Document:

ASSET PURCHASE AGREEMENT

      THIS  ASSET  PURCHASE  AGREEMENT  (hereinafter  "Agreement")  dated  as of
November  25,  2003  by  and  among  Nuvotec,  Inc.,  a  Washington  corporation
(hereinafter  "Nuvotec"),  in  conjunction  with its  subsidiary  Vivid Learning
Systems,  Inc.  (hereinafter  "Vivid"),  and FoodSafety.com,  Inc., a Delaware C
corporation (hereinafter "FoodSafety").

      WHEREAS, the respective Boards of Directors of Nuvotec and FoodSafety have
determined  that the  purchase  of the  assets  of  FoodSafety  (a list  thereof
attached hereto as Exhibit A) by Nuvotec  pursuant to, and subject to all of the
terms and conditions  of, this  Agreement,  is advisable,  fair, and in the best
interests of Nuvotec and FoodSafety and their respective shareholders;

      NOW,  THEREFORE,  in  consideration  of the  representations,  warranties,
covenants,  and  agreements  contained  herein and for other  good and  valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto, intending to be legally bound hereby, agree as follows:

                                    ARTICLE I
                                  THE PURCHASE

      Section 1.1 The Purchase.  Upon the terms and subject to the conditions of
this Agreement,  at the Effective Time (as hereinafter  defined),  Nuvotec shall
have lawful,  valid, and indefeasible  title to all of the assets of FoodSafety,
(reference  Exhibit A). This  Agreement in no manner shall be  interpreted to be
neither a purchase  of the  FoodSafety  corporate  entity nor a purchase  of the
shares of FoodSafety.  The corporate  existence of FoodSafety  shall continue or
cease at the election of the Board of Directors of FoodSafety.

      Section 1.2  Effective  Time of the  Purchase.  The Purchase  shall become
effective upon the time of Closing.

      Section 1.3 Closing. The Closing of the transactions  contemplated by this
Agreement  shall take place at 10:00 a.m. local time, at the offices of Nuvotec,
723 The Parkway, Suite 200, Richland,  Washington,  on November 25, 2003. On the
Closing  date or as  specified  below,  Nuvotec  shall  deliver  all  funds  and
documents required by this Agreement and FoodSafety shall deliver a bill of sale
for the assets.

                                   ARTICLE II
                                  CONSIDERATION

      Section 2.1  Consideration.  In exchange for the assets sold by FoodSafety
to Nuvotec and for certain  promises  regarding  non-compete  by Mr. Martin Mick
(hereinafter  "Mick")  as  noted  in  Mick's  consulting  agreement  with  Vivid
described herein, Nuvotec shall issue to FoodSafety:  a) Eighty Thousand Dollars
($80,000.00)  cash in equal monthly  payments over a six (6) month period,  with
the first payment due within five (5) business  days of Closing;  b) One Hundred
Thousand  Dollars  ($100,000.00)  in stock  and/or  options  (to be  defined  by
FoodSafety  such  that  there  be  a  value  of  One  Hundred  Thousand  Dollars
($100,000.00)  net of an exercise  price,  if applicable,  in the event of stock
options)-  said  stock  and/or  options  to be issued at a  discounted  value of
sixty-six  and two thirds  percent  (66 2/3%) of the stock price of Vivid at the
time of a financing of One Million Five Hundred Thousand Dollars ($1,500,000.00)
or greater and with a six (6) month  lockup-  provided that if Vivid does not go
public within (6) months of closing then  FoodSafety  will receive an additional

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premium of fifty percent (50%) of Vivid stock-  further,  if after an additional
nine (9) months Vivid is not public, then FoodSafety will have a put option with
a five (5) year payback for all stock and/or options with interest at the lowest
permissible rate allowed by the Internal Revenue Service;  c) Vivid will enter a
consulting  agreement  for the  services  of Mick  effective  on closing for One
Hundred Thousand Dollars ($100,000.00) for one (1) year- reference Exhibit B for
specific  terms;  d) payment to FoodSafety of a five percent (5%) royalty fee on
subscription  sales, said payments to be based on the net revenue (gross revenue
less  returns,  allowances,  insurance,  freight,  and  commissions  to  certain
distributors in certain markets) realized by Vivid on sales of online courseware
in the food safety industry that were either  developed from materials  obtained
via this  asset  purchase  or other  training  products  or online  food  safety
information  services  developed in conjunction  with Mick-  royalties on custom
projects  will be  negotiated  on a  case-by-case  basis- the five  percent (5%)
royalty  shall  continue to be paid after the initial five (5) year period based
on the aforenoted  conditions  should Mick remain in a  "non-compete"  status as
defined in his  consulting  agreement  (Exhibit B); e) Mick shall receive a five
percent (5%)  finders' fee for any capital  raise or  consideration  received by
Vivid or its affiliates of Twenty-five  Thousand  Dollars  ($25,000.00)  or more
from any entity previously unknown to Nuvotec, Vivid, Mr. Steve Katz, Gottbetter
& Partners LLP, or any third party  working on behalf of Nuvotec;  f) Vivid will
enter a  consulting  agreement  for the  services of Mr. Roy Costa  (hereinafter
"Costa");  and, f) Vivid has  reserved  the right to offer to third  parties the
services of Mick and/or  Costa,  as an addition to their  respective  consulting
agreements, and enter into agreements at billing rates determined by Vivid, with
the  approval  of  Mick  and/or  Costa,  said  approval  to not be  unreasonably
withheld,  for  consulting  or  services  otherwise  unrelated  to online or CBT
delivered  training that are the result of Vivid's  marketing and sales efforts-
in the instance  that Vivid  discovers an  opportunity  for such  consulting  or
services,  but opts to not provide said consulting or services to third parties,
Mick and/or Costa may elect to provide such services directly,  and will provide
Vivid a ten percent (10%) finders fee for any resulting direct contracts.

      Section 2.2  Non-compete.  It is  acknowledged  by the  parties  that Five
Thousand  Dollars  ($5,000.00) of the  afore-noted  consideration  is designated
specifically as the consideration in exchange for the covenant not to compete.

      Section  2.3  Establishment  of Escrow.  In the event that a claim  should
arise or attach to the Assets acquired hereunder, through no fault of Nuvotec or
Vivid,  Vivid  reserves the right to establish an escrow account for the royalty
payments  noted in  Section  2.3 (d) above.  Vivid  will work with  FoodSafety's
counsel to determine a reasonable  and probable  cost to any  settlement  of the
claim.  Vivid  will  retain  royalty  payments  in an  amount  to  equal to this
determined  probable cost. Upon  settlement of the claim,  any costs incurred by
Nuvotec  and/or Vivid in the matter will be applied  against the escrow and paid
to Nuvotec and/or Vivid,  with any unused  amounts in the escrow  transmitted to
FoodSafety.

                                   ARTICLE III
                         REPRESENTATIONS AND WARRANTIES

      Section 3.1  Representations  and  Warranties of Nuvotec.  Nuvotec  hereby
represents and warrants to FoodSafety that:

            3.1.1  Organization;  Corporate  Power and  Authority.  Nuvotec is a
            corporation  duly and validly  organized and existing under the laws
            of the State of Washington.  Nuvotec has full power, legal capacity,
            and  authority to carry on its business as it is now  conducted,  to
            own,  lease,  and  operate its assets and  properties,  and to enter
            into, perform, and comply with this Agreement.

            3.1.2  Authorization;  Enforceability;  No Conflict.  The execution,
            delivery,  and  performance  of this  Agreement by Nuvotec have been
            duly authorized by all

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            necessary corporate action. This Agreement constitutes the valid and
            binding  obligation of Nuvotec,  enforceable in accordance  with its
            terms except as limited by bankruptcy,  insolvency,  reorganization,
            fraudulent   transfer,   moratorium,   and  similar  laws  affecting
            creditors  generally and by the availability of equitable  remedies.
            The execution, delivery, and performance of this Agreement will not,
            or at Closing shall not,  conflict  with, or result in the breach or
            termination  of, or  constitute  a default  under,  the  articles of
            incorporation or bylaws of Nuvotec or any agreement,  commitment, or
            instrument,  judgment,  or decree to which  Nuvotec is a party or by
            which Nuvotec or its properties are bound.

            3.1.3  Disclosure.  To the best  knowledge of Nuvotec,  neither this
            Agreement nor any other instrument/document  delivered to FoodSafety
            pursuant to this Agreement or the due diligence  contains any untrue
            statement  of  material  fact or omits to state  any  material  fact
            required  to be stated  herein or therein or  necessary  to make the
            statements,   representations,   or  warranties,   and   information
            contained herein or therein to be not misleading.

      Section 3.2 Representations and Warranties of FoodSafety.  FoodSafety.com,
Inc. hereby represents and warrants to Nuvotec that:

            3.2.1 Organization;  Corporate Power and Authority.  FoodSafety is a
            corporation  duly and validly  organized and existing under the laws
            of the State of Delaware. FoodSafety has full power, legal capacity,
            and  authority to carry on its business as it is now  conducted,  to
            own,  lease,  and  operate its assets and  properties,  and to enter
            into, perform, and comply with this Agreement.

            3.2.2  Authorization;  Enforceability;  No Conflict.  The execution,
            delivery,  and  performance of this Agreement by FoodSafety has been
            duly authorized by all necessary  corporate  action.  This Agreement
            constitutes   the  valid  and  binding   obligation  of  FoodSafety,
            enforceable  in  accordance  with its  terms  except as  limited  by
            bankruptcy,   insolvency,   reorganization,   fraudulent   transfer,
            moratorium,  and similar laws affecting  creditors  generally and by
            the availability of equitable remedies. The execution, delivery, and
            performance  of this  Agreement  will not, or at Closing  shall not,
            conflict  with,  or  result  in the  breach  or  termination  of, or
            constitute a default under,  the articles of incorporation or bylaws
            of FoodSafety or any agreement,  commitment, or instrument, judgment
            or decree to which  FoodSafety are a party or by which FoodSafety or
            the properties of FoodSafety are bound.

            3.2.3  Liabilities.  FoodSafety has no liabilities or obligations of
            any  nature  or  kind,  whether  absolute  or  contingent,  known or
            unknown,  accrued or unaccrued,  due or to become due related to the
            assets being purchased by Nuvotec.

            3.2.4 Disclosure. To the best knowledge of FoodSafety,  neither this
            Agreement  nor any other  instrument/document  delivered  to Nuvotec
            pursuant to this Agreement or the due diligence  contains any untrue
            statement  of  material  fact or omits to state  any  material  fact
            required  to be stated  herein or therein or  necessary  to make the
            statements,   representations,   or  warranties,   and   information
            contained herein or therein to be not misleading.

            3.2.5 Title to Assets. FoodSafety is the record and beneficial owner
            of the assets to be purchased by Nuvotec from  FoodSafety,  free and
            clear of any security interest, claim, lien, pledge, encumbrance, or
            restriction  whatsoever  in  law  or  in  equity,  and  FoodSafety's
            delivery  and/or  granting  of access to  Nuvotec on Closing of this
            Agreement will convey to Nuvotec  lawful,  valid,  and  indefeasible
            title thereto, free and clear of any security interest, claim, lien,
            pledge, encumbrance, or restriction whatsoever.

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      Section 3.3 No Further  Representations or Warranties.  The parties hereto
acknowledge  that  due  diligence  has  occurred,  as a  result,  each  party is
adequately  informed  about the other's  past,  current,  and  planned  business
activities  and  strategies.  Accordingly,  the  representations  and warranties
contained  in  Sections  3.1 and 3.2 of this  Agreement  are  exclusive,  and no
further  representations  or  warranties  shall be  deemed  to have been made by
either party pursuant to this Agreement.

                                   ARTICLE IV
                 SECURITIES LAW MATTERS AND REGISTRATION RIGHTS

      Section 4.1 Shares for  Investment.  FoodSafety  covenants and agrees that
the Vivid shares and/or options to be issued to her under this Agreement will be
held for investment and not with a view to distribute all or any part thereof in
any transaction  which would constitute a  "distribution"  within the meaning of
the Securities Act of 1933 (hereinafter  "Securities Act"). FoodSafety will not,
directly or indirectly,  offer, transfer, sell, assign, pledge,  hypothecate, or
otherwise dispose of any of the Vivid shares and/or options except in compliance
with the Securities Act. FoodSafety agrees that no transfer of assignment of any
Vivid shares or options shall be effective if the  assignment  would violate the
provisions of the securities  laws. If Nuvotec so requires,  no assignment shall
be effective unless FoodSafety delivers an opinion of counsel to Nuvotec,  which
opinion must be satisfactory to Nuvotec in all respects, to the effect that such
transfer will not violate the securities laws.  FoodSafety  understands that all
stock certificates will bear a legend noting these transfer restrictions.

      Section 4.2  Registration  Rights.  In the event Vivid shall  undertake to
file a  registration  statement,  FoodSafety  shall  have the right to  register
shares provided FoodSafety pursuant to Section 2.1.

      Section 4.3 Shareholder Information.  So long as FoodSafety owns the Vivid
shares  and/or  options,  FoodSafety  will  be  provided  with  a  copy  of  any
information which Vivid sends to its shareholders in general.

                                    ARTICLE V
                            TERMINATION OF AGREEMENT

      This  Agreement  may be  terminated  at any time  before the  Closing,  as
follows, and in no other manner: By mutual consent of the parties.

                                   ARTICLE VI
                                 INDEMNIFICATION

      Section 6.1 Indemnification of FoodSafety.  Without in any way limiting or
diminishing the warranties,  representations,  or agreements herein contained or
the rights or remedies  available  to any party for a breach by one of the other
parties,  Nuvotec agrees to indemnify,  defend, and hold harmless FoodSafety and
its designees,  successors,  and assigns from and against all losses, judgments,
liabilities, claims, damages, or expenses (including reasonable attorneys' fees)
of every kind,  nature,  and description in existence  before or on the Closing,
whether  known or unknown,  absolute  or  contingent,  joint or several,  either
arising  out of any  failure  of  any  representation  or  warranty  of  Nuvotec
contained in this  Agreement to have been correct and  materially  complete when
made or arising out of or relating to the breach of any covenant or agreement of
Nuvotec contained in this Agreement.

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      Section 6.2  Indemnification  of Nuvotec.  Without in any way  limiting or
diminishing the warranties,  representations,  or agreements herein contained or
the rights or remedies  available  to any party for a breach by one of the other
parties,  FoodSafety agrees to indemnify,  defend, and hold harmless Nuvotec and
its designees,  successors,  and assigns from and against all losses, judgments,
liabilities, claims, damages, or expenses (including reasonable attorneys' fees)
of every kind,  nature,  and description in existence  before or on the closing,
whether  known or unknown,  absolute  or  contingent,  joint or several,  either
arising out of any  failure of any  representation  or  warranty  of  FoodSafety
contained in this  Agreement to have been correct and  materially  complete when
made or arising out of or relating to the breach of any covenant or agreement of
FoodSafety contained in this Agreement.

                                   ARTICLE VII
                            MISCELLANEOUS PROVISIONS

      Section 7.1  Confidentiality.  Each of the parties will treat and hold all
of the  confidential  information of the other  exchanged as a result of the due
diligence and the  transactions  contemplated  by this  Agreement to the highest
level of care and confidence.  No information of another party shall be released
without the prior written approval of said party; provided, however, the parties
may disclose such  information as is necessary to comply with any information or
disclosure  requirements of any governmental agency. In such event, the party to
whom the  information  belongs shall be  immediately  notified by the party from
whom the information has been requested.

      Section 7.2  Amendment.  This  Agreement  may not be amended  except by an
instrument in writing signed on behalf of each of the parties hereto.

      Section  7.3  Notices.   All   notices,   requests,   demands,   or  other
communications  which are required or may be given pursuant to the terms of this
Agreement  shall be in writing and shall be deemed to have been duly given:  (I)
on the date of delivery if personally delivered by hand, (ii) upon the third day
after such  notice is (a)  deposited  in the United  States  mail,  if mailed by
registered or certified mail, postage prepaid,  return receipt requested, or (b)
sent by a nationally recognized overnight express courier, or (iii) by facsimile
upon  written  confirmation  (other  than  the  automatic  confirmation  that is
received from the recipient's  facsimile machine) of receipt by the recipient of
such notice:

         If to Nuvotec:            Nuvotec, Inc.
                                   723 The Parkway
                                   Richland, WA  99532
                                   Attention:  Sandra I. Muller
                                   Telephone No.: 509/ 943-5319
                                   Facsimile No.: 509/ 943-5528

         If to FoodSafety:         FoodSafety.com, Inc.
                                   Post Office Box 428
                                   Lake Hopatcong, NJ  07849
                                   Attention:  Martin D. Mick
                                   Telephone No.: 973/ 663-3808
                                   Facsimile No.: 973/ 663-6159

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      Section  7.4  Survival  of   Representations.   The   representations  and
warranties  given  under this  Agreement  shall be  continuing  and  survive the
closing  of  the  transaction  contemplated  by  this  Agreement.

      Section 7.5  Interpretation.  The headings contained in this Agreement are
for  reference  purposes  only and shall not  affect in any way the  meaning  or
interpretation of this Agreement.  Whenever the words "include",  "includes", or
"including" are used in this  Agreement,  they shall be deemed to be followed by
the words "without limitation".

      Section 7.6  Miscellaneous.  This  Agreement  (including the documents and
instruments  referred to  herein):  (i)  constitutes  the entire  agreement  and
supersedes all other prior agreements and understandings, both written and oral,
among the parties,  or any of them,  with respect to the subject  matter hereof;
(ii) shall not be assigned by operation  of law or  otherwise  without the prior
written consent of the other parties hereto;  and (iii) shall be governed in all
respects,  including  validity,  interpretation  and effect,  by the laws of the
State of Washington, exclusive of the conflict of laws provisions thereof.

      Section 7.7  Counterparts.  This  Agreement may be executed in two or more
counterparts,  each of which shall be deemed to be an original, but all of which
shall constitute one and the same agreement.

      Section 7.8 Parties in Interest.  This Agreement shall be binding upon and
inure to the  benefit  of and be  enforceable  by the  parties  hereto and their
respective  permitted  successors  and assigns,  and nothing in this  Agreement,
express or implied,  is  intended to confer upon any other  person any rights or
remedies of any nature whatsoever under or by reason of this Agreement.

      Section 7.9 Severability. Any term or provision of this Agreement which is
invalid or unenforceable in any jurisdiction shall, as to that jurisdiction,  be
ineffective  to the  extent  of  such  invalidity  or  unenforceability  without
rendering  invalid or  unenforceable  the remaining terms and provisions of this
Agreement or affecting  the  validity or  enforceability  of any of the terms or
provisions of this Agreement in any other jurisdiction. If any provision of this
Agreement is so broad as to be unenforceable, the provision shall be interpreted
to be only so broad as is enforceable.

      IN WITNESS WHEREOF,  the parties hereto have each caused this Agreement to
be signed by their respective  officers thereunto duly authorized as of the date
first written above.

NUVOTEC, INC.

By:               /s/ Robert L. Ferguson
         --------------------------------------
         Robert L. Ferguson
         Chairman & Chief Executive Officer

FOODSAFETY, INC.

By:               /s/ Martin D. Mick
         --------------------------------------
         Martin D. Mick
         Chairman & Chief Executive Officer

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EXHIBIT A
LIST OF ASSETS

      1.    The URL www.foodsafety.com. Ownership of the URL will be transferred
            to Nuvotec immediately upon Closing.

      2.    Approximately  1200 copies of Food Safety  Management  &  Compliance
            (retail price $149 each).  These books will continue to be stored at
            their current location for a future disposition.

      3.    All  Intellectual   Property  of   FoodSafety.com,   Inc.  including
            copyrights,   trademarks,   patent  applications,   business  plans,
            marketing schema, demo courses, source code and databases to include
            complete and up-to-date  contact  information on all  FoodSafety.com
            inquiries (verbal, written, and electronic),  prospective customers,
            potential strategic partners, and associations.

      4.    Exclusive  rights to  commercialize  any and all online  food safety
            related  information and food safety training  materials produced by
            Mick for a five (5) year period,  independent  of the renewal of the
            Consulting Agreement executed between Vivid and Mick as part of this
            transaction.

      5.    Mick shall develop and deliver to Vivid, in storyboard  form, a food
            worker course and a food manager  certification course, such courses
            to be defined by mutual agreement and developed in a form and manner
            suitable to Vivid.

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EXHIBIT B
CONSULTING AGREEMENT: VIVID - MICK

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                              CONSULTANT AGREEMENT
                                 Martin D. Mick

This  letter  hereby  serves  as the  written  agreement  that  Martin  D.  Mick
henceforth shall act as a consultant to Vivid Learning Systems,  Inc. (Vivid) on
an as  needed  basis to  provide  Subject  Matter  Expertise  for the  following
services  related to the food  safety  industry:  lesson  development,  business
development,  and other  tasks as needed and  directed  by the Vivid  President.
Vivid Learning Systems, Inc. is a wholly owned subsidiary of Nuvotec, Inc.

It  is  acknowledged   that  Procurement   Integrity,   Non-Disclosure,   and/or
Organizational   Conflict  of  Interest   certificates  may  be  required  on  a
case-by-case  basis. The consultant shall complete and sign said  certifications
when requested by Vivid.

Period of Agreement
The  period of  performance  for the  above-noted  services  shall  commence  on
November 21, 2003 or date FoodSafety,  Inc.  definitive  agreement with Nuvotec,
Inc.  is  executed,  whichever  is later,  and end on  November  30,  2004.  The
agreement can be  renegotiated at the sole discretion of Vivid for one (1) year,
and thereafter by mutual agreement.

Termination
During the initial  period of  performance,  neither  party may  terminate  this
agreement  without good cause (e.g.,  health issues,  hardship,  etc.).  In such
circumstance,  the  terminating  party shall provide  written  notice as soon as
practicable and be willing to negotiate a compromise that allows both parties to
receive the  approximate  intended  benefit of the  agreement.  During the first
extension, Vivid may terminate with ten (10) days advance written notice. During
the periods of subsequent  extensions  either party may terminate this agreement
with ten (10) days advance written notice.

Payment Terms
In  consideration  of the  services to be  performed,  Vivid shall pay the fixed
price  amount  of  $8,333.00  per  month  for the  initial  12 month  period  of
performance.  If options to extend the period of  performance  are exercised the
payment  terms for that option  period will be  negotiated  at that time.  It is
anticipated  that the  Consultant  shall incur  approximately  20 hours per week
(potentially  more  during the  production  and  launch  phase of the Vivid Food
Safety Program).

All fair and reasonable  travel and other direct costs directly  attributable to
the work  conducted by  Consultant as approved by the Vivid  President  shall be
reimbursed.  The Consultant will be eligible for performance based stock options
after 6 months of the start date of this agreement  which will be agreed upon in
a separate agreement.

Invoices  may be  submitted  no more than once a month and shall be payable upon
receipt. Invoices shall reference this Consultant Agreement,  include all travel
and other direct cost receipts, and be mailed in duplicate to:

                                    Vivid Learning Systems, Inc.
                                    Accounts Payable
                                    723 The Parkway
                                    Richland, WA  99352

Independent Contractor
Consultant  represents,  warrants,  and agrees that Consultant  shall act at all
times as an independent  contractor  under this contract and shall  undertake to
perform all acts, including the payment of any applicable tax and acquisition of
any required licenses or permits,  necessary to allow Consultant to perform this
contract as an independent contractor. Consultant shall at no time be considered
or hold itself out as employees of Nuvotec and/or its subsidiaries.

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Confidentiality & Non-Compete

The parties  acknowledge  that in the course of  performance  of this  agreement
certain confidential,  proprietary, and/or business sensitive information may be
exchanged.  Each  party  agrees  to  keep  all  such  information  in  strictest
confidence and shall not disclose such without the written  consent of the party
to whom said information belongs. The level of care to be given said information
is the same that the party would afford its own such information.  If a separate
confidentiality  agreement  is  executed  between  the  parties,  it shall  take
precedence over this clause.

Consultant  agrees not to compete with Vivid for a period of five (5) years from
the date of execution of the FoodSafety, Inc. definitive agreement with Nuvotec,
Inc.  Non-compete is defined as: working on behalf of any company,  association,
or  individual  that  delivers or plans to deliver  any food safety  training or
information online,  company intranet or extranet, or via CBT; production of any
food safety  training  materials  on or offline for a company,  association,  or
individual  that will sell or market the training to third parties;  acting in a
sales  or  business  development  capacity  for  any  company,  association,  or
individual  that  delivers  or plans to  deliver  any food  safety  training  or
information online, company intranet or extranet, or via CBT.

Each party  acknowledges  that the other  party may  participate  in  activities
related to the subject matter that is pertinent to this Agreement;  however, the
parties agree not to compete on specific business  opportunities  brought to the
attention  of one  party  by the  other,  unless  agreed  to in  writing  by the
disclosing  party.  Notwithstanding  this, each party,  its affiliates,  and any
entity in which it owns directly or indirectly an equity interest, agrees to not
use,  copy, or simulate,  in any form or fashion,  the  Proprietary  Information
disclosed under this Agreement  without the written agreement of the other party
except for the purpose of this Agreement.

Conclusion
This agreement shall be construed under,  and any suits and special  proceedings
arising out of this  agreement  shall be  governed  by, the laws of the State of
Washington.  In the event any  provision  of this  agreement  shall be  declared
illegal,   invalid,   or  otherwise   unenforceable  by  a  court  of  competent
jurisdiction,  all remaining  provisions of this  agreement  shall  nevertheless
continue in full force and effect.

AGREEMENT AND ACCEPTED:                 APPROVED BY
                                        VIVID LEARNING SYSTEMS, INC:

/s/ Martin D. Mick  11/25/03                      /s/ Kevin A. Smith    11/25/03
----------------------------             ---------------------------------------
Consultant             Date                  President                  Date

                                       10================================================================================

                            SHARE EXCHANGE AGREEMENT

                          IMAGEWORKS MEDIA GROUP, INC.

================================================================================

<PAGE>

                            SHARE EXCHANGE AGREEMENT

      This Share Exchange Agreement  ("Agreement") is entered into effective the
1st of May,  2004,  by and  among  Vivid  Learning  Systems,  Inc.,  a  Delaware
corporation  ("Vivid"),  with  its  principle  office  at  2345  Stevens  Drive,
Richland,  Washington 99352 and ImageWorks Works Media Group, Inc.  ("Seller" or
"ImageWorks"),  with  its  principle  office  at  5710  Bedford  Street,  Pasco,
Washington 99301.

                                    RECITALS

      A. ImageWorks is the owner of Two Thousand (2,000) voting common shares of
ImageWorks,  constituting all of the issued and outstanding stock of ImageWorks.
Specifically,  ImageWorks is held equally by Matt Hammer and Nick Bauer, who are
the sole shareholders of ImageWorks.

      B. Matt Hammer and Nick Bauer desire to sell and Vivid desires to purchase
the ImageWorks  shares in accordance with the terms and conditions  contained in
this Agreement.

                                   AGREEMENTS

      NOW,  THEREFORE,  in  consideration of the mutual covenants and agreements
hereinafter set forth together with other good and valuable  consideration,  the
receipt of which is hereby acknowledged, the parties agree as follows:

                                   SECTION ONE
                                SELLER AGREEMENT

      1.1 Seller Shares.  Subject to the terms and conditions of this Agreement,
on the Closing Date,  Seller hereby sells to Vivid,  and Vivid hereby  purchases
from Seller,  Two Thousand  (2,000)  shares  voting  common stock in  ImageWorks
("Shares").

      1.2 Consideration. In exchange for the Shares sold by Seller, Vivid shall:
a) pay Seller Three Hundred Thousand Dollars  ($300,000)  payable in full within
ten (10) business days after closing; b) pay Seller Three Hundred Fifty Thousand
Dollars  ($350,000)  payable in  fourteen  (14)  equal  monthly  payments,  said
payments to begin June 2004; c) issue to Seller One Hundred  Thousand  (100,000)
shares of common stock of Vivid ("Vivid Shares"), said Vivid Shares to be issued
on December 31,  2004,  and  further,  said Vivid  Shares  subject to a buyback,
wherein if by May 24, 2008, the Common Stock received in this  transaction  does
not have a public market value of $300,000, then ImageWorks will have the option
to have Vivid buy the Common Stock back for  $300,000,  and further said buyback
may be  subject  to  staggered  payments  of at  least  Fifty  Thousand  Dollars
($50,000),  per month over a six (6) month period; and, d) shall grant to Seller
a warrant to purchase an additional  Two Hundred  Thousand  (200,000)  shares of
common stock of Vivid at an exercise  price of Three  Dollars  ($3.00)

                                      -1-
<PAGE>

per share ("Vivid Warrant"). The warrant shall be in the form attached hereto as
Exhibit "A". The warrant will have  attached a buyback  provision in  accordance
with the term  sheet  executed  by  Vivid  and  Seller  on  April 9,  2004.  The
afore-noted  consideration will be issued to the two shareholders of Seller on a
50-50 basis in their individual capacity.  DEFAULT PROVISION:  In the event of a
default  by Vivid,  such as  failure  to make a  required  payment or failure to
execute on an action required of Vivid by this Agreement, Vivid shall have sixty
(60) days to cure.  If after the sixty (60) days the default has not been cured,
Seller may provide Vivid notice that it is considered in default and that Seller
has elected to reverse the transaction  herein. In the event of a second default
by Vivid,  Vivid  will have  thirty  (30) days to cure.  In the event of a third
default by Vivid,  the Seller may provide  Vivid notice  immediately  that it is
considered in default and that the Seller has elected to reverse the transaction
herein.  Specifically,  to effect the  reverse of the  transaction,  Seller must
relinquish all stock and warrants  granted  hereunder and Vivid will: (a) return
the corporate  entity  ImageWorks  to Seller on a reasonably  equal basis to its
condition as represented in the April 30, 2004 balance sheet,  including but not
limited to all assets in the  corporate  entity at the time of transfer  (except
for  consumables  and  subject to normal  wear and tear) and the  payment of all
current  liabilities with the exception of the cash and receivables already paid
to the Seller; and, (b) cancel the non-compete agreements signed by Seller, with
the exception that Seller will be prohibited from soliciting  clients that Vivid
brought  to Seller.  In the event of  non-performance  by Seller,  such shall be
considered  a  default  on the part of  Seller.  Said  non-performance  is to be
specifically  delineated in the notice of default from Vivid.  Seller shall have
one (1) year to cure the  default.  If at such  time  the  default  has not been
cured, Vivid will terminate Seller from its employment.

      1.3  Offer  Letters.  Offer  letters  for the two  principals  of  Seller,
specifically  Matt Hammer and Nick Bauer,  will address matters  associated with
this transaction that are typically considered personnel matters.

      1.4 Closing.  The purchase of Seller's Shares by Vivid shall occur as soon
as practicable  following the fulfillment of the conditions specified in Section
6 hereof  ("Closing  Date") at such place as the parties shall agree,  but in no
event later than May 24, 2004; however, regardless of closing on or before April
30,  2004,  said  date of  April  30,  2004  shall  be the  cutoff  date for the
calculations necessary to effect the exchange. Upon Closing (a) the Seller shall
deliver to Vivid certificates representing the Shares, duly endorsed to Vivid or
accompanied by duly executed stock powers,  in transferable form on December 31,
2004; (b) Vivid shall deliver the  appropriate  cash payment,  the Vivid Shares,
and the Vivid Warrant; and, (c) the parties shall deliver all other documents or
agreements required by this Agreement.

                                  SECTION TWO
                  REPRESENTATIONS AND WARRANTIES OF IMAGEWORKS

      ImageWorks,  to the best of its knowledge represents and warrants to Vivid
the following:

                                      -2-
<PAGE>

      2.1 Title to Stock.  ImageWorks is the record and beneficial owners of the
Shares  being  sold by  ImageWorks  to  Vivid,  free and  clear of any  security
interest,  claim,  lien,  pledge,  option,   encumbrance,   or  restriction  (on
transferability  or otherwise)  whatsoever in law or in equity, and its delivery
to Vivid on the Closing Date of certificates for the Shares will convey to Vivid
lawful,  valid, and indefeasible  title thereto,  free and clear of any security
interest, claim, lien, pledge, option, encumbrance, or restriction whatsoever.

      2.2  Necessary  Authority:  Enforceability.  The execution and delivery of
this Agreement has been duly authorized by the  shareholders  of ImageWorks.  No
other corporate proceedings on the part of ImageWorks are necessary to authorize
this Agreement. ImageWorks has full power, and authority to enter into, deliver,
and perform this  Agreement  and to  consummate  the  transactions  contemplated
herein.  ImageWorks  has duly executed and delivered  this  Agreement,  and this
Agreement  constitutes its legal,  valid, and binding  obligations,  enforceable
against  ImageWorks  in  accordance  with its  terms,  except as the same may be
limited by bankruptcy,  insolvency,  reorganization, or other laws affecting the
enforcement  of  creditors'  rights  generally  now or  hereafter  in effect and
subject to the availability of equitable remedies.

      2.3 No  Conflicts.  The  execution,  delivery,  and  performance  of  this
Agreement by Seller and the consummation of the transactions contemplated herein
do not and will not (a) require the  consent,  approval,  authorization,  order,
filing,  registration,  or  qualification  of or with  any  court,  governmental
authority,  or third person,  except that which already has been  obtained;  (b)
conflict  with or result in any  violation of or default  under any provision of
any  mortgage,  indenture,  lease,  agreement,  or  other  instrument,   permit,
concession,  grant, franchise, or license to which Seller is a party or by which
the  Shares  are or  may  be  bound;  (c)  violate  any  law,  ordinance,  rule,
regulation,  judgment,  order, or decree  applicable to Seller; or (d) result in
the creation of any security interest,  claim, lien, charge, or encumbrance upon
any of the Shares.

      2.4  Organization  and Good  Standing.  ImageWorks is a  corporation  duly
organized, validly existing, and in good standing under the laws of the State of
Washington.  ImageWorks  has all power and authority to execute and deliver this
Agreement.

      2.5  Articles of  Incorporation  and  Bylaws.  ImageWorks  has  previously
furnished  to  Vivid  complete  and  correct  copies  of  (a)  its  Articles  of
Incorporation, and (b) its Bylaws, as amended.

      2.6 Capitalization. The authorized capital stock of ImageWorks consists of
Ten  Thousand  (10,000)  shares of  voting  common  stock of which Two  Thousand
(2,000) shares are issued and  outstanding.  No unissued shares of Seller or any
other  securities of Seller are subject to any  warrants,  options,  rights,  or
commitments  of any  character,  kind, or nature that would  obligate  Seller to
issue any additional  shares of its common stock or any other equity security to
any person.

                                      -3-
<PAGE>

      2.7 No  Restrictions  on  Securities.  ImageWorks  is not a  party  to any
written or oral  agreement  creating  rights in any  person (a) with  respect to
shares of capital stock or any other  securities of ImageWorks,  or (b) relating
to the voting of shares of ImageWorks stock on any matter.

      2.8  Financial  Statements.  The most  recent  two (2) years of  Financial
Statements of the Seller are hereby  incorporated  by  reference.  The Financial
Statements  (including  the Notes  thereto) (i) have been prepared in accordance
with basic tax accounting  principles  and in good faith in a manner  consistent
with past practice  applied on a consistent basis throughout the periods covered
thereby;  (ii) present  fairly the financial  condition of ImageWorks as of such
dates and the results of operations of  ImageWorks  for such periods;  (iii) are
correct and  complete;  and, (iv) are  consistent  with the books and records of
ImageWorks (which books and records are correct and complete).

      2.9 Tax Matters. For all periods prior to the date of this Agreement:

            2.9.1 All  federal,  state,  local,  and foreign tax returns and tax
      reports required to be filed by ImageWorks have been timely filed with the
      appropriate  governmental  agencies  in all  jurisdictions  in which  such
      returns and reports are required to be filed and all of the  foregoing are
      true, correct, and complete;

            2.9.2 All  federal,  state,  local,  and  foreign  income,  profits,
      franchise,  sales, use,  occupation,  property,  excise,  highway use, and
      other taxes  (including  interest and penalties) due from  ImageWorks have
      been fully paid or adequate provisions made therefor;

            2.9.3 Proper and accurate  amounts have been  withheld by ImageWorks
      from its employees for all periods prior to the Closing Date in compliance
      with the tax withholding provisions of applicable federal, foreign, state,
      and local laws;

            2.9.4 Proper and accurate federal, foreign, state, and local returns
      have been filed by  ImageWorks  for all periods for which returns were due
      with respect to employee  income tax  withholding,  social  security,  and
      unemployment  taxes,  and the amounts  shown thereon to be due and payable
      have been paid in full or  adequate  provisions  therefor  included in the
      Financial Statements;

            2.9.5 No issues have been raised or proposed with respect to any tax
      return of ImageWorks; and

            2.9.6  ImageWorks  has  not  been  audited  by  any  federal  taxing
      authority.  ImageWorks has been audited by the Washington State Department
      of Revenue.

      2.10  Liabilities.  Seller has no liabilities or obligations of any nature
or kind, whether absolute or contingent, known or unknown, accrued or unaccrued,
due or to become due, or otherwise,  except:  (a) to the extent reflected in the
ImageWorks  Financial  Statements,  (b) as disclosed on Schedule  2.10  attached
hereto,  and (c) those that will be incurred  in or as a result of the  ordinary
course of business,  consistent with past practices,  prior to the Closing Date.
Seller  acknowledges  that it is currently a Subchapter S  corporation  and as a
result of this  transaction  the  Subchapter S election will  terminate.  Seller
specifically  warrants that it will be responsible  for any and all  obligations
which may occur as a result of the Subchapter S termination.

                                      -4-
<PAGE>

      2.11  Litigation.  Matt  Hammer  and Nick  Bauer  were sued by  Tri-Rivers
construction  over a dispute on the  construction  contract  for the building at
5710 Bedford  Street.  Hammer and Bauer won the case and are now working with an
arbitrator and the contractor to repair final punchlist  issues. No other claim,
action,  suit,  proceeding,  arbitration,  investigation,  hearing, or notice of
hearing is pending nor,  insofar as is known to Seller,  threatened,  before any
court or  governmental  or  administrative  authority,  or  private  arbitration
tribunal,  against,  relating to, or affecting Seller,  any of its properties or
businesses,  or the  transactions  contemplated by this  Agreement;  nor are any
facts,  known to Seller  that may give  rise to any such  claim,  action,  suit,
proceeding,  arbitration,  investigation,  or hearing that may have any material
adverse  effect upon the  properties  or business of Seller or the  transactions
contemplated  by this  Agreement  to the best of its  knowledge.  Seller has not
waived any affirmative defense with respect to any of its liabilities, including
any liability  for any income,  excise,  or other taxes.  There is no continuing
order,  injunction,  or decree  of any  court,  arbitrator  or  governmental  or
administrative  authority to which Seller or any of its businesses,  properties,
or assets is a party or subject.  No material  infringement  of any  proprietary
right owned or licensed by Seller is known to Seller.

      2.12 Material Contracts. All material contracts, agreements,  commitments,
and  instruments  to which Seller is subject and by which it is bound are listed
on Schedule  2.12,  and true and correct  copies of them have been  delivered to
Vivid.  All such  contracts  are in full  force and  effect,  there have been no
threatened  cancellations thereof, there are no outstanding disputes thereunder,
and to the best of the warrantors'  knowledge,  there does not exist any default
in any  material  respect or event which is a breach or default in any  material
respect of the terms of any such contract. Seller is not a party to any material
oral  agreements.  Seller  has in all  respects  performed  all the  obligations
required to be performed by it to date and is not in default or alleged to be in
default in any respect under any agreement,  lease, or contract to which it is a
party,  and to the best of the  warrantors'  knowledge,  there  exists no event,
condition,  or occurrence  which,  after notice or lapse of time, or both, would
constitute such a default by it of any of the foregoing.

      2.13 Absence of Certain  Changes.  Except as  disclosed  in its  Financial
Statements  and  Reports,  (a) Seller has  conducted  its  business  only in the
ordinary and usual course of the business,  and (b) no change or  development or
combination of changes or developments has occurred that, individually or in the
aggregate,  is  reasonably  likely to result in a Material  Adverse  Effect with
respect to Seller.  For purposes of this  Agreement,  "Material  Adverse Effect"
means an effect  that:  (1) is  materially  adverse to the  business,  financial
condition,  results of operations,  or prospects of Seller taken as a whole; (2)
significantly  and  adversely  affects the ability of Seller to  consummate  the
transactions   contemplated  by  this  Agreement  or  to  perform  its  material
obligations  under this  Agreement;  or (3)  enables  any persons to prevent the
consummation of the transactions contemplated by this Agreement.

                                      -5-
<PAGE>

      2.14 Brokers,  Finders. No agent,  broker,  investment banker,  person, or
firm  acting  on behalf of Seller  is or will be  entitled  to any  broker's  or
finder's fee or any other commission or similar fee, directly or indirectly,  in
connection with the transactions contemplated hereby.

      2.15 Personal  Liabilities/Conflicting  Interests.  Except as set forth on
Schedule 2.15, no officer,  director,  or partner of Seller has (i) any material
interest in any property  used in or  pertaining  to the business of Seller,  or
(ii) any loan, lease, contract,  commitment,  arrangement, or understanding with
Seller.

      2.16  Tangible  Assets.  Seller owns or leases all  buildings,  machinery,
equipment,  and other tangible assets  necessary for the conduct of its business
as presently conducted and as presently proposed to be conducted. To the best of
the warrantors' knowledge, each such tangible asset is free from defects (patent
and latent), has been maintained in accordance with normal industry practice, is
in good operating condition and repair (subject to normal wear and tear), and is
suitable  for the  purposes  for which it  presently  is used and  presently  is
proposed to be used.

      2.17 Employees,  Compensation,  Etc. The names, dates of hire,  positions,
and base salary for all ImageWorks  employees are set forth in Schedule 2.17. No
employee of ImageWorks has a written or oral employment  agreement.  There is no
pending or threatened dispute,  including, but not limited to, claims for sexual
harassment,   discrimination   claims  of  any  kind,  employment  disputes,  or
otherwise,  between  or  involving  ImageWorks,  and any  employee  or  group of
employees of ImageWorks or any union  representing  or claiming to represent any
employees or former  employees of ImageWorks.  There have never been any strikes
or work stoppages in effect or threatened  against ImageWorks which had or would
have a  material  adverse  effect on  ImageWorks,  nor have any  strikes or work
stoppages  which would have or have had such effect been  enjoined by any order,
writ, injunction,  or decree of any court or federal, state, municipal, or other
governmental  agency or  instrumentality,  domestic or  foreign.  No employee of
ImageWorks is, or on the Closing Date will be, represented by any labor union in
connection  with its  employment by ImageWorks.  To the best of the  warrantors'
knowledge,  hours worked by and  payments  made to the  respective  employees of
ImageWorks  has not been in  violation  of the Fair Labor  Standards  Act or any
applicable laws of the United States or any state or other jurisdiction  dealing
with such matters.

      2.18 Employee Benefit Plans. Seller maintains no pension,  profit-sharing,
stock bonus,  or other plan which is  "qualified"  or intended to be "qualified"
under Section 401(a) of the Code.  Schedule 2.18 attached hereto contains a list
of each

                                      -6-
<PAGE>

bonus, deferred compensation, hospitalization, or other medical, stock purchase,
life, or other insurance, and each other employee benefit plan or arrangement of
Seller  (collectively,  the "Plans").  Seller has heretofore  delivered to Vivid
true and complete copies of the documents  governing all such Plans as in effect
on the  date  hereof.  Each of the  Plans  has  been  administered  in  material
compliance  with its  terms and all  filing,  reporting,  disclosure,  and other
requirements of the Employee  Retirement Income Security Act of 1974, as amended
("ERISA").  Seller has no plans or  commitments,  whether formal or informal and
whether  legally binding or not, to create any additional such Plan or modify or
change  any  existing  plan or  arrangement.  None of the  Plans,  nor any trust
created thereunder,  nor any trustee or administrator  thereof, has engaged in a
transaction in connection  with which any of the Plans,  any such trust,  or any
trustee or  administrator  thereof,  or any party  dealing with the Plans or any
such trust  could be  subject to either a civil  penalty  assessed  pursuant  to
Section  502(i) of ERISA or a tax  imposed by Section  4975 of the Code.  To the
best of the warrantors' knowledge, each of the employee benefit plans maintained
or contributed to by Seller,  including,  without  limitation,  the Plans, is in
material  compliance with applicable federal laws,  including but not limited to
ERISA.  Each of the Plans  required to be has been  determined to be "qualified"
within the meaning of Section 401(a) of the Code, and no facts or  circumstances
exist which would materially adversely affect the qualified status of the Plans.
No matter relating to any Plan is pending before any court or government agency.
Seller is unaware of any withdrawal liability under Section 4201 of ERISA.

      2.19 Environmental. Seller has no liability under, has never violated, and
is presently in  compliance  with (a) all terms and  conditions  of its permits,
licenses,  and  other  authorizations;  and (b) to the  best of the  warrantors'
knowledge, all requirements,  limitations,  restrictions, conditions, standards,
prohibitions,  obligations,  schedules,  and  timetables  provided  for  by  any
Environmental,  Health,  and Safety Laws, and no events or conditions exist that
may  prevent  continued  compliance.  Seller  has not (a)  entered  into or been
subject to any consent decree,  compliance order,  administrative  order,  court
order,  or judgment  with respect to any of its  activities or  operations;  (b)
received notice under the citizen suit provision of any  Environmental,  Health,
or Safety Law; (c) received any request for information,  notice, demand letter,
administrative inquiry, or formal or informal complaint or claim with respect to
its  activities or  operations;  or (d) been subject to or  threatened  with any
governmental  or citizen  litigation,  administrative,  or  judicial  proceeding
pursuant  to the  Environmental,  Health,  and Safety  Laws and has no reason to
believe that any of the above will be forthcoming.

            No  use,  exposure,  generation,  manufacture,  storage,  treatment,
transportation, or disposal of Hazardous Substances is occurring or has occurred
other than as  necessary in the  ordinary  course of business and in  compliance
with all applicable federal, state and local laws, ordinances,  and regulations.
The terms  "Environmental,  Health,  or Safety Laws" and "Hazardous  Substances"
shall have the meanings set forth on Exhibit 2.19.

      2.20  Insurance.  All  physical  properties  and  assets of Seller and the
premises  are  covered  by fire  and  other  extended  coverage  insurance  with
companies  licensed in the  relevant  jurisdictions  against  casualty and other
losses  customarily  obtained  to cover  comparable  properties  and  assets  by
businesses in the regions in which such properties are located. Based on its own
experience, Seller has no reason to believe that such coverage is not reasonable
in amounts, scope, and coverage in light of existing conditions.  Seller carries
public  liability and workmen's  compensation  insurance in amounts  believed by
Seller to be  reasonable.  A complete  and correct  list of all the  policies of
insurance  (including binders) and surety bonds carried by Seller is included in
Schedule  2.20, all of which are in full force and effect as of the date hereof.
Seller has not received notice of cancellation or non-renewal of any such policy
or bond. Seller does not have knowledge of any inaccuracy in any application for
such  policies or bonds,  any failure to pay  premiums  when due, or any similar
events that would form the basis for termination of any such insurance.

                                      -7-
<PAGE>

      2.21 Intellectual  Property.  Except as set forth in Schedule 2.21, Seller
owns or has the right to use  pursuant to  license,  sublicense,  agreement,  or
permission all Intellectual Property necessary or desirable for the operation of
the business of Seller as presently  conducted  and as presently  proposed to be
conducted.  Seller has taken all necessary and desirable  action to maintain and
protect each item of Intellectual  Property that it owns or uses. To the best of
the  warrantors'  knowledge,  Seller has not interfered  with,  infringed  upon,
misappropriated,  or otherwise come into conflict with any Intellectual Property
rights of third parties. Seller has never received any charge, complaint, claim,
demand,    or   notice   alleging   any   such    interference,    infringement,
misappropriation,  or violation (including any claim that Seller must license or
refrain from using any Intellectual  Property rights of any third party). To the
best of the warrantors' knowledge, no third party has interfered with, infringed
upon,  misappropriated,  or otherwise  come into conflict with any  Intellectual
Property  rights of Seller.  Seller has  delivered to Vivid correct and complete
copies of all patents,  registrations,  applications,  licenses, agreements, and
permissions  (as amended to date) and has made  available  to Vivid  correct and
complete  copies of all other  written  documentation  evidencing  ownership and
prosecution (if  applicable) of the  Intellectual  Property.  Schedule 2.21 also
identifies  each  trade  name  or  unregistered  trademark  used  by  Seller  in
connection  with  any of  its  businesses.  No  shareholder,  partner,  officer,
director,  or  any  employee  of  Seller  or  any  affiliate  owns  directly  or
indirectly,  in whole or in part, any Intellectual  Property (a) which Seller is
presently  using in its  business,  or (b) without which such business of Seller
could not be conducted as presently conducted.

            "Intellectual Property" means (a) all inventions (whether patentable
or  unpatentable  and  whether or not  reduced to  practice),  all  improvements
thereto, and patents, patent applications, and patent disclosures, together with
all reissuances,  continuations,  continuations-in-part,  revisions, extensions,
and  reexaminations  thereof;  (b) all trademarks,  service marks,  trade dress,
logos,  trade  names,  and  corporate  names,  together  with all  translations,
adaptations,  derivations,  and combinations  thereof and including all goodwill
associated  therewith,  and all  applications,  registrations,  and  renewals in
connection therewith; (c) all copyrightable works, all copyrights, applications,
registrations,  and renewals in connection therewith; (d) all mask works and all
applications, registrations, and renewals in connection therewith; (e) all trade
secrets and confidential  business  information  (including ideas,  research and
development  know-how,  formulas,  compositions,  manufacturing  and  production
processes and techniques,  technical data,  designs,  drawings,  specifications,
customer  and supplier  lists,  pricing and cost  information,  and business and
marketing plans and proposals);  (f) all computer  software  (including data and
related  documentation);  (g) all other proprietary  rights; and, (h) all copies
and tangible embodiments thereof (in whatever form or medium).

                                      -8-
<PAGE>

      2.22 Opportunity to Investigate.  Seller has been afforded the opportunity
to ask  questions  of, and receive  answers from Vivid or persons  acting on its
behalf  concerning the terms and conditions of the transaction and to obtain any
additional  information  necessary  to verify the  accuracy  of the  information
furnished; and has availed itself of such opportunity to the extent it considers
appropriate  in order to  permit  it to  evaluate  the  merits  and risks of the
proposed  transaction.   Seller  has  sufficient  knowledge  and  experience  in
financial and business  matters to be capable of evaluating the merits and risks
of the investment  contemplated by this Agreement.  Seller  acknowledges that no
oral  representations have been made and no information has been furnished to it
in connection  with the  negotiation of this Agreement that have been in any way
inconsistent  with the foregoing  specified  information and the information and
representations incorporated into this Agreement.

      2.23 Disclosure.  To the best knowledge of Seller,  neither this Agreement
nor any schedule,  exhibit, list,  certificate,  or other instrument or document
delivered to Vivid pursuant to this Agreement by or on behalf of Seller contains
any  untrue  statement  of  material  fact or omits to state any  material  fact
required to be stated  herein or therein or  necessary  to make the  statements,
representations,  or warranties, and information contained herein or therein not
misleading.

                                  SECTION THREE
                     REPRESENTATIONS AND WARRANTIES OF VIVID

      Vivid represents and warrants to Seller the following:

      3.1 Organization and Good Standing. Vivid is a corporation duly organized,
validly existing,  and in good standing under the laws of the State of Delaware.
Vivid has all the power and authority to execute and deliver this  Agreement and
consummate the transactions contemplated hereby.

      3.2 Capitalization.  The authorized capital stock of Vivid consists of Two
Hundred  Million  (200,000,000)  shares of voting  common stock and Five Million
(5,000,000) shares of voting preferred stock. There are Ten Million Eighty-seven
Thousand  Nine Hundred  Ninety-six  (10,087,996)  shares of voting  common stock
issued and outstanding as of the date of this Agreement.  There are no preferred
shares  issued  as of the date of this  Agreement.  Vivid has Two  Million  Four
Hundred Thousand (2,400,000) shares allocated to its stock option plan, of which
Seven Hundred  Sixty-six  Thousand Three Hundred  Thirty-four  (766,334) options
have been issued.

                                      -9-
<PAGE>

      3.3  Authority to Perform  Agreement.  The  execution and delivery of this
Agreement and the consummation of the transactions contemplated hereby have been
duly  authorized  by the  Board  of  Directors  of  Vivid.  No  other  corporate
proceedings  on the part of Vivid are  necessary  to  authorize  its officers to
perform this Agreement. The execution and performance of this Agreement by Vivid
does not violate,  or result in a breach of, or constitute a default under,  any
judgment,  order,  or  decree  to which  Vivid  may be  subject,  nor does  such
execution or performance  violate any provision of the Articles of Incorporation
or Bylaws of Vivid.

      3.4 Subsidiaries,  Affiliates, No Other Interests. Vivid is the sole owner
of Vivid Washington.

      3.5  Financial  Statements.  The most  recent  two (2) years of  Financial
Statements  of Vivid  Washington  are  hereby  incorporated  by  reference.  The
Financial  Statements  (including  the Notes  thereto) (i) have been prepared in
accordance with GAAP and in good faith in a manner consistent with past practice
applied on a consistent  basis  throughout  the periods  covered  thereby;  (ii)
present fairly the financial condition of Vivid as of such dates and the results
of  operations of Vivid for such  periods;  (iii) are correct and complete;  and
(iv) are consistent with the books and records of Vivid (which books and records
are correct and complete).

      3.6 Tax Matters. For all periods prior to the date of this Agreement:

            3.6.1 All  federal,  state,  local,  and foreign tax returns and tax
      reports  required  to be filed by Vivid  have been  timely  filed with the
      appropriate  governmental  agencies  in all  jurisdictions  in which  such
      returns and reports are required to be filed and all of the  foregoing are
      true, correct, and complete;

            3.6.2 All  federal,  state,  local,  and  foreign  income,  profits,
      franchise,  sales, use,  occupation,  property,  excise,  highway use, and
      other taxes  (including  interest and  penalties) due from Vivid have been
      fully paid or adequate provisions made therefor;

            3.6.3 Proper and accurate  amounts have been  withheld by Vivid from
      its employees for all periods prior to the Closing Date in compliance with
      the tax withholding provisions of applicable federal,  foreign, state, and
      local laws;

            3.6.4 Proper and accurate federal, foreign, state, and local returns
      have been filed by Vivid for all periods for which  returns  were due with
      respect  to  employee  income  tax  withholding,   social  security,   and
      unemployment  taxes,  and the amounts  shown thereon to be due and payable
      have been paid in full or  adequate  provisions  therefor  included in the
      Financial Statements;

                                      -10-
<PAGE>

            3.6.5 No issues have been raised or proposed with respect to any tax
      return of Vivid; and

            3.6.6  Vivid has not been  audited by any  federal  or state  taxing
      authority.

      3.7 Liabilities.  Vivid has no liabilities or obligations of any nature or
kind,  whether absolute or contingent,  known or unknown,  accrued or unaccrued,
due or to become due, or otherwise,  except:  (a) to the extent reflected in the
Vivid Financial  Statements,  (b) as disclosed on Schedule 3.7 attached  hereto,
and (c) those that will be incurred in or as a result of the ordinary  course of
business, consistent with past practices, prior to the Closing Date.

      3.8  Litigation.   No  claim,  action,  suit,   proceeding,   arbitration,
investigation, hearing, or notice of hearing is pending nor, insofar as is known
to  Vivid,  threatened,  before  any  court or  governmental  or  administrative
authority, or private arbitration tribunal,  against,  relating to, or affecting
Vivid, any of its properties or businesses,  or the transactions contemplated by
this Agreement; nor are any facts known to Vivid, that may give rise to any such
claim, action, suit, proceeding, arbitration, investigation, or hearing that may
have any material adverse effect upon the properties or business of Vivid or its
subsidiaries or the  transactions  contemplated by this Agreement to the best of
its knowledge.  Vivid has not waived any affirmative defense with respect to any
of its  liabilities,  including any liability for any income,  excise,  or other
taxes.  There is no  continuing  order,  injunction,  or  decree  of any  court,
arbitrator,  or governmental or  administrative  authority to which Vivid or its
subsidiaries  or any of their  businesses,  properties,  or assets is a party or
subject. No material  infringement of any proprietary right owned or licensed by
Vivid is known to Vivid.

      3.9  Absence of Certain  Changes.  Except as  disclosed  in its  Financial
Statements and Reports (a) Vivid has conducted its business only in the ordinary
and  usual  course  of  the  business,  and  (b) no  change  or  development  or
combination of changes or developments has occurred that, individually or in the
aggregate,  is  reasonably  likely to result in a Material  Adverse  Effect with
respect to Vivid.  For purposes of this  Agreement,  "Material  Adverse  Effect"
means an effect  that:  (1) is  materially  adverse to the  business,  financial
condition,  results of operations,  or prospects of Vivid taken as a whole;  (2)
significantly  and  adversely  affects  the ability of Vivid to  consummate  the
transactions   contemplated  by  this  Agreement  or  to  perform  its  material
obligations  under this  Agreement;  or (3)  enables  any persons to prevent the
consummation of the transactions contemplated by this Agreement.

      3.10 Environmental.  Vivid has no liability under, has never violated, and
is presently in  compliance  with (a) all terms and  conditions  of its permits,
licenses,  and  other  authorizations;  and (b) to the  best of the  warrantors'
knowledge, all requirements,  limitations,  restrictions, conditions, standards,
prohibitions,  obligations,  schedules,  and  timetables  provided  for  by  any
Environmental,  Health,  and Safety Laws, and no events or conditions exist that
may prevent continued compliance. Vivid has not (a) entered into or been subject
to any consent decree,  compliance order,  administrative order, court order, or
judgment  with  respect to any of its  activities  or  operations;  (b) received
notice under the citizen suit provision of any Environmental,  Health, or Safety
Laws;  (c)  received  any  request  for  information,   notice,  demand  letter,
administrative inquiry, or formal or informal complaint or claim with respect to
its  activities or  operations;  or (d) been subject to or  threatened  with any
governmental  or citizen  litigation,  administrative,  or  judicial  proceeding
pursuant  to the  Environmental,  Health,  and Safety  Laws and has no reason to
believe that any of the above will be forthcoming.

                                      -11-
<PAGE>

            No  use,  exposure,  generation,  manufacture,  storage,  treatment,
transportation, or disposal of Hazardous Substances is occurring or has occurred
other than as  necessary in the  ordinary  course of business and in  compliance
with all applicable federal, state, and local laws, ordinances, and regulations.
The terms  "Environmental,  Health,  or Safety Laws" and "Hazardous  Substances"
shall have the meanings set forth on Exhibit 2.19.

      3.11 Brokers,  Finders. No agent,  broker,  investment banker,  person, or
firm  acting  on  behalf  of Vivid is or will be  entitled  to any  broker's  or
finder's fee or any other  commission  or similar fee directly or  indirectly in
connection with the transactions contemplated hereby.

      3.12  Opportunity to Investigate.  Vivid has been afforded the opportunity
to ask questions of, and receive  answers from  ImageWorks or persons  acting on
their behalf  concerning  the terms and  conditions  of the  transaction  and to
obtain  any  additional  information  necessary  to verify the  accuracy  of the
information furnished;  and has availed itself of such opportunity to the extent
it considers  appropriate in order to permit it to evaluate the merits and risks
of the proposed  transaction.  Vivid has sufficient  knowledge and experience in
financial and business  matters to be capable of evaluating the merits and risks
of the investment  contemplated by this Agreement.  Vivid  acknowledges  that no
oral  representations have been made and no information has been furnished to it
in connection  with the  negotiation of this Agreement that have been in any way
inconsistent  with the foregoing  specified  information and the information and
representations incorporated into this Agreement.

      3.13  Disclosure.  To the best knowledge of Vivid,  neither this Agreement
nor any schedule,  exhibit, list,  certificate,  or other instrument or document
delivered  to  Seller  pursuant  to this  Agreement  by or on  behalf  of Vivid,
contains any untrue  statement  of material  fact or omits to state any material
fact  required  to be  stated  herein  or  therein  or  necessary  to  make  the
statements,  representations or warranties,  and information contained herein or
therein not misleading.

                                      -12-
<PAGE>

                                  SECTION FOUR
                 SECURITIES LAW MATTERS AND REGISTRATION RIGHTS

      4.1 Purchase for  Investment.  Seller  covenants and agrees that the Vivid
Shares and Vivid  Warrant to be issued to Seller as provided in Section 1.2 will
be held by Seller for  investment  and not with a view to distribute  all or any
part thereof in any transaction  which would constitute a "distribution"  within
the meaning of the Securities Act of 1933  ("Securities  Act).  Seller will not,
directly or indirectly,  offer, transfer, sell, assign, pledge,  hypothecate, or
otherwise  dispose  of any of the  Vivid  Shares  or  Vivid  Warrant  except  in
compliance with the Securities Act. Seller agrees that no transfer of assignment
of any Vivid  Shares or Warrants  shall be  effective  if the  assignment  would
violate  the  provisions  of the  securities  laws.  If  Vivid so  requires,  no
assignment  shall be effective  unless Seller  delivers an opinion of counsel to
Vivid,  which  opinion must be  satisfactory  to Vivid in all  respects,  to the
effect  that  such  transfer  will  not  violate  the  securities  laws.  Seller
understands that all stock certificates will bear a legend noting these transfer
restrictions.

      4.2  Registration  Rights.  In the event Vivid shall  undertake to provide
registration rights to its shareholders in general,  Seller shall have the right
to  participate  in such  registration  rights  upon the  terms  and  conditions
applicable to all shareholders.

      4.3  Shareholder  Information.  So long as Seller owns the Vivid Shares or
Vivid Warrant, Seller will be provided with a copy of any information that Vivid
sends to its shareholders in general.

                                  SECTION FIVE
                     CONDUCT AND TRANSACTIONS BEFORE CLOSING

      5.1 Cooperation.  From the date hereof through the Closing Date, Vivid and
Seller will each cooperate in good faith and use their best efforts to close the
purchase and sale of Shares.

      5.2 ImageWorks Contracts. Prior to Closing, Vivid and ImageWorks will work
to jointly  market  ImageWorks  in order to secure new  contracts.  Any expenses
incurred in connection with these marketing  efforts shall be borne by the party
incurring such expenses.

      5.3  Announcements.  Subsequent to the date hereof,  Vivid and  ImageWorks
will  consult  with each other  prior to any  public  announcement  relating  to
transactions  contemplated  hereby  and will not make any  public  announcements
without the express approval of the other.

                                      -13-
<PAGE>

      5.4  Efforts to  Consummate.  Subject to the terms and  conditions  herein
provided,  Vivid and Seller agree to use their  reasonable best efforts to take,
or cause to be taken,  all  action  and to do, or cause to be done,  all  things
necessary,  proper, or advisable to consummate, as promptly as practicable,  the
transactions  contemplated hereby,  including, but not limited to, the obtaining
of all necessary  consents,  waivers,  authorizations,  orders, and approvals of
third parties,  whether private or governmental,  required of it to enable it to
comply  with  the  conditions   precedent  to  consummating   the   transactions
contemplated by this  Agreement.  Vivid and Seller agree to cooperate fully with
the other in performing this Agreement.

                                   SECTION SIX
                              CONDITIONS TO CLOSING

      6.1  Conditions  to  Obligation  of  Vivid.  The  obligation  of  Vivid to
consummate  the  transactions  to be  performed  by it  hereunder  is subject to
satisfaction  of  the  following  conditions.  Vivid  may  waive  any  condition
specified in this  Section via a written  document so stating at or prior to the
Closing Date.

            6.1.1 Seller  shall have  performed  and complied  with all of their
      covenants and agreements  hereunder in all material  respects  through the
      Closing Date.

            6.1.2 All representations,  warranties,  disclosures, and statements
      of Seller  contained in this Agreement will be true and complete as of the
      date of this  Agreement  and  the  Closing  Date.  Any  amendments  to the
      exhibits  and  schedules  to  this  Agreement  which  are  proposed  to be
      delivered  after the date of this Agreement must be  satisfactory to Vivid
      in its sole discretion.

            6.1.3 Vivid shall have completed its due diligence  review of Seller
      and its business  (including,  but not limited to confirmation that Seller
      is in  compliance  with all  applicable  environmental  laws) with results
      reasonably  satisfactory  to Vivid.  Vivid agrees that such due  diligence
      shall be complete by May 11, 2004.

            6.1.4  Seller  shall  make   appropriate   accounting   and  expense
      adjustments to the Seller's balance sheet prior to the Closing Date, which
      adjustments must be approved by Vivid.

            6.1.5  All  actions  to  be  taken  by  Seller  in  connection  with
      consummation   of  the   transactions   contemplated   hereby,   and   all
      certificates,  opinions,  instruments,  and other  documents  required  to
      effect  the   transactions   contemplated   hereby   will  be   reasonably
      satisfactory in form and substance to Vivid.

      6.2  Conditions  to  Obligation  of Seller.  The  obligation  of Seller to
consummate  the  transactions  to be  performed  by it  hereunder  is subject to
satisfaction  of the  following  conditions.  Seller  may  waive  any  condition
specified in this  Section via a written  document so stating at or prior to the
Closing Date.

                                      -14-
<PAGE>

            6.2.1  Vivid  shall  have  performed  and  complied  with all of its
      covenants and agreements  hereunder in all material  respects  through the
      Closing Date.

            6.2.2 All representations,  warranties,  disclosures, and statements
      of Vivid  contained in this  Agreement will be true and complete as of the
      date of this  Agreement  and  the  Closing  Date.  Any  amendments  to the
      exhibits  and  schedules  to  this  Agreement  which  are  proposed  to be
      delivered  after the date of this Agreement must be satisfactory to Seller
      in its sole discretion.

            6.2.3  All  actions  to  be  taken  by  Vivid  in  connection   with
      consummation of the transactions contemplated hereby and all certificates,
      opinions,   instruments,  and  other  documents  required  to  effect  the
      transactions  contemplated hereby will be reasonably  satisfactory in form
      and substance to Seller.

                                  SECTION SEVEN
                            TERMINATION OF AGREEMENT

      This  Agreement  may be terminated at any time before the Closing Date, as
follows, and in no other manner:

      7.1 Mutual  Consent.  By mutual  consent of the  parties,  if the Board of
Directors, or similar governing body, of each party so determines.

      7.2 Conditions of Vivid Not Met. By Seller if, by the Closing Date, any of
the  conditions  set forth in Section 6.2 hereof have not been met or if, in the
exercise of its best  judgment,  Seller  determines  in good faith that any such
conditions reasonably cannot be met by such date.

      7.3 Conditions of Seller Not Met. By Vivid, if by the Closing Date, any of
the conditions set forth in Section 6.1 hereof shall not have been met or if, in
the exercise of its judgment, the Board of Directors of Vivid determines in good
faith that any such conditions reasonably cannot be met by such date.

                                  SECTION EIGHT
                                 INDEMNIFICATION

      8.1  Indemnification of Vivid.  Without in any way limiting or diminishing
the warranties, representations, or agreements herein contained or the rights or
remedies  available to Vivid for a breach by Seller hereunder,  Seller agrees to
indemnify,  defend, and hold harmless Vivid and its designees,  successors,  and
assigns from and against all losses, judgments, liabilities, claims, damages, or
expenses  (including  reasonable  attorneys'  fees) of every kind,  nature,  and
description  in  existence  before  or on the  Closing  Date,  whether  known or
unknown,  absolute or  contingent,  joint or several,  either arising out of any
failure of any  representation or warranty by Seller contained in this Agreement
to have been  correct  and  materially  complete  when made or arising out of or
relating to the breach of any covenant or agreement of Seller  contained in this
Agreement.

                                      -15-
<PAGE>

      8.2 Indemnification of Seller.  Without in any way limiting or diminishing
the warranties, representations, or agreements herein contained or the rights or
remedies  available  to Seller  for a breach by Vivid  hereunder,  Vivid  hereby
agrees, with respect to this Agreement, to indemnify,  defend, and hold harmless
Seller from and against all losses, judgments,  liabilities, claims, damages, or
expenses  (including  reasonable  attorneys'  fees) of every kind,  nature,  and
description in existence before, on, or after the Closing Date, whether known or
unknown,  absolute or  contingent,  joint or several,  either arising out of any
failure of any  representation  or warranty by Vivid contained in this Agreement
to have been  correct  and  materially  complete  when made or arising out of or
relating to the breach of any  covenant or  agreement  of Vivid  contained in or
arising out of this Agreement.

      8.3  Indemnification  Limitations.  Without  in any  way  diminishing  the
warranties,  representations,  or agreements  herein  contained or the rights or
remedies  available to either  party for a breach by the other party  hereunder,
the parties  hereby agree,  with respect to this  Agreement,  that any claim for
indemnity under either of the preceding sections 8.1 and 8.2 must be asserted in
writing to the other on or before the second  anniversary  of the Closing  Date.
Further,  with the  exception of  circumstances  wherein an  indemnification  is
warranted as a result of misconduct or gross  negligence,  the  indemnifications
offered under this Agreement shall be limited to the value of the  consideration
provided  herein.  In instances of misconduct or gross  negligence,  there is no
limit to the level of indemnification to be provided by a party.

      8.4    Indemnification    Procedure   for   Claims   of   Third   Parties.
Indemnification,  with  respect  to  claims  resulting  from  the  assertion  of
liability by those not parties to this Agreement (including  governmental claims
for penalties, fines, and assessments),  shall be subject to the following terms
and conditions:

            8.4.1 The party seeking  indemnification  (the "Indemnified  Party")
      shall give prompt  written notice to the party or parties from which it is
      seeking  indemnification  (the  "Indemnifying  Party") of any assertion of
      liability  by  a  third  party  which  might  give  rise  to a  claim  for
      indemnification  based on the foregoing provisions of this Section,  which
      notice  shall state the nature and basis of the  assertion  and the amount
      thereof, to the extent known; provided, however, that no delay on the part
      of the Indemnified  Party in giving notice shall relieve the  Indemnifying
      Party of any obligation to indemnify unless (and then solely to the extent
      that) the Indemnifying Party is prejudiced by such delay.

            8.4.2 If any  action,  suit,  or  proceeding  (a "Legal  Action") is
      brought  against  the   Indemnified   Party  with  respect  to  which  the
      Indemnifying  Party may have liability  under the foregoing  provisions of
      this Section,  the Legal Action shall be defended (such defense to include
      all  proceedings  for appeal or review which  counsel for the  Indemnified
      Party shall reasonably deem appropriate) by the Indemnifying Party.

                                      -16-
<PAGE>

            8.4.3 Notwithstanding the provisions of the previous subparagraph of
      this  Agreement,  until the  Indemnifying  Party  shall have  assumed  the
      defense  of  the  Legal  Action,  the  defense  shall  be  handled  by the
      Indemnified Party and the Indemnifying Party shall pay all legal and other
      expenses  reasonably  incurred by the Indemnified Party in conducting such
      defense.  Furthermore,  (i) if the Indemnified Party shall have reasonably
      concluded  that there are likely to be defenses  available  to it that are
      different  from or in  addition  to those  available  to the  Indemnifying
      Party;  (ii) if the Legal  Action  involves  other than money  damages and
      seeks injunctive or other equitable relief; or (iii) if a judgment against
      the  Indemnified  Party in the Legal Action will, in the good faith of the
      Indemnified  Party,  establish a custom or precedent which will be adverse
      to the best interest of its continuing  business,  the  Indemnified  Party
      shall have the right to defend such Legal Action,  provided,  however, the
      Indemnified  Party shall pay all legal and other expenses  incurred by the
      Indemnified Party in conducting such defense.

            8.4.4 In any Legal Action initiated by a third party and defended by
      the Indemnifying  Party (i) the Indemnified  Party shall have the right to
      be represented by advisory  counsel and  accountants,  at its own expense;
      (ii) the  Indemnifying  Party  shall  keep  the  Indemnified  Party  fully
      informed  as to the  status of such Legal  Action at all  stages  thereof,
      whether or not the  Indemnified  Party is  represented by its own counsel;
      (iii) the Indemnifying Party shall make available to the Indemnified Party
      and its attorneys,  accountants, and other representatives,  all books and
      records  relating to such Legal Action;  and (iv) the parties shall render
      to each other such  assistance as may be  reasonably  required in order to
      ensure the proper and adequate defense of such Legal Action.

            8.4.5 In any Legal Action initiated by a third party and defended by
      the Indemnifying  Party, the Indemnifying  Party shall not make settlement
      of any claim without the written consent of the Indemnified  Party,  which
      consent  shall  not  be  unreasonably   withheld.   Without  limiting  the
      generality  of the  foregoing,  it shall  not be  deemed  unreasonable  to
      withhold consent to a settlement  involving  injunctive or other equitable
      relief  against  Vivid or its assets,  employees,  or business,  or relief
      which Vivid  reasonably  believes  could  establish a custom or  precedent
      which will be adverse to the best interests of its continuing business.

                                      -17-
<PAGE>

                                  SECTION NINE
                    CONFIDENTIAL AND PROPRIETARY INFORMATION

      9.1 Confidential Information.  Each of the parties will treat and hold all
of the Confidential Information of the others as such, refrain from using any of
the  Confidential  Information  except in connection  with this  Agreement,  and
deliver  promptly  to the others or  destroy,  at the  request and option of the
others,   all  tangible   embodiments  (and  all  copies)  of  the  Confidential
Information which are in his, her, or its possession;  provided,  however,  that
the parties may disclose such Confidential Information as is necessary to comply
with any information or disclosure  requirements of any governmental  agency. In
the event that any of the parties is requested or required (by oral  question or
request for  information  or documents in any legal  proceeding,  interrogatory,
subpoena,  civil  investigation  demand,  or similar  process) to  disclose  any
Confidential  Information,  the Party who has been  requested  to disclose  such
Confidential  Information (the "Withholding  Party") will notify the Party whose
Confidential  Information is being sought (the "Confidential Party") promptly of
the request so that the  Confidential  Party may seek an appropriate  protective
order or waive  compliance  with the  provisions of this Section 9.1. If, in the
absence  of a  protective  order  or the  receipt  of a  waiver  hereunder,  any
Withholding  Party is, on the  advice of  counsel,  compelled  to  disclose  any
Confidential  Information to any tribunal or else stand liable for contempt, the
Withholding  Party may disclose the  Confidential  Information  to the tribunal;
provided,  however,  that the  Withholding  Party  shall use his,  hers,  or its
reasonable  best efforts to obtain,  at the reasonable  request of  Confidential
Party, an order or other assurance that confidential  treatment will be accorded
to such portion of the Confidential  Information required to be disclosed as the
Confidential Party shall designate.

      9.2   Definition.   "Confidential   Information"   means  any  information
concerning the businesses and affairs of Vivid on the one hand and ImageWorks on
the other hand that is not already generally available to the public.

                                   SECTION TEN
                            MISCELLANEOUS PROVISIONS

      10.1 Survival of Representations. The representations and warranties given
under this Agreement shall be continuing and survive the Closing Date.

      10.2 Modification. This Agreement may be altered or amended in whole or in
part at any time but only in a written instrument signed by the parties hereto.

      10.3 Succession and  Assignment.  This Agreement shall be binding upon and
inure to the benefit of the parties named herein and their respective successors
and permitted assigns.  Neither party may assign either this Agreement or any of
its rights,  interests,  or  obligations  hereunder  without  the prior  written
approval of the other party.

      10.4 Expenses.  Vivid and Seller shall be responsible for their respective
costs and expenses incurred in connection with this Agreement.

                                      -18-
<PAGE>

      10.5 Entire Agreement. This Agreement (including the documents referred to
herein)  constitutes the entire agreement between the parties and supersedes any
prior understandings,  agreements, or representations by or between the parties,
written or oral,  to the extent  they  relate in any way to the  subject  matter
hereof. The parties  acknowledge that a lease agreement for the building at 5710
Bedford Street,  Pasco,  Washington  will be executed  between Vivid and the two
shareholders of Seller in their individual capacity.

      10.6 Governing  Law. This  Agreement  shall be governed by the laws of the
State of Washington.

      10.7   Construction.   The  parties  have  participated   jointly  in  the
negotiation  and  drafting  of this  Agreement.  In the  event an  ambiguity  or
question of intent or interpretation  arises,  this Agreement shall be construed
as if drafted  jointly by the  parties,  and no  presumption  or burden of proof
shall arise favoring or disfavoring any party by virtue of the authorship of any
of the provisions of this  Agreement.  Nothing in any Schedule to this Agreement
shall be deemed  adequate  to  disclose  an  exception  to a  representation  or
warranty  made  herein  unless  the  Schedule   identifies  the  exception  with
reasonable  particularity and describes the relevant facts in reasonable detail.
Without limiting the generality of the foregoing, the mere listing (or inclusion
of a copy) of a document or other item shall not be deemed  adequate to disclose
an  exception  to  a   representation   or  warranty  made  herein  (unless  the
representation or warranty has to do with the existence of the document or other
item  itself).  The  parties  intend  that each  representation,  warranty,  and
covenant contained herein shall have independent significance.  If any party has
breached  any  representation,  warranty,  or covenant  contained  herein in any
respect,  the fact  that  there  exists  another  representation,  warranty,  or
covenant relating to the same subject matter  (regardless of the relative levels
of  specificity)  which the party has not  breached  shall not  detract  from or
mitigate  the fact that the  party is in  breach  of the  first  representation,
warranty, or covenant.

      10.8 Survival of Representations  and Covenants.  The  representations and
covenants in this Agreement  will not survive the  termination of this Agreement
if  terminated  pursuant to Section 7, except that Section 10  (confidentiality)
and Section 10.4 (expense allocation) will survive such termination.

      10.9 Notices.  Any notice required  hereunder shall be deemed to have been
validly given if delivered by certified mail, return receipt requested,  postage
prepaid, and addressed to the parties at the following addresses:

         If to Vivid:         Sandra Muller
                              723 The Parkway
                              Richland, WA  99352
         If to ImageWorks:    Matt Hammer
                              383 Columbia Point Drive
                              Richland, WA  99352

                                      -19-
<PAGE>

      10.10  Severability.  Should any one or more of the  provisions  hereof be
determined to be illegal or unenforceable,  all other provisions hereof shall be
given effect separately therefrom and shall not be affected thereby.

      10.11  Attorney  Fees. In any action at law or in equity to enforce any of
the provisions or rights under this Agreement,  the  unsuccessful  party of such
litigation,  as determined by the tribunal in a final judgment or decree,  shall
pay the successful party's or parties' costs,  expenses, and reasonable attorney
fees incurred  therein by such party or parties  (including  without  limitation
such costs,  expenses,  and fees on any appeals),  and if such successful  party
shall recover judgment in any such action or proceeding,  such costs,  expenses,
and attorney fees shall be included as part of such judgment.

      10.12  Separate  Counterparts.  This Agreement may be executed in separate
counterparts,  which shall collectively and separately be considered one and the
same Agreement.

      10.13 Mediation and Arbitration. In the event a dispute should arise under
this Agreement,  as a condition  precedent to arbitration,  the dispute shall be
submitted  first to  mediation.  If a party fails or refuses to  participate  in
mediation,  or if the parties fail to resolve their dispute  through  mediation,
then the parties shall seek  arbitration  in the following  manner:  Arbitration
shall be  commenced  by one party  submitting  to the other party a statement of
issue(s) to be arbitrated and shall designate such party's nominated arbitrator.
The responding  party shall respond with any additional or  counterstatement  of
the  issue(s)  to be  arbitrated  and shall  designate  the  responding  party's
arbitrator,  all within  fourteen (14) days after receipt of the initial notice.
If the responding party fails to designate an arbitrator, an arbitrator shall be
appointed  by the  Washington  Arbitration  &  Mediation  Service.  The  two (2)
arbitrators thus nominated shall proceed promptly to select a third  arbitrator.
The arbitrators  shall, as promptly as the circumstances will allow and within a
time established by a majority vote of the arbitrators, conduct a hearing on the
issues(s)  submitted  to them and shall render  their  decision in writing.  Any
decisions as to procedure  and substance  made by a majority of the  arbitration
panel shall be final and binding. A decision by a majority of the arbitrators on
any issue submitted  shall be the decision of the  arbitration  panel as to that
issue. The arbitrators have authority to award attorney fees and costs to either
party in accordance with the merits and good faith of the positions  asserted by
the parties and the terms of this  Agreement.  In lieu of  appointing  three (3)
arbitrators  in the manner set forth  above,  the  parties  may,  by  agreement,
designate a single  arbitrator.  Judgment upon the award rendered by arbitration
may be entered in any court of competent jurisdiction.  Each party shall pay the
cost of the  arbitrator  it  appointed  and  one-half  of the costs of the third
arbitrator.  Except as provided  herein,  the arbitration  proceedings  shall be
conducted in accordance with the rules of the American  Arbitration  Association
and the statutes of the State of Washington  pertaining  to binding  arbitration
(if any).

      10.14 Publicity.  With the exception of information  releases  required in
the normal course of business (such as regulatory filings, financial statements,
et cetera), any news releases, public announcement,  advertisement, or publicity
released by either party  concerning this  Agreement,  shall be subject to prior
approval  of the other  Party for a period of ninety  (90) days from the date of
Closing,

                                      -20-
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Agreement this 25th
day of May, 2004.

VIVID LEARNING SYSTEMS, INC.            IMAGEWORKS MEDIA GROUP, INC.

/s/Kevin A. Smith                       /s/Matt Hammer
---------------------------------       ----------------------------------------
Kevin A. Smith                          Matt Hammer
President & CEO                         President & Shareholder

                          "Vivid"                      "ImageWorks" and "Seller"

                                        /s/Nick Bauer
                                        ----------------------------------------
                                        Nick Bauer
                                        Creative Director & Shareholder

                                                       "ImageWorks" and "Seller"

                                      -21-
<PAGE>

                                  EXHIBIT 2.10
                              SELLER'S LIABILITIES

DATA AS OF 4/30/04

                               PAID THRU        APRIL ACCRUAL

A-1 Landscaping                16-Apr           $   102.89
AT&T Wireless                  5-Apr            $   164.33
Big Bend Electric              21-Apr           $    68.00
Baker & Giles                  29-Dec           $ 2,400.00
City of Pasco                  19-Mar           $   115.21
Cascade Natural Gas            6-Apr            $    28.00
Nova                           5-Apr            $    64.06
Safeco Insurance               22-Apr           $   978.07
Tri City Water                 14-Apr           $    23.00
Visa                           12-Apr           $ 1,098.28
Sales Tax                      30-Apr           $    58.63
B&O Tax                        30-Apr           $ 1,996.82
                                                ----------
                                                $ 7,097.29

                                      -22-
<PAGE>

EXHIBIT 2.12

                          SELLER'S MATERIAL CONTRACTS

BECHTEL NATIONAL

POP:                            1/1/2004 - 12/31/2004
Current Authorized Amount:      $33,500
Scope:                          Media production services for WTP communications
                                department  and  training  material  development
                                support for WTP training department

ADVANCEMED CORPORATION

POP:                            6/1/2004 - 5/31/2006
Current Authorized Amount:      $50,000
Scope:                          Media  communications  including  computer based
                                training, e-learning, and web site development

                            -23-
<PAGE>

EXHIBIT 2.15

                   PERSONAL LIABILITIES/CONFLICTING INTERESTS

Matt Hammer:

      1.    Investment in cousin's  business in Portland,  OR. Cousin's business
            could become a competitor  of Vivid.  Mr. Hammer agrees to have said
            business  pay him back his  initial  investment  of $15,000 + $5,000
            over the next two years.  Mr.  Hammer  will not  participate  in any
            additional financial gain of the company.  Company may continue as a
            reseller  of  ImageWorks  products  and  services,  as  long  as the
            agreement  is an  "arms  length"  transaction  between  company  and
            reseller.
      2.    Serves on the board of a sales  training-employee  learning start-up
            company in Spokane,  WA. Mr.  Hammer shall recuse  himself from this
            board. As a representative of ImageWorks and Vivid Learning Systems,
            Mr.  Hammer  may  pursue  business  development   opportunities  for
            ImageWorks and or Vivid with start-up company.

Nick Bauer

      1.    Provide  videos/graphic  work for church using ImageWorks  equipment
            during off-hours.

                                      -24-
<PAGE>

EXHIBIT 2.17

                                  EMPLOYEE LIST

NAME                   DATE OF HIRE     POSITION                   BASE SALARY

Matt Hammer            Inception        Director of Business
                                        Development                $60,000

Nick Bauer             Inception        Creative Director          $60,000

Conrad Suhadolnik      4-15-02          Operations Manager         $60,000

D'Waine Mayovsky       1-26-04          Programmer                 $30,000

Brad Steiner           12-0-02          Senior Video Producer      $41,500

Jeremiah McGuire       6-1-04           Video Producer             $25,000

Tyler Goodro           4-8-02           Senior Designer            $53,000

Jeremy O'Neil          8-1-01           Senior Designer/
                                        Programmer                 $50,000

Jared Bates            1-26-04          Senior Designer            $40,000

Rachael Drouhard       3-16-04          Designer/Writer            $30,000

Kim Fetrow             3-20-00          Photographer               $19,912*

*hourly- estimated annual wage

                                      -25-
<PAGE>

EXHIBIT 2.18

                             EMPLOYEE BENEFIT PLANS

ImageWorks offers health insurance and a SEP IRA for their employees.

                                      -26-
<PAGE>

EXHIBIT 2.19

                                   DEFINITIONS

            "ENVIRONMENTAL,  HEALTH,  AND SAFETY  LAWS" means the  Comprehensive
      Environmental Response,  Compensation and Liability Act of 1980, 42 U.S.C.
      ss. 9601 et seq., the Resource  Conservation  and Recovery Act of 1976, 42
      U.S.C. ss. 6901 et seq., the  Occupational  Safety and Health Act of 1970,
      29 U.S.C. ss. 651 et seq., the Toxic Substances Control Act, 15 U.S.C. ss.
      2601 et seq., the Federal Insecticide,  Fungicide,  and Rodenticide Act, 7
      U.S.C.  ss. 136 et seq., the Clean Water Act, 33 U.S.C.  ss. 1251 et seq.,
      the Clean Air Act, 42 U.S.C. ss. 7401 et seq., the National  Environmental
      Policy Act, ss. 42 U.S.C.  ss. 4321 et seq.,  the Safe Drinking Water Act,
      33  U.S.C.   ss.  300  et  seq.,   the  Emergency   Planning  &  Community
      Right-to-Know Act, 42 U.S.C. ss. 11011 et seq., the Endangered Species Act
      of 1973, 16 U.S.C. 1531 et seq., each as amended,  or any other applicable
      statute, code, enactment,  ordinance,  rule, regulation,  permit, consent,
      approval authorization,  license,  judgment,  order, writ, common law rule
      (including  without  limitation  the common law  respecting  nuisance  and
      tortious liability),  decree,  injunction, or other requirement having the
      force and effect of law, whether local, state,  territorial,  or national,
      at any time in force or effect relating to:

                  (a) emissions,  discharges,  spills,  releases,  or threatened
            releases of Hazardous  Substances  into ambient air,  surface water,
            ground water,  watercourses,  publicly or privately  owned treatment
            works,  drains,  sewer systems,  wetlands,  septic systems,  or onto
            land;

                  (b)  the   use,   treatment   storage,   disposal,   handling,
            manufacturing, transportation, or shipment of Hazardous Substances;

                  (c) the regulation of storage tanks; or,

                  (d) otherwise relating to pollution or the protection of human
            health or the environment.

            "HAZARDOUS  SUBSTANCES"  means  at any time  any  substance,  waste,
      pollutant,  contaminant,  or material,  in solid, liquid, or gaseous form,
      which:

                  (a) is a  substance  regulated  or  defined or  designated  as
            hazardous,  extremely or imminently hazardous,  dangerous,  or toxic
            pursuant to any law,  by any local  state,  territorial,  or federal
            governmental authority; or,

                  (b) is a substance  with respect to which such a  governmental
            authority    otherwise   requires    environmental    investigation,
            monitoring, reporting, or remediation including but not limited to,

                        (i) all substances,  wastes,  pollutants,  contaminants,
                  and   materials   regulated,   or  defined  or  designated  as
                  hazardous,  extremely or  imminently  hazardous,  dangerous or
                  toxic,  under the following  federal  statutes and their state
                  counterparts,   as  well  as   these   statutes   implementing
                  regulations:   the   Comprehensive   Environmental   Response,
                  Compensation  and Liability  Act, 42 U.S.C.  ss. 9601 et seq.,
                  the Clean Air Act, 42 U.S.C. ss. 7401 et seq., the Clean Water
                  Act, 33 U.S.C. ss. 1251 et seq., the Resource Conservation and
                  Recovery  Act,  42  U.S.C.  ss.  6901 et seq.,  the  Emergency
                  Planning and Community  Right-to-Know Act, 42 U.S.C. ss. 11011
                  et seq., the Safe Drinking  Water Act, 33 U.S.C.  300 et seq.,
                  the Federal  Insecticide,  Fungicide,  and Rodenticide  Act, 7
                  U.S. C. ss. 136, et seq.,  the Atomic  Energy Act, 42 U, S. C.
                  ss. 2011 et seq., and the Hazardous  Materials  Transportation
                  Act, 42 U.S.C. ss. 1801 et seq.

                                      -27-
<PAGE>

                        (ii) petroleum and petroleum  products  including  crude
                  oil and any fractions thereof;

                        (iii)  natural  gas,  synthetic  gas,  and any  mixtures
                  thereof;

                        (iv) radon;

                        (v) radioactive substances;

                        (vi) asbestos;

                        (vii) urea formaldehyde;

                        (viii) polychlorinated biphenyls; and,

                        (ix) electromagnetic field radiation.

                                      -28-
<PAGE>

                                  EXHIBIT 2.20

                    LIST OF INSURANCE POLICIES & SURETY BONDS

Seller has insurance through Conover Insurance.  Policy # 02CD076598  addresses:
on-site  property and equipment;  the 5710 Bedford  Street,  Pasco, WA building;
general liability; and business auto coverage.

Seller does not have any surety bonds.

                                      -29-
<PAGE>

EXHIBIT 2.21

                              INTELLECTUAL PROPERTY

Seller does not hold any intellectual  property rights with the exception of the
url associated with the business; specifically, imageworksdigital.com.

                                      -30-
<PAGE>

EXHIBIT 3.7

                               VIVID'S LIABILITIES

N/A

                                      -31-
<PAGE>

EXHIBIT A

                               WARRANT TO PURCHASE
                             SHARES OF COMMON STOCK
                         OF VIVID LEARNING SYSTEMS, INC.

      This certifies that ______________ (the "Holder"),  for value received, is
entitled to purchase from Vivid Learning Systems,  Inc., a Delaware  corporation
(the  "Company"),  a maximum of One  Hundred  Thousand  (100,000)  shares of the
Company's  common stock  ("Common  Stock") for cash at a price of Three  Dollars
($3.00) per share (the "Stock Purchase  Price") at any time or from time to time
up to and  including 4 p.m.  (Pacific  Standard  Time) on December 31, 2008 (the
"Expiration Date") The Stock Purchase Price and the number of shares purchasable
hereunder  are subject to  adjustment  as provided in Section 3 of this Warrant.
The Holder may only make an exercise of one-fourth  (1/4) of the total number of
shares of Common Stock  represented  by this  Warrant on December 31, 2004,  and
thereafter an additional one-fourth (1/4) each December 31st thereafter.

      This Warrant is subject to the following terms and conditions:

      1. Exercise; Issuance of Certificates; Payment for shares. This Warrant is
exercisable at the option of the Holder, at any time or from time to time, up to
the  Expiration  Date for all or any part of the shares of Common Stock (but not
for a fraction of a share) that may be  purchased  hereunder.  To exercise  this
Warrant,  Holder must  surrender  this  Warrant to the Company at its  principal
office  (or at such  other  location  as the  Company  may  advise the Holder in
writing) together with a properly endorsed Form of Subscription  attached hereto
as  Exhibit  A-1.  Holder  must also  tender  payment in cash or by check of the
aggregate  Stock  Purchase Price for the number of shares for which this Warrant
is being  exercised  determined in accordance  with the provisions  hereof.  The
Company  agrees that the shares of Common  Stock  purchased  under this  Warrant
shall be and are deemed to be issued to the  Holder as the record  owner of such
shares as of the close of business on the date on which (a) this  Warrant  shall
have been surrendered and properly endorsed;  (b) the Form of Subscription shall
have been  completed,  executed,  and  endorsed;  and,  (c) the payment for such
shares shall have been delivered. Certificates for the shares of Common Stock so
purchased  shall be  delivered  to the Holder by the  Company  at the  Company's
expense  within a reasonable  time after the rights  represented by this Warrant
have been so exercised.  Each stock  certificate  so delivered  shall be in such
denominations  of Common  Stock as may be  requested  by the Holder and shall be
registered  in the name of such Holder.  In the event of a purchase of less than
all the shares  which may be purchased  under this  Warrant,  the Company  shall
cancel this Warrant and execute and deliver a new Warrant for the balance of the
shares  purchasable  under the  Warrant  surrendered  upon such  purchase to the
Holder within a reasonable time.

                                      -32-
<PAGE>

      Notwithstanding  the  foregoing  provisions  of this Section 1, the Holder
shall be entitled to the benefit of the following provisions upon the occurrence
of each of the specified events:

      (i)   If, at the time the Holder  exercises  any portion of this  Warrant,
            the Common Stock is publicly  traded and the Stock Purchase Price is
            lower than the  then-current  market price of the Common Stock as of
            the  exercise  date  ("Market  Price"),  then,  in lieu of tendering
            payment  of the  required  Stock  Purchase  Price,  the  Holder  may
            surrender the exercised portion of this Warrant in exchange for that
            number of shares of Common Stock which could be purchased  that date
            at the Market Price utilizing the difference obtained by subtracting
            (A) the Stock  Purchase  Price for the shares  which would have been
            issued upon  exercising  that  portion of the  Warrant  from (B) the
            Market Price of that same number of shares as of that date.

      (ii)  If, at any time prior to the Expiration  Date, the Company  declares
            an extraordinary  dividend,  which shall not include  dividends from
            earnings but rather be defined as a dividend associated with a major
            asset sale  wherein the  dividend is made from the  proceeds of said
            sale and  decreases  the assets of the Company or is one wherein the
            asset  value of the  Company is  decreased  in excess of the current
            years' net earnings, to its shareholders ("Special Dividend"),  then
            the Holder shall be entitled to receive as of that Special  Dividend
            payment date a payment from the Company equal in value to the amount
            that the Holder would have  received  from that Special  Dividend if
            the Holder,  as of the day before the effective  date of the Special
            Dividend,  had been  issued 50% of the  maximum  number of shares of
            Common Stock that the Holder could have acquired if it had exercised
            the entire Warrant as of that date.

      (iii) If, each December 31st as a portion of the Warrant becomes  eligible
            for exercise,  should Holder elect to not exercise such right,  then
            the Company  will cancel that  portion and provide a cash payment to
            Holder of Thirty-seven  Thousand Five Hundred  Dollars  ($37,500) in
            lieu of the  exercise by Holder of the then  eligible  for  exercise
            portion of the  Warrant.  The Company  shall have sixty (60) days to
            make said payment after receipt of notice from Holder that they have
            elected to not  exercise  the  portion of the Warrant  eligible  for
            exercise that December  31st.  Such an election to receive a payment
            instead of  exercising a portion of the Warrant in one year does not
            effect Holder's ability to make an exercise in a later year.

      2. Shares to be Fully Paid;  Reservation of Shares.  The Company covenants
and agrees that all shares of Common  Stock that may be issued upon the exercise
of the  rights  represented  by  this  Warrant  will,  upon  issuance,  be  duly
authorized,  validly  issued,  fully paid, and  nonassessable  and free from all
preemptive  rights of any shareholder and free of all taxes,  liens, and charges
with respect to the issue thereof. The Company further covenants and agrees that
during the period  within  which the rights  represented  by this Warrant may be
exercised,  the Company will at all times have authorized and reserved,  for the
purpose of issue or transfer upon exercise of the subscription  rights evidenced
by this Warrant, a sufficient number of shares of authorized but unissued Common
Stock, or other securities and property, when and as required to provide for the
exercise of the rights  represented  by this Warrant.  The Company will take all
such action as may be  necessary  to assure that such shares of Common Stock may
be  issued  as  provided  herein  without  violation  of any  applicable  law or
regulation;  provided, however, that the Company shall not be required to effect
a  registration  under  Federal or State  securities  laws with  respect to such
exercise.

                                      -33-
<PAGE>

      3.  Adjustment of Stock Purchase Price and Number of Shares.  In the event
that the  outstanding  shares of the Company's  Common Stock are changed into or
exchanged  for a  different  number or kind of shares  of the  Company  or other
securities of the Company or a successor  entity by reason of merger,  corporate
reorganization,   recapitalization,   reclassification,  stock  split-up,  stock
dividend,  combination  of shares,  or otherwise,  the Board of Directors of the
Company,  or  the  governing  body  of  any  successor  entity,  shall  make  an
appropriate  and  equitable  adjustment  in the  number and kind of shares as to
which this Warrant is then  unexercised  and the Stock Purchase Price to the end
that,  after such event, the shares as to which this Warrant is then unexercised
shall  represent the same potential  ownership  interest in the Company (or that
part of the successor  entity which consists of the Company)  immediately  after
such  event  as  they  represented  immediately  before  such  event.  Any  such
adjustment by the Board of Directors or such  governing body shall be conclusive
and shall bind the Holder,  the Company,  any  successor  entity,  and any other
interested persons.

      4.  No  Voting  or  Dividend  Rights;  Limitation  of  Liability.  Nothing
contained in this Warrant shall be construed as  conferring  upon the Holder the
right to vote or to consent or to receive notice as a shareholder of the Company
or any other matters or any rights  whatsoever as a shareholder  of the Company.
No dividends or interest  shall be payable or accrued in respect of this Warrant
or the interest  represented hereby or the shares  purchasable  hereunder until,
and only to the  extent  that,  this  Warrant  shall  have  been  exercised.  No
provisions  hereof,  in the  absence  of  affirmative  action  by the  Holder to
purchase shares of Common Stock, and no mere enumeration herein of the rights or
privileges  of the Holder,  shall give rise to any  liability of such Holder for
the Stock  Purchase  Price or as a  shareholder  of the  Company,  whether  such
liability is asserted by the Company or by its creditors.

      5.  Representations  and  Warranties  of Holder.  The  Holder  represents,
warrants, and agrees:

            5.1 The Holder will acquire the shares pursuant to this Warrant with
      the Holder's  own funds and not with the funds of anyone else.  The shares
      will be acquired for the  Holder's own account,  not as a nominee or agent
      and not for the account of any other  person or firm,  and no one else has
      or will have any interest,  beneficial or otherwise, in any of the shares.
      The Holder is not  obligated to transfer any of the shares or any interest
      therein to anyone else other than its partners nor has it any agreement or
      understanding to do so. The Holder will acquire the shares, if at all, for
      investment  for an  indefinite  period  and not with a view to the sale or
      distribution  of any part or all  thereof,  by public or  private  sale or
      other  disposition,   and  has  no  intention  of  selling,  granting  any
      participation in, or otherwise  distributing or disposing of any shares or
      any interest therein.

                                      -34-
<PAGE>

            5.2 The  Holder  is (or  will be at the time of any  acquisition  of
      shares) able to bear the economic risk of any  investment in shares and is
      aware that the Holder must be prepared to hold any shares  received for an
      indefinite  period and that such shares have not been registered under the
      Securities Act of 1933, as amended (the "Act").

            5.3 The Holder has such  knowledge  and  experience in financial and
      business  matters that the Holder is capable of evaluating  the merits and
      risks of the  prospective  investment by the Holder  contemplated  by this
      Warrant and the Holder has carefully  reviewed and will  carefully  review
      all the  information  regarding  the Company,  access to which has been or
      will be accorded to the Holder hereunder,  is thoroughly familiar with the
      business,  operations,  and  properties  of the  Company by virtue of such
      review and has  discussed  with the officers of the Company any  questions
      the Holder may have had with  respect  to the  Company.  Holder has sought
      outside  professional  advice as to any information or material it was not
      competent to evaluate personally.

            5.4 Without in any way limiting the Holder's  representations as set
      forth herein,  the Holder further agrees that the Holder shall in no event
      make any  disposition of all or any part of or interest in this Warrant or
      the  shares  and  that  the  shares  shall  not  be  encumbered,  pledged,
      hypothecated,  sold,  or  transferred  by the  Holder nor shall the Holder
      receive any  consideration for the shares or for any interest therein from
      any person, unless and until prior to any proposed transfer,  encumbrance,
      disposition,  pledge, hypothecation,  or sale of any of the shares, either
      (a) a registration statement under the securities laws with respect to the
      shares proposed to be transferred is then effective; or, (b)(i) the Holder
      notifies  the  Company  of  the  proposed  disposition,  (ii)  the  Holder
      furnishes  the  Company  with an opinion of counsel in form and  substance
      satisfactory to the Company to the effect that such  disposition  will not
      require  registration of any of the shares under the Act or  qualification
      of the shares  under any other  securities  law, and (iii) such opinion of
      counsel  shall have been  concurred  in by counsel for the Company and the
      Company shall have advised the Holder of such concurrence.

            5.5 The Holder  hereby  agrees to indemnify  the Company and hold it
      harmless from and against any and all liability,  damage, cost, or expense
      incurred on account of or arising out of (a) any  inaccuracy in any of the
      representations,  warranties,  or agreements  set forth in this Section 5;
      (b) the  disposition of any shares which the Holder may receive,  contrary
      to the Holder's representations,  warranties,  and agreements set forth in
      this Section 5; or, (c) any action,  suit, or proceeding  based on a claim
      that said  representations,  warranties,  or agreements were inaccurate or
      misleading or otherwise  cause for  obtaining  damages or redress from the
      Company under the Federal or State securities laws.

                                      -35-
<PAGE>

      6. Miscellaneous.

            6.1 The Holder understands and agrees that certificates representing
      any shares  received on exercise of this  Warrant will bear a legend which
      restricts the sale, transfer,  or disposition of the shares otherwise than
      in accordance with the provisions of this Warrant.

            6.2 This  Warrant  may not be  assigned  by the  Holder  whether  by
      operation  of law or  otherwise,  without  the prior  written  consent  of
      Company;  provided that such consent shall not required if the assignee is
      a partner of the Holder and then only if such assignee  acknowledges to be
      bound in the future by the restriction of this 6.2.

            6.2 This Warrant and any  provision  hereof may be changed,  waived,
      discharged,  or terminated  only by an instrument in writing signed by the
      party against which enforcement of the same is sought.

            6.3 Any notice,  request or other document  required or permitted to
      be given or delivered  to the Holder or the Company  shall be delivered or
      shall be sent by certified mail,  postage  prepaid,  to such Holder at its
      address  as shown on the books of the  Company  or to the  Company  at its
      principal  office or such  other  address  as either may from time to time
      provide to the other.

      IN WITNESS  WHEREOF,  the parties  have signed this Warrant as of the date
below.

VIVID LEARNING SYSTEMS, INC.              [NAME OF WARRANT HOLDER]

-------------------------------------     --------------------------------------
Kevin A. Smith                            [Insert Name of Warrant Holder]
President & CEO                           An Individual

     "Company"                                     "Holder"

Date:                                     Date:
     --------------------------------          ---------------------------------

                                      -36-
<PAGE>

                                   EXHIBIT A-1

                                SUBSCRIPTION FORM

Date:  _________

      The  undersigned  hereby  elects to exercise  the warrant  issued to it by
Vivid Learning  Systems,  Inc. (the  "Company"),  dated May ________,  2004 (the
"Warrant") and to purchase thereunder  ___________ shares of the Common Stock of
the Company (the "Common  Stock") at a purchase  price of Three Dollars  ($3.00)
per share for an aggregate  purchase price of Dollars  ($________________)  (the
"Purchase Price").

      Pursuant to the terms of the Warrant the  undersigned  has  delivered  the
Purchase Price herewith in full in cash or by certified  check.  The undersigned
also makes the representations set forth in Section 5 of the Warrant.

                                     -------------------------------------------

                                     [Insert name of warrant holder]

                                      -37-

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