Document:

Exhibit
10.17.2

       

    LIMITED PARTNERSHIP UNIT
PURCHASE AGREEMENT (13%)

    

    LIMITED PARTNERSHIP UNIT PURCHASE
AGREEMENT (this “Agreement”) dated as of
November 30, 2010, by and among MDC PARTNERS INC., a Canadian
corporation (the “Purchaser”), 2265174 Ontario
Limited (“Kenna
Holdco”), GLENN CHILTON and PAUL QUIGLEY (collectively, the “Kenna Principals” and each, a
"Kenna
Principal").

    

    WITNESSETH:

    

    WHEREAS, Newport Holdco
Partners Holding LP (“Newport”) and the Kenna
Principals formed Kenna
Communications LP
("Kenna LP") for the
purpose of demerging the businesses of Capital C Communications LP ("Cap C LP"), which consisted of
the Kenna business (the "Kenna
Business") and the Cap C business (see reorganization chart attached as
Exhibit A to the Newport Purchase Agreement (the "Reorganization");

    

    AND WHEREAS immediately prior
to the execution and delivery of this Agreement, Newport, Cap C LP, the Kenna
Principals and the Cap C principals consummated the transactions contemplated by
the Reorganization.  In connection with such Reorganization, Newport
and the Kenna Principals caused Cap C LP to transfer all of the assets utilized
as the Kenna Business and certain disclosed liabilities and obligations and the
Kenna Business to Kenna LP, pursuant to an Assignment and Assumption Agreement
(the "Conveyance
Documents");

    

    AND WHEREAS, immediately
following the Reorganization, Newport held 67.13% of the partnership units of
Kenna LP (the “67% Purchased
Units”), and Purchaser purchased such 67% Purchased Units from Newport
pursuant to a Limited Partnership Purchase Agreement dated the date hereof (the
“Newport Purchase
Agreement”), such that after giving effect to such purchase, Purchaser
owned 67.13% of Kenna LP, Kenna Holdco owned 20% of Kenna LP and 2265176 Ontario
Limited, a wholly owned subsidiary of Kenna Holdco (“2265176”) owned 12.86% of the
partnership units of Kenna LP (the “13% Units”);

    

    AND WHEREAS, the issued
capital of 2265176 consists of 101 common shares (the “Purchased Shares”), all of
which are legally and beneficially owned by Kenna Holdco;

    

    AND WHEREAS, Kenna Holdco now
desires to sell, and Purchaser desires to purchase, the Purchased Shares such
that after giving effect to such purchase, Purchaser will own 67.13% of Kenna LP
directly, 12.87% of Kenna LP through ownership of 2265176 which owns the 13%
Units, beneficially and of record, aggregating a 80.0% ownership interest in
Kenna LP and Kenna Holdco will own 20% of Kenna LP;

    

    AND WHEREAS simultaneous with
the execution and delivery of this Agreement, the Purchaser, Kenna Holdco, the
Kenna Principals and Kenna LP are executing and delivering an amended and
restated limited partnership agreement in respect of Kenna LP (the “Kenna LP
Agreement”);

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth in this
Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties do hereby agree as
follows:

     

    ARTICLE I

    SALE OF THE PURCHASED
SHARES

    

    Section 1.1        Sale of
the Purchased Shares.  Subject to the terms and conditions
herein stated, Kenna Holdco agrees to sell, assign, transfer and deliver to the
Purchaser on the Closing Date (as defined in Section 2.2), and the
Purchaser agrees to purchase from Kenna Holdco on the Closing Date, the
Purchased Shares.

    

    ARTICLE II

    PURCHASE PRICE AND
CLOSING

    

    Section 2.1        Purchase
Price; Contingent Payments.  In full consideration for the
purchase by the Purchaser of the Purchased Shares, the purchase price (the
"Purchase Price") shall
be calculated and paid by the Purchaser to Kenna Holdco, as set forth in this
Section 2.1 below.

    

    (a)        First Contingent
Payment. Subject to clauses (i) and (j) below, within five business days
after the Annual Determination for calendar year 2010 and any adjustments
thereto shall have become binding on the parties in accordance with the Kenna LP
Agreement, the Purchaser shall pay to Kenna Holdco the First Contingent Payment
("FAP"), calculated as
follows:

    

    FAP = 36% x 2010 PBT

    

    ; provided, however, that for
purposes of calculating the FAP, “2010 PBT” shall be calculated for the period
commencing on the Closing Date and ending on December 31, 2010.

    

    (b)        Second Contingent
Payment. Subject to clauses (i) and (j) below, within five business days
after the Annual Determination for calendar year 2011 and any adjustments
thereto shall have become binding on the parties in accordance with the Kenna LP
Agreement, the Purchaser shall pay to Kenna Holdco the Second Contingent Payment
("SAP"), calculated as
follows:

    

    SAP =
Applicable Percentage x 36% x 2011 PBT

       

    
      ; provided, however, in the event
that 2011 PBT were less than $4,000,000, then SAP shall equal (A) the excess, if
any, of (i) 2011 PBT over (ii) $2,400,000, multiplied by (B) 90%, multiplied by
(C) the Applicable Percentage.

    

     

    
      
         

      

      
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    (c)        Third Contingent
Payment. Subject to clauses (i) and (j) below, within five business days
after the Annual Determination for calendar year 2012 and any adjustments
thereto shall have become binding on the parties in accordance with the Kenna LP
Agreement, the Purchaser shall pay to Kenna Holdco the Third Contingent Payment
("TAP"), calculated as
follows:

    

    TAP =
Applicable Percentage x 36% x 2012 PBT

    

    ; provided, however, in the event
that 2012 PBT were less than the sum of (i) $4,000,000 plus (ii) 33% of the
aggregate Top-Up Payments made as of such determination, then TAP shall equal
(A) the excess, if any, of (i) 2012 PBT over (ii) 2,400,000 plus (20% of
aggregate Top-Up Payments), multiplied by (B) 90%, multiplied by (C) the
Applicable Percentage;

    

    provided further, however, in the event
that (x) 2011 PBT minus (y) (i) SAP divided by the Applicable Percentage
applicable to SAP divided by (ii) 90%, were less than $2,400,000 plus (20% of
aggregate Top-Up Payments), then for purposes of the calculations of TAP above,
2012 PBT shall be reduced by the amount of such shortfall;

    

    (d)        Fourth Contingent
Payment. Subject to clauses (i) and (j) below, within five business days
after the Annual Determination for calendar year 2013 and any adjustments
thereto shall have become binding on the parties in accordance with the Kenna LP
Agreement, the Purchaser shall pay to Kenna Holdco the Fourth Contingent Payment
("FOAP"), calculated as
follows:

    

    FOAP =
Applicable Percentage x 36% x 2013 PBT

    

    ; provided, however, in the event
that 2013 PBT were less than the sum of (i) $4,000,000 plus (ii) 33% of the
aggregate Top-Up Payments made as of such determination, then FOAP shall equal
(A) the excess, if any, of (i) 2013 PBT over (ii) 2,400,000 plus (20% of
aggregate Top-Up Payments), multiplied by (B) 90%, multiplied by (C) the
Applicable Percentage;

    

    provided further, however, in the event
that (x) the sum of 2011 PBT and 2012 PBT minus (y) (i) the sum of (A) SAP
divided by the Applicable Percentage applicable to SAP and (B) TAP divided by
the Applicable Percentage applicable to TAP divided by (ii) 90%, were less than
$4,800,000 plus (20% of aggregate Top-Up Payments), then for purposes of the
calculations of FOAP above, 2013 PBT shall be reduced by the amount of such
shortfall;

    

    (e)        Fifth Contingent
Payment.  Subject to clauses (i) and (j) below, within five
business days after the Annual Determination for calendar year 2014 and any
adjustments thereto shall have become binding on the parties in accordance with
the Kenna LP Agreement, the Purchaser shall pay to Kenna Holdco the Fifth
Contingent Payment ("FIAP"), calculated as
follows:

                           

    
      FIAP =
Applicable Percentage x 36% x 2014 PBT
  

    

    
      
         

      

      
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    ; provided, however, in the event
that 2014 PBT were less than the sum of (i) 4,000,000 plus (ii) 33% of the
aggregate Top-Up Payments made as of such determination, then FIAP shall equal
(A) the excess, if any, of (i) 2014 PBT over (ii) $2,400,000 plus (20% of
aggregate Top-Up Payments), multiplied by (B) 90%, multiplied by (C) the
Applicable Percentage;

    

    ; provided further, however, in the event
that (x) the sum of 2011 PBT, 2012 PBT and 2013 PBT minus (y) (i) the sum of (A)
SAP divided by the Applicable Percentage applicable to SAP, (B) TAP divided by
the Applicable Percentage applicable to TAP and (C) FOAP divided by the
Applicable Percentage applicable to FOAP divided by (ii) 90%, were less than
$7,200,000 plus (20% of aggregate Top-Up Payments), then for purposes of the
calculations of FIAP above, 2014 PBT shall be reduced by the amount of such
shortfall.

    

    (f)           Last Contingent
Payment.  Subject to clauses (i) and (j) below, within five
business days after the Annual Determination for calendar year 2015 and any
adjustments thereto shall have become binding on the parties in accordance with
the Kenna LP Agreement, the Purchaser shall pay to Kenna Holdco the Last
Contingent Payment ("LAP"), calculated as
follows:

    

    LAP =
Applicable Percentage x 36% x 2015 PBT

    

    ; provided, however, in the event
that 2015 PBT were less than the sum of (i) $4,000,000 plus (ii) 33% of the
aggregate Top-Up Payments made as of such determination, then LAP shall equal
(A) the excess, if any, of (i) 2015 PBT over (ii) $2,400,000 plus (20% of
aggregate Top-Up Payments), multiplied by (B) 90%, multiplied by (C) the
Applicable Percentage;

    

    ; provided further, however, in the event
that (x) the sum of 2011 PBT, 2012 PBT, 2013 PBT and 2014 PBT minus (y) (i) the
sum of (A) SAP divided by the Applicable Percentage applicable to SAP, (B) TAP
divided by the Applicable Percentage applicable to TAP, (C) FOAP divided by the
Applicable Percentage applicable to FOAP and (D) FIAP divided by the Applicable
Percentage applicable to FIAP, divided by (ii) 90%, were less than $9,600,000
plus (20% of aggregate Top-Up Payments), then for purposes of the calculations
of LAP above, 2015 PBT shall be reduced by the amount of such
shortfall.

    

    (g)        No Negative
Payments.  In the event that the calculation of FAP, SAP, TAP,
FOAP, FIAP or LAP, as the case may be, results in an amount which is less than
zero, such Purchase Price component shall be deemed to be zero.

    

    (h)        Additional Top-Up
Payments. Kenna shall also be eligible to receive the following potential
top-up payments (the “Top-Up
Payments”):

     

    
      
        (i)        
Within
thirty (30) days after the Annual Determination (as defined below) has been
determined for each 12-month calendar year 2010 and 2011, Kenna Holdco will be
eligible to receive a “First
Top-Up Payment” (if any) equal to the highest amount calculated under
clauses (1), (2), (3) and (4) below:

      

      

      
        	
                 
      

              	
                1.

              	
                If  average
      PBT for calendar years 2010 and 2011 is greater than $4,500,000 but less
      than $5,000,001, then the Company will be eligible to receive a First
      Top-Up Payment equal to
$1,250,000;

              

      

    

     

    
      
         

      

      
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              2.

            	
              If  average
      PBT for calendar years 2010 and 2011 is equal to or greater than
      $5,000,001 but less than $5,500,000, then the Company will be eligible to
      receive a First Top-Up Payment equal to
  $1,500,000;

            

    

    
      	
               
      

            	
              3.

            	
              If  average
      PBT for calendar years 2010 and 2011 is equal to or greater than
      $5,500,001 but less than $5,800,000, then the Company will be eligible to
      receive a First Top-Up Payment equal to $2,000,000;
  or

            

    

    
      	
               
      

            	
              4.

            	
              If
      average PBT for calendar years 2010 and 2011 is equal to or greater than
      $5,800,000, then the Company will be eligible to receive a First Top-Up
      Payment equal to $2,500,000.

            

    

    

    
      (ii)        
Within
thirty (30) days after the Annual Determination (as defined below) has been
determined for each 12-month calendar year 2010, 2011 and 2012, Kenna Holdco
will be eligible to receive a “Second Top-Up Payment” (if
any) equal to the highest amount calculated under clauses (1), (2), (3) and (4)
below:

    

    

    
      	
               
      

            	
              1.

            	
              If  average
      PBT for calendar years 2010, 2011 and 2012 is greater than $4,500,000 but
      less than $5,000,001, then the Company will be eligible to receive a
      Second Top-Up Payment equal to $2,500,000 minus the amount of the First
      Top-Up Payment;

            

    

    
      	
               
      

            	
              2.

            	
              If  average
      PBT for calendar years 2010, 2011 and 2012 is equal to or greater than
      $5,000,001 but less than $5,500,000, then the Company will be eligible to
      receive a Second Top-Up Payment equal to $3,000,000 minus the amount of
      the First Top-Up Payment;

            

    

    
      	
               
      

            	
              3.

            	
              If  average
      PBT for calendar years 2010, 2011 and 2012 is equal to or greater than
      $5,500,001 but less than $5,800,000, then the Company will be eligible to
      receive a Second Top-Up Payment equal to $4,000,000 minus the amount of
      the First Top-Up Payment; or

            

    

    
      	
               
      

            	
              4.

            	
              If  average
      PBT for calendar years 2010, 2011 and 2012 is equal to or greater than
      $5,800,000, then the Company will be eligible to receive a Second Top-Up
      Payment equal to $5,000,000 minus the amount of the First Top-Up
      Payment.

            

    

    
      
         

      

      
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    (i)          Payment of the Purchase
Price; Limitations and Conditions Precedent to Contingent Payments and Top-Up
Payments. Payment of each
component of the Purchase Price and any Contingent Payment or Top-Up Payment
that is required to be made under this Section 2.1 shall be
made in Canadian dollars by the Purchaser by direct wire transfer to the account
of Kenna Holdco, as set forth on Schedule 2.1 (or to such other
account as Kenna Holdco may notify the Purchaser in
writing).  Notwithstanding the foregoing provisions in this Section
2.1, the Purchaser shall not be obligated to pay any Contingent Payments or
Top-Up Payments to Kenna Holdco unless and until (i) Kenna LP has Working
Capital of at least the Working Capital Target for a continuous period of at
least 6 months, (ii) Kenna LP has paid Kenna Holdco the Pre-Closing
Undistributed Profit Amount in accordance with the Kenna LP Agreement and (iii)
Kenna LP has sufficient cash on-hand to pay distributions due in accordance with
the Kenna LP Agreement.

    

    (j)          Termination of Contingent
Payments.  Upon the exercise and closing of a Call option or
the consummation of a sale to a Prospective Purchaser (as such terms are defined
in the Kenna LP Agreement) pursuant to the Kenna LP Agreement (collectively, a
"Sale Event"), Kenna
Holdco’s right to receive any Contingent Payments based upon PBT for the
calendar year in which the applicable Sale Event occurred or for any calendar
year(s) thereafter, shall cease, and the obligation of the Purchaser to pay to
Kenna Holdco any such Contingent Payments shall terminate, contemporaneously
with the applicable Sale Event.

     

    
      	
            	
              2.2 

            	
              Definitions.

            

    

    

    
      	
               
      

            	
              (i)

            	
              "Contingent Payments"
      shall mean the aggregate amount of the payments made in Sections 2.1(a)
      through (f).

            

    

    

    
      	
               
      

            	
              (ii)

            	
              “Annual Determination”
      shall have the meaning ascribed to such term in the Kenna LP
      Agreement.

            

    

    

    
      	
               
      

            	
              (iii)

            	
              "Applicable Percentage"
      shall mean, with respect to any Contingent Payment, a percentage equal to
      the result of (A) the quotient of (x) the average number of LP Units of
      Kenna LP owned by Kenna Holdco during the calendar year for which PBT is
      used to calculate such Contingent Payment (such average being determined
      as the quotient of (1) the sum of the products of the varying numbers of
      LP Units so owned by Kenna Holdco by the number of days in such year each
      such number was owned by Kenna Holdco, and (2) 365 or 366 days, as
      applicable for such year), divided by (y) the average total number of
      outstanding Class A Units and LP Units for such year (calculated on the
      same basis as provided in the parenthetical under (A)(x) above), divided
      by (B) 20%.

            

    

    

    
      	
               
      

            	
              (iv)

            	
              "GAAP" shall mean United
      States generally accepted accounting principles consistently
      applied.

            

    

    

    
      	
               
      

            	
              (v)

            	
              “Pre-Closing Undistributed
      Profit Amount” shall mean the amount of undistributed profits owed
      to the Kenna Principals from Cap C LP immediately prior to the
      consummation of the Reorganization, which amount shall be determined as of
      the Closing Date in accordance with the Kenna LP Agreement and which
      amount is estimated at Closing to be equal to
  $648,000.

            

    

    
      
         

      

      
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              (vi)

            	
              "PBT" with respect to any
      year, shall mean the consolidated net income (loss) of Kenna LP before
      provision for any income taxes for such year, determined in accordance
      with GAAP; provided, however, that for purposes of calculating PBT for
      2010, PBT shall be deemed to include the PBT of the Kenna Business for the
      period from January 1, 2010 until the Closing Date, plus the PBT of Kenna
      LP for the period from the Closing Date through December 31,
      2010.

            

    

    

    
      	
               
      

            	
              (vii)

            	
              “Working Capital” shall
      mean current assets minus current liabilities as determined in accordance
      with GAAP.

            

    

    

    
      	
            	
              (viii)

            	
              “Working Capital Target”
      shall mean the sum of (x) $1,500,000 plus (b) the Pre-Closing
      Undistributed Profit Amount (to the extent not yet distributed in
      accordance with the Kenna LP
Agreement).

            

    

     

    Section 2.3        Closing.  The
closing of the transactions contemplated by this Agreement (the "Closing") shall take place
simultaneously with the execution and delivery of this Agreement on the date
hereof, at the offices of MDC Partners Inc., 45 Hazelton Avenue, Toronto,
Ontario, M5R 2E3, or by the exchange of documents and instruments by mail,
courier, telecopy and wire transfer to the extent mutually acceptable to the
parties hereto (such date is herein referred to as the "Closing Date").

       

    ARTICLE III

    REPRESENTATIONS OF KENNA
HOLDCO AND THE KENNA PRINCIPALS

    

    Kenna
Holdco and the Kenna Principals, jointly and severally, represent and warrant to
and with the Purchaser, as follows:

    

    Section 3.1         Execution
and Validity of Agreements.

    

    3.1.1        Execution and
Validity.  Kenna Holdco has the full legal right and capacity
to enter into this Agreement and to perform its obligations
hereunder.  This Agreement has been duly and validly executed and
delivered by Kenna Holdco and, assuming due authorization, execution and
delivery by the Purchaser, constitutes a legal, valid and binding obligation of
Kenna Holdco, enforceable against Kenna Holdco in accordance with its
terms.

    

    3.1.2        No
Restrictions.  There is no suit, action, claim, investigation
or inquiry by any court, tribunal, arbitrator, authority, agency, commission,
official or other instrumentality of Canada, any foreign country or any domestic
or foreign state, county, city or other political subdivision ("Governmental or Regulatory
Authority"), and no legal, administrative or arbitration proceeding is
pending or, to the Kenna Principal's knowledge, threatened against Kenna Holdco
with respect to the execution, delivery and performance of this Agreement or the
transactions contemplated hereby or any other agreement entered into by Kenna
Holdco in connection with the transactions contemplated hereby.

    
      
         

      

      
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    3.1.3        Non-Contravention; Approvals
and Consents.  The execution, delivery and performance by the
Kenna Principals and Kenna Holdco of their respective obligations under this
Agreement and the Conveyance Documents and the consummation of the transactions
contemplated hereby and thereby, will not (a) violate, conflict with or result
in the breach of any provision of the declaration and limited partnership
agreement (or other comparable documents) of Kenna LP or Kenna Holdco; (b)
result in the violation by Kenna LP or Kenna Holdco of any Laws or Orders of any
Governmental or Regulatory Authority, or (c) conflict with, result in a
violation or breach of, constitute (with or without notice or lapse of time or
both) a default under, or require Kenna LP or Kenna Holdco to obtain any
consent, approval or action of, make any filing with or give any notice to, or
result in or give to any Person any right of payment or reimbursement,
termination, cancellation, modification or acceleration of, or result in the
creation or imposition of any Lien upon any of their respective assets or
properties, or under any of the terms, conditions or provisions of any Contract
to which Kenna LP or Kenna Holdco is a party or by which Kenna LP or Kenna
Holdco or any of their respective assets or properties are or were
bound.  Except as set forth in Schedule 3.2.10, no consent, approval
or action of, filing with or notice to any Governmental or Regulatory Authority
or other Person is necessary or required under any of the terms, conditions or
provisions of any Law or Order of any Governmental or Regulatory Authority or
any contract to which Kenna LP or Kenna Holdco is a party, or by which their
respective assets or properties were or are bound, for the execution and
delivery of this Agreement or the Conveyance Documents, the performance by Kenna
LP or Kenna Holdco of their respective obligations hereunder or thereunder or
the consummation of the transactions contemplated hereby or
thereby.

    

    3.2          Proceeds
of Purchase Price.  Kenna
Holdco has not agreed or made any written or verbal commitment to give any
employee of Kenna LP (or any family member or any affiliate of the employee of
Kenna LP) any portion or share of the Purchase Price in the form of a bonus,
gift, award, or any similar type of remuneration.  The Kenna
Principals agree that, from and after the date hereof, no portion or proceeds of
the Purchase Price shall be used to compensate or give to any employee of Kenna
LP (or any family member of any employee of Kenna LP) a bonus, gift, award, or
any similar type of remuneration.

    

    3.3          Limited
Partnership Units and Purchased Shares Free and Clear of All Liens; No Options
or Restrictions; Subsidiaries and Investments.  Immediately prior
to the consummation of the transactions contemplated by this Agreement, (a)
Kenna Holdco owns of record and beneficially has valid title to the Purchased
Shares, and (b) 2265176 owns of record and beneficially has valid title to 13%
Units of Kenna LP and such ownership, in each case, is free and clear or all
Liens. There are no outstanding subscriptions, options, warrants, rights
(including "phantom stock rights"), calls, commitments, understandings,
conversion rights, rights of exchange, plans or other agreements of any kind
providing for the purchase, issuance or sale of any equity or ownership or
proprietary interest of 2265176 or the 13% Units , or which grants any Person
(other than 2265176 or the Kenna Principals) the right to share in the earnings
of Kenna LP.  2265176 does not, directly or indirectly, own any equity
interest in or have any voting rights with respect to any Person other than the
13% Units.  There are no outstanding subscriptions, options, rights,
warrants, calls, commitments or arrangements of any kind to acquire any of the
Purchased Shares or 13% Units and there are no agreements or understandings with
respect to the sale or transfer of any of the Purchased Shares or 13% Units
other than this Agreement. There is no suit, action, claim, investigation or
inquiry by any Governmental or Regulatory Authority, and no legal,
administrative or arbitration proceeding pending or, to the knowledge of Kenna
Holdco or the Kenna Principals, threatened, against Kenna Holdco, 2265176 or
Kenna LP or any of the Purchased Shares or any of the 13% Units, with respect to
the execution, delivery and performance of this Agreement or the Conveyance
Documents or the transactions contemplated hereby or thereby or any other
agreement entered into by Kenna Holdco in connection with the transactions
contemplated hereby or thereby.

    
      
         

      

      
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    Section
3.4        Brokers.  No
broker, finder, agent or similar intermediary has acted on behalf of Kenna
Holdco in connection with this Agreement or the transactions contemplated
hereby, and no brokerage commissions, finder's fees or similar fees or
commissions are payable by the Kenna Holdco or the Kenna Principals in
connection therewith based on any agreement, arrangement or understanding with
either of them.

    

    Section 3.5  Reaffirmation
of Representations and Warranties.  Kenna Holdco and the Kenna
Principals hereby reaffirm and restate, to Purchaser, each of their respective
representations and warranties set forth in Article III.C. of the Newport
Purchase Agreement, which representations and warranties shall be true and
correct as of the Closing Date.

           
          
           

    ARTICLE IV

    REPRESENTATIONS OF THE
PURCHASER

    

    The Purchaser represents, warrants and
agrees to and with Kenna Holdco as follows:

    

    Section 4.1        Existence
and Good Standing.  The Purchaser is a corporation duly
organized, validly existing and in good standing under the laws of the Province
of Ontario with full corporate power and authority to own its property and to
carry on its business all as and in the places where such properties are now
owned or operated or such business is now being conducted.

    

    Section 4.2        Execution
and Validity of Agreement.  The Purchaser has
the full corporate power and authority to make, execute, deliver and perform
this Agreement and the transactions contemplated hereby.  The
execution and delivery of this Agreement by the Purchaser and the consummation
of the transactions contemplated hereby have been duly authorized by all
required corporate action on behalf of the Purchaser.  This Agreement
has been duly and validly executed and delivered by the Purchaser and, assuming
due authorization, execution and delivery by Kenna Holdco and the Kenna
Principals, constitutes the legal, valid and binding obligation of the
Purchaser, enforceable against it in accordance with its terms.

     

    
      Section 4.3        Litigation.  There
is no action, suit, proceeding at law or in equity by any Person, or any
arbitration or any administrative or other proceeding by or before (or to the
knowledge of the Purchaser, any investigation by), any Governmental or
Regulatory Authority pending or, to the knowledge of the Purchaser, threatened
against the Purchaser or any of their respective properties or rights with
respect to this Agreement.  The Purchaser is not subject to any Order
entered in any lawsuit or proceeding with respect to this Agreement or the
transactions contemplated hereby.

    

       

    
      
         

      

      
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    Section 4.4        Non-Contravention;
Approvals and Consents.  The execution, delivery and
performance by the Purchaser of its obligations hereunder and the consummation
of the transactions contemplated hereby will not (a) violate, conflict with or
result in the breach of any provision of the certificate of incorporation and
bylaws of the Purchaser, (b) result in the violation by the Purchaser of any
Laws or Orders of any Governmental or Regulatory Authority applicable to the
Purchaser or any of its assets or properties, or (c) result in a violation or
breach of, constitute (with or without notice or lapse of time or both) a
default under, or require the Purchaser to obtain any consent, approval or
action of, make any filing with or give any notice to, or result in or give to
any Person any right of payment or reimbursement, termination, cancellation,
modification or acceleration of, or, except for such Liens as may be created in
connection with an MDC Financing (as defined in Section 6.1 hereof),
result in the creation or imposition of any Lien upon any of the respective
assets or properties of the Purchaser, under any of the terms, conditions or
provisions of any Contract to which the Purchaser is a party or by which the
Purchaser or any of its assets or properties are bound. No consent, approval or
action of, filing with or notice to any Governmental or Regulatory Authority or
other Person is necessary or required under any of the terms, conditions or
provisions of any Law or Order of any Governmental or Regulatory Authority or
any Contract to which the Purchaser is a party or by which the Purchaser or any
of its assets or properties are bound for the execution and delivery of this
Agreement by the Purchaser, the performance by the Purchaser of its obligations
hereunder or the consummation by the Purchaser of the transactions contemplated
hereby

    

    Section 4.5        Brokers.  No
broker, finder, agent or similar intermediary has acted on behalf of the
Purchaser in connection with this Agreement or the transactions contemplated
hereby, and no brokerage commissions, finder's fees or similar fees or
commissions are payable by the Purchaser in connection therewith based on any
agreement, arrangement or understanding with either of them.

    

    ARTICLE V

    ACTIONS AT
CLOSING

    

    Simultaneously
herewith:

       

    Section 5.1        Tax
Restructuring Proceedings. All proceedings to be taken in connection with
the transactions contemplated by this Agreement, including, without limitation,
the pre-closing transactions constituting the Reorganization, the Conveyance
Documents and all documents incident thereto must be reasonably satisfactory in
form and substance to the Purchaser and its counsel, and the Purchaser shall
have received copies of all such documents and other evidences as it or its
counsel reasonably requested in order to establish the consummation of such
transactions and the taking of all proceedings in connection
therewith.

       

    
      Section 5.
2        Certified
Resolutions.  Kenna
Holdco shall have delivered to the Purchaser a copy of the resolutions of
authorizing the execution, delivery and performance of this Agreement and the
Conveyance Documents and the transactions contemplated hereby and thereby,
certified by one of its
officers.
       

    
      Section 5.3         Limited
Partnership Agreement.  The
Kenna Principals, Kenna Holdco and the Purchaser shall have entered into the
Amended and Restated Kenna LP Agreement.

    

         

    
      
         

      

      
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    ARTICLE VI

    OTHER
AGREEMENTS

    

    Section 6.1         MDC
Financing.  Notwithstanding
anything to the contrary contained in this Agreement, in consideration for the
payment of the Purchase Price under Section 2.1 hereof
and for other good and valuable consideration, the parties hereto hereby (i)
agree that MDC Partners and/or one or more of its affiliates, in connection with
its or any of its affiliates' current or future credit facilities, debt
offerings (including, without limitation, senior, subordinated or mezzanine debt
issued in a public offering or a Regulation S or Rule 144A private placement) or
any other debt agreements, shall be entitled to: (w) pledge or grant a security
interest in or otherwise have a lien placed upon the Purchaser's Limited
Partnership Units; (x) pledge or grant a security interest in or to otherwise
have a lien placed upon the assets and properties of Kenna LP, and/or their
respective subsidiaries; (y) assign all of its rights, benefit, title and
interest in Kenna LP and distributions therefrom, including, without limitation,
all rights and claims pursuant to and under the Call and/or Sale Request (as
such terms are defined in the applicable Limited Partnership Agreement) to or to
an agent or representative on behalf of, its bank or lender or group of banks or
group of lenders from time to time (as applicable and collectively, the "Lender"); and (z) have Kenna
LP provide guarantees and such other ancillary security and related
documentation as reasonably required by the Lender from time to time (the items
in (w), (x), (y) and (z) being collectively referred to as an "MDC Financing"); and (ii)
consent unconditionally to (x) the granting of all security and the execution of
all documents required in connection with an MDC Financing and the enforcement
thereof, where applicable, by the Lender; and (y) any transaction by which the
Lender becomes the absolute legal and beneficial owner of any limited
partnership Units which have been pledged or assigned to it.

    

    Section
6.2         Equity Securities of Kenna
Holdco.

    

    (a)           As
long as Kenna Holdco beneficially owns any equity interests in Kenna LP, no
Kenna Principal shall sell or in any other way transfer, assign, distribute,
pledge, encumber or otherwise dispose of any of the equity securities of Kenna
Holdco or permit Kenna Holdco to issue any additional equity
securities.

       

    
      (b)           From
and after the Closing, Kenna Holdco covenants and agrees that it shall not,
directly or indirectly (i) authorize, create, issue, amend or modify any equity
interests (whether common or preferred), subscriptions, options, warrants,
rights (including "phantom equity rights"), calls, commitments, understandings,
conversion rights, rights of exchange, plans or other agreements of any kind,
providing for the purchase, issuance or sale of any membership interests,
profits interests, capital interests or equity interests of any kind in Kenna
Holdco; or (ii) provide compensation to any employee of Kenna LP or any
subsidiary, if any, except to the extent such employee was entitled or eligible
to receive such compensation at the time of, and as a result of, the
Closing.  Kenna Holdco further covenants and agrees that it shall not,
directly or indirectly modify or amend Kenna Holdco's Articles of Incorporation
(as amended through the Closing Date), a copy of each of which is attached
hereto, without the prior written consent of MDC Partners.

    

     

    
      
         

      

      
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    ARTICLE VII

    SURVIVAL;
INDEMNITY

    

    Section 7.1        Survival.  Notwithstanding
any right of any party hereto fully to investigate the affairs of any other
party, and notwithstanding any knowledge of facts determined or determinable
pursuant to such investigation or right of investigation, each party hereto
shall have the right to rely fully upon the representations, warranties,
covenants and agreements of the other parties contained in this Agreement and
the Schedules, if any, furnished by any other party pursuant to this Agreement,
or in any certificate or document delivered at the Closing by any other
party.  Subject to the limitations set forth in Section 7.6, the
respective representations, warranties, covenants and agreements of Kenna
Holdco, the Kenna Principals and the Purchaser contained in this Agreement shall
survive the Closing.

    

    Section 7.2         Obligation
of Kenna Holdco and the Kenna Principals to Indemnify.

     

    7.2.1        General
Indemnity.  Subject to the limitations contained in Sections 7.6.1 and
7.6.2, Kenna
Holdco and the Kenna Principals hereby agree, jointly and severally, to
indemnify the Purchaser and its affiliates, stockholders, officers, directors,
employees, agents, representatives and successors, permitted assignees of the
Purchaser and their affiliates (individually, a "Purchaser Indemnified Party"
and collectively, the "Purchaser Indemnified
Parties") against, and to protect, save and keep harmless the Purchaser
Indemnified Parties from, and to pay on behalf of or reimburse the Purchaser
Indemnified Parties as and when incurred for, any and all liabilities (including
liabilities for Taxes), obligations, losses, damages, penalties, demands,
claims, actions, suits, judgments, settlements, penalties, interest,
out-of-pocket costs, expenses and disbursements (including reasonable costs of
investigation, and reasonable attorneys', accountants' and expert witnesses'
fees) of whatever kind and nature (collectively, "Losses"), that may be imposed
on or incurred by any Purchaser Indemnified Party as a consequence of, in
connection with, incident to, resulting from or arising out of or in any way
related to or by virtue of: (a) any misrepresentation, inaccuracy or breach of
any warranty or representation contained in Article III hereof or in any
certificate delivered by Kenna Holdco or the Kenna Principals at the Closing or
otherwise in connection herewith; (b) any action, demand, proceeding,
investigation or claim by any third party (including any Governmental or
Regulatory Authority) against or affecting any Purchaser Indemnified Party which
may give rise to or evidence the existence of or relate to a misrepresentation
or breach of any of the representations and warranties of Kenna Holdco or the
applicable Kenna Principals contained in Article III hereof or in any
certificate delivered by Kenna Holdco or the applicable Kenna Principals at the
Closing or otherwise in connection herewith; (c) any breach or failure by Kenna
Holdco or the applicable Kenna Principals to comply with, perform or discharge
any obligation, agreement or covenant by Kenna Holdco or the Kenna Principals
contained in this Agreement; or (d) any liability or obligation or any assertion
against any Purchaser Indemnified Party, arising out of or relating, directly or
indirectly, to any Excluded Asset or any Retained Liability (as such terms are
defined in the Conveyance Documents) or other liability arising, in whole or in
part, out of the conduct of the business of Cap C LP or any of its subsidiaries
or successors, if any, prior to the Closing except for the Assumed Liabilities
(as such term is defined in the Conveyance Documents).

    
      
         

      

      
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    7.2.2        Losses.  The
term "Losses" as used in
this Article VII is not limited to matters asserted by third parties against any
Purchaser Indemnified Party but includes Losses incurred or sustained by a
Purchaser Indemnified Party in the absence of Third Party Claims (as defined in
Section 7.4.2
hereof).

    

    Section 7.3         Obligation
of the Purchaser to Indemnify.  Subject to the limitations set
forth in Section
7.6.3 hereof, the Purchaser hereby agrees to indemnify Kenna Holdco,
Kenna and the Kenna Principals (individually a "Company Indemnified Party" and
collectively, the "Company
Indemnified Parties") against, and to protect,
save and keep harmless the Company Indemnified Parties from, and to pay on
behalf of or reimburse the Company Indemnified Parties as and when incurred for,
any and all Losses that may be imposed on or incurred by the Company Indemnified
Parties as a consequence of, in connection with, incident to, resulting from or
arising out of or in any way related to or by virtue of: (a) any
misrepresentation, inaccuracy or breach of any warranty or representation of the
Purchaser contained in Article IV hereof or in any certificate delivered by the
Purchaser at the Closing; or (b) any action, demand, proceeding, investigation
or claim by any third party (including any Governmental or Regulatory Authority)
against or affecting any Company Indemnified Party which may give rise to or
evidence the existence of or relate to a misrepresentation or breach of any of
the representations and warranties of the Purchaser contained in Article IV
hereof or in any certificate delivered by the Purchaser at the Closing; or (c)
any breach or failure by the Purchaser to comply with, perform or discharge any
obligation, agreement or covenant by the Purchaser contained in this
Agreement.

    

    Section
7.4         Indemnification
Procedures.

    

    7.4.1        Non-Third Party
Claims.

    

    (a)           In
the event that any Person entitled to indemnification under this Agreement (an
"Indemnified Party")
asserts a claim for indemnification which does not involve a Third Party Claim
(as defined in Section
7.4.2) (a "Non-Third
Party Claim"), against which a Person is required to provide
indemnification under this Agreement (an "Indemnifying Party"), the
Indemnified Party shall give written notice to the Indemnifying Party (the
"Non-Third Party Claim
Notice"), which Non-Third Party Claim Notice shall (i) describe the claim
in reasonable detail, and (ii) indicate the amount (estimated, if necessary, and
to the extent feasible) of the Losses that have been or may be suffered by the
Indemnified Party.

     

    
      
         

      

      
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    (b)           The
Indemnifying Party may acknowledge and agree by written notice (the "Non-Third Party Acknowledgement of
Liability") to the Indemnified Party to satisfy the Non-Third Party Claim
within 30 days of receipt of the Non-Third Party Claim Notice.  In the
event that the Indemnifying Party disputes the Non-Third Party Claim, the
Indemnifying Party shall provide written notice of such dispute (the "Non-Third Party Dispute
Notice") to the Indemnified Party within 30 days of receipt of the
Non-Third Party Claim Notice (the "Non-Third Party Dispute
Period"), setting forth a reasonable basis of such dispute.  In
the event that the Indemnifying Party shall fail to deliver the Non-Third Party
Acknowledgement of Liability or Non-Third Party Dispute Notice within the
Non-Third Party Dispute Period, the Indemnifying Party shall be deemed to have
acknowledged and agreed to pay the Non-Third Party Claim in full and to have
waived any right to dispute the Non-Third Party Claim.  Once the
Indemnifying Party has acknowledged and agreed to pay any Non-Third Party Claim
pursuant to this Section 7.4.1, or
once any dispute under this Section 7.4.1 has
been finally resolved in favor of indemnification by a court or other tribunal
of competent jurisdiction, subject to the provisions of Section 7.6.1, the
Indemnifying Party shall pay the amount of such Non-Third Party Claim to the
Indemnified Party within 10 days of the date of acknowledgement or resolution,
as the case may be, to such account and in such manner as is designated in
writing by the Indemnified Party.

    

    7.4.2        Third-Party
Claims.

    

    (a)           In
the event that any Indemnified Party asserts a claim for indemnification or
receives notice of the assertion of any claim or of the commencement of any
action or proceeding by any Person who is not a party to this Agreement or an
affiliate of a party to this Agreement in respect of which such Indemnified
Party is entitled to indemnification by an Indemnifying Party under this
Agreement (a "Third Party
Claim"), the Indemnified Party shall give written notice to the
Indemnifying Party (the "Third
Party Claims Notice") within 20 days after asserting or learning of such
Third Party Claim (or within such shorter time as may be necessary to give the
Indemnifying Party a reasonable opportunity to respond to such claim), together
with a statement specifying the basis of such Third Party Claim.  The
Third Party Claim Notice shall (i) describe the claim in reasonable detail, and
(ii) indicate the amount (estimated, if necessary, and to the extent feasible)
of the Losses that have been or may be suffered by the Indemnified Party. The
Indemnifying Party must provide written notice to the Indemnified Party that it
is either (i) assuming responsibility for the Third Party Claim or (ii)
disputing the claim for indemnification against it (the "Indemnification
Notice")  The Indemnification Notice must be provided by the
Indemnifying Party to the Indemnified Party within 15 days after receipt of the
Third Party Claims Notice or within such shorter time as may be necessary to
give the Indemnified Party a reasonable opportunity to respond to such Third
Party Claim (the "Indemnification Notice
Period").

    

    (b)           If
the Indemnifying Party provides an Indemnification Notice to the Indemnified
Party within the Indemnification Notice Period that it assumes responsibility
for the Third Party Claim (the "Defense Notice"), the
Indemnifying Party shall conduct at its expense the defense against such Third
Party Claim in its own name, or if necessary in the name of the Indemnified
Party.  The Defense Notice shall specify the counsel the Indemnifying
Party will appoint to defend such claim ("Defense Counsel"); provided, however, that the
Indemnified Party shall have the right to approve the Defense Counsel, which
approval shall not be unreasonably withheld or delayed, except that such
approval may be withheld if the defense is to be in the name of the Indemnified
Party.  In the event that the Indemnifying Party fails to give the
Indemnification Notice within the Indemnification Notice Period, the Indemnified
Party shall have the right to conduct the defense and to compromise and settle
such Third Party Claim without the prior consent of the Indemnifying Party and
subject to the provisions of Section 7.6.1, the
Indemnifying Party will be liable for all costs, expenses, settlement amounts or
other Losses paid or incurred in connection therewith.

    
      
         

      

      
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    (c)           In
the event that the Indemnifying Party provides in the Indemnification Notice
that it disputes the claim for indemnification against it, the Indemnified Party
shall have the right to conduct the defense and to compromise and settle such
Third Party Claim, without the prior consent of the Indemnifying Party. Once
such dispute has been finally resolved in favor of indemnification by a court or
other tribunal of competent jurisdiction or by mutual agreement of the
Indemnified Party and Indemnifying Party, subject to the provisions of Section 7.6.1, the
Indemnifying Party shall within 10 days of the date of such resolution or
agreement, pay to the Indemnified Party all Losses paid or incurred by the
Indemnified Party in connection therewith.

     

    (d)           In
the event that the Indemnifying Party delivers an Indemnification Notice
pursuant to which it elects to conduct the defense of the Third Party Claim, the
Indemnifying Party shall be entitled to have the exclusive control over the
defense of the Third Party Claim and the Indemnified Party will cooperate in
good faith with and make available to the Indemnifying Party such assistance and
materials as it may reasonably request, all at the expense of the Indemnifying
Party.  The Indemnified Party shall have the right at its expense to
participate in the defense assisted by counsel of its own
choosing.  The Indemnifying Party will not settle the Third Party
Claim or cease to defend against any Third Party Claim as to which it has
delivered an Indemnification Notice (as to which it has assumed responsibility
for the Third Party Claim), without the prior written consent of the Indemnified
Party, which consent will not be unreasonably withheld or delayed; provided, however, such consent
may be withheld if, among other reasons, as a result of such settlement or
cessation of defense, (i) injunctive relief or specific performance would be
imposed against the Indemnified Party, or (ii) such settlement or cessation
would lead to liability or create any financial or other obligation on the part
of the Indemnified Party for which the Indemnified Party is not entitled to
indemnification hereunder.

      

    (e)           If
an Indemnified Party refuses to consent to a bona fide offer of settlement which
the Indemnifying Party wishes to accept, which provides for a full release of
the Indemnified Party and its affiliates relating to the Third Party Claims
underlying the offer of settlement and solely for a monetary payment, the
Indemnified Party may continue to pursue such matter, free of any participation
by the Indemnifying Party, at the sole expense of the Indemnified Party. In such
an event, the obligation of the Indemnifying Party shall be limited to the
amount of the offer of settlement which the Indemnified Party refused to accept
plus the reasonable costs and expenses of the Indemnified Party incurred prior
to the date the Indemnifying Party notified the Indemnified Party of the offer
of settlement.

     

    (f)           Notwithstanding
clause (d) above, the Indemnifying Party shall not be entitled to control, but
may participate in, and the Indemnified Party shall be entitled to have sole
control over, the defense or settlement of (x) that part of any Third Party
Claim that (i) seeks a temporary restraining order, a preliminary or permanent
injunction or specific performance against the Indemnified Party, (ii) involves
criminal allegations against the Indemnified Party or (iii) may lead to
liability or create any financial or other obligation on the part of the
Indemnified Party for which the Indemnified Party is not entitled to
indemnification hereunder and (y) the entire Third Party Claim if such Third
Party Claim would impose liability on the part of the Indemnified Party in an
amount which is greater than the amount as to which the Indemnified Party is
entitled to indemnification under this Agreement.
  

    
      
         

      

      
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    (g)           A
failure by an Indemnified Party to give timely, complete or accurate notice as
provided in this Section 7.4 will not
affect the rights or obligations of any party hereunder except and only to the
extent that, as a result of such failure, any party entitled to receive such
notice was deprived of its right to recover any payment under its applicable
insurance coverage or was otherwise directly and materially damaged as a result
of such failure to give timely notice.

    

    Section 7.5         Right of
Offset.  Without limiting any other rights or remedies
available to it, the Purchaser shall be entitled to offset any claim for
indemnity made pursuant to Section 7.2 and in
accordance with Section 7.4, against
any Contingent Payment or Top-Up Payment due to Kenna Holdco, subject to an
aggregate limit of $3,000,000; provided, however, the
Purchaser may only exercise such right of offset in respect of claims relating
to Losses actually incurred by a Purchaser Indemnified Party (in which case the
amount of such offset shall be the amount of such actual Loss) or claims
actually asserted by a third party (in which case the amount of the offset shall
not exceed the Purchaser's good faith estimate of the amount of indemnifiable
Losses that will ultimately be payable to a Purchaser Indemnified Party in
respect of such claims).

    

    Section
7.6         Limitations On and Other
Matters Regarding Indemnification

    

    7.6.1        Indemnity Cushion and
Cap.  Subject to Section 7.6.5,
neither Kenna Holdco nor any of the Kenna Principals shall have any liability to
any Purchaser Indemnified Party with respect to Losses arising out of any of the
matters referred to in Section 7.2 until
such time as the amount of such liability shall exceed $100,000 in the aggregate
(in which case Kenna Holdco and the Kenna Principals shall be liable for all
Losses).  Notwithstanding anything to the contrary herein, subject to
Section 7.6.5
below, the maximum aggregate liability of Kenna Holdco and the Kenna Principals
for indemnity payments under Section 7.2.1 shall
be an aggregate amount equal to the sum of (A) $750,000 plus (B) $3,000,000 of
the Contingent Payments and the Top-Up Payments paid or payable pursuant to this
Agreement.

    

    7.6.2        Termination of
Indemnification Obligations of Kenna Holdco and the Kenna
Principals.  Subject to Section 7.6.5, the
obligation of Kenna Holdco and the Kenna Principals to indemnify under Section 7.2 hereof
shall terminate on March 31, 2012, except as to matters as to which the
Purchaser Indemnified Party has made a claim for indemnification on or prior to
such date, in which case the right to indemnification with respect thereto shall
survive the expiration of such period until such claim for indemnification is
finally resolved and any obligations with respect thereto are fully
satisfied.

        

    
      7.6.3        Termination of
Indemnification Obligations of the Purchaser; Purchaser Indemnity
Cap.  The obligation of the Purchaser to indemnify under Section 7.3 hereof
shall terminate on March 31, 2012, except as to matters as to which Kenna Holdco
or the Kenna Principals have made a claim for indemnification on or prior to
such date, in which case the right to indemnification with respect thereto for
such party shall survive the expiration of such period until such claim for
indemnification is finally resolved and any obligations with respect thereto are
fully satisfied.  Notwithstanding anything to the contrary herein, the
maximum aggregate liability of the Purchaser for indemnity payments under this
Agreement to the Company Indemnified Parties shall be an aggregate amount equal
to $3,000,000.

    

     

    
      
         

      

      
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    7.6.4        Treatment.  Any
indemnity payments by an Indemnifying Party to an Indemnified Party under this
Article VIII shall be treated by the parties as an adjustment to the Purchase
Price.

    

    7.6.5        Exceptions.  Each
of the limitations set forth above in this Section 7.6 shall in
no event (a) apply to any Losses incurred by a Purchaser Indemnified Party which
relate, directly or indirectly, to (i) any fraudulent acts committed by Kenna
Holdco or the Principal; (ii) any breach of a representation or warranty
contained in Sections
3.1 or 3.3 or any other provision hereof relating to Taxes, (iii) any
indemnification obligation under Sections 7.2.1(c) or
7.2.1(d)  and
(iv) the obligations of Kenna Holdco and the Kenna Principals set forth in Section 8.1 to pay
certain expenses; or (b) apply to any Losses incurred by a Company Indemnified
Party which relate, directly or indirectly, to (i) any fraudulent acts committed
by the Purchaser; (ii) any indemnification obligation under Section 7.3(c); and
(iii) the Purchaser's obligations set forth in Section 8.1 to pay
certain expenses.

    

    7.6.6        Control by MDC
Partners. All decisions and determinations to be made by the Purchaser
and/or a Purchaser Indemnified Party under this Article VII shall be made by MDC
Partners in the name of and on behalf of the Purchaser and/or such other
Purchaser Indemnified Party.

    
 

    ARTICLE VIII

    MISCELLANEOUS

    

    Section 8.1         Expenses.  Except
as otherwise provided in this Agreement, the Purchaser, on the one hand, and the
Kenna Principals and Cap C LP, on the other hand, shall pay its or his own
expenses relating to the transactions contemplated by this Agreement, including,
without limitation, the fees and expenses of their respective counsel, financial
advisors and accountants.

     

    Section 8.2         Governing
Law; Service of Process and Consent to Jurisdiction. The interpretation and
construction of this Agreement, and all matters relating hereto (including,
without limitation, the validity or enforcement of this Agreement), shall be
governed by the laws of the Province of Ontario and the laws of Canada
applicable therein.

                 

    Section 8.3         "Person"
Defined.  "Person" shall mean and include
an individual, a company, a joint venture, a corporation (including any
non-profit corporation), an estate, an association, a trust, a general or
limited partnership, a limited liability company, a limited liability
partnership, an unincorporated organization and a government or other department
or agency thereof.

                         

    
      Section 8.4         "Knowledge"
Defined.  Where any representation and warranty contained in
this Agreement is expressly specified by reference to the knowledge of Kenna
Holdco or any Kenna Principal, such term shall be limited to the actual
knowledge of the executive officers of Kenna Holdco, Kenna and the Kenna
Principals (if not an individual), and unless otherwise stated, such knowledge
that would have been discovered by the executive officers of Kenna Holdco, Kenna
or the applicable Kenna Principal after reasonable inquiry.  Where any
representation and warranty contained in this Agreement is expressly specified
by reference to the knowledge of the Purchaser, as the case may be, such term
shall be limited to the actual knowledge of the executive officers of such
entity and unless otherwise stated, such knowledge that would have been
discovered by such executive officers after reasonable
inquiry.

    

     

    
      
         

      

      
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      Section
8.5         "Affiliate"
Defined.  As used in this Agreement, an "affiliate" of any Person,
shall mean any Person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with
such Person.

    

                       

    Section 8.6         Captions.  The
Article and Section captions used herein are for reference purposes only, and
shall not in any way affect the meaning or interpretation of this
Agreement.

    

    Section 8.7         Publicity.  Subject to the
provisions of the next sentence, no party to this Agreement shall, and Kenna
Holdco and the Kenna Principals shall use their reasonable efforts to ensure
that no representative of either of them shall, issue any press release or other
public document or make any public statement relating to this Agreement or the
matters contained herein without obtaining the prior approval of the
Purchaser.  Notwithstanding the foregoing, the foregoing provision
shall not apply to the extent that MDC Partners is required to make any
announcement relating to or arising out of this Agreement by virtue of the
securities laws of the United States or Canada or the rules and regulations
promulgated thereunder or other rules of the NASDAQ Stock Market, Toronto Stock
Exchange or the United States Securities and Exchange Commission or any
announcement by any party or the Company pursuant to applicable law or
regulations.

    

    Section 8.8         Notices.  Unless
otherwise provided herein, any notice, request, instruction or other document to
be given hereunder by any party to any other party shall be in writing and shall
be deemed to have been given (a) upon personal delivery, if delivered by hand or
courier, (b) three days after the date of deposit in the mails, postage prepaid,
or (c) the next business day if sent by a prepaid overnight courier service, and
in each case at the respective addresses set forth below or such other address
as such party may have fixed by notice:

    

    If to the Purchaser, addressed
to:

    

    c/o MDC
Partners Inc.

    45
Hazelton Avenue

    Toronto,
Ontario

    Canada
M5R 2E3

    Attention:  Gavin
Swartzman

    

    with a copy
to:

    

    c/o MDC
Partners Inc.

    
      950 Third
Avenue

      New York,
New York 10022

      Attention:  General
Counsel
 

    

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

        

    If to Kenna Holdco, to:

    

    c/o Paul
Quigley

    898
Wildrush Place

    Newmarket,
Ontario  L3X 1L7

        

    Attention:          Paul
Quigley

     

    with
a copy to (which shall not constitute notice):

     

    Lipman,
Zener & Waxman LLP

    1220
Eglinton Avenue West

    Toronto,
Ontario  M6C 2E3

     

    Attention:        Bradley
J. Miller

    Facsimile:       (416)
789-9015

       

    If to the Kenna Principals,
to:

    
 

    Paul
Quigley

    898
Wildrush Place

    Newmarket,
Ontario  L3X 1L7

     

    and

     

    Glenn
Chilton

    161
Coldstream Avenue

    Toronto,
Ontario  M5N 1X7

     

    with
a copy to (which shall not constitute notice):

     

    Lipman,
Zener & Waxman LLP

    1220
Eglinton Avenue West

    Toronto,
Ontario  M6C 2E3

     

    Attention:        Bradley
J. Miller

    Facsimile:       (416)
789-9015

                       

    Any party
may change the address to which notices are to be sent by giving notice of such
change of address to the other parties in the manner herein provided for giving
notice.

                                 

    
      Section 8.9         Parties
in Interest.  This Agreement
may not be transferred, assigned, pledged or hypothecated by any party hereto,
other than by operation of law.  Any purported such transfer,
assignment, pledge, or hypothecation (other than by operation of law) shall be
void and ineffective.  This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective heirs,
executors, administrators, successors and permitted assigns.

    

                      

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    Section 8.10      Severability.  In
the event any provision of this Agreement is found to be void and unenforceable
by a court of competent jurisdiction, the remaining provisions of this Agreement
shall nevertheless be binding upon the parties with the same effect as though
the void or unenforceable part had been severed and deleted.

    

    Section 8.11      Counterparts.  This
Agreement may be executed in two or more counterparts or by facsimile
transmission, all of which taken together shall constitute one
instrument.

    

    Section 8.12      Entire
Agreement.  This Agreement, together with the Schedules and
Exhibits hereto, constitutes the sole, exclusive and only agreements of the
parties hereto pertaining to the subject matter hereof, contains all of the
covenants, conditions and agreements between the parties, express or implied,
whether by statute or otherwise, and sets forth the respective rights, duties
and obligations of each party to the other party as of the date hereof. No oral
understandings, oral statements, oral promises or oral inducements
exist.

    

    Section 8.13      Amendments.  This
Agreement may not be amended, supplemented or modified orally, but only by an
agreement in writing signed by each of the parties hereto.

    

    Section 8.14      Third
Party Beneficiaries.  Each party hereto intends that this
Agreement shall not benefit or create any right or cause of action in or on
behalf of any Person other than the parties hereto and their respective
successors and assigns as permitted under Section 8.9, except
the Purchaser Indemnified Parties as provided in Article VII hereof and with
respect to the provisions of Section 7.6.6, MDC
Partners.

    

    Section 8.15      Use of
Terms.  Whenever the
context so requires or permits, all references to the masculine herein shall
include the feminine and neuter, all references to the neuter herein shall
include the masculine and feminine, all references to the plural shall include
the singular and all references to the singular shall include the
plural.  Whenever used in this Agreement, the terms "Dollars" and "$"
shall mean Canadian Dollars.

    

    Section 8.16      "Liens"
Defined.  With respect to any asset, a "Lien" shall mean (a) any
mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or
security interest in, on or of such asset, (b) the interest of a vendor or a
lessor under any conditional sale agreement, capital lease or title retention
agreement (other than an operating lease) (or any financial lease having
substantially the same economic effect as any of the foregoing) relating to such
asset and (c) in the case of securities, any purchase option, call or similar
right of a third party with respect to such securities.

     

    
      Section 8.17      No Strict
Construction; Representation by Counsel.  The language used in
this Agreement will be deemed to be the language chosen by the parties hereto to
express their mutual intent, and no rule of law or contract interpretation that
provides that in the case of ambiguity or uncertainty a provision should be
construed against the draftsman will be applied against any party
hereto.  The provisions of this Agreement shall be construed according
to their fair meaning and neither for nor against any party hereto irrespective
of which party caused such provisions to be drafted.  Each of the
parties acknowledges that it has been represented by an attorney in connection
with the preparation and execution of this Agreement.

       

      *                      *                      *                      *
 

    

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    IN WITNESS WHEREOF, the
parties hereto have executed this Limited Partnership Unit Purchase Agreement,
on the day and year first above written.

     

    
      
        
          
            
              
                	 
      	 	
                        MDC
      PARTNERS INC.

                      
	 
      	 	 
      
	 
      	 	
                        By:

                      	
                        /s/ Mitchell Gendel

                      
	 
      	 	
                        Name:  
      Mitchell Gendel

                      
	 
      	 	
                        Title:    General
      Counsel

                      
	 
      	 	 
      
	 
      	 	
                        2265174
      ONTARIO LIMITED

                      
	 
      	 	 
      
	 
      	 	
                        By:

                      	
                        /s/ Glenn Chilton

                      
	 
      	 	
                        Name:  
      Glenn Chilton

                      
	 
      	 	
                        Title:    
      Authorized Officer

                      
	 
      	 	 
      
	
                        /s/

                      	 	
                        /s/ Glenn Chilton

                      
	
                        Witness

                      	 	
                        Glenn
      Chilton

                      
	 
      	 	 
      	 
      
	
                        /s/

                      	 	
                        /s/ Paul Quigley

                      
	
                        Witness

                      	 	
                        Paul
      Quigley

                      

              

            

          

        

      

    

     

    
      
         

      

      
        21Exhibit
10.18.1

       

    LIMITED
PARTNERSHIP UNIT PURCHASE AGREEMENT

     

    LIMITED PARTNERSHIP UNIT PURCHASE
AGREEMENT (this "Agreement") dated as of
November 30, 2010, by and among MDC PARTNERS INC., a Canadian corporation (the
"Purchaser"), NEWPORT
PARTNERS HOLDINGS LP, an Ontario limited partnership ("Newport"), CAP C LP HOLDCO
INC., an Ontario corporation ("Communications Holdco"),
2265178 ONTARIO LIMITED ("Capital C Holdco"), an Ontario
corporation, TONY CHAPMAN and VICTORIA CALVERLEY, each an individual resident in
the Province of Ontario (collectively, the "Cap C Principals" and
each  a "Cap C
Principal").

     

    WITNESSETH:

     

    WHEREAS, in order to
facilitate a sale to the Purchaser, each of Newport and the Cap C Principals
have caused Capital C Partners LP ("CLP") to be formed for the
purpose of demerging the businesses of Capital C Communications LP ("Cap C LP"), which consisted of
a technology based, customer relationship business and related database
marketing services business (the "Kenna Business") and the
separate business of rendering advertising, customer relationship, marketing or
communications services (the "Cap C Business") (see
reorganization chart attached as Exhibit A (the "Reorganization");

     

    AND WHEREAS immediately prior
to the execution and delivery of this Agreement, Newport, Communications Holdco,
the Cap C Principals and Glenn Chilton and Paul Quigley (the "Kenna Principals") consummated
the transactions contemplated by the Reorganization.  In connection
with such Reorganization, Newport and the Cap C Principals caused Cap C LP to
transfer all of the assets utilized as part of the Cap C Business (the "Acquired Cap C Assets") and
certain disclosed liabilities and obligations of the Cap C Business to CLP,
pursuant to an Assignment and Assumption Agreement, and certain ancillary
documents (collectively, the "Conveyance Documents")
following which Cap C LP was dissolved;

     

    AND WHEREAS, immediately
following the Reorganization, Newport holds 67.13% of the limited partnership
units of CLP (the "Purchased
Units"), and the Purchaser wishes to purchase the Purchased Units from
Newport, such that after giving effect to such purchase, the Purchaser will own
67.13% of CLP and the Cap C Principals will own 32.87% of CLP, indirectly
through their equity interest in Communications Holdco;

     

    AND WHEREAS simultaneous with
the execution and delivery of this Agreement, the Purchaser, Capital C Holdco,
the Cap C Principals and CLP are executing and delivering an amended and
restated limited partnership agreement in respect of CLP;

     

    NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth in this
Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties do hereby agree as
follows:

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    ARTICLE I

    SALE
OF THE PURCHASED UNITS

     

    Section
1.1        Sale of the Purchased
Units.  Subject to the terms and conditions herein stated,
Newport agrees to sell, assign, transfer and deliver to the Purchaser on the
Closing Date (as defined in Section 2.2), and the
Purchaser agrees to purchase from Newport on the Closing Date, the Purchased
Units.

     

    ARTICLE II

    PURCHASE
PRICE AND CLOSING

     

    Section
2.1        Purchase
Price.

     

    2.1.1              
 Purchase
Price.  In full consideration for the purchase by the Purchaser
of the Purchased Units, the purchase price (the "Purchase Price") shall be
calculated and paid by the Purchaser to Newport, as set forth
below.

     

    (a)           Closing
Payment.  At the Closing, the Purchaser shall pay to Newport an
amount equal to CDN $10,000,000.

     

    (b)           Payment of Purchase
Price.  At the Closing, the Purchaser shall pay the Purchase
Price by wire transfer of immediately available funds as follows:

     

    
      	
               
      

            	
              (i)

            	
              $9,440,000
      to the order of DB Newport LLC (as successor to Fortress Credit Corp.);
      and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              an
      amount equal to $560,000 to
Newport.

            

    

     

    (c)           For
the purposes of any wire transfers contemplated in this Agreement, the following
particulars of accounts into which funds are to be issued:

     

    
      	
               
      

            	
              (i)

            	
              in
      respect of Fortress Credit Corp.:

            

    

     

    
      	
            	
              Destination
      Bank:

            	
              TD
      Canada Trust

            

    

    
      	 	
               
      

            	
              55
      King Street West, Toronto, ON

            

    

    
      	 	
              Bank
      No.:

            	
              004

            

    

    
      
        	 	
                Transit
      No.:

              	
                10202

              

      

    

    
      	 	
              Account
      No.:

            	
              0690-5364551

            

    

    
      	 	
              SWIFT
      Code:

            	
              TDOMCATTTOR

            

    

    
      
        	 	
                Beneficiary:

              	
                Torys
      LLP, in Trust

              

      

    

    
      	 	
              Client
      Contact:

            	
              Amanda
      Balasubramanian

            

    

    
      	 	
               
      

            	
              (416)
      865-8137

            

    

     

    
      
        
           

        

        
          - 2
-

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (ii)

            	
              in
      respect of Newport:

            

    

     

    
      	
            	
              Destination
      Bank:

            	
              Royal
      Bank of Canada

            

    

    
      	
            	
               
      

            	
              Main
      Branch Royal Bank Plaza

            

    

    
      	
            	
               
      

            	
              200
      Bay Street, Toronto, ON

            

    

    
      	
            	
              Bank
      No.:

            	
              003

            

    

    
      	
               
      

            	
              Transit
      No.:

            	
              00002

            

    

    
      	
            	
              Account
      No.:

            	
              103-328-1

            

    

    
      	
            	
              SWIFT
      Code:

            	
              ROYCCAT2

            

    

    
      	
               
      

            	
              Beneficiary:

            	
              Newport
      Partners Holdings LP

            

    

    
      	
            	
              Client
      Contact:

            	
              Suzanne
      Corkery

            

    

    
      	
            	
               
      

            	
              (416)
      867-7533

            

    

     

    Section
2.2        Closing.  The
closing of the transactions contemplated by this Agreement (the "Closing") shall take place
simultaneously with the execution and delivery of this Agreement on the date
hereof, at the offices of Fogler, Rubinoff LLP, 95 Wellington Street West, Suite
1200, Toronto, Ontario, M5J 2Z9, or by the exchange of documents and instruments
by mail, courier, telecopy and wire transfer to the extent mutually acceptable
to the parties hereto (such date is herein referred to as the "Closing Date").

     

    Section
2.3        Third Party Consents.
Anything in this Agreement to the contrary notwithstanding, in the event an
assignment or purported assignment to CLP of any of the agreements, contracts or
commitments of the Cap C Business pursuant to the Conveyance Documents or any
claim, right or benefit arising thereunder or resulting therefrom, without the
consent of other parties thereto, would constitute a breach thereof or would not
result in CLP receiving all of the rights thereunder, such agreement, contract
or commitment shall be deemed not to have been assigned to CLP.  In
those circumstances, if requested by the Purchaser, after the Closing, each Cap
C Principal will use their best efforts to obtain any such consent (excluding
the payment of any fees).  If such consent is not obtained and is
required to effectively assign any agreement, contract or commitment to CLP, the
Cap C Principals will cooperate to provide CLP with the full claims, rights and
benefits thereunder, including enforcement at the cost and for the benefit of
CLP of any and all rights of Communications Holdco, against a third party
thereto arising out of the breach or cancellation by such third party or
otherwise, and any amount received by Communications Holdco in respect thereof
shall be held for and paid over to CLP.

     

    Section
2.4        Further Assurance;
Post-Closing Cooperation. Newport and the Cap C Indemnitors (as defined
in Article III.B) will, from time to time, at the reasonable request of the
Purchaser, whether at or after the Closing Date, execute and deliver such other
and further instruments of conveyance, assignment, transfer and consent
reasonably required for the conveyance, assignment and transfer of the Assets
(as defined in the Conveyance Documents) pursuant to the Conveyance
Documents.  Following the Closing, upon reasonable advance notice,
each party will afford each other party, its counsel and its accountants, during
normal business hours, reasonable access to the books, records and other data
relating to Newport or the Cap C Indemnitors or any of the Cap C Indemnitors'
respective subsidiary entities, if any, in its possession with respect to
periods prior to the Closing and the right to make copies and extracts
therefrom, to the extent that such access may be reasonably required by the
requesting party strictly in connection with (i) the preparation of tax returns,
(ii) the determination and enforcement of rights and obligations under this
Agreement, (iii) compliance with the requirements of any Governmental or
Regulatory Authority (as defined in Section 3.1.2), (iv)
any actual or threatened action or proceeding, and (v) the verification of the
"Assets" and "Assumed Liabilities" (as such terms are defined in the Conveyance
Documents), in each case only to the extent relating to the Cap C
Business.

    

    
      
        
           

        

        
          - 3
-

          
            

          

        

        
           

        

      

    

     

    ARTICLE III

    REPRESENTATIONS
OF NEWPORT, COMMUNICATIONS HOLDCO,

    CAPITAL
C HOLDCO AND THE CAP C PRINCIPALS

     

    A.  Newport
represents and warrants to the Purchaser, as follows:

     

    Section
3.1        Execution and Validity of
Agreements; Restrictive Documents.

     

    3.1.1         Execution and
Validity.  Newport has the full legal right and capacity to
enter into this Agreement and to perform its obligations
hereunder.  This Agreement has been duly and validly executed and
delivered by Newport and, assuming due authorization, execution and delivery by
the other parties hereto, constitutes a legal, valid and binding obligation of
Newport, enforceable against Newport in accordance with its terms.

     

    3.1.2         No
Restrictions.  There is no suit, action, claim, investigation
or inquiry by any court, tribunal, arbitrator, authority, agency, commission,
official or other instrumentality of Canada, any foreign country or any domestic
or foreign state, county, city or other political subdivision ("Governmental or Regulatory
Authority"), and no legal, administrative or arbitration proceeding is
pending or, to Newport's knowledge, threatened against Newport with respect to
the execution, delivery and performance of this Agreement or the transactions
contemplated hereby or any other agreement entered into by Newport in connection
with the transactions contemplated hereby.

     

    3.1.3         Non-Contravention.  The
execution, delivery and performance by Newport of its obligations hereunder and
the consummation of the transactions contemplated hereby, will not as of the
Closing Date: (a) result in the violation by Newport of any statute, law, rule,
regulation or ordinance (collectively, "Laws"), or any judgment,
decree, order, writ, permit or license (collectively, "Orders"), of any Governmental
or Regulatory Authority, applicable to Newport, or (b) conflict with, result in
a violation or breach of, constitute (with or without notice or lapse of time or
both) a default under, or require Newport to obtain any consent, approval or
action of, make any filing with or give any notice to, or result in or give to
any Person any right of payment or reimbursement, termination, cancellation,
modification or acceleration of, or result in the creation or imposition of any
Lien upon any of the assets or properties of Newport, under any of the terms,
conditions or provisions of any agreement, commitment, lease, license, evidence
of indebtedness, letter of credit, mortgage, indenture, security agreement,
instrument, note, bond, franchise, permit, concession, or other instrument,
obligation or agreement of any kind, written or oral (collectively, the "Newport Contracts"), to which
Newport is a party or by which Newport or any of its assets or properties are
bound.

     

    
      
        
           

        

        
          - 4
-

          
            

          

        

        
           

        

      

    

     

    3.1.4         Approvals and
Consents.  Other than the consents required pursuant to the
Credit Agreement (as defined below) to the Reorganization and any corporate or
partnership consents required for the Reorganization, no consent, approval or
action of, filing with or notice to any Governmental or Regulatory Authority or
Person is necessary or required under any of the terms, conditions or provisions
of any Law or Order of any Governmental or Regulatory Authority or any Newport
Contract for the execution and delivery of this Agreement by Newport, the
performance by Newport of its obligations hereunder or the consummation of the
transactions contemplated hereby. For the purposes of this Agreement, the term
"Credit Agreement" means
that certain Credit Agreement dated as of December 7, 2006 by and among Newport
Finance Corp., as borrower, Newport, Newport Private Yield LP, NPY GP Trust,
Newport Partners Commercial Trust, Newport Partners Trustee Inc., Newport
Partners GP Inc. and NPY Beneficiary Inc., as parent obligors, DB Newport LLC
(as successor to Fortress Credit Corp.), as administrative agent and the lenders
from time to time party thereto (as amended by the First Amendment to Credit
Agreement dated as of May 9, 2007, the Second Amendment to the Credit Agreement
dated as of July 5, 2007, the Third Amendment to Credit Agreement and Consent
dated as of January 7, 2008 and the Fourth Amendment to Credit Agreement and
Consent dated September 30, 2008).

     

    3.1.5         Limited Partnership Units;
Equity Ownership; No Options or Restrictions.  Newport owns of
record and beneficially has valid title to 67.13% of the limited partnership
units of the CLP, which constitute the Purchased Units, and such ownership shall
be free and clear of all Liens except for those Liens in respect of which the
personal property security registrations set out on Schedule 3.1.5 have
been filed, which Liens shall not apply in respect of the Purchased Units, as
confirmed by evidence to be delivered pursuant to Section 5.10
hereof.

     

    B.  Communications
Holdco, Capital C Holdco and the Cap C Principals (the "Cap C Indemnitors"),
jointly and severally, represent and warrant to the Purchaser, as
follows:

     

    Section
3.2     Existence and Good
Standing.

     

    3.2.1         Full
Power.  Each of Communications Holdco, Capital C Holdco and the
Cap C Principals has the full power and authority to enter into this Agreement
and the Conveyance Documents and to perform their respective obligations
hereunder and thereunder.  The execution and delivery of this
Agreement and the Conveyance Documents by Communications Holdco, and the
consummation by such parties of the transactions contemplated hereby and thereby
have been duly authorized by all required company action on behalf of such
parties.  This Agreement and the Conveyance Documents have been duly
and validly executed and delivered by Communications Holdco and constitute a
legal, valid and binding obligation of Communications Holdco, enforceable
against it in accordance with their terms.  Communications Holdco,
Capital C Holdco and the CLP are each duly organized and are each validly
existing under the laws of the Province of Ontario, with the full power and
authority to own their respective properties and to carry on their respective
businesses, including the Cap C Business, all as and in the places where such
properties are now owned or operated or such businesses are now being conducted
except where such failure to qualify would not have a material adverse effect on
the respective businesses.  The CLP, Capital C Holdco and
Communications Holdco are each duly qualified, licensed or admitted to do
business and each of them is in good company and tax standing in the
jurisdictions set forth on Schedule 3.2.1, which
are the only jurisdictions in which the ownership, use or leasing of their
respective assets and properties, or the conduct or nature of their respective
businesses, makes such qualification, licensing or admission
necessary.

    

    
      
        
           

        

        
          - 5
-

          
            

          

        

        
           

        

      

    

     

    3.2.2         Capital Stock; Equity
Ownership; No Options or Restrictions; Subsidiaries and
Investments.  There are no outstanding subscriptions, options,
warrants, rights (including "phantom stock rights"), calls, commitments,
understandings, conversion rights, rights of exchange, plans or other agreements
of any kind providing for the purchase, issuance or sale of any equity or
ownership or proprietary interest of the CLP, or which grants any Person other
than the Cap C Principals and Newport the right to share in the earnings of the
CLP.  The CLP does not, directly or indirectly, own any equity
interest in or have any voting rights with respect to any
Person.  There are no outstanding subscriptions, options, rights,
warrants, calls, commitments or arrangements of any kind to acquire any of the
Purchased Units and there are no agreements or understandings with respect to
the sale or transfer of any of the Purchased Units other than this Agreement.
There is no suit, action, claim, investigation or inquiry by any Governmental or
Regulatory Authority, and no legal, administrative or arbitration proceeding
pending or threatened, against Communications Holdco, the CLP, the Cap C
Principals or any of the Purchased Units, with respect to the execution,
delivery and performance of this Agreement or the Conveyance Documents or the
transactions contemplated hereby or thereby or any other agreement entered into
by Newport in connection with the transactions contemplated hereby or
thereby.

     

    3.2.3         Litigation.  Except
as set forth on Schedule 3.2.3, there
is no action, suit, proceeding at law or in equity by any Person, or any
arbitration or any administrative or other proceeding by or before (or to the
knowledge of the Cap C Principals, Capital C Holdco or Communications Holdco,
any investigation by) any Governmental or Regulatory Authority, pending or, to
the knowledge of the Cap C Principals, Capital C Holdco or Communications
Holdco, threatened, against the Cap C Principals, Capital C Holdco or
Communications Holdco with respect to this Agreement or the transactions
contemplated hereby or by the Conveyance Documents, or any other agreement
entered into by the CLP, Capital C Holdco or Communications Holdco in connection
with the transactions contemplated hereby, or against or affecting the Cap C
Business or the assets transferred to the CLP pursuant to the Conveyance
Documents; and no acts, facts, circumstances, events or conditions occurred or
exist which are a basis for any such action, proceeding or
investigation.  None of the Cap C Principals, Capital C Holdco or
Communications Holdco is subject to any Order entered in any lawsuit or
proceeding.

     

    3.2.4         Compliance with
Laws.  Each of the Cap C Principals, Capital C Holdco and
Communications Holdco is in compliance with all applicable Laws and Orders,
except in each case where the failure to so comply would not reasonably be
expected to have a Material Adverse Effect (as defined below). Each of the Cap C
Principals, Capital C Holdco and Communications Holdco has all Required Permits,
except where the failure to have such Required Permits would not reasonably be
expected to have a Material Adverse Effect.  All of such Required
Permits are in full force and effect and no action or claim is pending, nor to
the knowledge of Communications Holdco, the Cap C Principals or Capital C Holdco
threatened, to revoke or terminate any such Required Permit or declare any such
Required Permit invalid in any respect. For the purposes of this Agreement, (a)
the term "Material Adverse
Effect" means, in respect of any Person, any effect or effects that are
materially adverse to the operations, business, prospects, assets or financial
condition of such Person, and (b) the term "Required Permits" means,
collectively, in respect of any Person, all permits, licenses, and other
government certificates, authorizations and approvals required by any
Governmental or Regulatory Authority for the operation of such Person's
business.

     

    
      
        
           

        

        
          - 6
-

          
            

          

        

        
           

        

      

    

     

    3.2.5         Non-Contravention; Approvals
and Consents.  The execution, delivery and performance by the
Cap C Principals, Communications Holdco and Capital C Holdco of their respective
obligations under this Agreement and the Conveyance Documents and the
consummation of the transactions contemplated hereby and thereby, as applicable,
will not (a) violate, conflict with or result in the breach of any provision of
the declaration and limited partnership agreement (or other comparable
documents) of Communications Holdco or Capital C Holdco; (b) result in the
violation by Communications Holdco, the Cap C Principals and Capital C Holdco of
any Laws or Orders of any Governmental or Regulatory Authority, or (c) if the
consents and notices set forth in Schedule 3.2.5 are
obtained, conflict with, result in a violation or breach of, constitute (with or
without notice or lapse of time or both) a default under, or require
Communications Holdco, the Cap C Principals or Capital C Holdco to obtain any
consent, approval or action of, make any filing with or give any notice to, or
result in or give to any Person any right of payment or reimbursement,
termination, cancellation, modification or acceleration of, or result in the
creation or imposition of any Lien upon any of their respective assets or
properties, or under any of the terms, conditions or provisions of any Contract
(as defined in Section
3.2.12) to which Communications Holdco, the Cap C Principals or Capital C
Holdco is a party or by which Communications Holdco, the Cap C Principals or
Capital C Holdco or any of their respective assets or properties are or were
bound. Except as set forth in Schedule 3.2.5, no
consent, approval or action of, filing with or notice to any Governmental or
Regulatory Authority or other Person is necessary or required under any of the
terms, conditions or provisions of any Law or Order of any Governmental or
Regulatory Authority or any Contract to which Communications Holdco, the Cap C
Principals or Capital C Holdco is a party, or by which their respective assets
or properties were or are bound, for the execution and delivery of this
Agreement or the Conveyance Documents, the performance by Communications Holdco,
the Cap C Principals or Capital C Holdco of their respective obligations
hereunder or thereunder or the consummation of the transactions contemplated
hereby or thereby.

     

    C.           Each
of Newport and the Cap C Indemnitors (jointly and severally as among the Cap C
Indemnitors) and severally between Newport and the Cap C Indemnitors, represent
and warrant to the Purchaser, as follows:

     

    3.2.6         Financial Statements and No
Material Changes.

     

    (a)           Schedule 3.2.6(a)(i)
sets forth (i) the unaudited balance sheets of the Cap C Business as at December
31, 2008 and December 31, 2009 and the related unaudited statements of
operations for the fiscal years then ended, and (ii) the unaudited balance
sheets of the Cap C Business as at October 31, 2010 (the "Balance Sheet") and the
related unaudited statements of operations for the ten months then
ended.  Such financial statements have been prepared in accordance
with GAAP throughout the periods indicated except as set forth on Schedule
3.2.6(a)(ii).  Each balance sheet fairly presents the financial
condition of the entity or entities included within such balance sheet, at the
respective date thereof, and reflects all claims against and all debts and
liabilities of such entities, fixed or contingent, as at the respective date
thereof, required to be shown thereon under GAAP and the related statements of
operations fairly present the results of operations for the respective period
indicated.  Except for the transactions consummated pursuant to the
Conveyance Documents, since October 31, 2010 (the "Balance Sheet Date"), there
has been no material adverse change in the assets or liabilities, or in the
business or condition, financial or otherwise, or in the results of operations
or prospects of Cap C LP and the Cap C Business.

    

    
      
        
           

        

        
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    (b)           Schedule 3.2.6(b)(i)
sets forth (i) the unaudited consolidated balance sheets for Cap C LP as at
December 31, 2008 and December 31, 2009, and the related unaudited consolidated
statements of operations for the fiscal years then ended, and (ii) the unaudited
consolidated balance sheet of Cap C LP as at September 30, 2010 (the "Current Balance Sheet") and
the related unaudited consolidated statements of operations for the nine months
then ended.  Such financial statements have been prepared in
accordance with GAAP throughout the periods indicated except as set forth on
Schedule
3.2.6(b)(ii).  Each balance sheet fairly presents the financial
condition of the entity or entities included within such balance sheet, at the
respective date thereof, and reflects all claims against and all debts and
liabilities of such entities, fixed or contingent, as at the respective date
thereof, required to be shown thereon under GAAP and the related statements of
operations fairly present the results of operations for the respective period
indicated.  Except for the transactions consummated pursuant to the
Conveyance Documents, since September 30, 2010 (the "Current Balance Sheet Date"), there
has been no material adverse change in the assets or liabilities, or in the
business or condition, financial or otherwise, or in the results of operations
or prospects of Cap C LP and the Cap C Business.

     

    3.2.7         Books and
Records.  The Cap C Principals have delivered to the Purchaser
complete and correct copies of the partnership declaration and the partnership
agreement of the CLP in effect immediately prior to the execution of this
Agreement.

     

    3.2.8         Title to Properties;
Encumbrances.  The CLP has good and valid title to, or
enforceable leasehold interests in or valid rights under contract to use, all
the properties and assets owned or used in the Cap C Business, including,
without limitation: (a) all the properties and assets reflected in the Balance
Sheet; (b) all the properties and assets purchased or otherwise contracted for
by the CLP since the Balance Sheet Date (except for properties and assets
reflected in the Balance Sheet or acquired or otherwise contracted for since the
Balance Sheet Date that have been sold or otherwise disposed of in the ordinary
course of business); and (c) all monies received from clients of the Cap C
Business (including, without limitation, all monies received in connection with
the Cap C Business' media purchase obligations on behalf of its clients), in
each case free and clear of all Liens, except for Liens set forth on Schedule
3.2.8.

     

    3.2.9         No Prior
Activities.  The CLP was created in order to facilitate a sale
to the Purchaser and solely for the purpose of engaging in the transactions
contemplated by the Conveyance Documents and this Agreement.  The CLP
has not engaged in any activities other than in connection with its formation,
the negotiation, execution and delivery of this Agreement, the Conveyance
Documents and the CLP partnership agreement, and the consummation of the
transactions contemplated hereby and thereby.  Except for liabilities
incurred in connection with its formation and the consummation of the
transactions contemplated by this Agreement, the Conveyance Documents and the
CLP partnership agreement, the CLP has not incurred any liabilities or entered
into any agreements or arrangements with any Person.

    

    
      
        
           

        

        
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    3.2.10       Owned Real
Property.  The CLP does not own any real property (including
ground leases) or hold a freehold interest in any real property or any option or
right of first refusal or first offer to acquire any real property.

     

    3.2.11       Leased Real
Property.  Schedule 3.2.11
contains an accurate and complete list of all real property leases, subleases,
real property licenses and other occupancy agreements, including without
limitation, any modification, amendment or supplement thereto and any other
related document or agreement executed or entered into by the CLP, or by Cap C
LP in relation to the Cap C Business and assigned to the CLP pursuant to the
Conveyance Documents, to which the CLP is a party (as lessee, sublessee, lessor,
sublessor, licensor or licensee) (each individually, a "Real Property Lease" and
collectively, the "Real
Property Leases").  Each Real Property Lease is valid, binding
and in full force and effect; all rents and additional rents and other sums,
expenses and charges due thereunder to date on each Real Property Lease have
been paid; and the lessee has been in peaceable possession since the
commencement of the original term of each Real Property Lease and no waiver,
indulgence or postponement of the lessee's obligations thereunder has been
granted by the lessor.  There exists no default or event of default by
Cap C LP or the CLP or to the knowledge of Newport or the Cap C Principals by
any other party to any Real Property Lease; and there exists no occurrence,
condition or act (including the purchase of the Purchased Units hereunder)
which, with the giving of notice, the lapse of time or the happening of any
further event or condition, would become a default or event of default by Cap C
LP or the CLP under any Real Property Lease, and there are no outstanding claims
of breach or indemnification or notice of default or termination of any Real
Property Lease.  Cap C LP held and the CLP now holds the leasehold
estate on all the Real Property Leases free and clear of all Liens except as set
forth on Schedule
3.2.11.  The real property leased by Cap C LP and/or the CLP is
in a state of good maintenance and repair (ordinary wear and tear excepted),
adequate and suitable for the purposes for which it is presently being used, and
there are no material repair or restoration works likely to be required in
connection with any of the leased real properties.  Cap C LP was, and
the CLP now is, in physical possession and actual and exclusive occupation of
the whole of each of its leased properties.  No environmental claim
has been made against Cap C LP or the CLP with respect to any Real Property
Lease.  Neither Cap C LP nor the CLP owes any brokerage commission
with respect to any of the Real Property Leases.

     

    
      
        
           

        

        
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    3.2.12       Contracts.  For
purposes of this Agreement, the term "Contract" shall mean any
written agreement, commitment, lease, license, evidence of indebtedness, letter
of credit, mortgage, indenture, security agreement, instrument, note, bond,
franchise, permit, concession, or other instrument, obligation or agreement of
any kind. Schedule
3.2.12 hereto contains an accurate and complete list of the following
Contracts to which the CLP is currently a party or Cap C LP was a party prior to
the assignment of the same to the CLP pursuant to the Conveyance Documents (and
Schedule 3.2.12
indicates if a listed item has not been assigned as of the Closing Date (in
which case, Section
2.3 shall apply) to and assumed by the CLP pursuant to the Conveyance
Documents): (a) all Plans (as such term is defined in Section 3.2.24), (b)
any personal property lease with a fixed annual rental of $10,000 or more, (c)
any Contract relating to capital expenditures which involves payments of $50,000
or more in any single transaction or series of related transactions, (d) any
Contract relating to the making of a loan or advance to or investment in, any
other Person, (e) any agreement, instrument or arrangement evidencing or
relating in any way to indebtedness for money borrowed or to be borrowed,
whether directly or indirectly, by way of loan, purchase money obligation,
guarantee (other than the endorsement of negotiable instruments for collection
in the ordinary course of business), conditional sale, purchase or otherwise,
(f) any management service, employment, consulting or similar type of Contract
which is not cancelable by the CLP or Cap C LP without penalty or other
financial obligation within 30 days, (g) any Contract
limiting the CLP's freedom to engage in any line of business or to compete with
any other Person, including, without limitation, any agreement limiting the
ability of the CLP or Cap C LP or any of their respective affiliates to take on
competitive accounts during or after the term thereof, (h) any collective
bargaining or union agreement, (i) any Contract between the CLP, on the one
hand, and any officer or director thereof, on the other hand, not covered by
subsection (f) above (including indemnification agreements), (j) any secrecy or
confidentiality agreement (other than standard confidentiality agreements in
computer software license agreements or agreements with clients entered into in
the ordinary course of business), (k) any agreement with respect to any
Intellectual Property (as defined in Section 3.2.17) other
than "shrink-wrap" and similar end-user licenses, (l) any agreement with a
client required to be listed on Schedule 3.2.21, (m)
any agreement, indenture or other instrument which restricts the ability of the
CLP or any of its subsidiaries to make distributions in respect of its equity,
(n) any joint venture agreement involving a sharing of profits not covered by
clauses (a) through (m) above, (o) any Contract (not covered by another
subsection of this Section 3.2.12) which
involves $50,000 or more over the unexpired term thereof and is not cancelable
by the CLP, without penalty or other financial obligation within 30 days;
provided, however, Contracts of a similar nature which individually do not
involve $50,000 but in the aggregate involve $50,000 or more over the unexpired
terms shall also be set forth on Schedule 3.2.12, (p)
any Contract with a media buying service; provided, however, commitments to
purchase media in the ordinary course of business do not have to be set forth on
Schedule
3.2.12, and (q) any agreement (not covered by another subsection of this
Section 3.2.12)
between the CLP, on the one hand, and any member of the CLP, on the other hand.
Notwithstanding anything to the contrary contained above, (x) commitments to
media and production expenses which are fully reimbursable from clients, and (y)
estimates or purchase orders given in the ordinary course of business relating
to the execution of projects, do not have to be set forth on Schedule 3.2.12. Each
Contract which has been assigned to and assumed by the CLP pursuant to the
Conveyance Documents, including without limitation, those required to be set
forth on Schedule
3.2.12, is in full force and effect, and there exists no default or event
of default by the CLP or Cap C LP or, to the knowledge of Newport or the Cap C
Principals, by any other party, or occurrence, condition, or act (including the
purchase of the Purchased Units hereunder) which, with the giving of notice, the
lapse of time or the happening of any other event or condition, would become a
default or event of default thereunder by the CLP, and there are no outstanding
claims of breach or indemnification or notice of default or termination of any
such Contract.

     

    3.2.13       Litigation. Except as
set forth on Schedule
3.2.13, there is no action, suit, proceeding at law or in equity by any
Person, or any arbitration or any administrative or other proceeding by or
before (or to the knowledge of Newport, the Cap C Principals, Capital C Holdco
or Communications Holdco, any investigation by) any Governmental or Regulatory
Authority, pending or, to the knowledge of the Cap C Principals, Capital C
Holdco or Communications Holdco, threatened, against the CLP, the Cap C Business
or Cap C LP with respect to this Agreement or the transactions contemplated
hereby or by the Conveyance Documents, or any other agreement entered into by
the Cap C Business in connection with the transactions contemplated hereby, or
against or affecting the Cap C Business, and no acts, facts, circumstances,
events or conditions occurred or exist which are a basis for any such action,
proceeding or investigation.  The Cap C Business is not subject to any
Order entered in any lawsuit or proceeding.

    

    
      
        
           

        

        
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    3.2.14       Taxes.  Cap
C LP has timely filed, or caused to be filed, taking into account any valid
extensions of due dates, completely and accurately, all federal and provincial
tax or information returns required under the statutes, rules or regulations of
such jurisdictions to be filed by it for all fiscal periods of Cap C LP. The
term "Taxes" means
taxes, duties, charges or levies of any nature imposed by any taxing or other
Governmental or Regulatory Authority, including without limitation income,
gains, capital gains, surtax, capital, franchise, capital stock, value-added
taxes, taxes required to be deducted from payments made by the payor and
accounted for to any tax authority, employees' income withholding, back-up
withholding, withholding on payments to foreign Persons, social security,
national insurance, unemployment, worker's compensation, payroll, disability,
real property, personal property, sales, use, goods and services or other
commodity taxes, business, occupancy, excise, customs and import duties,
transfer, stamp, and other taxes (including interest, penalties or additions to
tax in respect of the foregoing), and includes all taxes payable by Cap C LP
pursuant to the Income Tax
Act (Canada) (the "ITA") or any similar provision
of provincial or foreign law, but only to the extent that such Taxes relate to
or are in connection with the Cap C Business which has been heretofore carried
on by Cap C LP.  All Taxes shown on said returns to be due and all
other Taxes due and owing (whether or not shown on any Tax return) have been
paid and all additional assessments received prior to the date hereof have been
paid or are being contested in good faith, in which case, such contested
assessments are set forth on Schedule
3.2.14.  Cap C LP has collected all sales, use, goods and
services, harmonized or other commodity Taxes required to be collected and
remitted or will remit the same to the appropriate taxing authority within the
prescribed time periods.  Cap C LP has withheld all amounts required
to be withheld on account of Taxes from amounts paid to employees, former
employees, directors, officers, members, residents and non-residents and
remitted or will remit the same to the appropriate taxing authorities within the
prescribed time periods.  Newport and/or the Cap C Principals have
delivered or caused to be delivered to the Purchaser correct and complete copies
of all federal or provincial income tax returns or information returns filed
with respect to Cap C LP that were requested by the Purchaser.  Except
as set forth on Schedule 3.2.14, none
of the federal or provincial income tax returns or information returns of Cap C LP have, to the
knowledge of Newport, Communications Holdco or the Cap C Principals, ever been
audited by the Canada Revenue Agency or any other Governmental or Regulatory
Authority.  None of Newport, the Cap C Principals or Communications
Holdco are non-residents of Canada within the meaning of the ITA.

     

    3.2.15       Liabilities.  Except
as incurred in the ordinary course since October 31, 2010 or as set forth in the
Conveyance Documents, the Balance Sheet, the Current Balance Sheet or on Schedule 3.2.15,
neither the Cap C Business, the CLP nor Cap C LP has any outstanding claims,
liabilities or indebtedness of any nature whatsoever as to which the Cap C
Business, the CLP or Cap C LP is or may become responsible (collectively in this
Section 3.2.15,
"Liabilities"), whether
accrued, absolute or contingent, determined or undetermined, asserted or
unasserted, and whether due or to become due.

    

    
      
        
           

        

        
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    3.2.16       Insurance.  Schedule 3.2.16
contains a true and complete list (including the names and addresses of the
insurers, the names of the Persons to whom such insurance policies have been
issued, the expiration dates thereof, the annual premiums and payment terms
thereof, whether it is a "claims made" or an "occurrence" policy and a brief
description of the interests insured thereby) of all liability, property,
workers' compensation and other insurance policies currently in effect that
insure the property, assets and employees of the Cap C Business, including but
not limited to the property, assets, business and employees of Cap C LP that
were transferred to the CLP pursuant to the Conveyance Documents (other than
self-obtained insurance policies by such employees). Each such insurance policy
is valid and binding and in full force and effect, all premiums due thereunder
have been paid and neither Cap C LP, the Cap C Business nor the CLP has received
any notice of cancellation or termination in respect of any such policy or
default thereunder.  Neither Cap C LP, the Cap C Business nor the CLP,
or to the knowledge of Newport, the Cap C Principals or Communications Holdco,
the Person to whom such policy has been issued, has received notice that any
insurer under any policy referred to in this Section 3.2.16 is
denying liability with respect to a claim thereunder or defending under a
reservation of rights clause.  Within the last two years neither Cap C
LP, the Cap C Business nor the CLP has filed for any claims exceeding $25,000
against any of its insurance policies, exclusive of automobile and health
insurance policies. None of such policies shall lapse or terminate by reason of
the transactions contemplated by this Agreement or the Conveyance Documents and
all such policies shall continue in effect after the Closing Date for the
benefit of the CLP.  Neither Cap C LP, the Cap C Business nor the CLP
has received any notice of cancellation of any such policy.  Neither
Cap C LP, the Cap C Business nor the CLP has received written notice from any of
its insurance carriers that any premiums will be materially increased in the
future or that any insurance coverage listed on Schedule 3.2.16 will
not be available in the future on substantially the same terms now in effect,
unless as a result of the Reorganization or the change of control contemplated
herein. Neither Cap C LP, the Cap C Business nor the CLP has been refused any
insurance or required to pay higher than normal or customary premiums, nor has
its coverage been limited by any insurance carrier to which it has applied for
insurance during the last three years.

     

    3.2.17       Intellectual
Property.

     

    Definitions.
For purposes of this Agreement, the following terms have the following
definitions:

     

    (a)           "Intellectual Property" shall
include, without limitation, any or all of the following and all rights
associated therewith: (a) all domestic and foreign patents, and applications
therefor, and all reissues, re-examinations, divisions, renewals, extensions,
continuations and continuations-in-part thereof; (b) all inventions (whether
patentable or not), invention disclosures, improvements; (c) trade secrets,
confidential and proprietary information, know how, technology, technical data
and customer lists, financial and marketing data, pricing and cost information,
business and marketing plans, databases and compilations of data, rights of
privacy and publicity, and all documentation relating to any of the foregoing;
(d) all copyrights, copyright registrations and applications therefor,
unregistered copyrights, the content of all World Wide Web sites of a Person and
all other rights corresponding thereto throughout the world; (e) all mask works,
mask work registrations and applications therefor; (f) all industrial designs
and any registrations and applications therefor; (g) all trade names, corporate
names, logos, trade dress, common law trademarks and service marks, trademark
and service mark registrations and applications therefor and all goodwill
associated therewith; (h) any and all Internet domain names and Web sites
(including all software and applications, and all components and/or modules
thereof), used in connection therewith; and (i) all computer software including
all source code, object code, firmware, development tools, files, records and
data, all media on which any of the foregoing is recorded, and all documentation
related to any of the foregoing.

    

    
      
        
           

        

        
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    (b)           "Intellectual Property of the
CLP" shall mean any Intellectual Property that is owned by the CLP
(including Intellectual Property transferred by Cap C LP to the CLP pursuant to
the Conveyance Documents), including Registered IP and Unregistered
IP.

     

    (c)           "Licensed Intellectual
Property" means any Intellectual Property owned by another Person that is
used by the CLP in the operation of the Cap C Business, including Off-the-Shelf
Software (as defined below), but excluding rights in or to materials created for
clients of the Cap C Business, to the extent to which such (x) client of the Cap
C Business is the first owner of copyright in such materials or (y) the
materials are subject to a written assignment of copyright in favour of clients
of the Cap C Business.

     

    
      
        
           

        

        
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    3.2.18       Representations.
Except as set forth on Schedule 3.2.18, all
of the Intellectual Property of Cap C LP used in the Cap C Business was
transferred to the CLP pursuant to the Conveyance Documents. Schedule 3.2.18
hereto contains an accurate and complete list of all the Intellectual Property
of the CLP and the Licensed Intellectual Property including, without limitation,
(a) patents, patent applications, registered trademarks, applications for
registered trademarks, registered service marks, domain names, applications for
registered service marks, logos, registered copyrights and applications for
registered copyrights, and all registered design rights and applications thereto
which are owned by the CLP (the "Registered IP"), (b) all
unregistered trademarks, unregistered service marks and material unregistered
copyrights and all designs which are owned by the CLP (the "Unregistered IP") and (c) all
Licensed Intellectual Property that is material to the operation of the Cap C
Business, other than widely distributed off-the-shelf applications subject to
shrink-wrap and similar non-negotiated end-user license agreements ("Off-the-Shelf Software").
Except as set forth on Schedule 3.2.18, the
registrations and applications of the Registered IP listed on Schedule 3.2.18, are
in the name of Cap C LP, and are valid, in proper form, enforceable and
subsisting, all necessary registration and renewal fees in connection with such
registrations have been made and all necessary documents and certificates in
connection with such registrations have been filed with the relevant patent and
Internet domain names, copyrights and trademark authorities in the United States
or other jurisdictions where the Cap C Business is conducted for the purposes of
maintaining such Intellectual Property registrations, and applications therefor,
and no actions (including filing of documents or payments of fees) are due
within ninety (90) days after the Closing.  No registration, or
application therefor, for any of the Registered IP has lapsed, expired, or been
abandoned, and no such registrations, or applications therefor, are the subject
of any opposition, interference, cancellation, or other legal, quasi-legal, or
governmental proceeding pending before any governmental, registration, or other
authority in any jurisdiction. Except as set forth on Schedule 3.2.18, (i)
the CLP is the sole and exclusive owner of all rights, title and interest in and
to the Intellectual Property of the CLP, free and clear of all Liens, (ii) no
Person has any rights to use any of the Intellectual Property of the CLP, (iii)
neither Cap C LP nor the CLP has granted to any Person, or authorized any Person
to retain, any ownership in the Intellectual Property of the CLP, and (iv) all
Licensed Intellectual Property in the CLP's possession or used in the operation
of the Cap C Business has been properly licensed from the owner of such
Intellectual Property, and the CLP possesses all license agreements,
certificates or documentation sufficient to substantiate such rights, and the
CLP is in compliance with, and Cap C LP has not in the past violated, such
license agreements.  Except as set forth on Schedule 3.2.18, the
consummation of the transactions contemplated hereby will not result in any loss
or impairment of the CLP's rights to own or use any Intellectual Property, nor
will such consummation require the consent of any third party in respect of any
Intellectual Property. To the knowledge of Newport, the Cap C Principals or
Communications Holdco, the operation of the Cap C Business and use of all
Intellectual Property therein does not infringe the Intellectual Property of any
other Person. There are no proceedings pending or, to the knowledge of Newport,
the Cap C Principals or Communications Holdco, threatened against Cap C LP, the
Cap C Business or the CLP with respect to the Intellectual Property, or with
respect to any other Intellectual Property, alleging the infringement or
misappropriation by Cap C LP, the Cap C Business or the CLP of any Intellectual
Property of any Person, and neither Cap C LP, the Cap C Business nor the CLP has
received notice from any Person that the operation of the Cap C Business
infringes the Intellectual Property of any Person.  There are no
claims pending or, to the knowledge of Newport, the Cap C Principals or
Communications Holdco, threatened challenging the validity of any Intellectual
Property of the CLP or any Intellectual Property used by the CLP in the conduct
of the Cap C Business. Neither Cap C LP, the Cap C Principals nor the CLP has
entered into or is otherwise bound by any consent, forbearance or any settlement
agreement which limits the rights of the CLP to use the Intellectual Property of
the Cap C Business.  To the knowledge of Newport, the Cap C Principals
or Communications Holdco, no Person is infringing or misappropriating any of the
Intellectual Property of the Cap C Business. All Intellectual Property of the
Cap C Business was either developed (a) by employees of Cap C LP within the
scope of such employee's employment duties; or (b) by independent contractors or
other third parties who have assigned all of their rights therein to Cap C LP
pursuant to a written agreement, and all such employees, independent
contractors, and other third parties have waived, pursuant to a written
agreement, their moral rights in all such Intellectual Property in favour of the
CLP or Cap C LP.  Except as set forth on Schedule 3.2.18, the
Intellectual Property of the CLP does not contain any software licensed under
terms which require, as a condition of the use, modification, or distribution of
such software, that other software incorporated into, derived from, or
distributed with such software: (x) be disclosed or distributed in source code
form; (y) be licensed under terms that permit making derivative works; or (z) be
redistributable at no charge to subsequent licensees.

     

    
      
        
           

        

        
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    3.2.19       Privacy and
Security.  All information or data of any kind relating to the
Cap C Business possessed by the CLP, including but not limited to, personally
identifiable information collected from consumers ("PII"), aggregate or anonymous
information collected from consumers ("Non-PII") and employee data
relating to the Cap C Business or possessed by the CLP (collectively, "Data"), has been collected, by
Cap C LP, the Cap C Business or the CLP, and is being maintained, stored,
processed and used by the CLP in connection with the Cap C Business, in
compliance with all Laws and Orders.  Cap C LP and the CLP have at all
times presented a privacy policy ("Privacy Policy") to consumers
prior to the collection of any PII or Non-PII online.  The Privacy
Policy, and any other representations, marketing materials and advertisements
that address privacy issues and the treatment of PII and Non-PII, accurately and
completely describe Cap C LP, the Cap C Business and the CLP's respective
information collection and use practices, and no such notices or disclosures
have been inaccurate, misleading or deceptive.  Neither Cap C LP nor
the CLP has collected or received any PII from children under the age of 13
without verifiable parental consent or directed any of its websites to children
under the age of 13 through which such PII could be obtained.  Cap C
LP and the CLP have stored and maintained all Data in a secure manner, using
commercially reasonable technical measures, to assure the integrity and security
of the Data and to prevent loss, alteration, corruption, misuse and unauthorized
access to such Data.  There has been no unauthorized use, access to or
disclosure of any Data.  Neither Cap C LP nor the CLP has received any
claims, notices or complaints regarding its information practices or use of
Data.  The consummation of the transactions contemplated hereby will
not result in any loss or impairment of the rights to own and use any Data, nor
will such consummation require the consent of any third party in respect of any
Data.

     

    3.2.20       Compliance with Laws.
The Cap C Business (including the business conducted by Cap C LP) has been
conducted, in compliance with all applicable Laws and Orders, except in each
case where the failure to so comply would not reasonably be expected to have a
Material Adverse Effect. The Cap C Business has all Required Permits except
where the failure to have such Required Permits would not reasonably be expected
to have a Material Adverse Effect.  All of such Required Permits are
in full force and effect and no action or claim is pending, nor to the knowledge
of Newport or Communications Holdco, threatened, to revoke or terminate any such
Required Permit or declare any such Required Permit invalid in any
respect.

     

    3.2.21       Client
Relations.  Schedule 3.2.21 sets
forth (a) the ten (10) largest clients of the Cap C Business (measured by
revenues), and the revenues from each such client and from all clients (in the
aggregate) for the calendar year ended December 31, 2009 and (b) the clients
projected to be the ten (10) largest clients (measured by revenues) of the Cap C
Business based on its current profit plan for the twelve months ending December
31, 2010 and 2011, together with the estimated revenues from each such client
and all clients (in the aggregate) for such periods.  Communications
Holdco represents that the estimated revenues set forth on Schedule 3.2.21 were
made in good faith and on a reasonable basis.  Except as set forth on
Schedule
3.2.21, no client of the Cap C Business has advised Communications
Holdco, the CLP or any Cap C Principal in writing that it is (x) terminating or
considering terminating the handling of its business by Cap C LP or the CLP or
in respect of any particular product, project or service or (y) planning to
reduce its future spending with Cap C LP, the Cap C Business or the CLP in any
material manner; and no client has orally advised the CLP, Communications
Holdco, the Cap C Business or any Cap C Principal of any of the foregoing
events.

     

    
      
        
           

        

        
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    3.2.22       Accounts Receivable;
Work-in-Process; Accounts Payable.  The amount of all
work-in-process, accounts receivable, unbilled invoices (including without
limitation unbilled invoices for services and out-of-pocket expenses) and other
debts due or recorded in the records and books of account of the Cap C Business
and which was transferred to the CLP pursuant to the Conveyance Documents, as
being due to the Cap C Business and reflected on the Balance Sheet and the
Closing Balance Sheet represent or will represent valid obligations arising from
sales actually made or services actually performed in the ordinary course of
business and will be good and collectible in full (less the amount of any
provision, reserve or similar adjustment therefor reflected on the Balance Sheet
and the Closing Balance Sheet) in the ordinary course of business, and none of
the accounts receivable or other debts (or accounts receivable arising from any
such work-in-process or unbilled invoices) is or will be subject to any
counterclaim or set-off except to the extent of any such provision, reserve or
adjustment.  The accounts payable set forth on the Balance Sheet, and
the accounts payable incurred since the Balance Sheet Date through the Closing
Date, represent trade payables resulting from bona fide transactions incurred in
the ordinary course of business. There has been no change since the Balance
Sheet Date in the amount or aging of the work-in-process, accounts receivable,
unbilled invoices, or other debts due to the Cap C Business, or the reserves
with respect thereto, or accounts payable of the Cap C Business which would have
a Material Adverse Effect.

     

    3.2.23       Employment
Relations.  (a) No unfair labour practice complaint against Cap
C LP, the Cap C Business or the CLP is pending before any Governmental or
Regulatory Authority; (b) there is no organized labour strike, dispute, slowdown
or stoppage pending or to the knowledge of Newport or Communications Holdco,
threatened against or involving the Cap C Business; (c) there are no labour
unions representing or, to the knowledge of Newport or Communications Holdco,
attempting to represent the employees of the Cap C Business who became employees
of the CLP; (d) no claim or grievance nor any arbitration proceeding arising out
of or under any collective bargaining agreement is pending against any of the
Cap C Business, the CLP or Communications Holdco and to the knowledge of Newport
or Communications Holdco, no such claim or grievance has been threatened; (e) no
collective bargaining agreement is currently being negotiated by Cap C LP or the
CLP; and (f) Cap C LP did not experience any work stoppage or similar organized
labour dispute during the last three years. Except as set forth on Schedule 3.2.23,
there is no legal action, suit, proceeding or claim pending or, to the knowledge
of Newport, Capital C Holdco or the Cap C Principals or Communications Holdco,
threatened between the Cap C Business, the CLP or Cap C LP and any employees or
former employees of Cap C LP or the Cap C Business.

     

    3.2.24       Pension and Other Benefit
Plans.

     

    (a)           Schedule 3.2.24 sets
forth a true and complete list of all employee benefit plans, including, without
limitation, pension/benefit plans maintained by Cap C LP and/or the CLP (each a
"Plan").

     

    (b)           Except
as disclosed in Schedule 3.2.24 each
Plan is, and has been, established, registered, qualified, administered and
invested, in compliance with (i) the terms thereof, and (ii) all applicable
Laws.

     

    (c)           All
obligations under the Plans (whether pursuant to the terms thereof or applicable
Law) have been satisfied.

     

    (d)           All
contributions or premiums required to be paid to or in respect of each Plan have
been paid in a timely fashion in accordance with the terms thereof and all
applicable Law, and no Taxes, penalties or fees are owing or exigible under any
Plan.

    

    
      
        
           

        

        
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    (e)           There
are no going concern unfunded actuarial liabilities, past service unfunded
liabilities or solvency deficiencies respecting any of the Plans.

     

    (f)           No
material changes have occurred in respect of any Plan since the date of the most
recent financial, accounting or actuarial report, as applicable, issued in
connection with any Plan, which could reasonably be expected to adversely affect
the relevant report (including rendering it misleading in any material
respect).

     

    (g)           There
have been no improper withdrawals or transfer of assets from any
Plan.

     

    (h)           None
of the Plans require or permit a retroactive increase in premiums or payments,
and the level of insurance reserves, if any, under any insured Plan is
reasonable and sufficient to provide for all incurred but unreported
claims.

     

    3.2.25       Interests in Customers,
Suppliers, etc.  Except as set forth on Schedule 3.2.25,
neither Newport nor to the knowledge of Newport or Communications Holdco
(without making any inquiry of any member of the Related Group, as hereinafter
defined), any officer, director, or employee of Cap C LP or the CLP immediately
prior to the Closing Date, any parent, brother, sister, child or spouse of any
such officer, director, key executive or employee of the CLP, Communications
Holdco or Newport (collectively, the "Related Group"), or any Person
controlled by anyone in the Related Group:

     

    (a)           owns,
directly or indirectly, any interest in (excepting for ownership, directly or
indirectly, of less than 1/4 of 1% of the issued and outstanding shares of any
class of securities of a publicly held and traded company), or received or has
any right to receive payments from, or is an officer, director, employee, agent
or consultant of, any Person which is, or is engaged in business as, a
competitor, lessor, lessee, supplier, distributor, sales agent, customer or
client of Cap C LP or the CLP;

     

    (b)           owns,
directly or indirectly (other than through the ownership of Limited Partnership
Units), in whole or in part, any tangible or intangible property that the CLP
used in the conduct of the Cap C Business, other than immaterial personal items
owned and used by employees at their work stations; or

     

    (c)           has
any cause of action or other claim whatsoever against, or owes any amount to,
Cap C LP or the CLP, except for claims in the ordinary course of business such
as for accrued vacation pay, accrued benefits under employee benefit plans, and
similar matters and agreements existing on the date hereof.

     

    3.2.26       Bank Accounts and Powers of
Attorney.  Set forth in Schedule 3.2.26 is an
accurate and complete list showing (a) the name and address of, and account
information for, each bank in which Cap C LP had immediately prior to the
transfer of the Cap C Business to the CLP, or the CLP has, an account, credit
line or safe deposit box and the names of all Persons authorized to draw thereon
or to have access thereto, and (b) the names of all Persons, if any, holding
powers of attorney from Cap C LP or the CLP and a summary statement of the terms
thereof.

     

    
      
        
           

        

        
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    3.2.27       Compensation of
Employees.  Schedule 3.2.27 is an
accurate and complete list showing: (a) the names and positions of all employees
and exclusive consultants of the Cap C Business, or Cap C LP immediately prior
to the transfer of the Cap C Business by Cap C LP to the Cap C Business, who
are, or were being, compensated at an annualized rate of $50,000 or more,
together with a statement of the current annual salary, and the annual salary,
bonus and incentive compensation paid or payable with respect to calendar years
2008 and 2009, and a statement of the projected annual salary, bonus and
incentive compensation payable with respect to the calendar year ended December
31, 2010, and the material fringe benefits of such employees and exclusive
consultants not generally available to all employees of Cap C LP or the Cap C
Business; (b) all bonus and incentive compensation paid or payable (whether by
agreement, custom or understanding) to any employee of Cap C LP or the Cap C
Business not listed in clause (a) above for services rendered or to be rendered
during calendar years 2008 and 2009; (c) the names of all retired employees, if
any, of Cap C LP or the Cap C Business who are receiving or entitled to receive
any healthcare or life insurance benefits or any payments from Cap C LP or the
Cap C Business not covered by any pension plan to which Cap C LP or the Cap C
Business is a party, their ages and current unfunded pension rate, if any; and
(d) a description of the current severance and vacation policy of Cap C LP and
the Cap C Business.  Neither Cap C LP nor the Cap C Business has,
because of past practices or previous commitments with respect to its employees,
established any rights on the part of any of its employees to additional
compensation with respect to any period after the Closing Date (other than wage
increases in the ordinary course of business).  Each of Cap C LP and
the Cap C Business has properly classified and compensated all employees and
consultants in accordance with all applicable Laws and Orders of any
Governmental and Regulatory Authority.

     

    3.2.28       Non-Contravention; Approvals
and Consents.  The execution, delivery and performance by the
CLP and Cap C LP of their respective obligations under this Agreement and the
Conveyance Documents, as the case may be, and the consummation of the
transactions contemplated hereby and thereby, as the case may be, will not (a)
violate, conflict with or result in the breach of any provision of the
declaration and limited partnership agreement (or other comparable documents) of
the CLP and Cap C LP, (b) result in the violation by the CLP or Cap C LP of any
Laws or Orders of any Governmental or Regulatory Authority, or (c) if the
consents and notices set forth in Schedule 3.2.28 are
obtained, conflict with, result in a violation or breach of, constitute (with or
without notice or lapse of time or both) a default under, or require the CLP or
Cap C LP to obtain any consent, approval or action of, make any filing with or
give any notice to, or result in or give to any Person any right of payment or
reimbursement, termination, cancellation, modification or acceleration of, or
result in the creation or imposition of any Lien upon any of their respective
assets or properties, or under any of the terms, conditions or provisions of any
Contract to which the CLP or Cap C LP is a party or by which the CLP or Cap C LP
or any of their respective assets or properties are or were bound. Except as set
forth in Schedule
3.2.28, no consent, approval or action of, filing with or notice to any
Governmental or Regulatory Authority or other Person is necessary or required
under any of the terms, conditions or provisions of any Law or Order of any
Governmental or Regulatory Authority or any Contract to which the CLP or Cap C
LP is a party, or by which their respective assets or properties were or are
bound, for the execution and delivery of this Agreement or the Conveyance
Documents, the performance by the CLP or Cap C LP of their respective
obligations hereunder or thereunder or the consummation of the transactions
contemplated hereby or thereby.

     

    
      
        
           

        

        
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    3.2.29       No Changes Since the Balance
Sheet Date.  From the Balance Sheet Date through the date
hereof, except as specifically stated on Schedule 3.2.29,
neither Cap C LP nor the CLP (i) incurred any liability or obligation of any
nature (whether accrued, absolute, contingent or otherwise), except in the
ordinary course of business, (ii) permitted any of its assets to be subjected to
any Lien, (iii) sold, transferred or otherwise disposed of any assets except in
the ordinary course of business, (iv) made any capital expenditure or commitment
therefor which individually or in the aggregate exceeded $50,000; (v) made any
distributions or dividend payments on any shares of its capital stock or equity
participation rights, or redeemed, purchased or otherwise acquired any shares of
its capital stock, or any option, warrant or other right to purchase or acquire
any shares of capital stock or equity participation rights of Cap C LP or the
CLP, (vi) made any bonus or profit sharing distribution, (vii) increased or
prepaid its indebtedness for borrowed money, except current borrowings under
credit lines, or made any loan to any Person other than to any employee for
normal travel and expense advances, (viii) wrote down the value of any
work-in-process, or wrote off as uncollectible any notes or accounts receivable,
except write-downs and write-offs in the ordinary course of business, none of
which individually or in the aggregate, were material to Cap C LP or the CLP,
(ix) granted any increase in the rate of wages, salaries, bonuses or other
remuneration of any employee who, whether as a result of such increase or prior
thereto, received aggregate compensation from Cap C LP or the CLP at an annual
rate of $100,000 or more, or except in the ordinary course of business to any
other employees, (x) entered into any employment or exclusive consulting
agreement which is not cancelable by Cap C LP or the CLP (and will not be
cancelable by the CLP) without penalty or other financial obligation within 30
days, (xi) canceled or waived any claims or rights of material value, (xii) made
any change in any method of accounting procedures, (xiii) otherwise conducted
Cap C LP's business or the Cap C Business or entered into any transaction,
except in the usual and ordinary manner and in the ordinary course of its
business, (xiv) amended or terminated any agreement which is material to their
businesses, (xv) renewed, extended or modified any lease of real property or any
lease of personal property, except in the ordinary course of business, or (xvi)
agreed, whether or not in writing, to do any of the actions set forth in any of
the above clauses.

     

    3.2.30       Corporate
Controls.  To the knowledge of the Cap C Principals, no
officer, authorized agent, employee, consultant or any other Person while acting
on behalf of Cap C LP, the Cap C Business or the CLP, has, directly or
indirectly: used any corporate fund for unlawful contributions, gifts, or other
unlawful expenses relating to political activity; made any unlawful payment to
foreign or domestic government officials or employees or to foreign or domestic
political parties or campaigns from corporate funds; established or maintained
any unlawful or unrecorded fund of corporate monies or other assets; made any
false or fictitious entry on its books or records; participated in any
racketeering activity; or made any bribe, rebate, payoff, influence payment,
kickback, or other unlawful payment, or other payment of a similar or comparable
nature, to any Person, private or public, regardless of form, whether in money,
property, or services, to obtain favourable treatment in securing business or to
obtain special concessions, or to pay for favourable treatment for business
secured or for special concessions already obtained, and neither Communications
Holdco, the Cap C Business nor the CLP have participated in any illegal boycott
or other similar illegal practices affecting any of its actual or potential
customers.

    

    
      
        
           

        

        
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    3.2.31       Brokers.  No
broker, finder, agent or similar intermediary has acted on behalf of Newport,
Communications Holdco or the CLP in connection with this Agreement or the
transactions contemplated hereby, and no brokerage commissions, finder's fees or
similar fees or commissions are payable by Communications Holdco, Capital C
Holdco, the CLP or Newport in connection therewith based on any agreement,
arrangement or understanding with any of them.

     

    3.2.32       Repayment of
Loans.  Except as set forth on Schedule 3.2.32, as
of the Closing, all (i) intercompany indebtedness and (ii) indebtedness
(including unpaid distributions) of the CLP or Capital CEK LP to Communications
Holdco or Newport has been repaid in full, other than routine travel expense
advances in the ordinary course of business and consistent in amount with past
practice.

     

    3.2.33       Disclosure.  No
representation or warranty of Newport, Communications Holdco, Capital C Holdco
or the Cap C Principals contained in this Agreement contains any untrue
statement of a material fact or omits to state a material fact necessary in
order to make the statements herein or therein, in the light of the
circumstances under which they were made, not misleading.

     

    3.2.34       Copies of
Documents.  Communications Holdco and/or the Cap C Principals
have caused to be made available for inspection and copying by the Purchaser and
its advisers, true, complete and correct copies of all documents referred to in
this Article III.C or in any Schedule.

     

    ARTICLE IV

    REPRESENTATIONS
OF THE PURCHASER

     

    The Purchaser represents and warrants
to Newport, the Cap C Principals, Capital C Holdco and Communications Holdco as
follows:

     

    Section
4.1        Existence and Good
Standing.  The Purchaser is a corporation duly organized,
validly existing and in good standing under the laws of Canada with full
corporate power and authority to enter into this Agreement, to perform its
obligations hereunder and to own its property and to carry on its business all
as and in the places where such properties are now owned or operated or such
business is now being conducted.

     

    Section
4.2       Execution and Validity of
Agreement.  The Purchaser has the full corporate power and
authority to make, execute, deliver and perform this Agreement and the
transactions contemplated hereby.  The execution and delivery of this
Agreement by the Purchaser and the consummation of the transactions contemplated
hereby have been duly authorized by all required corporate action on behalf of
the Purchaser.  This Agreement has been duly and validly executed and
delivered by the Purchaser and, assuming due authorization, execution and
delivery by the other parties hereto, constitutes the legal, valid and binding
obligation of the Purchaser, enforceable against it in accordance with its
terms.

    

    
      
        
           

        

        
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    Section
4.3        Litigation.  There
is no action, suit, proceeding at law or in equity by any Person, or any
arbitration or any administrative or other proceeding by or before (or to the
knowledge of the Purchaser, any investigation by), any Governmental or
Regulatory Authority pending or, to the knowledge of the Purchaser, threatened
against the Purchaser or any of its properties or rights with respect to this
Agreement.  The Purchaser is not subject to any Order entered in any
lawsuit or proceeding with respect to this Agreement or the transactions
contemplated hereby.

     

    Section
4.4        Non-Contravention; Approvals
and Consents.  The execution, delivery and performance by the
Purchaser of its obligations hereunder and the consummation of the transactions
contemplated hereby will not (a) violate, conflict with or result in the breach
of any provision of the certificate of incorporation and bylaws of the
Purchaser, (b) result in the violation by the Purchaser of any Laws or Orders of
any Governmental or Regulatory Authority applicable to the Purchaser or any of
its assets or properties, or (c) result in a violation or breach of, constitute
(with or without notice or lapse of time or both) a default under, or require
the Purchaser to obtain any consent, approval or action of, make any filing with
or give any notice to, or result in or give to any Person any right of payment
or reimbursement, termination, cancellation, modification or acceleration of,
or, except for such Liens as may be created in connection with an MDC financing
post-Closing, result in the creation or imposition of any Lien upon any of the
respective assets or properties of the Purchaser, under any of the terms,
conditions or provisions of any Contract to which the Purchaser is a party or by
which the Purchaser or any of its assets or properties are bound. No consent,
approval or action of, filing with or notice to any Governmental or Regulatory
Authority or other Person is necessary or required under any of the terms,
conditions or provisions of any Law or Order of any Governmental or Regulatory
Authority or any Contract to which the Purchaser is a party or by which the
Purchaser or any of its assets or properties are bound for the execution and
delivery of this Agreement by the Purchaser, the performance by the Purchaser of
its obligations hereunder or the consummation by the Purchaser of the
transactions contemplated hereby.

     

    Section
4.5        Brokers.  No
broker, finder, agent or similar intermediary has acted on behalf of the
Purchaser in connection with this Agreement or the transactions contemplated
hereby, and no brokerage commissions, finder's fees or similar fees or
commissions are payable by the Purchaser in connection therewith based on any
agreement, arrangement or understanding with either of them.

     

    Section
4.6        Investment
Canada.  The Purchaser is not a “non-Canadian" within the
meaning of the Investment
Canada Act (Canada).

     

    Section
4.7        Status. The Purchaser
is not a person exempt from tax under section 149 of the ITA.

     

    ARTICLE V

    ACTIONS
AT CLOSING

      

    Simultaneously
herewith:

     

    Section
5.1       Pre-Closing Restructuring
Proceedings. All proceedings taken in connection with the Reorganization
and the Conveyance Documents and all documents incident thereto shall have been
completed in form and substance satisfactory to the Purchaser and Newport and
their respective counsel, and the Purchaser shall have received copies of all
such documents and other evidences as it or its counsel reasonably requested in
order to establish the consummation of such transactions and the taking of all
proceedings in connection therewith.

    

    
      
        
           

        

        
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    Section
5.2        Resolutions.  Each
of Newport, Capital C Holdco and Communications Holdco shall have delivered to
the Purchaser a copy of the resolutions of their respective partners, or board
of directors, as the case may be, authorizing the execution, delivery and
performance of this Agreement and the Conveyance Documents to which it is a
party, and the transactions contemplated hereby and thereby. The Purchaser shall
have delivered to the other parties hereto a copy of the resolutions of its
board of directors authorizing the execution, delivery and performance of this
Agreement and the transactions contemplated hereby.

     

    Section
5.3        Required Approvals and
Consents.  Newport and the Cap C Principals shall have obtained
or given, at no expense to the Purchaser, and there shall not have been
withdrawn or modified, any consents or approvals or other actions listed on
Schedule 3.2.5
hereof (including without limitation, obtaining all such consents, approvals
and/or waivers required under the Contracts listed on Schedule 3.2.12).
Each such consent or approval shall be in a form satisfactory to counsel for the
Purchaser, acting reasonably.

     

    Section
5.4        Limited Partnership
Agreement.  The Cap C Principals and the Purchaser shall have
entered into the Amended and Restated CLP Agreement.

     

    Section
5.5        Employment
Agreements. The Cap C Principals shall have entered into an Employment
Agreement with the CLP on terms and conditions satisfactory to the
Purchaser.

     

    Section
5.6        Non-Competition.
Newport shall have entered into a Non-Competition Agreement with the Purchaser,
and the Cap C Principals shall have entered into a Non-Competition Agreement
with the Purchaser and CLP in the form and to the effect of Exhibit D
hereto.

     

    Section
5.7        Kenna LP Purchase
Agreement. Cap C LP, Communications Holdco, the Kenna Principals, Newport
and the Purchaser shall have entered into and delivered a purchase agreement
pursuant to which Newport sells to the Purchaser its interests in Kenna Communications
LP.

     

    Section
5.8        Conveyance
Documents.  Communications Holdco and the CLP shall have
entered into the Conveyance Documents.

     

    Section
5.9        Mutual
Release.  Newport, the Cap C Principals and Communications
Holdco, among others, shall have entered into a mutual release in the form of
Exhibit E hereto, and the parties thereto shall have dismissed with prejudice
the related pending litigation matters.

     

    Section
5.10      Fortress Release of
Liens.  Newport shall have delivered to the Purchaser evidence
reasonably satisfactory to the Purchaser of the release of all security
interests encumbering the Purchased Units and the Acquired Cap C
Assets.

    

    
      
        
           

        

        
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    ARTICLE VI

    OTHER
AGREEMENTS

     

    Section
6.1        Tax
Matters.

     

    6.1.1         Tax
Returns.  Communications Holdco, Newport, CLP and/or the Cap C
Principals, as applicable, shall timely and properly prepare or cause to be
prepared, execute, file and deliver all (i) Tax returns, information returns,
Tax elections or other tax filings required to be filed by CLP, Cap C LP and
Capital CEK LP in connection with the Reorganization (each a "LP Tax Filing"),
and  (ii) all Tax elections required to be filed by Communications
Holdco or Newport in connection with the Reorganization (each, a "Tax Election"), and shall
permit the Purchaser to review and comment on each such LP Tax Filing or Tax
Election prior to filing. Each of Communications Holdco and Newport shall
include their respective share of any taxable income allocated to them in
respect of their partnership interest in Cap C LP for the fiscal period ending
on the dissolution of Cap C LP in their return filed under the ITA for the
taxation year that includes the end of such fiscal period.

     

    6.1.2         Tax
Cooperation.  The Purchaser, Newport, Communications Holdco and
the Cap C Principals shall cooperate fully as and to the extent reasonably
requested by the other party, in connection with any Tax Filing pursuant to
Section 6.1.1
or other Tax returns relating to the operations of the Cap C Business and any
audit, litigation or other proceeding with respect to Taxes.

     

    Section
6.2        Change of
Name.  At the Closing or as soon as practicable after the
Closing Date, Capital C Holdco shall execute appropriate documents to change its
name to a name dissimilar to "Capital C", and promptly thereafter shall file any
necessary documents to reflect the name change with the appropriate governmental
authorities.

     

    Section
6.3        Pre-Closing
Distribution.

     

    6.3.1         Return of Capital; Repayment
of Loans.  Immediately prior to the commencement of the
Reorganization: Newport and Communications Holdco shall have caused (i) Capital
CEK LP to distribute to Newport $1,990,453 as a return of capital on the limited
partnership units of Capital CEK LP held by Newport at October 31, 2010; and
(ii) Capital CEK LP to repay in full Newport’s outstanding loans (including all
accrued interest) to Capital CEK LP in the amount of $1,787,229.33 owing as of
the Closing Date.

     

    6.3.2         Return of Capital. As
soon as reasonably practicable but not later than forty-five (45) days of the Closing, the
Purchaser shall ensure that CLP and/or Kenna Communications LP distribute to
Newport an amount equal to the amount due as a return of capital on the limited
partnership units of Capital CEK LP held by Newport from November 1, 2010 until
the Closing Date (the "November
Capital Distribution"). The amount of the November Capital Distribution
shall be determined by the Purchaser's auditor in accordance with GAAP based on
the financial statements relating to the Kenna Business and the Cap C Business,
and allocated in a manner consistent with the allocations from January 1, 2010
to October 31, 2010; provided, however, that any controversy, dispute, question
or difference between the parties hereto regarding the determination of the
November Capital Distribution shall be resolved by a senior officer of the
Purchaser and a senior officer of Newport working in good faith to come to a
mutually acceptable determination of the November Capital Distribution within 10
days of notice from Newport of such controversy, dispute, question or
difference.

    

    
      
        
           

        

        
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    Section
6.4        Key Man
Insurance.  Newport shall cause Newport Partners Income Fund to
assign all current
key man insurance policies relating to Tony Chapman, Glenn Chilton and Paul
Quigley effective as of the Closing Date.

     

    ARTICLE VII

    SURVIVAL;
INDEMNITY

     

    Section
7.1        Survival.  Notwithstanding
any right of any party hereto fully to investigate the affairs of any other
party, and notwithstanding any knowledge of facts determined or determinable
pursuant to such investigation or right of investigation, each party hereto
shall have the right to rely fully upon the representations, warranties,
covenants and agreements of the other parties contained in this Agreement and
the Schedules, if any, furnished by any other party pursuant to this
Agreement.  Subject to the limitations set forth in Section 7.6, the
respective representations, warranties, covenants and agreements of Newport,
Communications Holdco, the Cap C Principals, Capital C Holdco and the Purchaser
contained in this Agreement shall survive the Closing for sixteen (16) months
following the Closing Date.

     

    Section
7.2        Obligation of Newport,
Communications Holdco, Capital C Holdco and the Cap C Principals to
Indemnify.

     

    7.2.1         Newport
Indemnity.  Subject to the limitations contained in Sections
7.2.3,  7.6.1 and 7.6.2, Newport hereby
agrees to indemnify the Purchaser and its affiliates, stockholders, officers,
directors, employees, agents, representatives and successors, permitted
assignees of the Purchaser and their affiliates (individually, a "Purchaser Indemnified Party"
and collectively, the "Purchaser Indemnified
Parties") against, and to protect, save and keep harmless the Purchaser
Indemnified Parties from, and to pay on behalf of or reimburse the Purchaser
Indemnified Parties as and when incurred for, any and all liabilities (including
liabilities for Taxes), obligations, losses, damages, penalties, demands,
claims, actions, suits, judgments, settlements, penalties, interest,
out-of-pocket costs, expenses and disbursements (including reasonable costs of
investigation, and reasonable attorneys', accountants' and expert witnesses'
fees) of whatever kind and nature (collectively, "Losses"), that may be imposed
on or incurred by any Purchaser Indemnified Party as a consequence of, in
connection with, incident to, resulting from or arising out of or in any way
related to or by virtue of: (a) any misrepresentation, inaccuracy or breach of
any warranty or representation contained in Article III.A or Article III.C
hereof; (b) any action, demand, proceeding, investigation or claim by any third
party (including any Governmental or Regulatory Authority) against or affecting
any Purchaser Indemnified Party which may give rise to or evidence the existence
of or relate to a misrepresentation or breach of any of the representations and
warranties of Newport contained in Article III.A or Article III.C hereof; (c)
any breach or failure by Newport to comply with, perform or discharge any
obligation, agreement or covenant by Newport contained in this Agreement; (d)
any liability or obligation or any assertion against any Purchaser Indemnified
Party, arising out of or relating, directly or indirectly, to any Excluded Asset
or any Retained Liability (as such terms are defined in the Conveyance
Documents) or other liability arising, in whole or in part, out of the conduct
of the business of Cap C LP or any of its subsidiaries or successors, if any,
prior to the Closing except for the Assumed Liabilities (as such term is defined
in the Conveyance Documents); (e) any litigation or claim disclosed on Schedule 3.2.3 to
this Agreement; and (f) any liability or obligation arising out of or relating,
directly or indirectly, to the classification of any individual performing
services for Cap C LP as an independent contractor, as a freelancer, as a
consultant or in any other capacity other than as an employee.

    

    
      
        
           

        

        
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    7.2.2          Indemnity by Cap C
Indemnitors.  Subject to the limitations contained in Sections 7.2.3, 7.6.1 and 7.6.2, the Cap C
Indemnitors hereby agree, jointly and severally, to indemnify the Purchaser
Indemnified Parties against, and to protect, save and keep harmless the
Purchaser Indemnified Parties from, and to pay on behalf of or reimburse the
Purchaser Indemnified Parties as and when incurred for, any and all Losses that
may be imposed on or incurred by any Purchaser Indemnified Party as a
consequence of, in connection with, incident to, resulting from or arising out
of or in any way related to or by virtue of: (a) any misrepresentation,
inaccuracy or breach of any warranty or representation contained in Article
III.B or Article III.C hereof; (b) any action, demand, proceeding, investigation
or claim by any third party (including any Governmental or Regulatory Authority)
against or affecting any Purchaser Indemnified Party which may give rise to or
evidence the existence of or relate to a misrepresentation or breach of any of
the representations and warranties of Communications Holdco, Capital C Holdco or
the applicable Cap C Principals contained in Article III.B or Article III.C
hereof; (c) any breach or failure by Communications Holdco, Capital C Holdco or
the applicable Cap C Principals to comply with, perform or discharge any
obligation, agreement or covenant by Communications Holdco, Capital C Holdco or
the applicable Cap C Principals contained in this Agreement; (d) any liability
or obligation or any assertion against any Purchaser Indemnified Party, arising
out of or relating, directly or indirectly, to any Excluded Asset or any
Retained Liability (as such terms are defined in the Conveyance Documents) or
other liability arising, in whole or in part, out of the conduct of the business
of Cap C LP or any of its subsidiaries or successors, if any, prior to the
Closing except for the Assumed Liabilities (as such term is defined in the
Conveyance Documents); (e) any litigation or claim disclosed on Schedule 3.2.3 to
this Agreement; and (f) any liability or obligation arising out of or relating,
directly or indirectly, to the classification of any individual performing
services for Cap C LP as an independent contractor, as a freelancer, as a
consultant or in any other capacity other than as an employee.

     

    7.2.3          Notwithstanding
anything to the contrary contained herein, Newport's obligation to indemnify the
Purchaser Indemnified Parties under this Agreement shall only occur after the
aggregate amount of all Losses claimed by the Purchaser Indemnified Parties
against the Cap C Indemnitors (including Losses previously claimed by the
Purchaser Indemnified Parties against the Cap C Indemnitors) exceeds
$750,000.  Any such claims made against the Cap C Indemnitors may be
made against Newport if such claims remain unpaid by the Cap C Indemnitors or
any of them after sixty (60) days from the date of claim; provided that the Cap
C Indemnitors have acted in good faith in response to such claim and that the
Purchaser shall have exercised its commercially reasonable efforts to recover
against such claim (including exercising its right to offset any claim for
indemnity against payments due and/or payable to Capital C Holdco or the Cap C
Principals in accordance with Section 7.5).

    

    
      
        
           

        

        
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    7.2.4         Losses.  The
term "Losses" as used in
this Article VII is not limited to matters asserted by third parties against any
Purchaser Indemnified Party but includes Losses incurred or sustained by a
Purchaser Indemnified Party in the absence of Third Party Claims (as defined in
Section 7.4.2
hereof).

     

    Section
7.3        Obligation of the Purchaser
to Indemnify.

     

    7.3.1         Subject
to the limitations set forth in Section 7.6.3 hereof,
the Purchaser hereby agrees to indemnify Newport (together with its affiliates,
partners, officers, directors, employees, agents, representatives, successors
and permitted assigns, collectively, the "Newport Indemnified Parties"),
Communications Holdco, Capital C Holdco and the Cap C Principals (individually a
"Seller Indemnified
Party" and collectively, the "Seller Indemnified Parties")
against, and to protect, save and keep harmless the Seller Indemnified Parties
from, and to pay on behalf of or reimburse the Seller Indemnified Parties as and
when incurred for, any and all Losses that may be imposed on or incurred by the
Seller Indemnified Parties as a consequence of, in connection with, incident to,
resulting from or arising out of or in any way related to or by virtue of: (a)
any misrepresentation, inaccuracy or breach of any warranty or representation of
the Purchaser contained in Article IV hereof; or (b) any action, demand,
proceeding, investigation or claim by any third party (including any
Governmental or Regulatory Authority) against or affecting any Seller
Indemnified Party which may give rise to or evidence the existence of or relate
to a misrepresentation or breach of any of the representations and warranties of
the Purchaser contained in Article IV hereof; or (c) any breach or failure by
the Purchaser to comply with, perform or discharge any obligation, agreement or
covenant by the Purchaser contained in this Agreement.

     

    7.3.2         The
Purchaser shall indemnify the Newport Indemnified Parties against, and protect,
save and keep harmless the Newport Indemnified Parties from, any Taxes (within
the meaning of Section
3.2.14 hereof) incurred by the Newport Indemnified Parties solely as a
result of the Reorganization (including any of the individual transactions
forming part thereof), without duplication, in an aggregate amount not to exceed
$1 million (the "Newport
Reorganization Indemnity"). For greater certainty, the Newport
Reorganization Indemnity shall exclude any Taxes which would, but for the
Reorganization, have been incurred by Newport in connection with the sale of its
partnership interest in Capital CEK LP or Cap C LP.  Notwithstanding
anything to the contrary, the Purchaser shall not indemnify the Newport
Indemnified Parties in respect of any Taxes imposed on Newport which were
existing liabilities of Capital CEK LP or its affiliates at the time of, or
arising in connection with any matter or omission occurring prior to, the
commencement of the Reorganization.

     

    Section
7.4        Indemnification
Procedures.

     

    7.4.1          
 Non-Third Party
Claims.

     

    (a)           In
the event that any Person entitled to indemnification under this Agreement (an
"Indemnified Party")
asserts a claim for indemnification which does not involve a Third Party Claim
(as defined in Section
7.4.2) (a "Non-Third
Party Claim"), against which a Person is required to provide
indemnification under this Agreement (an "Indemnifying Party"), the
Indemnified Party shall give written notice to the Indemnifying Party (the
"Non-Third Party Claim
Notice"), which Non-Third Party Claim Notice shall (i) describe the claim
in reasonable detail, and (ii) indicate the amount (estimated, if necessary, and
to the extent feasible) of the Losses that have been or may be suffered by the
Indemnified Party.

    

    
      
        
           

        

        
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    (b)           The
Indemnifying Party may acknowledge and agree by written notice (the "Non-Third Party Acknowledgement of
Liability") to the Indemnified Party to satisfy the Non-Third Party Claim
within 30 days of receipt of the Non-Third Party Claim Notice.  In the
event that the Indemnifying Party disputes the Non-Third Party Claim, the
Indemnifying Party shall provide written notice of such dispute (the "Non-Third Party Dispute
Notice") to the Indemnified Party within 30 days of receipt of the
Non-Third Party Claim Notice (the "Non-Third Party Dispute
Period"), setting forth a reasonable basis of such dispute.  In
the event that the Indemnifying Party shall fail to deliver the Non-Third Party
Acknowledgement of Liability or Non-Third Party Dispute Notice within the
Non-Third Party Dispute Period, the Indemnifying Party shall be deemed to have
acknowledged and agreed to pay the Non-Third Party Claim in full and to have
waived any right to dispute the Non-Third Party Claim.  Once the
Indemnifying Party has acknowledged and agreed to pay any Non-Third Party Claim
pursuant to this Section 7.4.1, or
once any dispute under this Section 7.4.1 has
been finally resolved in favour of indemnification by a court or other tribunal
of competent jurisdiction, subject to the provisions of Section 7.6.1, the
Indemnifying Party shall pay the amount of such Non-Third Party Claim to the
Indemnified Party within 10 days of the date of acknowledgement or resolution,
as the case may be, to such account and in such manner as is designated in
writing by the Indemnified Party.

     

    7.4.2         
  Third-Party
Claims.

     

    (a)           In
the event that any Indemnified Party asserts a claim for indemnification or
receives notice of the assertion of any claim or of the commencement of any
action or proceeding by any Person who is not a party to this Agreement or an
affiliate of a party to this Agreement in respect of which such Indemnified
Party is entitled to indemnification by an Indemnifying Party under this
Agreement (a "Third Party
Claim"), the Indemnified Party shall give written notice to the
Indemnifying Party (the "Third
Party Claims Notice") within 20 days after asserting or learning of such
Third Party Claim (or within such shorter time as may be necessary to give the
Indemnifying Party a reasonable opportunity to respond to such claim), together
with a statement specifying the basis of such Third Party Claim.  The
Third Party Claim Notice shall (i) describe the claim in reasonable detail, and
(ii) indicate the amount (estimated, if necessary, and to the extent feasible)
of the Losses that have been or may be suffered by the Indemnified Party. The
Indemnifying Party must provide written notice to the Indemnified Party that it
is either (i) assuming responsibility for the Third Party Claim or (ii)
disputing the claim for indemnification against it (the "Indemnification
Notice")  The Indemnification Notice must be provided by the
Indemnifying Party to the Indemnified Party within 15 days after receipt of the
Third Party Claims Notice or within such shorter time as may be necessary to
give the Indemnified Party a reasonable opportunity to respond to such Third
Party Claim (the "Indemnification Notice
Period").

    

    
      
        
           

        

        
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    (b)           If
the Indemnifying Party provides an Indemnification Notice to the Indemnified
Party within the Indemnification Notice Period that it assumes responsibility
for the Third Party Claim (the "Defense Notice"), the
Indemnifying Party shall conduct at its expense the defense against such Third
Party Claim in its own name, or if necessary in the name of the Indemnified
Party.  The Defense Notice shall specify the counsel the Indemnifying
Party will appoint to defend such claim ("Defense Counsel"); provided, however, that the
Indemnified Party shall have the right to approve the Defense Counsel, which
approval shall not be unreasonably withheld or delayed, except that such
approval may be withheld if the defense is to be in the name of the Indemnified
Party.  In the event that the Indemnifying Party fails to give the
Indemnification Notice within the Indemnification Notice Period, the Indemnified
Party shall have the right to conduct the defense and to compromise and settle
such Third Party Claim without the prior consent of the Indemnifying Party and
subject to the provisions of Section 7.6.1, the
Indemnifying Party will be liable for all costs, expenses, settlement amounts or
other Losses paid or incurred in connection therewith.

     

    (c)           In
the event that the Indemnifying Party provides in the Indemnification Notice
that it disputes the claim for indemnification against it, the Indemnified Party
shall have the right to conduct the defense and to compromise and settle such
Third Party Claim, without the prior consent of the Indemnifying Party. Once
such dispute has been finally resolved in favour of indemnification by a court
or other tribunal of competent jurisdiction or by mutual agreement of the
Indemnified Party and Indemnifying Party, subject to the provisions of Section 7.6.1, the
Indemnifying Party shall within 10 days of the date of such resolution or
agreement, pay to the Indemnified Party all Losses paid or incurred by the
Indemnified Party in connection therewith.

     

    (d)           In
the event that the Indemnifying Party delivers an Indemnification Notice
pursuant to which it elects to conduct the defense of the Third Party Claim, the
Indemnifying Party shall be entitled to have the exclusive control over the
defense of the Third Party Claim and the Indemnified Party will cooperate in
good faith with and make available to the Indemnifying Party such assistance and
materials as it may reasonably request, all at the expense of the Indemnifying
Party.  The Indemnified Party shall have the right at its expense to
participate in the defense assisted by counsel of its own
choosing.  The Indemnifying Party will not settle the Third Party
Claim or cease to defend against any Third Party Claim as to which it has
delivered an Indemnification Notice (as to which it has assumed responsibility
for the Third Party Claim), without the prior written consent of the Indemnified
Party, which consent will not be unreasonably withheld or delayed; provided, however, such consent
may be withheld if, among other reasons, as a result of such settlement or
cessation of defense, (i) injunctive relief or specific performance would be
imposed against the Indemnified Party, or (ii) such settlement or cessation
would lead to liability or create any financial or other obligation on the part
of the Indemnified Party for which the Indemnified Party is not entitled to
indemnification hereunder.

    

    
      
        
           

        

        
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    (e)           If
an Indemnified Party refuses to consent to a bona fide offer of settlement which
the Indemnifying Party wishes to accept, which provides for a full release of
the Indemnified Party and its affiliates relating to the Third Party Claims
underlying the offer of settlement and solely for a monetary payment, the
Indemnified Party may continue to pursue such matter, free of any participation
by the Indemnifying Party, at the sole expense of the Indemnified Party. In such
an event, the obligation of the Indemnifying Party shall be limited to the
amount of the offer of settlement which the Indemnified Party refused to accept
plus the reasonable costs and expenses of the Indemnified Party incurred prior
to the date the Indemnifying Party notified the Indemnified Party of the offer
of settlement.

     

    (f)           Notwithstanding
clause (d) above, the Indemnifying Party shall not be entitled to control, but
may participate in, and the Indemnified Party shall be entitled to have sole
control over, the defense or settlement of (x) that part of any Third Party
Claim that (i) seeks a temporary restraining order, a preliminary or permanent
injunction or specific performance against the Indemnified Party, (ii) involves
criminal allegations against the Indemnified Party or (iii) may lead to
liability or create any financial or other obligation on the part of the
Indemnified Party for which the Indemnified Party is not entitled to
indemnification hereunder and (y) the entire Third Party Claim if such Third
Party Claim would impose liability on the part of the Indemnified Party in an
amount which is greater than the amount as to which the Indemnified Party is
entitled to indemnification under this Agreement.

     

    (g)           A
failure by an Indemnified Party to give timely, complete or accurate notice as
provided in this Section 7.4.2 will
not affect the rights or obligations of any party hereunder except and only to
the extent that, as a result of such failure, any party entitled to receive such
notice was deprived of its right to recover any payment under its applicable
insurance coverage or was otherwise directly and materially damaged as a result
of such failure to give timely notice.

     

    Section
7.5        Right of
Offset.  Without limiting any other rights or remedies
available to it, the Purchaser shall be entitled to offset any claim for
indemnity made pursuant to Section 7.2 and in
accordance with Section 7.4, against
any payments due and/or payable to Capital C Holdco or the Cap C Principals,
including, without limitation, up to $2,750,000 of any payments made pursuant to
the limited partnership unit purchase agreement (the "13% Purchase Agreement") of
even date made among Capital C Holdco, the Cap C Principals and the Purchaser
pursuant to which the Purchaser indirectly acquired an additional approximately
13% limited partnership interest in CLP, provided, however, the Purchaser may
only exercise such right of offset in respect of claims relating to Losses
actually incurred by a Purchaser Indemnified Party (in which case the amount of
such offset shall be the amount of such actual Loss) or claims actually asserted
by a third party (in which case the amount of the offset shall not exceed the
Purchaser's good faith estimate of the amount of indemnifiable Losses that will
ultimately be payable to a Purchaser Indemnified Party in respect of such
claims).

     

    
      
        
           

        

        
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    Section
7.6        Limitations On and Other
Matters Regarding Indemnification.

    

    7.6.1         Indemnity Cushion and
Cap.  Subject to Section 7.6.5,
neither Newport, nor the Cap C Indemnitors shall have any liability to any
Purchaser Indemnified Party with respect to Losses arising out of any of the
matters referred to in Section 7.2 until
such time as the amount of such liability shall exceed $100,000 in the aggregate
(in which case Newport and the Cap C Indemnitors shall be severally liable for
all Losses).  Notwithstanding anything to the contrary herein, subject
to Section
7.6.5 below, (a) the maximum aggregate liability of Newport for indemnity
payments under Section
7.2.1 shall be an aggregate amount equal to $3,500,000; and (b) the
maximum aggregate joint and several liability of the Cap C Indemnitors for
indemnity payments under Section 7.2.2 shall
be an aggregate amount equal to the sum of $750,000 plus a right of setoff of
all "Contingent Payments" (as defined in the 13% Purchase Agreement) payable
pursuant to the 13% Purchase Agreement, subject to a maximum aggregate of such
Contingent Payments of $2,750,000.

     

    7.6.2         Termination of
Indemnification Obligations of Newport and the Cap C
Principals.  Subject to Section 7.6.5, the
obligation of Newport, Capital C Holdco and the Cap C Principals to indemnify
under Section
7.2 hereof shall terminate sixteen (16) months following the Closing
Date, except as to matters as to which the Purchaser Indemnified Party has made
a claim for indemnification on or prior to such date, in which case the right to
indemnification with respect thereto shall survive the expiration of such period
until such claim for indemnification is finally resolved and any obligations
with respect thereto are fully satisfied.

     

    7.6.3         Termination of
Indemnification Obligations of the Purchaser; Purchaser Indemnity
Cap.  Subject to Section 7.6.5, the
obligation of the Purchaser to indemnify under Section 7.3 hereof
shall terminate sixteen (16) months following the Closing Date, except as to
matters as to which any Seller Indemnified Party has made a claim for
indemnification on or prior to such date, in which case the right to
indemnification with respect thereto for such party shall survive the expiration
of such period until such claim for indemnification is finally resolved and any
obligations with respect thereto are fully satisfied. The Purchaser shall have
no liability to the Seller Indemnified Parties with respect to Losses arising
out of any of the matters referred to in Section 7.3 until
such time as the amount of such liability shall exceed $100,000 in the
aggregate.  Notwithstanding anything to the contrary herein, the
maximum aggregate liability of the Purchaser for indemnity payments under this
Agreement shall be an aggregate amount equal to $6,000,000.

     

    7.6.4         Treatment.  Any
indemnity payments by an Indemnifying Party to an Indemnified Party under this
Article VII shall be treated by the parties as an adjustment to the Purchase
Price.

     

    7.6.5         Exceptions.  Each
of the limitations set forth above in this Section 7.6 shall in
no event (a) apply to any Losses incurred by a Purchaser Indemnified Party which
relate, directly or indirectly, to (i) any fraudulent acts committed by Newport,
Communications Holdco, Capital C Holdco or the Cap C Principals; (ii) any breach
of a representation or warranty contained in Sections 3.1.1, 3.1.3, 3.1.5, 3.2.1, 3.2.5, 3.2.9 or 3.2.14, and (iii) any
indemnification obligation under Sections 7.2.1(d),
7.2.2(c) and
(d); and (iv)
the obligations of Newport, Communications Holdco, Capital C Holdco and the Cap
C Principals set forth in Section 8.1 to pay
certain expenses; or (b) apply to any Losses incurred by a Seller Indemnified
Party which relate, directly or indirectly, to (i) any fraudulent acts committed
by the Purchaser and (ii) the Purchaser's obligations set forth in Section 8.1 to pay
certain expenses.

     

    
      
        
           

        

        
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    7.6.6         Indemnification Sole
Remedy. Except as otherwise expressly provided in this Agreement or as it
relates to any claim for fraud or intentional misrepresentation, the
indemnifications provided for in this Article VII constitute the sole remedy
available to an Indemnified Party hereunder with respect to any and all breaches
or failures of representations, warranties, covenants, conditions, agreements or
obligations contained in this Agreement.  In furtherance of the
foregoing, each of the parties hereby waives to the fullest extent permitted
under applicable Law, any and all other rights, claims and causes of action it
may have against the other parties relating to the subject matter of this
Agreement.

     

    ARTICLE VIII

    MISCELLANEOUS

     

    Section
8.1        Expenses.  Except
as otherwise provided in this Agreement, each of the parties hereto shall pay
its or his own expenses relating to the transactions contemplated by this
Agreement, including, without limitation, the fees and expenses of its
respective counsel, financial advisors and accountants and any brokerage
commissions, finder's fees, consulting fees, break-up or termination fees, or
similar fees or commissions.

     

    Section
8.2        Governing Law; Service of
Process and Consent to Jurisdiction.  The interpretation and
construction of this Agreement, and all matters relating hereto (including,
without limitation, the validity or enforceability of this Agreement), shall be
governed by the laws of the Province of Ontario and the laws of Canada
applicable therein.

     

    Section
8.3        "Person"
Defined.  "Person" shall mean and include
an individual, a company, a joint venture, a corporation (including any
non-profit corporation), an estate, an association, a trust, a general or
limited partnership, a limited liability company, a limited liability
partnership, an unincorporated organization and a government or other department
or agency thereof.

     

    Section
8.4        "Knowledge"
Defined.  Where any representation and warranty contained in
this Agreement is expressly specified by reference to the knowledge of Newport,
Capital C Holdco or any Cap C Principal, such term shall be limited to the
actual knowledge of the executive officers of Newport, Capital C Holdco or the
Cap C Principals, respectively, and unless otherwise stated, such knowledge that
would have been discovered by the executive officers of Newport, Capital C
Holdco or the applicable Cap C Principal, respectively, after reasonable
inquiry.  Where any representation and warranty contained in this
Agreement is expressly specified by reference to the knowledge of the Purchaser,
as the case may be, such term shall be limited to the actual knowledge of the
executive officers of such entity and unless otherwise stated, such knowledge
that would have been discovered by such executive officers after reasonable
inquiry.

     

    Section
8.5        "Affiliate"
Defined.  As used in this Agreement, an "affiliate" of any Person,
shall mean any Person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with
such Person.

     

    Section
8.6         Captions.  The
Article and Section headings used herein are for reference purposes only, and
shall not in any way affect the meaning or interpretation of this
Agreement.

    

    
      
        
           

        

        
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    Section
8.7        Publicity.  Subject
to the provisions of the next sentence, no party to this Agreement shall, and
Newport and Capital C Holdco shall use their reasonable efforts to ensure that
no representative of either of them shall, issue any press release or other
public document or make any public statement relating to this Agreement or the
matters contained herein without obtaining the prior approval of the
Purchaser.  Notwithstanding the foregoing, the foregoing provision
shall not apply to the extent that the Purchaser or Newport is required to make
any announcement relating to or arising out of this Agreement by virtue of the
securities laws of the United States or Canada or the rules and regulations
promulgated thereunder or other rules of the NASDAQ Stock Market, Toronto Stock
Exchange or the United States Securities and Exchange Commission or any
announcement by any party hereto pursuant to applicable law or
regulations.

     

    Section
8.8        Notices.  Unless
otherwise provided herein, any notice, request, instruction or other document to
be given hereunder by any party to any other party shall be in writing and shall
be deemed to have been given (a) upon personal delivery, if delivered by hand or
courier, (b) three days after the date of deposit in the mail, postage prepaid,
or (c) the next business day if sent by a prepaid overnight courier service, and
in each case at the respective addresses set forth below or such other address
as such party may have fixed by notice:

     

    (a)           If
to the Purchaser, addressed to:

     

    c/o MDC
Partners Inc.

    45
Hazelton Avenue

    Toronto,
Ontario

    Canada
M5R 2E3

     

    Attention:  Gavin
Swartzman

     

    with
a copy to (which shall not constitute notice):

     

    c/o MDC
Partners Inc.

    950 Third
Avenue

    New York,
New York 10022

     

    Attention:  General
Counsel

     

    (b)           If
to Newport, to:

     

    469 King
Street West

    4th
Floor

    Toronto,
Ontario  M5V 1K4

     

    Attention:         Keith
Halbert

    Facsimile:          (416)
867-7595

     

    with
a copy to (which shall not constitute notice):

     

    Ogilvy
Renault LLP

    Royal
Bank Plaza, South Tower, Suite 3800

    

    
      
        
           

        

        
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    200 Bay
Street, P.O. Box 84

    Toronto,
Ontario  M5J 2Z4

     

    Attention:        Walied
Soliman

    Facsimile:         (416)
216-3930

     

    (c)           If
to Capital C Holdco, to:

     

    340 King
Street East, 5th
Floor

    Toronto,
Ontario  M5A 1K8

    

    Attention:        Tony
Chapman

    Facsimile:         (416)
777-0060

     

    with
a copy to (which shall not constitute notice):

     

    Hughes,
Dorsch, Garland, Coles LLP

    365 Bay
Street, Suite 400

    Toronto,
Ontario  M5H 2V1

    

    Attention:         Michie
T. Garland

    Facsimile:          (416)
861-1147

    

    (d)           If
to the Cap C Principals, to:

     

    Victoria
Calverley

    17455
Dufferin Street, R.R. #2

    Newmarket,
Ontario  L3Y 4V9

     

    and

     

    Tony
Chapman

    241
Dawlish Avenue

    Toronto,
Ontario  M4N 1J2

    

    with
a copy to (which shall not constitute notice):

     

    Hughes,
Dorsch, Garland, Coles LLP

    365 Bay
Street, Suite 400

    Toronto,
Ontario  M5H 2V1

    

    Attention:         Michie
T. Garland

    Facsimile:          (416)
861-1147

    

    Any party
may change the address to which notices are to be sent by giving notice of such
change of address to the other parties in the manner herein provided for giving
notice.

     

    
      
        
           

        

        
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    Section
8.9        Parties in
Interest.  This Agreement may not be transferred, assigned,
pledged or hypothecated by any party hereto, other than by operation of
law.  Any purported transfer, assignment, pledge, or hypothecation
(other than by operation of law) of this Agreement shall be void and
ineffective.  This Agreement shall be binding upon and shall inure to
the benefit of the parties hereto and their respective heirs, executors,
administrators, successors and permitted assigns.

     

    Section
8.10      Severability.  In
the event any provision of this Agreement is found to be void and unenforceable
by a court of competent jurisdiction, the remaining provisions of this Agreement
shall nevertheless be binding upon the parties with the same effect as though
the void or unenforceable part had been severed and deleted.

     

    Section
8.11      Counterparts.  This
Agreement may be executed in two or more counterparts or by facsimile
transmission, all of which taken together shall constitute one
instrument.

     

    Section
8.12      Entire
Agreement.  This Agreement, together with the Schedules and
Exhibits hereto, constitutes the sole, exclusive and only agreements of the
parties hereto pertaining to the subject matter hereof, contains all of the
covenants, conditions and agreements between the parties, express or implied,
whether by statute or otherwise, and sets forth the respective rights, duties
and obligations of each party to the other party as of the date hereof. No oral
understandings, oral statements, oral promises or oral inducements relating to
the subject matter hereof exist.

     

    Section
8.13      Amendments.  This
Agreement may not be amended, supplemented or modified orally, but only by an
agreement in writing signed by each of the parties hereto.

     

    Section
8.14      Third Party
Beneficiaries.  Each party hereto intends that this Agreement
shall not benefit or create any right or cause of action in or on behalf of any
Person other than the parties hereto and their respective successors and assigns
as permitted under Section
8.9.

     

    Section
8.15      Use of
Terms.  Whenever the context so requires or permits, all
references to the masculine herein shall include the feminine and neuter, all
references to the neuter herein shall include the masculine and feminine, all
references to the plural shall include the singular and all references to the
singular shall include the plural.  Whenever used in this Agreement,
the terms "Dollars" and "$" shall mean Canadian Dollars.

     

    Section
8.16      "Liens"
Defined.  With respect to any asset, a "Lien" shall mean (a) any
mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or
security interest in, on or of such asset, (b) the interest of a vendor or a
lessor under any conditional sale agreement, capital lease or title retention
agreement (other than an operating lease) (or any financial lease having
substantially the same economic effect as any of the foregoing) relating to such
asset and (c) in the case of securities, any purchase option, call or similar
right of a third party with respect to such securities.

     

    
      
        
           

        

        
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    Section
8.17      No Strict Construction;
Representation by Counsel.  The language used in this Agreement
will be deemed to be the language chosen by the parties hereto to express their
mutual intent, and no rule of law or contract interpretation that provides that
in the case of ambiguity or uncertainty a provision should be construed against
the draftsman will be applied against any party hereto.  The
provisions of this Agreement shall be construed according to their fair meaning
and neither for nor against any party hereto irrespective of which party caused
such provisions to be drafted.  Each of the parties acknowledges that
it has been represented by legal counsel in connection with the preparation and
execution of this Agreement.

     

    [Remainder
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    IN WITNESS WHEREOF, the
parties hereto have executed this Limited Partnership Unit Purchase Agreement,
on the day and year first above written.

     

    
      
        
          
            
              	 
      	
                      MDC
      PARTNERS INC.

                    
	 	 	 	 
	 
      	 
      	
                      Per:

                    	
                      /s/
      Mitchell Gendel

                    
	 
      	 
      	 
      	
                      Name:    Mitchell
      Gendel

                    
	 
      	 
      	 
      	
                      Title:      General
      Counsel

                    

            

          

        

      

    

    

    
      
        
          
            
              	 
      	
                      NEWPORT
      PARTNERS HOLDINGS LP, by its general
      partner NPY GP TRUST, by its
      trustee NEWPORT PARTNERS GP INC.

                    
	 	 	 	 
	 
      	 
      	
                      Per:

                    	
                      /s/
      Adrian Montgomery

                    
	 
      	 
      	 
      	
                      Name:    Adrian
      Montgomery

                    
	 
      	 
      	 
      	
                      Title:      Vice
      President

                    

            

          

        

      

    

    

    
      
        
          
            	 
      	
                    CAP
      C LP HOLDCO INC.

                  
	 	 
	 
      	 
      	
                    Per:

                  	
                    /s/
      Tony Chapman

                  
	 
      	 
      	 
      	
                    Name:    Tony
      Chapman

                  
	 
      	 
      	 
      	
                    Title:      President

                  

          

        

      

    

    

    
      
        
          
            
              	 
      	
                      2265178
      ONTARIO LIMITED

                    
	 	 
	 
      	 
      	
                      Per:

                    	
                      /s/
      Tony Chapman

                    
	 
      	 
      	 
      	
                      Name:    Tony
      Chapman

                    
	 
      	 
      	 
      	
                      Title:      Authorized
      Signatory

                    
	 	 	 	 

            

          

        

      

    

    
    

    
      
        
          	
                  /s/

                	 
      	
                  /s/ Tony Chapman

                
	
                  Witness

                	 
      	
                  Tony
      Chapman

                
	 
      	 
      	 
      
	
                  /s/

                	 
      	
                  /s/ Victoria Calverley

                
	
                  Witness

                	 
      	
                  Victoria
      Calverley

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