

                                    (C)      exercise, or attempt to exercise,
                                             any right of set-off against, nor
                                             realise any Encumbrance from, a
                                             Transaction Party or any surety; or

                                    (D)      raise any defence or counterclaim
                                             in reduction or discharge of any
                                             obligation owed by a Transaction
                                             Party to another Transaction Party
                                             or any surety,

                           but this clause does not apply, in circumstances
                           where no Event of Default has occurred and is
                           continuing, to payments or repayments by one

                                       38
<PAGE>

                           Transaction Party to another Transaction Party in the
                           ordinary course of the conduct of the administration
                           of the business of the Campbell Group;

                  (e)      TAXES: it will ensure that each Campbell Group Member
                           will pay all relevant Taxes and outgoings payable
                           when due and on request give the Agent all receipts
                           or documents showing payment;

                  (f)      ACCOUNTS: it will ensure that each Campbell Group
                           Member will keep proper books of account;

                  (g)      NOTICES: it will provide to the Agent:

                           (1)      notice of Defaults of which it is aware;

                           (2)      notice of litigation involving a potential
                                    liability of a Campbell Group Member of
                                    C$250,000 or more;

                           (3)      copies of any material notices received
                                    under any Environmental Law in relation to a
                                    Project or under a Project Document; and

                           (4)      notice of any Material Adverse Change;

                  (h)      CONDUCT OF BUSINESS: it will ensure that each
                           Campbell Group Member carries on and conducts its
                           business in a proper and efficient manner and in
                           accordance with all applicable laws of each
                           jurisdiction in which it carries on its business;

                  (i)      CORPORATE BUDGET: it will ensure that each Campbell
                           Group Member conducts its business substantially in
                           accordance with the Project Cashflow Model and
                           Capital Schedule; and

                  (j)      CORPORATE EXISTENCE: it will ensure that each
                           Campbell Group Member maintains its corporate
                           existence and not permit any material alteration to
                           its Constituent Documents without the Agent's
                           consent.

         9.3      REPORTING

                  Each of MSV and Campbell agree to provide to the Agent for the
                  duration of the Facility:

                  (a)      FINANCIAL STATEMENTS: within 120 days, or any lesser
                           period required under any Law, of the end of
                           Campbell's financial year, a copy of the audited
                           consolidated financial statements for Campbell and
                           its subsidiaries for the financial year prepared in
                           accordance with the relevant accounting standards;

                  (b)      MANAGEMENT ACCOUNTS: within 45 days of each Quarterly
                           Date, a copy of the unaudited quarterly consolidated
                           management accounts for Campbell and its subsidiaries
                           prepared in accordance with the relevant accounting
                           standards, including profit and loss account,
                           cashflow statement and balance sheet;

                  (c)      MONTHLY REPORTS: before the first day on the
                           subsequent month, on a confidential basis, a cashflow
                           and liquidity report setting out the month's opening
                           cash balances, expenditures during the month, closing
                           balances, forecast expenditures, cash inflows of the
                           Campbell Group over the next 6 months and for the
                           period covered by the Project Cashflow Model and

                                       39
<PAGE>

                           Capital Schedule, a comparison of expenditure with
                           the Project Cashflow Model and Capital Schedule;

                  (d)      RELEASES TO THE EXCHANGE: copies of all press
                           releases and all documents issued by Campbell to the
                           Exchange, any securities commission or its
                           shareholders, at the same time as or as soon as
                           practicable after their issue; and

                  (e)      OTHER INFORMATION: any other information about the
                           financial condition or state of affairs of a
                           Transaction Party or the Project as the Agent may
                           request.

         9.4      UNDERTAKING BY CAMPBELL IN RELATION TO SHARES, LISTING,
                  SECURITIES LAWS, ETC

                  (a)      At all times before and including the Final
                           Conversion Date, Campbell must reserve and allot and
                           conditionally issue out of its authorised capital
                           that number of Shares as is sufficient to enable
                           Campbell to meet its obligation to issue the
                           Allocated Number of Shares under this agreement from
                           time to time. All Shares acquired under this
                           Agreement must be fully paid and non-assessable.

                  (b)      Campbell must:

                           (1)      take all steps and actions and do all things
                                    that may be required to maintain the listing
                                    and posting for trading of the Shares on the
                                    Exchange until the Final Conversion Date,
                                    and must make application to list and
                                    reserve for issuance any additional number
                                    of Shares as are to be issued as a result of
                                    a Conversion;

                           (2)      take all steps and actions and do all things
                                    that may be reasonably required to obtain
                                    from the Exchange the weighted average
                                    trading price of the Shares traded on the
                                    Exchange for each day in a given Trading
                                    Period and to provide this information to
                                    the Agent;

                           (3)      take all steps and actions to do all things
                                    that may be required to maintain its status
                                    as a "reporting issuer" not in default of
                                    the requirements of the securities acts and
                                    regulations of all provinces of Canada where
                                    it is or may, from time to time, be a
                                    reporting issuer,

                           (4)      make all requisite filings, registrations
                                    and notices, including those required to be
                                    made with the appropriate securities
                                    commissions and the Exchange, and Campbell
                                    must pay all corresponding fees;

                           (5)      not take any action or omit to take any
                                    action which would have the effect of
                                    preventing a Holder from exercising its
                                    right to convert or from receiving any of
                                    the Shares on exercise; and

                           (6)      promptly notify the Agent, whilst there is
                                    an Amount Owing, full particulars of any
                                    order of any securities regulatory authority
                                    preventing or suspending the offering, sale
                                    or trading of the securities of Campbell.

                  (c)      If, in the opinion of counsel, any instrument (not
                           including a prospectus) is required to be filed with,
                           or any permission, order or ruling is required to

                                       40
<PAGE>

                           be obtained from, any securities commission or
                           similar regulatory authority or any other step is
                           required under any federal or provincial law of a
                           jurisdiction in which Campbell is a reporting issuer
                           or equivalent thereof, before any securities or
                           property which a Holder is entitled to receive under
                           a Conversion may properly and legally be delivered on
                           that Conversion, Campbell covenants that it will use
                           its reasonable best efforts to file that instrument,
                           obtain that permission, order or ruling or take all
                           those other actions, at its expense, as is required
                           or appropriate in the circumstances, but nothing in
                           this clause requires Campbell to prepare a prospectus
                           or a similar offering document.

         9.5      POST-CLOSING REGISTRATIONS AND OTHER OBLIGATIONS

                  Each of MSV and the Guarantors will ensure that:

                  (a)      before 9 November 2004, it will arrange for the
                           registration of the Meston Hypothec and the MSV
                           Hypothec at the Land Register;

                  (b)      before 31 December 2004, it will arrange for the
                           registration of the Meston Hypothec and the MSV
                           Hypothec at the MRN Register;

                  (c)      it will take all steps and actions to do all things
                           that may be required to maintain the registration of
                           the Meston Hypothec and the MSV Hypothec at the Land
                           Register and the MRN Register respectively,

                  (d)      before 31 January 2005, it will arrange for the
                           registrations of the 2001 Agreement and the June 2002
                           Agreement under MRN Register registration numbers
                           50327 and 50526 respectively to be removed,
                           discharged or radiated or wherever else they appear
                           in the MRN Register in respect of the Mineral Rights
                           of MSV;

                  (e)      within 3 Business Days after Lavery receives
                           confirmation of the registration of the Campbell
                           Hypothec, the MSV Hypothec and the Meston Hypothec at
                           the Register of personal and movable real rights,
                           Lavery provides the addressees of the Lavery Opinion
                           with an update or restatement of the Lavery Opinion
                           which states that the Finance Parties' security has
                           been perfected and that there has been no adverse
                           entry at the Register of personal and movable real
                           rights; and

                  (f)      within 5 Business Days after Michel Lusignan receives
                           confirmation of:

                           (1)      the registration of the MSV Hypothec and the
                                    Meston Hypothec at the MRN Register and the
                                    Land Register; and

                           (2)      the discharge, removal or radiation of the
                                    2001 Agreement and the June 2002 Agreement,
                                    or registration numbers 50327 and 50526
                                    respectively from the MRN Register as
                                    referred to in clause 9.5(d),

                           Michel Lusignan provides:

                           (3)      the addressees of the original MSV Titles
                                    Opinion with an update or restatement of the
                                    MSV Titles Opinion which states that:

                                    (A)      the only registered Charge against
                                             the Corner Bay Property (as those
                                             terms are defined in the MSV Titles
                                             Opinion)

                                       41
<PAGE>

                                             registered at the MRN Register
                                             (other than those in favour of a
                                             Finance Party), is the MSV NSR; and

                                    (B)      there has been no adverse entry at
                                             the MRN Register or the Land
                                             Register in respect of the property
                                             the subject of that opinion; and

                           (4)      the addressees of the original Meston Titles
                                    Opinion with an update or restatement of the
                                    Meston Titles Opinion which states that
                                    there has been no adverse entry at the MRN
                                    Register or the Land Register in respect of
                                    the property the subject of the Meston
                                    Titles Opinion.

         9.6      TERM OF COVENANTS

                  MSV and each Guarantor (as applicable) must perform and
                  observe the covenants in clauses 9.1, 9.2, 9.3 and 9.4 until
                  all ECUs subscribed for have been Converted or the Amount
                  Owing has been paid in full.

10       EVENTS OF DEFAULT

         10.1     TERMS OF DEFAULT

                  It is a Default, whether or not it is within the control of a
                  Transaction Party, if:

                  (a)      FAILURE TO PAY AMOUNT OWING: a Transaction Party
                           fails to pay interest or any other part of the Amount
                           Owing when due;

                  (b)      FAILURE TO PAY OTHER AMOUNTS: a Transaction Party
                           fails to pay any other amounts when due under the
                           Transaction Documents and the failure is not remedied
                           within 7 Business Days from the date on which the
                           Agent gives MSV notice requiring the failure to be
                           remedied;

                  (c)      FAILURE TO PERFORM OBLIGATIONS: a Transaction Party
                           fails to perform or observe any other obligation
                           under any of the Transaction Documents and the
                           failure is not remedied within 14 days from the date
                           on which the Agent gives MSV notice requiring the
                           failure to be remedied;

                  (d)      DEFAULT UNDER PROJECT DOCUMENTS: a Transaction Party
                           defaults in performing any material obligation under
                           a Project Document and that default is not remedied
                           within the period specified in the Project Document,
                           or if no period is specified within 21 days;

                  (e)      DEFAULT UNDER OTHER DOCUMENTS: a Campbell Group
                           Member fails to perform any material obligation under
                           any agreement, Surety Obligation or Encumbrance with
                           or in favour of a person other than RMBI or the Agent
                           relating to money borrowed or raised, and that
                           failure is not remedied within 21 days;

                  (f)      AMENDMENT TO PROJECT DOCUMENTS: there is a revocation
                           or material adverse variation to any of the Project
                           Documents and that revocation or variation is not
                           reinstated or reversed within 21 days;

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<PAGE>

                  (g)      VARIATION TO PROJECT: a Project is not operated or
                           developed substantially in accordance with the
                           Project Cashflow Model and Capital Schedule (as
                           revised from time to time by the Transaction Parties
                           and approved by the Finance Parties) and that failure
                           is not remedied within 21 days;

                  (h)      ABANDONMENT: a Project is:

                           (1)      abandoned; or

                           (2)      placed on a "care and maintenance" basis
                                    after the Project construction has been
                                    completed, without the Agent's prior written
                                    approval;

                  (i)      MISREPRESENTATION: any representation or warranty
                           made by a Transaction Party in any Transaction
                           Document is breached in any material respect and the
                           relevant circumstances (if capable of remedy) are not
                           remedied within the period available to the
                           Transaction Party under the relevant Transaction
                           Document, or 14 days if no period is specified;

                  (j)      INSOLVENCY EVENT: an Insolvency Event occurs;

                  (k)      ACCELERATION OF PAYMENTS: a Transaction Party does
                           anything which constitutes an event, whatever called,
                           which causes or enables the acceleration of a payment
                           to be made under a Document, or the enforcement,
                           termination or rescission of a Document;

                  (1)      ENCUMBRANCE: an Encumbrance is enforceable against an
                           asset of a Campbell Group Member;

                  (m)      SURETY OBLIGATION: a Surety Obligation is enforceable
                           against a Campbell Group Member;

                  (n)      JUDGMENT: a judgment, order or execution in respect
                           of an amount exceeding C$250,000 or its equivalent in
                           another currency is made or levied, and not set aside
                           within 30 days, against MSV or another Campbell Group
                           Member or its assets or against any asset the subject
                           of the Security and remains unpaid or unsatisfied
                           after the time for payment has expired in accordance
                           with the terms of the relevant process;

                  (o)      AMENDMENT OF CONSTITUENT DOCUMENTS: a Constituent
                           Document of a Campbell Group Member is amended in a
                           manner which is prejudicial to a Holder, without the
                           prior written consent of the Agent;

                  (p)      VITIATION OF DOCUMENTS: all or part of a provision of
                           a Document is illegal, void, voidable, unenforceable
                           or otherwise of limited force or effect, or a person
                           becomes entitled to terminate, rescind or avoid all
                           or a material part or material provision of a
                           Document;

                  (q)      DE-LISTING ON THE EXCHANGE: the Shares cease to be
                           listed for trading on the Exchange; or

                  (r)      EXPROPRIATION OR CHANGE OF LAW: any of the following
                           happens:

                           (1)      any assets of a Campbell Group Member are
                                    compulsorily acquired by any Governmental
                                    Agency; or

                           (2)      a change in any law, regulation,
                                    Authorisation, official directive,
                                    instrument, undertaking, obligation or any
                                    other matter or thing

                                       43
<PAGE>

                                    occurs (including a variation to a Project
                                    Document or a restriction by a Governmental
                                    Agency on the exportation of Product),

                           and, in the opinion of the Agent, the relevant matter
                           might reasonably be expected to have a Material
                           Adverse Effect.

         10.2     EFFECT OF DEFAULT

                  (a)      If a Default occurs, the Agent may:

                           (1)      demand immediate repayment of the Amount
                                    Owing; and

                           (2)      cancel the Commitment.

                  (b)      If the Agent makes demand for payment under clause
                           10,2(a), the Agent may exercise its rights under the
                           Security if payment is not made.

                  (c)      Each Transaction Party is taken to have received
                           formal notice to fulfil an obligation of that
                           Transaction Party under the Transaction Documents by
                           the mere lapse of time provided for performance of
                           that obligation under the Transaction Documents, or
                           by the occurrence of the Final Conversion Date or by
                           any other cause provided by law.

         10.3     INDEMNITY BY MSV AND THE GUARANTORS

                  Without prejudice to any other provisions of this agreement,
                  each of MSV and each of the Guarantors indemnify the Agent and
                  each Holder from and against any claim, loss, damage or
                  liability suffered by the Agent or the Holder arising from the
                  failure of any Transaction Party to observe, perform or comply
                  with any provision of a Transaction Document.

         10.4     REVIEW EVENTS

                  (a)      If there is a change in Control of Campbell and
                           Control passes to a person whom a Holder considers
                           for any reason in its sole discretion to be
                           undesirable, then the Holder has the right for a
                           period of 60 days after the Agent receives notice of
                           the change of Control to review its participation
                           under the ECUs.

                  (b)      If the Holder decides that it does not wish to
                           continue its participation under the ECUs following
                           the occurrence of the event referred to in clause
                           10.4(a), it must give notice to that effect to MSV.
                           The notice must state a date (not to be earlier than
                           90 days from the date of service of the notice) by
                           which the Agent requires the Amount Owing for each
                           ECU held by the Holder to be paid in full. MSV must
                           with respect to each ECU pay those amounts to the
                           Holder in full on the date nominated in the notice.
                           MSV may not Redeem any ECU under clause 4.2 at any
                           time after a notice has been given by a Holder under
                           this clause.

         10.5     UNDERTAKINGS BY FINANCE PARTIES ON REALIZATION OF SECURITY

                  (a)      Subject to clause 10.5(b), if after an Event of
                           Default occurs a Finance Party exercises a right to
                           sell Secured Property which is the subject of a
                           Royalty, it will sell that Secured Property subject
                           to the rights of the holder of that Royalty, and will
                           use reasonable endeavours to ensure that the

                                       44
<PAGE>

                           buyer of that Secured Property undertakes to comply
                           with the obligations of the relevant Transaction
                           Party to the holder of the relevant Royalty.

                  (b)      Despite clause 10.5(a), this clause 10.5 does not
                           confer any right on any third party against the
                           Finance Parties, or any obligation by the Finance
                           Parties to any third party.

11       ILLEGALITY AND INCREASED COSTS

         11.1     ILLEGALITY

                  If an event occurs (including, but not limited to, a change in
                  or the introduction, implementation, operation or taking
                  effect of an applicable law, regulation, order, treaty or
                  official directive or in the interpretation or administration
                  of any of them by a Governmental Agency charged with the
                  administration of them) which makes it unlawful, impossible or
                  impracticable for a Holder to maintain or give effect to its
                  obligations under this agreement the Holder may by notice to
                  MSV appoint a date (which must not be a date less than 60 days
                  after the date of the notice by the Holder) as the date on
                  which the Amount Owing with respect to that Holder must be
                  repaid in full.

         11.2     INCREASED COST

                  (a)      If a Holder determines that it is affected by a
                           change or proposed change in a law, regulation,
                           order, treaty, official directive or request (whether
                           or not having the force of law), or the
                           interpretation or administration of any of them by a
                           Governmental Agency, and that as a result (directly
                           or indirectly):

                           (1)      the effective cost to the Holder of making,
                                    funding or maintaining the Facility or
                                    performing an obligation under or in respect
                                    of the Transaction Documents is increased;

                           (2)      an amount payable to the Holder or the
                                    effective return to the Holder under the
                                    Transaction Documents is reduced; or

                           (3)      the Holder makes, or is required to make, a
                                    payment or forgoes interest or other return
                                    on or calculated by reference to:

                                    (A)      a sum received or receivable by it
                                             from MSV under a Transaction
                                             Document in an amount which the
                                             Holder considers material; or

                                    (B)      any capital or other amount which
                                             is or becomes directly or
                                             indirectly allocated by the Holder
                                             to its obligation to make, fund or
                                             maintain the Facility in an amount
                                             which that Holder considers
                                             material; or

                           (4)      the Holder is restricted in its capacity to
                                    enter into, or is prevented from entering
                                    into, any other transaction with any
                                    consequence referred to in clause
                                    11.2(a)(l), (2) and (3) or with any other
                                    cost or loss of return to the Holder,

                           then and in each case described above:

                                       45
<PAGE>

                           (5)      when it becomes aware of the relevant result
                                    and has calculated or otherwise determined
                                    the relevant effects, the Holder will notify
                                    MSV of the event;

                           (6)      on demand from time to time by the Holder
                                    MSV must pay to the Holder the amount which
                                    compensates the Holder for the increased
                                    cost, reduction, payment or foregone
                                    interest or other loss of return or
                                    liability.

                  (b)      If a Holder has acted in good faith it is no defence
                           that a cost, increased cost, reduction or liability
                           could have been avoided.

                  (c)      A Holder may use any method it reasonably considers
                           appropriate to determine an amount payable under
                           clause 11.2(a) and, in the absence of manifest error,
                           a certificate by an Authorised Officer of the Holder
                           is conclusive and binding on MSV as to the amount
                           payable.

12       INDEMNITIES

         12.1     GENERAL INDEMNITY

                  (a)      Each Transaction Party indemnifies the Agent and each
                           Holder against any claim, action, damage, loss
                           (including currency exchange loss), liability, cost,
                           expense or payment which the Agent or Holder pays,
                           suffers, incurs or is liable for, in respect of the
                           following:

                           (1)      a payment required by an ECU Notice, not
                                    being made for any reason including, but not
                                    limited to, a failure by a Transaction Party
                                    to fulfil a condition precedent contained in
                                    part 2, but excluding a default by the
                                    Holder;

                           (2)      a payment of interest being made on a date
                                    other than an Interest Payment Date, or
                                    another repayment or prepayment of all or
                                    part of the Amount Owing being made on a
                                    date other than the due date;

                           (3)      a payment being made or received in a
                                    currency other than Canadian Dollars;

                           (4)      the occurrence of a Default or Potential
                                    Default; or

                           (5)      the Agent or a Holder exercising its Powers
                                    consequent on or arising out of the
                                    occurrence of a Default or Potential
                                    Default.

                  (b)      Without limitation to the indemnity contained in
                           clause 12.1 (a), that indemnity includes the amount
                           determined by the Holder as being incurred by reason
                           of the liquidation or re-employment of deposits or
                           other funds acquired or contracted for by the Holder
                           to fund or maintain the Issue Price and includes, but
                           is not limited to, loss of margin.

         12.2     FOREIGN CURRENCY INDEMNITY

                  If at any time:

                  (a)      the Agent or a Holder receives or recovers any amount
                           payable by a Transaction Party for any reason
                           including but not limited to:

                                       46
<PAGE>

                           (1)      any judgment or order of any Governmental
                                    Agency;

                           (2)      any breach of any Transaction Document;

                           (3)      the liquidation or bankruptcy of a
                                    Transaction Party or any proof or claim in
                                    that liquidation or bankruptcy; or

                           (4)      any other thing into which the obligations
                                    of a Transaction Party may have become
                                    merged; and

                  (b)      the Payment Currency is not in the Relevant Currency,

                  Each Transaction Party indemnifies the Agent and the Holder
                  against any shortfall between the amount payable in the
                  Relevant Currency and the amount actually received or
                  recovered by the Agent or the Holder, after the Payment
                  Currency is converted or translated into the Relevant Currency
                  under clause 12.3.

         12.3     CONVERSION OF CURRENCIES

                  In making any currency conversion under clause 12.2, the Agent
                  or the Holder may itself or through its bankers purchase one
                  currency with another, whether or not through an intermediate
                  currency, whether spot or forward, in the manner and amounts
                  and at the times it thinks fit.

         12.4     CONTINUING INDEMNITIES AND EVIDENCE OF LOSS

                  (a)      Each indemnity of a Transaction Party contained in
                           this agreement is a continuing obligation of a
                           Transaction Party despite:

                           (1)      a settlement of account; or

                           (2)      the occurrence of any other thing,

                           and remains in full force and effect until:

                           (3)      all money owing, contingently or otherwise,
                                    under all Transaction Documents has been
                                    paid in full;

                           (4)      the Amount Owing is fully and finally
                                    repaid; and

                           (5)      each of the Transaction Documents has been
                                    finally discharged.

                  (b)      Each indemnity of a Transaction Party contained in
                           this agreement is an additional, separate and
                           independent obligation of that Transaction Party and
                           no one indemnity limits the generality of another
                           indemnity.

                  (c)      Each indemnity of a Transaction Party contained in
                           this agreement survives the termination of a
                           Transaction Document.

                  (d)      A certificate signed by an Authorised Officer of the
                           Agent or the Holder detailing the amount of damage,
                           loss, liability, cost, expense or payment covered by
                           any indemnity in this agreement is prima facie
                           evidence of the matter certified.

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<PAGE>

13       FEES, TAX, COSTS AND EXPENSES

         13.1     ARRANGEMENT FEE

                  MSV must pay to the Agent the Arrangement Fee on the date this
                  agreement is entered into.

         13.2     COMMITMENT FEE

                  MSV must pay to the Agent, as consideration for making
                  available the Facility, a commitment fee which is equal to 1%
                  per annum of the sum of Issue Prices for each ECU available
                  but unissued from time to time for the period from the date of
                  this agreement to the end of the Availability Period, payable
                  quarterly in arrears during the Availability Period with the
                  first payment due on the earlier of the date 3 months after
                  the date this agreement is entered into and the date all ECUs
                  have been issued, and the last payment due on the last day of
                  the Availability Period (which amount is not refundable in any
                  circumstances).

         13.3     TAX

                  (a)      Each Transaction Party must pay any Tax, in respect
                           of the execution, delivery, performance, release,
                           discharge, amendment, enforcement or attempted
                           enforcement or otherwise in respect of the following:

                           (1)      a Transaction Document;

                           (2)      an agreement or document entered into or
                                    signed under a Transaction Document; and

                           (3)      a transaction contemplated under a
                                    Transaction Document or an agreement or
                                    document described in clause 13.3(a)(2).

                  (b)      Each Transaction Party must pay fines, penalties or
                           other costs in respect of a failure to pay a Tax
                           described in clause 13.3(a) except to the extent that
                           a fine, penalty or other cost is caused by the
                           Agent's failure to lodge money received from MSV
                           before the due date for lodgement.

                  (c)      Each Transaction Party indemnifies the Agent and each
                           Holder against an amount payable under clause 13.3(a)
                           or 13.3(b) or both,

         13.4     COSTS AND EXPENSES

                  Each Transaction Party must pay all costs and expenses of the
                  Agent and each Holder and any employee, Authorised Officer,
                  agent or contractor of the Agent or the Holder in relation to:

                  (a)      the negotiation, preparation, execution, delivery,
                           stamping, registration, completion, variation and
                           discharge of a Transaction Document;

                  (b)      the enforcement, protection or waiver, or attempted
                           enforcement or protection, of any rights under a
                           Transaction Document;

                  (c)      the consent or approval of the Agent or a Holder
                           given under a Transaction Document; and

                  (d)      any enquiry by a Governmental Agency involving any
                           Transaction Party,

                                       48
<PAGE>

                           including, but not limited to, reasonable
                           administration costs of the Agent or the Holder in
                           connection with the matters referred to in clause
                           13.4(b) and (d) and legal costs and expenses and
                           professional consultants' fees for any of the above
                           on a foil indemnity basis.

14       SAVING PROVISIONS

         14.1     NO MERGER OF SECURITY

                  (a)      Nothing in this agreement merges, extinguishes,
                           postpones, lessens or otherwise adversely affects any
                           Power, Encumbrance or indemnity in favour of the
                           Agent or a Holder.

                  (b)      No other Encumbrance or Transaction Document held by
                           the Agent or a Holder adversely affects any Power
                           under this agreement.

         14.2     EXCLUSION OF MORATORIUM

                  To the extent not excluded by law, a provision of any
                  legislation which at any time directly or indirectly lessens
                  or otherwise varies or affects in favour of a Transaction
                  Party, any obligations under this agreement or any Collateral
                  Security, or stays, postpones or otherwise prevents or
                  adversely affects the exercise by the Agent or a Holder of any
                  Power, is negatived and excluded from this agreement and any
                  Collateral Security and all relief and protection conferred on
                  a Transaction Party by or under that legislation is also
                  negatived and excluded.

         14.3     POWERS

                  (a)      The Powers are cumulative and do not exclude any
                           other right, power, authority, discretion or remedy.

                  (b)      Where a Power is inconsistent with the rights,
                           powers, authorities, discretions or remedies
                           conferred by applicable law then, to the extent not
                           prohibited by that law, those conferred by applicable
                           law are regarded as negatived or varied to the extent
                           of the inconsistency.

         14.4     CONSENTS

                  Whenever the doing of any thing by a Transaction Party is
                  dependent on the consent or approval of the Agent or a Holder,
                  the Agent or Holder may withhold its consent or approval or
                  give it conditionally or unconditionally in its absolute
                  discretion unless expressly stated otherwise in a Transaction
                  Document. Any conditions must be complied with by a
                  Transaction Party.

         14.5     PRINCIPAL OBLIGATIONS

                  This agreement and each Collateral Security is:

                  (a)      a principal obligation and is not ancillary or
                           collateral to an Encumbrance (other than another
                           Collateral Security) or other obligation however
                           created; and

                                       49
<PAGE>

                  (b)      independent of, and unaffected by an Encumbrance or
                           other obligation however created which the Agent or a
                           Holder may hold at any time in respect of the Amount
                           Owing.

         14.6     NON-AVOIDANCE

                  If a payment by a Transaction Party to the Agent or a Holder
                  is at any time avoided for any reason including, but not
                  limited to, a legal limitation, disability or incapacity of or
                  affecting a Transaction Party and whether or not:

                  (a)      a transaction relating to the Amount Owing was
                           illegal, void or substantially avoided; or

                  (b)      any thing was or ought to have been within the
                           knowledge of the Agent or the Holder,

                  each Transaction Party:

                  (c)      as an additional, separate and independent
                           obligation, indemnifies the Agent and each Holder
                           against that avoided payment; and

                  (d)      acknowledges that the liability of a Transaction
                           Party under the Transaction Documents and the rights
                           and remedies of the Agent and each Holder under the
                           Transaction Documents are the same as if that payment
                           had not been made.

         14.7     SET-OFF AUTHORISED

                  If a Transaction Party does not pay any part of the Amount
                  Owing when due to a Holder, each Transaction Party authorises
                  the Holder:

                  (a)      to apply the credit balance in any currency in any
                           account of a Transaction Party with a branch or
                           office of the Holder towards satisfaction of that
                           amount;

                  (b)      in the name of a Transaction Party or of the Holder,
                           to do any act or thing including, but not limited to,
                           executing documents or effecting currency conversions
                           which may be required to make an application under
                           clause 14.7(a).

         14.8     CERTIFICATES OF AGENT AND HOLDER

                  A certificate signed by an Authorised Officer of the Agent or
                  a Holder stating:

                  (a)      the amount of the Amount Owing (whether currently due
                           and payable or not) or any amount due and payable by
                           a Transaction Party under a Transaction Document; or

                  (b)      the opinion or determination of the Agent or the
                           Holder as to any thing,

                  is prima facie evidence of amount or that opinion or
                  determination (as the requires) at the date stated on the
                  certificate failing that as at the date of that certificate.

         14.9     NO RELIANCE OR OTHER OBLIGATIONS AND RISH ASSUMPTION

                  Each Transaction Party acknowledges and confirms that:

                                       50
<PAGE>

                  (a)      it has not entered into a Transaction Document in
                           reliance on a representation, warranty, promise or
                           statement made by the Agent or a Holder or a person
                           on behalf of the Agent or the Holder;

                  (b)      in respect of the transactions evidenced by a
                           Transaction Document, the Agent and each Holder has
                           no obligations other than those expressly set out in
                           the Transaction Documents; and

                  (c)      in respect of interest rates or exchange rates, the
                           Agent and each Holder is not liable for:

                           (1)      movements in interest rates or exchange
                                    rates; or

                           (2)      information, advice or opinions provided by
                                    the Agent or the Holder or a person on
                                    behalf of the Agent or the Holder, even if:

                                    (A)      provided at the request of a
                                             Transaction Party (it being
                                             acknowledged by each Transaction
                                             Party that such matters are
                                             inherently speculative);

                                    (B)      relied on by a Transaction Party,
                                             or

                                    (C)      provided incorrectly or
                                             negligently.

         14.10    ATTORNEY

                  If a Default occurs and while it is continuing, the Agent,
                  each Holder and each of its Authorised Officers for the time
                  being (each with a power to appoint a substitute or
                  substitutes) is irrevocably appointed the attorney of a
                  Transaction Party to:

                  (a)      execute and deliver all documents; and

                  (b)      do all things (including the signing and lodging of
                           proofs of debt and similar claims in the bringing and
                           enforcing of legal proceedings, the compromise of
                           disputes, the enforcement of each Transaction
                           Document or any of them),

                  which, subject to the provisions of the Transaction Documents,
                  the attorney thinks requisite or desirable for the giving
                  effect to the provisions of each Transaction Document.

         14.11    OPINION OF THE AGENT AND HOLDER

                  Where the Agent or a Holder is required or entitled under this
                  agreement to form or hold an opinion or view, this may be
                  formed or held on its behalf by a person authorised by the
                  Agent or the Holder to act on its behalf in relation to this
                  agreement or by its board of directors or by one or more
                  Authorised Officers of the Agent or Holder.

15       GENERAL

         15.1     CONFIDENTIAL INFORMATION

                  The Agent and each Holder may, for the purpose only of
                  exercising an enforcement Power arising after a Default occurs
                  and while it is continuing,

                                       51
<PAGE>

                  disclose to a person documents or records of, or information
                  about, a Transaction Document, or the assets, business or
                  affairs of a Transaction Party or other Campbell Group Member,
                  whether or not confidential and whether or not the disclosure
                  would be in breach of a law or of a duty owed to a Transaction
                  Party or a Campbell Group Member.

         15.2     PERFORMANCE BY THE AGENT OF OBLIGATIONS

                  If a Transaction Party defaults in fully and punctually
                  performing an obligation contained or implied in a Transaction
                  Document, the Agent may, without affecting a Power do all
                  things necessary or desirable, in the opinion of the Agent, to
                  make good or attempt to make good that default to the
                  satisfaction of the Agent.

         15.3     TRANSACTION PARTIES TO BEAR COST

                  Any thing which must be done by a Transaction Party under a
                  Transaction Document, whether or not at the request of the
                  Agent or a Holder, must be done at the cost of the Transaction
                  Party.

         15.4     NOTICES

                  Any notice or other communication including, but not limited
                  to, a request, demand, consent or approval, to or by a party
                  to a Transaction Document:

                  (a)      must be in legible writing and in English addressed
                           as follows:

                           (1)      if to the Agent:

                                    Address:      Two London Bridge
                                                  London SE1 9RA
                                                  United Kingdom

                                    Attention:    Michael Schonfeld

                                    Facsimile:    int+ 44 207 939 1825

                                    with a copy to:

                                    Address:      143 Union Blvd., Suite 900
                                                  Lakewood, Colorado, 80228

                                    Attention:    Rick Winters

                                    Facsimile:    int+ 1 303 986 5136;

                           (2)      if to RMBI:

                                    Address:      158 Shelbourne Road
                                                  Dublin 4
                                                  Ireland

                                    Attention:    Des Brien

                           (3)      Facsimile:    int+ 35 31 670 2439;

                           (4)      if to a Transaction Party:

                                    Address:      Campbell Resources Inc.
                                                  1155, University Street,
                                                  Suite 1405
                                                  Montreal

                                       52
<PAGE>

                                                  Quebec H3B 3A7
                                                  Canada

                                    Attention:    Lucie Brun

                                    Facsimile:    int+ 514 875 9764,

                           or as specified to the sender by a party by notice;

                  (b)      must be signed by an Authorised Officer or under the
                           common seal of the sender;

                  (c)      is regarded as being given by the sender and received
                           by the addressee:

                           (1)      if by delivery in person, when delivered to
                                    the addressee;

                           (2)      if by post, 2 Business Days (if posted
                                    within a country) or 10 Business Days (if
                                    posted from one country to another) as the
                                    case may be, from and including the date of
                                    postage; or

                           (3)      if by facsimile transmission, whether or not
                                    legibly received, on receipt of a
                                    transmission report confirming successful
                                    transmission without error or omission,

                           but if the delivery or receipt is on a day which is
                           not a Business Day or is after 4.00 pm (addressee's
                           time) it is regarded as received at 9.00 am
                           (addressee's time) on the following Business Day, and

                  (d)      can be relied on by the addressee and the addressee
                           is not liable to another person for the consequences
                           of that reliance if the addressee believes it to be
                           genuine, correct and authorised by the sender.

         15.5     GOVERNING LAW AND JURISDICTION

                  (a)      This agreement is governed by the laws of the
                           Province of Quebec, Canada and the federal laws of
                           Canada which apply in the Province of Quebec.

                  (b)      Each Transaction Party and Finance Party irrevocably
                           and unconditionally:

                           (1)      submits to and accepts the non-exclusive
                                    jurisdiction of the courts of the Province
                                    of Quebec; and

                           (2)      in respect of any legal proceedings brought
                                    in the Province of Quebec, waives any
                                    objection to the venue of any legal process
                                    on the basis that the process has been
                                    brought in an inconvenient forum.

         15.6     PROHIBITION AND ENFORCEABILITY

                  (a)      A provision of, or the application of a provision of,
                           a Transaction Document or a Power which is prohibited
                           in a jurisdiction is, in that jurisdiction,
                           ineffective only to the extent of that prohibition.

                  (b)      A provision of, or the application of a provision of,
                           a Transaction Document which is void, illegal or
                           unenforceable in a jurisdiction does not affect the
                           validity, legality or enforceability of that
                           provision in another jurisdiction or of the remaining
                           provisions in that or another jurisdiction.

                                       53
<PAGE>

         15.7     WAIVER AND VARIATION

                  (a)      Waiver of a Power arising under, or a provision of,
                           this agreement (including this clause) must be in
                           writing and signed by the party granting the waiver.

                  (b)      A failure or delay in exercise, or partial exercise,
                           of a Power (arising on the occurrence of a Default or
                           otherwise) does not operate as a waiver of that Power
                           or preclude another or further exercise of that or
                           another Power.

                  (c)      The variation of a term of this agreement must be in
                           writing and signed by the parties.

         15.8     ATTORNEYS

                  Each of the attorneys executing this agreement states that the
                  attorney has no notice of the revocation of the power of
                  attorney appointing that attorney.

         15.9     COUNTERPARTS

                  This agreement may be signed in any number of counterparts and
                  all counterparts together constitute one and the same
                  instrument.

         15.10    LANGUAGE

                  The parties to this agreement have expressly required that
                  this agreement and all deeds, documents and notices relating
                  to it, be drafted in the English language. Les parties aux
                  presentes ont expressement exige que la presente convention et
                  que les autres contrats, documents ou avis, qui sont afferents
                  soient rediges en langue anglaise.

         15.11    SUPERIOR FORCE

                  The obligations of MSV under any of the Transaction Documents
                  will not be reduced, limited or cancelled by reason of the
                  occurrence of an event of force majeure, MSV expressly
                  assuming the risk of superior force. For the purposes of this
                  clause 15.11, force majeure means an unforeseeable and
                  irresistible event including external causes with the same
                  characteristics.

16       PROVISIONS IN RELATION TO THE AGENT

         16.1     AGENT NOT LIABLE

                  The Agent is not, and its directors, officers, employees are
                  not, liable to the Holders for:

                  (a)      any loss or damage occurring as a result of it
                           exercising, failing to exercise or purporting to
                           exercise any Power under this agreement or in
                           relation to the Transaction Documents;

                  (b)      the default, negligence or fault of any (other) agent
                           or attorney of the Agent whether or not the
                           employment or appointment of the other agent or
                           attorney was necessary or expedient;

                                       54
<PAGE>

                  (c)      any mistake or omission made by it;

                  (d)      any other matter or thing done, or not done, in
                           relation to this agreement or the other Transaction
                           Documents;

                  (e)      any absence of, or defect in title or for its
                           inability to exercise any of its Powers under the
                           Transaction Documents;

                  (f)      any failure by a Transaction Party to perform its
                           obligations under a Transaction Document;

                  (g)      the financial condition or solvency of a Transaction
                           Party or other Campbell Group Member;

                  (h)      any statement, representation or warranty of a
                           Transaction Party being incorrect or misleading in
                           any respect;

                  (i)      the value, validity, effectiveness, genuineness,
                           enforceability or sufficiency of any Transaction
                           Document or any other certificate or document given
                           under any of them; or

                  (j)      the acts or omissions of the Agent or a receiver or
                           receiver and manager,

                  except to the extent that the Agent and its directors,
                  Authorised Officers and employees have been guilty of fraud or
                  wilful misconduct or gross negligence.

         16.2     AGENT INDEMNITY

                  (a)      Without prejudice to any right of indemnity given to
                           it by law or equity (and in addition to, and without
                           prejudice to, any other indemnity in part 12 or any
                           other Transaction Document), the Agent is entitled to
                           be indemnified out of any moneys from time to time
                           received by the Agent under the Transaction
                           Documents:

                           (1)      in respect of all reasonable liabilities and
                                    expenses (including any moneys paid or to be
                                    paid for, or incurred as a result of, the
                                    employment or appointment of any agent or
                                    any receiver or receiver and manager)
                                    incurred by any of them in the exercise of
                                    the Powers under this agreement or in
                                    relation to the Transaction Documents; and

                           (2)      in respect of all reasonable actions,
                                    proceedings, costs, claims and demands
                                    arising in relation to this agreement or the
                                    Transaction Documents,

                           to the extent that the Agent has not been guilty of
                           fraud or wilful misconduct or gross negligence, and
                           the Agent may from time to time retain and pay out of
                           any moneys recovered from the Transaction Documents
                           an amount to satisfy that indemnity.

                  (b)      If there are no moneys available for the Agent to
                           satisfy its indemnity under clause 16.2(a), then each
                           Holder severally indemnifies the Agent against its
                           pro rata share (determined as at the date the
                           relevant amount is incurred by the Agent) of the
                           relevant amount, and must pay its share to the Agent
                           within 3 Business Days of demand.

                                       55
<PAGE>

         16.3     QUEBEC SECURITY

                  For greater certainty, and without limiting the powers of the
                  Agent under this agreement or under any other Transaction
                  Document, MSV acknowledges that the Agent will, for the
                  purposes of holding any security granted by MSV on property
                  pursuant to the laws of the Province of Quebec to secure
                  obligations of MSV in respect of all ECUs subscribed for and
                  all other Secured Moneys (collectively, the OBLIGATIONS), be
                  the holder of an irrevocable power of attorney (within the
                  meaning of Article 2692 of the Civil Code of Quebec) for all
                  present and future Holders. The Holder irrevocably
                  constitutes, to the extent necessary, the Agent as the holder
                  of an irrevocable power of attorney (within the meaning of
                  Article 2692 of the Civil Code of Quebec) in order to hold
                  security granted by MSV in the Province of Quebec to secure
                  the Obligations. Each assignee of the Holder will be deemed to
                  have confirmed and ratified the constitution of the Agent as
                  the holder of the irrevocable power of attorney referred to
                  above, by execution of the relevant agreement of assignment by
                  which the assignee takes the assignment Despite the provisions
                  of Section 32 of the An Act respecting the special powers of
                  legal persons (Quebec), the Agent may acquire and be the
                  holder of any ECU. MSV acknowledges that each ECU constitutes
                  a "title of indebtedness", as that term is used in Article
                  2692 of the Civil Code of Quebec.

                                       56
<PAGE>

SCHEDULE 1 - ECU NOTICE

         TO:      RMB International (Dublin) Limited (RMBI)

         A.       This ECU Notice is given by MSV Resources Inc. (MSV) under an
                  ECU facility agreement (ECU AGREEMENT) dated 26 October 2004
                  between MSV, Campbell Resources Inc, Meston Resources Inc.,
                  RMBI and RMB Resources Limited.

         B.       Expressions used in this ECU Notice which are defined in the
                  ECU Agreement bear the defined meanings.

         C.       MSV represents and warrants to RMBI that:

                  (1)      as at the date of this ECU Notice, the
                           representations and warranties referred to in clause
                           8.1 of the ECU Agreement are true and correct as
                           though they had been made as at the date of this ECU
                           Notice with respect to the facts and circumstances
                           applicable at that time;

                  (2)      since the end of the accounting period for the
                           accounts referred to in clause 2.1(g), no event has
                           occurred (and is continuing) which has or may have a
                           Material Adverse Effect; and

                  (3)      no Default or Potential Default has occurred and is
                           continuing.

         D.       MSV irrevocably requests RMBI under clause 3.1 of the ECU
                  Agreement to credit the Issue Price for [INSERT NO. OF ECUS
                  REQUESTED] ECUs, denoted by ECU Certificate no.[s] [INSERT ECU
                  CERTIFICATE NO./NO.S] the subject of the ECU Agreement to the
                  following bank account:

                           [INSERT BANK ACCOUNT DETAILS]

                  DATED:
                  SIGNED for and on behalf of
                  MSV RESOURCES INC.
                  by:

                  ------------------------
                  an Authorised Officer of MSV Resources Inc.

                                       57
<PAGE>

SCHEDULE 2 - ECU CERTIFICATE

                                      MSV RESOURCES INC.

                                       ECU CERTIFICATE

                  This is to certify that RMB International (Dublin) Limited
                  (RMBI) is the holder of one (1) secured exchangeable capital
                  unit of C$500,000 (ECU) in MSV Resources Inc. (MSV).

                  The ECU is created and issued under an ECU facility agreement
                  dated 26 October 2004 (ECU AGREEMENT) made between MSV,
                  Campbell Resources Inc., Meston Resources Inc., RMBI and RMB
                  Resources Limited.

                  The ECU is issued on the terms and conditions contained in the
                  ECU Agreement and bears interest at the Rate specified in the
                  ECU Agreement.

                  This ECU Certificate must be returned to MSV for cancellation
                  on Conversion or redemption of the ECU or repayment of the
                  Amount Owing (as defined in the ECU Agreement) in full.

                  The ECU may be Converted during the Conversion Period by
                  completing and returning the attached notice to MSV.

                  The provisions of part 6 of the ECU Agreement apply to any
                  transfer or assignment of the ECU.

                  DATED:
                  SIGNED for and on behalf of
                  MSV RESOURCES INC.
                  by:

                  ------------------------
                  an Authorised Officer of MSV Resources Inc.

                                       58
<PAGE>

                                CONVERSION NOTICE

To:      The Directors
         Campbell Resources Inc.

and to:  The Directors
         MSV Resources Inc.

both of: 1155, University Street, Suite 1405
         Montreal
         Quebec H3B 3A7
         Canada

NOTICE is given of the exercise by [name of Holder] of its right to Convert the
[Principal Conversion Amount and/or Interest Conversion Amount] into Shares in
accordance with clause [4.1/4.2/7.2] of the ECU facility agreement 26 October
2004 between MSV Resources Inc., Campbell Resources Inc., Meston Resources Inc.,
RMB International (Dublin) Limited and RMB Resources Limited.

The Conversion Date applicable to the Conversion is [        ].

[The Interest Payment Date applicable to the Conversion is [        ].

The Current Market Price applicable to the Conversion is [$        ].

[The Conversion Sum applicable to the Principal Conversion Amount is [       ].]

DATED:

SIGNED for and on behalf of [HOLDER]
by

------------------------
an Authorised Officer of [HOLDER].

                                       59
<PAGE>

SCHEDULE 3 - REDEMPTION NOTICE

         TO:      RMB International (Dublin) Limited (RMBI)

         FROM:    MSV Resources Inc.

         A.       This Redemption Notice is given by MSV Resources Inc. (MSV)
                  under an ECU facility agreement (ECU AGREEMENT) dated 26
                  October 2004 between MSV, Campbell Resources Inc, Meston
                  Resources Inc., RMBI and RMB Resources Limited.

         B.       Expressions used in this Redemption Notice which are defined
                  in the ECU Agreement bear the defined meanings.

         C.       MSV gives notice to RMBI under clause 4.2(a) that it elects to
                  Redeem [INSERT NO. AND DESCRIPTION OF ECUS TO BE REDEEMED]
                  ECU[S] by paying to the Agent:

                  (1)      the Issue Price for each ECU; and

                  (2)      the interest which has accrued under the terms of
                           this agreement on each of those ECUs,

                  on [INSERT A DATE THAT IS AT LEAST 20 BUSINESS DAYS FROM THE
                  DATE OF THIS NOTICE].

         D.       MSV acknowledges that this notice is irrevocable.

         DATED:

         SIGNED for and on behalf of
         MSV RESOURCES INC.
         by:

         ------------------------
         an Authorised Officer of MSV Resources Inc.

                                       60
<PAGE>

SCHEDULE 4 - PERMITTED ENCUMBRANCES

         (a)      the Securities;

         (b)      any other Transaction Document which is an Encumbrance;

         (c)      any Encumbrance granted over Movable Plant and Equipment in
                  respect of Equipment Finance;

         (d)      any Encumbrance arising under clause 3(c) of the agreement
                  which sets out the Auramet Transaction; and

         (e)      liens or charges arising by operation of law in the ordinary
                  course of business in good faith including worker's or
                  solicitor's liens or liens in favour of any Governmental
                  Agency, but only for so long as there is no default in payment
                  of any money or performance of any obligation secured by the
                  relevant lien or charge, and not including any lien or charge
                  arising due to the failure to observe any statute or contract.

                                       61

<PAGE>

EXECUTED BY THE PARTIES AS AN AGREEMENT.

SIGNED for and on behalf of
MSV RESOURCES INC.
by its attorney in the
presence of:

/s/ MICHEL BLOUIN                           /s/ ANDRE FORTIER
------------------------------------        ------------------------------------
Witness                                     Attorney

MICHEL BLOUIN                               ANDRE FORTIER
------------------------------------        ------------------------------------
Name (please print)                         Name (please print)

SIGNED for and on behalf of
CAMPBELL RESOURCES INC.
by its attorney in the
presence of:

/s/ MICHEL BLOUIN                           /s/ ANDRE FORTIER
------------------------------------        ------------------------------------
Witness                                     Attorney

MICHEL BLOUIN                               ANDRE FORTIER
------------------------------------        ------------------------------------
Name (please print)                         Name (please print)

SIGNED for and on behalf of
MESTON RESOURCES INC.
by its attorney in the
presence of:

/s/ MICHEL BLOUIN                           /s/ ANDRE FORTIER
------------------------------------        ------------------------------------
Witness                                     Attorney

MICHEL BLOUIN                               ANDRE FORTIER
------------------------------------        ------------------------------------
Name (please print)                         Name (please print)

                                       62
<PAGE>

SIGNED for RMB INTERNATIONAL
(DUBLIN) LIMITED by its Authorized
Signatories:

/s/ P.V.C. SMITH                            /s/ D. COETZEE
------------------------------------        ------------------------------------
Authorized Signatory                        Authorized Signatory

P.V.C. SMITH                                D. COETZEE
------------------------------------        ------------------------------------
Name (please print)                         Name (please print)

SIGNED for RMB RESOURCES LIMITED
by its Authorized Signatories:

------------------------------------        ------------------------------------
Authorized Signatory                        Authorized Signatory

------------------------------------        ------------------------------------
Name (please print)                         Name (please print)

<PAGE>

SIGNED for RMB INTERNATIONAL
(DUBLIN) LIMITED by its Authorized
Signatories:

------------------------------------        ------------------------------------
Authorized Signatory                        Authorized Signatory

------------------------------------        ------------------------------------
Name (please print)                         Name (please print)

SIGNED for RMB RESOURCES LIMITED
by its Authorized Signatories:

/s/ M.L. SCHONFELD                          /s/ STUART GREENE
------------------------------------        ------------------------------------
Authorized Signatory                        Authorized Signatory

M.L. SCHONFELD                              STUART GREENE
------------------------------------        ------------------------------------
Name (please print)                         Name (please print)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]