Document:

ASSET PURCHASE AGREEMENT

                                       BY

                           DIGITAL CARD SYSTEMS, INC.
                                       AND
                          MARKOW PHOTO PROPERTIES, INC.

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<TABLE>

                                TABLE OF CONTENTS

<C>                                                                                              <C>
1. Definitions ............................................................................      5

2. Basic Transaction ......................................................................     15
         (a)      Purchase and Sale of Assets .............................................     15
         (b)      Assumption of Liabilities ...............................................     15
         (c)      Purchase Price ..........................................................     15
         (d)      Deposit .................................................................     15
         (e)      Lease, Office of Robert Markow ..........................................     16
         (f)      Employment Agreement of Paul Taylor .....................................     16
         (g)      The Closing .............................................................     16
         (h)      Deliveries at Closing ...................................................     18
         (i)      Capital Equipment Closing ...............................................     19
         (j)      Allocation ..............................................................     19

3. Representations and Warranties of the Seller ...........................................     19
         (a)      Organization of Seller ..................................................     19
         (b)      Authorization of Transaction ............................................     19
         (c)      Noncontravention ........................................................     20
         (d)      Broker's Fees ...........................................................     20
         (e)      Title to an Possession of Acquired Assets ...............................     20
         (f)      Liens and Adverse Agreements ............................................     20
         (g)      Financial Statements ....................................................     20
         (h)      Absence of Certain Adverse Events .......................................     21
         (i)      Undisclosed Liabilities .................................................     22
         (j)      Legal Compliance ........................................................     22
         (k)      Tax Matters .............................................................     22
         (l)      Intellectual Property ...................................................     23
         (m)      Tangible Assets .........................................................     24
         (n)      Inventory ...............................................................     24
         (o)      Contracts ...............................................................     25
         (p)      Insurance ...............................................................     25
         (q)      Litigation ..............................................................     26
         (r)      Product Warranty ........................................................     26
         (s)      Product Liability .......................................................     26
         (t)      Employees and Labor Matters .............................................     27
         (u)      Employee Benefits .......................................................     28
         (v)      Disclosure ..............................................................     28
         (w)      Warranties Survive Closing ..............................................     28
         (x)      Environmental Matters ...................................................     29
         (y)      Solvency ................................................................     30

</TABLE>

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<TABLE>

<C>                                                                                             <C>
4. Representations and Warranties of the Buyer ............................................     31
         (a)      Organizations of the Buyer ..............................................     31
         (b)      Authorization of Transactions ...........................................     31
         (c)      Noncontravention ........................................................     31
         (d)      Broker's Fees ...........................................................     31
         (e)      Capital Resources .......................................................     32
         (f)      Warranties Survive Closing ..............................................     32

5. Convenants and Agreements of the Parties ...............................................     32
         (a)      General .................................................................     32
         (b)      Assignment, Benefits, and Performance of Accepted Contracts .............     32
         (c)      Payment of Expenses .....................................................     33
         (d)      Convenant Not to Compete ................................................     33
         (e)      Employee Matters ........................................................     33
         (f)      Real Estate Lease .......................................................     34
         (g)      Due Diligence ...........................................................     34
         (h)      Accounts Receivable and Accounts Payable ................................     34
         (i)      PRO .....................................................................     34
         (j)      Adjustments at Closing ..................................................     35
         (k)      Best Efforts ............................................................     35

6. Conditions to Obligation to Close ......................................................     35
         (a)      Conditions to Obligation of the Buyer ...................................     35
         (b)      Conditions to Obligation of the Seller ..................................     36

7. Termination ............................................................................     36
         (a)      Termination of Agreement ................................................     36

         (b)      Effect of Termination ...................................................     37

8. Indemnification ........................................................................     37
         (a)      Indemnification  Provisions for Benefit of the  Buyer ...................     37
         (b)      Indemnification Provisions for Benefit of the Seller ....................     38
         (c)      Matters Involving Third Parties .........................................     39

         (d)      Limitation on Liability .................................................     40
         (e)      Consequential and Other Damages .........................................     40

9. Resolution of Disputes, Binding Arbitration ............................................     40

</TABLE>

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<TABLE>

<C>                                                                                             <C>
10. Miscellaneous .........................................................................     41
         (a)      Press Releases and Public Announcements .................................     41
         (b)      No Third Party Beneficiaries ............................................     41
         (c)      Entire Agreement.........................................................     41
         (d)      Succession and Assignment ...............................................     41
         (e)      Counterparts ............................................................     41
         (f)      Headings ................................................................     42
         (g)      Notices .................................................................     42
         (h)      Governing Law ...........................................................     43
         (i)      Amendments and Waivers ..................................................     43
         (j)      Severability ............................................................     43
         (k)      Construction ............................................................     43
         (l)      Incorporation of Exhibits and Schedules .................................     44
         (m)      Specific Performance ....................................................     44

</TABLE>

Exhibits

Exhibit A         Real Estate Lease
Exhibit B         Taylor Employment Agreement
Exhibit C         Consignment Agreement
Exhibit D         Liabilities to be Assumed
Exhibit E         Tradenames
Exhibit F         Insurance Policies
Exhibit G         Product Warranty
Exhibit H         Employee Benefits
Exhibit I         Allocation
Exhibit J         Other Disclosures
Exhibit K         Capital Equipment

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                            ASSET PURCHASE AGREEMENT

         THIS ASSET PURCHASE AGREEMENT ("Agreement") is made and entered into on
June 5, 2006, by and among:

MARKOW PHOTO PROPERTIES,  INC., an Arizona corporation (the "Seller") and ROBERT
MARKOW  ("PRINCIPAL  STOCKHOLDER"),  BEATRICE MARKOW,  MARKOW FAMILY TRUST, PAUL
MARKOW, AND PAUL TAYLOR (collectively the "Stockholders");

                                      -AND-

         DIGITAL CARD SYSTEMS,  INC.  ("DCS"),  a Delaware  corporation,  or its
nominee (collectively, the "Buyer").

The Seller and the Buyer are referred to collectively herein as the "Parties."

         This  Agreement  contemplates  a  transaction  in which the Buyer  will
purchase,  in exchange for cash,  all of the  "Acquired  Assets" and assume only
certain "Assumed  Liabilities" of the "Seller's  Business" (as those capitalized
terms are hereinafter defined).

         Now,  therefore,  in  consideration  of the  promises  and  the  mutual
promises herein made, and in consideration of the  representations,  warranties,
and covenants herein contained, the Parties agree as follows.

1.  DEFINITIONS.  In  addition to other terms  defined  herein,  as used in this
Agreement the following terms shall have the meanings defined below.

         1.1 "Acquired  Assets" means all of the tangible and intangible  assets
and  properties,  real,  personal and mixed  (other than the  Excluded  Assets),
wherever located, which are owned, leased or otherwise used by the Seller or any
Affiliate of the Seller as at the Closing  Date and which are used,  in whole or
in part, in connection with the operations of the Seller's Business,  including,
without limitation, the following:

            (a) all  common law rights  Seller  may have in the  trademarks  and
trade  names  Al-Cor/Photomark",   "Photomark",   "Photomark  Camera  &  Video",
"Colormark"  and "Colormark  Imaging Lab", "5 Star Imaging",  "Photo  Concepts",
"Al-Cor  NPM",  and any other  trade  name  relating  to,  associated  with,  or
otherwise  used in  connection  with the  operations  of the Seller's  Business,
including, without limitation, all licenses and sublicenses granted and obtained
with respect thereto, and rights thereunder (including,  without limitation, all
rights of assignment); all remedies against infringements thereof, and rights to
protection of interests therein under the laws of all jurisdictions  ("Tradename
Rights");

            (b) all cameras,  photographic  and digital  development  equipment,
photo finishing equipment,  computer hardware,  software,  servers, modems, data
processing  equipment,  printers,  tools,  molds,  dyes,  spare parts,  material
handling  equipment,  supplies,  manufactured  and purchased  parts,  furniture,
fixtures,  furnishings,  office  equipment and other items of similar  character
used in the Seller's  Business,  and other related  items of personal  property;
including  computers  that are  owned or  leased  by the  Seller  for use in the
Seller's Business (the "Personal Property");

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            (c) all  transferable  computer  programs,  software,  customer  and
vendor lists,  including  without  limitation,  those  associated  with Seller's
Business,  billing and materials records and other written and computer data and
information related to the Seller's Business, including, without limitation, the
economic  resource and  planning  systems and  computer  systems  (collectively,
"Business Data");

            (d) all inventories of raw materials, work in progress, and finished
goods and  packaging  materials,  including,  without  limitation,  photographic
equipment and supplies,  plastic cards, plastic laminate,  cameras, printers and
software as at the Closing  Date  relating to the Seller's  Business,  including
inventories  located in both  Phoenix  and Las Vegas,  as well as  inventory  in
transit (the "Inventory");

            (e) all transferable  leases and subleases to the Personal Property,
and rights thereunder, relating to the Seller's Business (the "Leases");

            (f)  all  transferable  rights  and  benefits   including,   without
limitation, all rights to receive payment for products sold or services rendered
following  the Closing  Date and to assert  Claims  (and to take other  rightful
actions  in  respect  of  breaches,  defaults  and other  violations)  under all
agreements,  contracts,  contract rights,  purchase orders,  sales orders, sales
agreements,   supply  agreements,   licenses,  dealer  agreements,   distributor
agreements,  and other agreements  (whether written or oral) to which the Seller
or any of its  Affiliates  is a party and which relate to the Seller's  Business
and commerce stream (collectively,  the "Contracts");  it being agreed that: (i)
all Contracts that have been entered into in the Ordinary Course of the Seller's
Business and (except as otherwise  agreed in writing by Buyer) have been entered
into upon arm's length terms and conditions  with Persons who are not Affiliates
of the Seller shall be deemed to be an "Accepted Contract" (as defined in ss.1.2
below) and included in the Acquired Assets;  and (ii) unless otherwise agreed by
the  Buyer,  it shall not be  obligated  to assume any  Contract  that is not an
Accepted Contract (a "Rejected Contract").

            (g)  all  supplies,   packaging   materials,   marketing  and  sales
literature,  advertising materials,  catalogues,  consumable materials and other
items of  similar  character  used in the  operation  of the  Seller's  Business
(collectively, "Consumables");

            (h) to the extent such items are not related to the Excluded  Assets
or Excluded Liabilities, all claims, deposits,  prepayments,  refunds, causes of
action, demands, rights of recovery, rights of set off, and rights of recoupment
relating to the Seller's Business (collectively,  "Claims"),  including any such
Claim  relating  to  Tradename  Rights   infringement,   rights  under  Accepted
Contracts,  Claims against  vendors or suppliers,  and other rights or Claims in
respect of the Acquired Assets of any nature  whatsoever,  whether being pursued
by or otherwise available to the Seller with respect to the Seller's Business;

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            (i) to the extent  their  transfer is permitted by Law (as that term
is defined in ss.3(j)  below) and by the  applicable  "Governmental  Permit" (as
defined below),  all franchises,  approvals,  permits,  licenses,  applications,
orders,  registrations,   certificates,  variances,  product  registrations  and
similar rights  obtained from  governments and  governmental  agencies which are
used in the  operation  of the  Seller's  Business  and which  are  transferable
(collectively,  the "Governmental  Permits"), and to the extent permitted by Law
and the  applicable  Governmental  Permit,  the  benefits  of such  Governmental
Permits;

            (j) all books and records  (excluding  corporate books and records),
manuals,  ledgers,  files,  documents,  correspondence,   lists,  drawings,  and
specifications,  creative  materials,  advertising,  marketing  and  promotional
materials,  studies,  reports,  and other  printed or written  materials  of the
Seller's  Business,  including without  limitation,  all vendor lists,  customer
lists and contact details, sales,  manufacturing and customer records,  purchase
records, price lists,  correspondence,  quality control records and all research
and development files (the "Records");

            (k) to the extent such items are not related to the Excluded  Assets
or Excluded  Liabilities,  all guarantees,  warranties,  indemnities and similar
rights in favor of the  Seller  with  respect  to any  Acquired  Asset,  and all
claims,  deposits,  unemployment  compensation  account  balances  of the Seller
related to the Seller's Business to the extent transferable;  provided, that the
Buyer shall be  responsible  for the payment of any  deductibles  required to be
paid  following  the Closing  Date in  connection  with the exercise of any such
rights;

            (l) to the extent  their  transfer is  permitted  by Law, all of the
Seller's  rights in, to and under any Accepted  Contract  with any  consultants,
agents,  representatives,  customers,  suppliers,  vendors or otherwise,  of the
Seller  relating  solely to the  Seller's  Business  regarding  non-competition,
non-solicitation  and/or confidentiality of trade secrets,  proprietary or other
information;

            (m) any and all other  rights and assets owned by the Seller or used
by the Seller in the  operation of the Seller's  Business,  including all of the
rights of the  Seller  to  conduct  the  Seller's  Business  as it exists at the
Closing,  including  the right to pursue  orders  resulting  from  quotations to
customers outstanding at the Closing, but excluding the Excluded Assets;

            (n) the 51% equity interest that Seller owns in Al-Cor NPM.

            (o) the goodwill of the Seller's  Business as a going  concern as of
the Closing Date ("Goodwill").

         1.2 "Accepted Contracts" means any and all of the Contracts relating to
the  Seller's  Business as at the Closing Date that has been entered into by the
Seller in the  Ordinary  Course of the Seller's  Business and (unless  otherwise
agreed in writing by Buyer) upon arm's length terms and conditions  with Persons
who are not Affiliates of the Seller.

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         1.3  "Acquisition  Documents"  means the  collective  reference to this
Agreement as duly executed,  the Transfer  Instruments and the Exhibits  annexed
hereto, all as approved by the Parties.

         1.4 "Adverse  Consequences" has the meaning as is defined in ss.8(a) of
this Agreement.

         1.5  "Affiliate"  means:  (a) with  respect to the  Seller,  any Person
(including,  without limitation,  any creditor,  shareholder,  employee,  agent,
consultant,   manager  or  director),   directly  or  indirectly,   controlling,
controlled  by  or  under  common   control  with  the  Seller  or  any  of  its
"Affiliates;"  it being  understood and agreed that each of the Stockholders and
Al-Cor/Photomark,  Photomark  Camera & Video and  Colormark  Imaging Lab, 5 Star
Imaging,  Photo Concepts,  and Al-Cor NPM, whether  corporations,  partnerships,
sole  proprietorships  or  divisions  of the Seller,  is hereby  deemed to be an
Affiliate  of the Seller;  and (b) with respect to the Buyer or any other Person
(including,  without limitation,  any creditor,  shareholder,  employee,  agent,
consultant,   manager  or  director),   directly  or  indirectly,   controlling,
controlled by or under common control with the Buyer or any of its "Affiliates".

         1.6  "Assumed   Liabilities"   shall  mean  only  the  liabilities  and
obligations  of the Buyer  arising  from and after the  Closing  Date  under (a)
Assumed  Contracts,  (b) in  respect  of  the  Real  Estate  Lease,  and  (c) in
connection  with the conduct of the  Seller's  Business for all periods from and
after the Closing Date; it being  understood  and agreed that the terms "Assumed
Liabilities"  shall not mean or include any  liabilities or obligations  arising
out of any events,  actions or inaction  that  occurred at any time prior to the
Closing Date.

         1.7 "Best Efforts" means the efforts that a prudent Person  desirous of
achieving a result would use in similar  circumstances to achieve that result as
expeditiously as possible, provided, however, that a Person required to use Best
Efforts under this Agreement  will not be thereby  required to take actions that
would result in a material adverse change in the benefits to such Person of this
Agreement and the contemplated  Transactions or to dispose of or make any change
to its business, expend any material funds or incur any other material burden.

         1.8  "Business"  or  "Seller's   Business"   means  the  individual  or
collective reference to the distribution of identification  products, the retail
and  wholesale  distribution  of  both  conventional  and  digital  photographic
equipment and the  development and processing of both  conventional  and digital
film.

         1.9 "Buyer" has the meaning set forth in the preface above.

         1.10  "Cash"  means  cash and cash  equivalents  (including  marketable
securities and short term investments).

         1.11 "Closing" has the meaning set forth in ss.2(g) below.

         1.12 "Closing Date" has the meaning set forth in ss.2(g) below.

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         1.13 "Exhibit" has the meaning set forth in ss.3 below.

         1.14  "Employee  Benefit Plan" means any (a) deferred  compensation  or
retirement  plan or  arrangement,  (b) defined  contribution  retirement plan or
arrangement  which is an Employee  Pension  Benefit Plan, (c) qualified  defined
benefit retirement plan or arrangement which is an Employee Pension Benefit Plan
(including any  Multiemployer  Plan),  or (d) Employee  Welfare  Benefit Plan or
material fringe benefit or other retirement, bonus, or incentive plan or program
which is listed or otherwise described in Exhibit H and, in each case, only with
respect to employees of the Seller's Business.

         1.15  "Employee  Pension  Benefit  Plan" means any employee  pension or
retirement  plan currently  existing for employees of the Seller or the Seller's
Business under applicable Laws which is listed or otherwise described in Exhibit
H.

         1.16  "Employee  Welfare  Benefit  Plan" means any  medical,  dental or
related  health  plan  currently  existing  for  employees  of the Seller or the
Seller's  Business under applicable Laws which is listed or otherwise  described
in Exhibit H.

         1.17  "Environmental,  Health and Safety Laws" shall mean all statutes,
regulations,  ordinances and other provisions having the force or effect of law,
all judicial  and  administrative  orders and  determinations,  all  contractual
obligations,  including  responsible  parties pay private parties,  or groups of
them,  for  damages  done to  their  health  or the  environment  or  permitting
self-appointed  representatives  of the public  interest to recover for injuries
done to public assets,  and all common law concerning  public health and safety,
worker  health and safety,  and  pollution  or  protection  of the  environment,
including,  without  limitation,  all  those  relating  to  the  presence,  use,
production, generation, handling, transportation,  treatment, storage, disposal,
distribution,  labeling,  testing,  processing,  discharge,  release, threatened
release,  control, or cleanup of any chemical,  compound,  product,  solid, gas,
liquid, waste, byproduct, material, pollutant or contaminant which is hazardous,
toxic or otherwise harmful to health, safety, natural resources, wildlife or the
environment,  including, without limitation,  asbestos (whether friable or not),
PCB's,  radon and urea,  formaldehyde  foam,  petroleum and petroleum  products,
radiation,  or other  hazardous  waste,  which is included  or defined  under or
regulated by any environmental  laws, each as amended and as now or hereafter in
effect (collectively, "Hazardous Substances").

         1.18 "Excluded Assets" shall mean and be limited to:

            (a)  all  Cash  and  cash  equivalents  of  Seller  or the  Seller's
Business;

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            (b) all real property located in Phoenix,  Arizona or elsewhere that
is  owned  or  leased  and  used in the  operations  of the  Seller's  Business,
including  all  leasehold   interests  and   subleasehold   interests   therein,
improvements,  fixtures, and fittings thereon, and easements, rights-of-way, and
other appurtenants  thereto, such as appurtenant rights in and to public streets
(individually or collectively,  the "Real Estate"), provided, however, that from
and after the Closing Date, the Buyer shall be entitled to lease the Real Estate
pursuant to the Real Estate Lease;

            (c) all Accounts Receivable;

            (d) all rights under any Contract which becomes a Rejected Contract;

            (e) all investments by the Seller in any of their Affiliates,  other
than the Seller's Business; and

            (f) the corporate  charter,  qualifications to conduct business as a
foreign  corporation,  arrangements  with registered  agents relating to foreign
qualifications,  taxpayer and other identification numbers, seals, minute books,
stock transfer books, blank stock certificates,  and other documents relating to
the organization,  maintenance, and existence of the Seller or any Subsidiary of
the Seller as a corporation.

            (g) the camera museum of Robert Markow ("Camera Museum")

            (h) the historical negatives from the photography business of Robert
Markow stored in the Mosler safe ("Historic Negatives")

         1.19 "Excluded  Liabilities"  means all  Liabilities and obligations of
every kind and  description  of the Seller or any Affiliate or Subsidiary of the
Seller  (including  the Seller's  Business)  which are not Assumed  Liabilities.
Without  limiting the  generality of the  foregoing,  such Excluded  Liabilities
shall include:

            (a) any and all accounts payable, or other obligations of the Seller
or the  Seller's  Business  to  suppliers,  vendors or other  Persons  that have
supplied  goods,  products or services to the Seller's  Business for all periods
through and including the Closing or otherwise  under any Contracts that are not
Accepted Contracts;

            (b) any and all Liabilities under any Employee Welfare Benefit Plan,
or any and all accrued  vacation  pay,  sick leave or related  employee  benefit
Liabilities owed to any employees of the Seller or the Seller's Business;

            (c) any and all  Liabilities  under  any  Employee  Benefit  Plan or
Employee Pension Benefit Plan, or any and all accrued profit sharing, pension or
related  Liabilities  payable to any  employees  of the  Seller or the  Seller's
Business;

            (d) any and all payroll, employment, occupation, withholding, social
security (or similar)  unemployment  Taxes relating to employees of the Seller's
Business as at the Closing;

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            (e) any Employee  Benefit  Plan,  Employee  Pension  Benefit Plan or
Employee  Welfare  Benefit Plan of the Seller,  or any and all  severance pay or
related severance  Liability  payable to employees,  any accrued profit sharing,
bonus or severance  obligations,  or other  Liabilities or expenses which are or
may be owed to any  employees of the Seller or the  Seller's  Business as at the
Closing Date, whether or not such employees become Hired Employees;

            (f) any intercompany accounts or notes payable,  accrued expenses or
other  Liabilities or obligations  to Seller or any of Seller'  Subsidiaries  or
Affiliates;

            (g)  any  Liabilities  or  obligations  of the  Seller  representing
indebtedness for money borrowed or as the deferred purchase price for any assets
or properties (including  capitalized lease obligations),  whether payable under
any notes or indentures or otherwise  (collectively,  "Indebtedness"),  with the
exception  that the Buyer shall  accept the  liabilities  related to the company
machinery and equipment as set forth in Exhibit D;.

            (h) any and all  accrued  expenses  or other  accruals  which  would
constitute a Liability of the Seller or the Seller's  Business as at the Closing
Date;

            (i) any Liability or obligation  under any Contract,  lease or other
agreement that is a Rejected Contract or not otherwise  included in the Acquired
Assets;

            (j) any Liability  for Taxes,  or any Liability for the unpaid Taxes
of the Seller, their Subsidiaries and Affiliates and the Seller's Business as at
the Closing Date under any Laws or any similar provision, whether directly, as a
transferee or successor, by contract, or otherwise;

            (k) any Liability (whether as a transferee or successor, by contract
or otherwise) arising out of events,  acts or omissions relating to the Seller's
Business,  the Seller or any of their Affiliates which occurred on or before the
Closing Date, for (i)  infringement of any patent,  patent  application or other
Intellectual  Property,  (ii) violation of any Employee  Benefit Plan,  Employee
Pension  Benefit  Plan or Employee  Welfare  Plan in existence as at the Closing
Date, or (iii) violation of any Laws (as hereinafter defined) including, without
limitation,  any Environmental,  Health and Safety Laws (irrespective of whether
or not  such  Liability  or  Claims  are  disclosed  on the  schedules  of  this
Agreement);

            (l) any Liability or  obligation to indemnify any Person  (including
the  Seller'  Inventoryholders)  by reason of the fact  that such  Person  was a
director,  officer, employee, or agent of the Seller and its Subsidiaries or was
serving at the  request  of any such  entity as a  partner,  trustee,  director,
officer,  employee,  or agent of another entity (whether such indemnification is
for judgments,  damages,  penalties,  fines, costs,  amounts paid in settlement,
losses,  expenses,  or otherwise and whether such indemnification is pursuant to
any statute, charter document, bylaw, agreement, or otherwise);

            (m) any Liability or obligation of the Seller or their Affiliates to
pay any  creditors,  avoidance  claims  or other  amounts,  costs  and  expenses
required to be paid in connection  with the  liquidation,  dissolution  or other
termination of the business  operations of the Seller,  or any of them following
the Closing Date (collectively, "Liquidation Obligations");

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            (n) any  Liability or obligation of the Seller (i) in respect of any
or all of the Excluded Liabilities, (ii) under this Agreement or (iii) under any
Transfer  Instrument,  Assumption  Instrument or other  certificate or agreement
with  Buyer  or any  third  Party  entered  into on or  after  the  date of this
Agreement which are not one of the Assumed Liabilities;

            (o) any Liability arising out of any Proceeding  commenced after the
Closing Date and arising out of or relating to any occurrence or event happening
prior to the Closing Date;

         1.20 "Financial Statement" has the meaning set forth in ss.3(g) below.

         1.21  "GAAP"  means  generally  accepted   accounting   principles  for
financial reporting in the United States, applied on a basis consistent with the
basis on which the financial statements referred to in ss.3(g) herein.

         1.22 "Governmental Body" any:

            (a) nation, state, county, city, town, borough, village, district or
other jurisdiction;

            (b) federal, state, local, municipal, foreign or other government;

            (c)  governmental  or  quasi-governmental  authority  of any  nature
(including any agency, branch, department, board, commission, court, tribunal or
other entity exercising governmental or quasi-governmental powers);

            (d) multinational organization or body;

            (e) body  exercising,  or entitled or  purporting  to exercise,  any
administrative,  executive, judicial, legislative,  police, regulatory or taxing
authority or power; or

            (f) official of any of the foregoing

         1.23  "Knowledge"  means an individual will be deemed to have Knowledge
of a particular  fact or other matter if: (a) that  individual is actually aware
of that  fact or  matter;  or (b) a  prudent  individual  could be  expected  to
discover  or  otherwise  become  aware of that fact or  matter in the  course of
conducting a reasonably  comprehensive  investigation  regarding the accuracy of
any representation or warranty contained in this Agreement.

         A Person (other than an individual) will be deemed to have Knowledge of
a particular  fact or other matter if any individual who is serving,  or who has
at any time served, as a director, officer, partner, executor or trustee of that
Person (or in any similar  capacity) has, or at any time had,  Knowledge of that
fact  or  other  matter  (as set  forth  in (a) and  (b)  above),  and any  such
individual  (and any individual  party to this Agreement) will be deemed to have
conducted a reasonably comprehensive investigation regarding the accuracy of the
representations and warranties made herein by that Person or individual.

                                       12
<PAGE>

         1.24 "Liability" means any liability (whether known or unknown, whether
asserted or  unasserted,  whether  absolute or  contingent,  whether  accrued or
unaccrued,  whether  liquidated  or  unliquidated,  and whether due or to become
due), including any liability for Taxes.

         1.25 "Lien" means any  mortgage,  community or other  marital  property
interest, condition, right of way, easement,  encroachment,  servitude, right of
first  option,  right of first  refusal or similar  restriction,  including  any
restriction  on use,  voting (in the case of any  security or equity  interest),
transfer,  receipt of income or exercise of any other  attribute  of  ownership,
equitable interest, option, deed, pledge, lien, security interest,  encumbrance,
charge,  or other  claim or  interest  of any kind or nature,  whether  known or
unknown.

         1.26 "Material  Adverse  Effect" means any event or condition  which is
likely to have a material adverse effect on the Seller or the Seller's Business,
financial  condition or results of  operations of the Seller and/or the Seller's
Business, when taken as a consolidated or combined whole.

         1.27 "Most Recent  Balance  Sheet" means the balance  sheet dated as at
October 31, 2005, contained within the Most Recent Financial Statements.

         1.28 "Most Recent  Financial  Statements"  has the meaning set forth in
ss.3(g) below.

         1.29 "Ordinary  Course of Business" an action taken by a Person will be
deemed to have  been  taken in the  Ordinary  Course  of  Business  only if that
action:

            (a) is  consistent  in  nature,  scope and  magnitude  with the past
practices  of such  Person and is taken in the  ordinary  course of the  normal,
day-to-day operations of such Person;

            (b) does not  require  authorization  by the board of  directors  or
shareholders  of such  Person (or by any  Person or group of Persons  exercising
similar   authority)  and  does  not  require  any  other  separate  or  special
authorization of any nature; and

            (c) is similar in nature, scope and magnitude to actions customarily
taken, without any separate or special authorization,  in the ordinary course of
the normal,  day-to-day operations of other Persons that are in the same line of
business as such Person.

         1.30 "Party" has the meaning set forth in the preface above.

         1.31  "Permitted  Liens" means and is limited to: (i) Liens  arising by
operation  of law,  (ii)  Liens  for  current  Taxes  not yet due,  (iii)  items
constituting  part of the Acquired Assets which are leased by the Seller, or the
Seller's Business or any Affiliate of the Seller, or (iv)  materialman's  Liens,
mechanics  Liens  or  statutory  Liens  that  are  not,  individually  or in the
aggregate, material to the Acquired Assets or the Seller's Business.

                                       13
<PAGE>

         1.32 "Person" means, without limitation,  an individual, a partnership,
a corporation,  an association, a joint stock company, a trust, a joint venture,
an  unincorporated  organization,  or a governmental  entity (or any department,
agency, or political subdivision thereof).

         1.33  "Proceeding"  means  any  action,  arbitration,  audit,  hearing,
investigation,  litigaton  or suit  (whether  civil,  criminal,  administrative,
judicial  or  investigative,  whether  formal  or  informal,  whether  public or
private)  commenced,  brought,  conducted  or heard by or before,  or  otherwise
involving, any Governmental Body or arbitrator.

         1.34     "Purchase Price" has the meaning set forth in ss.2(c) below.

         1.35 "Real Estate" shall mean the real estate and improvements  located
at and adjacent to 2222 East McDowell Road,  Phoenix,  Arizona 85006, as further
defined in the real estate lease.

         1.36 "Real  Estate  Lease" shall mean the lease  agreement  between the
Buyer and the  Principal  Stockholder  or his  Affiliate  to be  executed on the
Closing Date, pursuant to which the Buyer shall lease the Real Estate for a five
year period  from the Closing  Date  (subject  to one  additional  five (5) year
renewal term at the option of the Buyer),  all in  accordance  with the terms of
the lease  agreement  in the form of  EXHIBIT A annexed  hereto  and made a part
hereof.

         1.37 "ss." or "Section"  means any of the sections  referred to in this
Agreement or in the Exhibits.

         1.38 "Seller" has the meaning set forth in the preface above.

         1.39  "Subsidiary"  means  any  corporation  with  respect  to  which a
specified  Person (or a Subsidiary  thereof) owns a majority of the common stock
or has the power to vote or direct the voting of sufficient  securities to elect
a majority of the directors.

         1.40 "Tax" means any federal,  state,  local, or foreign income,  value
added tax, capital gains, gross receipts, license, payroll, employment,  excise,
severance, stamp, occupation, premium, windfall profits, environmental,  customs
duties, capital Inventory,  franchise, profits, withholding, social security (or
similar),  unemployment,  disability,  real property,  personal property, sales,
use,  transfer,  registration,  value  added,  alternative  or  add-on  minimum,
estimated, or other tax of any kind whatsoever, including any interest, penalty,
or addition thereto, whether disputed or not, including any liability of another
Party  for  any of the  foregoing,  payable  pursuant  to a  tax-sharing  or tax
indemnification agreement.

         1.41  "Transfer  Instruments"  means those  documents  and  instruments
referred to in Section 2(f) below, including bills of sale, quit claim deeds and
other  instruments  of  transfer,  to be executed  and  delivered by the Parties
following the Closing Date (in form and content  satisfactory to counsel to each
of the Parties) pursuant to which:

                                       14
<PAGE>

            (a) the  Acquired  Assets  shall  be  transferred,  conveyed  and/or
assigned to the Buyer, as necessary to enable the Buyer to own and hold good and
marketable  title  to the  Assets,  free  and  clear of all  Liens,  other  than
Permitted Liens; and

            (b) the Buyer shall assume,  by such instruments of assumption,  all
of the Assumed Liabilities.

         1.42 "WARN Act" as defined in Section 3(u) herein.

2. BASIC TRANSACTION.

         (a) Purchase and Sale of Acquired  Assets.  On the terms and subject to
the  conditions  of this  Agreement,  at the  Closing,  but  effective as of the
Closing  Date,  the Buyer  agrees to purchase  from the  Seller,  and the Seller
hereby jointly and severally agrees to sell,  transfer,  convey,  and deliver to
the Buyer,  free and clear of any Liens,  other than Permitted Liens, all of the
right,  title,  and interest of the Seller in and to all of the Acquired Assets,
as  the  same  are  constituted  on  the  Closing  Date,  in  exchange  for  the
consideration  specified  below in this ss.2.  The Buyer  shall not  purchase or
acquire at the Closing or otherwise any of the Excluded Assets.

         (b) Assumption of Liabilities.  On the Closing Date, Buyer shall assume
and agree to discharge  only those specific  Assumed  Liabilities of Seller that
are described in Section 1.6 above.

         (c) Purchase Price.  Subject to all of the terms and conditions of this
Agreement,  at Closing,  the Buyer shall pay to the Seller,  a purchase price of
Five Hundred Ninety One Thousand  Dollars  ($591,000) for the capital  equipment
and other business assets (the "Equipment Payment"),  and a payment equal to the
value of the inventory (the "Inventory Payment"),  (payments  collectively,  the
"Purchase  Price").  The Purchase Price for the Acquired Assets shall be payable
on,  or  before,  the  Closing  Date in Cash by  wire  transfer  of  immediately
available funds.  The Inventory  Payment shall be equal to the book value of the
Seller's inventory acquired by the Purchaser as determined in accordance with an
audit and counting of the physical inventory, as of the close of business on the
Closing Date. Values presented in the inventory listing of January 31, 2006 were
shown to be approximately $1,000,000.  Parties agree that inventory in excess of
one year shall remain the property of the Seller,  but will be marketed by Buyer
on a consignment arrangement as set forth in Exhibit C. Inventory to be acquired
shall  include  certain  demonstration  equipment  over one year old that  shall
become  the  property  of the  Buyer.  Parties  agree  that  certain  Inventory,
including  that which is in transit,  or that which is not otherwise  able to be
counted as of the Closing Date,  shall be later counted and shall be paid for by
the Buyer in a timely manner following Closing.

                                       15
<PAGE>

         (d) Deposit.  Buyer agrees to deliver a Fifty Thousand Dollar ($50,000)
deposit  with  the   execution  of  this   Agreement.   This  deposit  shall  be
non-refundable  so long as the  Seller  has  satisfied  the  conditions  of this
paragraph. This deposit shall be applied to the Purchase Price at Closing, or to
the Equipment  Payment  should that occur prior to Closing.  If the Closing does
not occur by the Outside  Closing  Date,  and the Seller has acted in good faith
relative to closing  matters,  including  conducting and completing an inventory
audit  witnessed by the Buyer during the weekend of June 3 and June 4, 2006, the
Seller shall be entitled to retain the deposit.  Should the inventory  audit, by
the Seller's  decision,  be delayed  beyond the Outside  Closing Date,  then the
Buyer shall have three days following the  completion of the inventory  audit to
close the  Agreement,  and apply the deposit to the Purchase  Price.  Should the
Seller  elect not to complete the  inventory  audit,  then the deposit  shall be
refundable, unless previously applied to the Equipment Payment.

         (e) Lease, Office of Robert Markow,  Special Provisions.  Seller agrees
to make continued use of its real estate  facility  available for the Buyer,  as
set forth in Exhibit A.

         Buyer also  agrees to  maintain  an office in the  facility  during the
initial term of the Lease for Robert Markow, with the agreement that he shall be
invited  to remain an  adviser  to the Buyer,  on such  terms,  conditions,  and
schedule as may be acceptable to Mr. Markow.  Parties agree that initially there
shall be no specific  performance  conditions  associated with this office,  and
there shall be no compensation to Mr. Markow apart from the lease payments,  and
the  assumption of ordinary  office  expenses by the Buyer,  unless the Parties,
separate from this Agreement, negotiate otherwise.

         The Parties  also agree that the Mr.  Markow shall be entitled to house
his Camera Museum and the Historic Negatives at their present  locations,  at no
cost, during the initial term of the Lease.

         The  Parties  also agree that  Markow  Southwest  shall be  entitled to
continue to store its negatives in the Mosler safe during the term of the Lease,
and shall be entitled to access the Mosler safe during normal business hours.

         The  execution  of the  Lease  shall be a  condition  precedent  to the
closing of the Asset Purchase Agreement.

         (f)  Employment  Agreement  of Paul  Taylor.  Buyer shall enter into an
employment  agreement  with Paul Taylor as set forth in Exhibit B. The execution
of Taylor's  Employment  Agreement shall be a condition precedent to the closing
of the Asset Purchase Agreement.

         (g)  Closing.  The  closing of the  transactions  contemplated  by this
Agreement  (the  "Closing")  shall take place  commencing on June 5, 2006, or as
soon thereafter as is practicable,  following the  satisfaction or waiver of all
conditions  to the  obligations  of the Parties to consummate  the  transactions
contemplated   hereby  (other  than  conditions  with  respect  to  actions  the
respective  Parties shall take at the Closing  itself) or such other date as the
Parties may mutually determine (the "Closing Date"). In any event, Closing shall
occur on the morning after the counting of the inventory, and the Purchase Price
to be distributed to the Seller on that date.

         At  Closing,  the Lease and  Taylor's  Employment  Agreements  shall be
executed.

         Closing  shall be subject to the  provisions  of the Capital  Equipment
Closing referenced below in this ss.2.

                                       16
<PAGE>

                  (i) The  Parties  hereto do agree that time is of the  essence
and,  unless  extended  by mutual  written  agreement  of Seller and Buyer,  the
closing  deliveries set forth in Section 2(h) below, the payment of the Purchase
Price in accordance with Section 2(c) above, and the sale of the Acquired Assets
to Buyer and other  transactions  contemplated  hereby,  shall all take place no
later that the close of business (Phoenix, Arizona, P.S.T.) on June 5, 2006 (the
"Outside Closing Date");  failing which either (i) the Seller may terminate this
Agreement  without any further  liability or  obligation  to the Buyer,  or (ii)
Buyer may terminate this Agreement  without any further  liability or obligation
to the Seller,  except  that the Seller  shall be entitled to retain the $50,000
deposit, subject to the provisions of Section 2(d).

                  (ii) To  facilitate  the Closing,  the Parties agree that this
executed  Agreement  may be  delivered  to  each  of the  Parties  by  facsimile
transmission, and that the ribbon originals of this Agreement, together with the
other Transfer  Instruments  contemplated  hereby,  shall be delivered  promptly
after the Closing by Fedex or other overnight or express mail deliveries.

                  (iii) All documents to be delivered at Closing and  thereafter
to and on behalf of the Buyer shall be delivered by the Seller to:

DCS Card Systems, Inc.:

                  6 Strawberry Hill Road
                  Acton, Massachusetts 01720
                  Attn; Charles Benz, CEO
                  Tel: (508) 574-4390
                  Fax: (978) 263-2985

         With respect to communications to DCS a copy to:

                  Vincent J. McGill, Esq.
                  Eaton & Van Winkle LLP
                  3 Park Avenue, 16th Flr.
                  New York, NY 10016
                  Tel: (212) 561-3600
                  Fax: (212) 779-9928

                  (iv) All  documents to be delivered at Closing and  thereafter
to and on behalf of the Seller shall be delivered by the Buyer to:

         Barry Becker, P.C.
         2516 North Third Street
         Phoenix, AZ 85004
         Telephone:  (602) 252-1822
         Facsimile:   (602) 256-0070

                                       17
<PAGE>

         (h) Deliveries at the Closing:

                  (i) the  Buyer  will  deliver  in cash,  by wire  transfer  of
immediately  available  funds,  to an account  designated by the Seller the full
Purchase Price;

                  (ii) the Seller shall deliver to the Buyer,  where  practical,
irrevocable and unconditional  release letters from any Affiliate or other third
party  releasing  all Liens or other Claims held by such Persons on the Acquired
Assets and the Seller's Business,  with the exception being the liens associated
with the  machinery  and  equipment  listed  in  Exhibit  D; and where it is not
practical, such releases shall be delivered immediately following Closing;

                  (iii) the  Seller  shall  deliver  to the  Buyer  the  various
certificates, instruments, and documents referred to in ss.6(a) below;

                  (iv) the Seller will execute,  acknowledge  (if  appropriate),
and deliver to the Buyer all (x) bills of sale,  quit claim deeds,  assignments,
and  other  instruments  of  transfer   (including   Tradename  Rights  transfer
documents) in such form as shall be reasonably  satisfactory  to the Parties and
their  respective  legal  counsel,  and (y)  such  other  instruments  of  sale,
transfer, conveyance, and assignment as the Buyer and its counsel reasonably may
request (collectively, the "Transfer Instruments");

                  (v) the Buyer shall execute, acknowledge (if appropriate), and
deliver  to the  Seller  (x) an  assumption  agreement  in such form as shall be
reasonably  satisfactory to the Parties and their respective legal counsel,  and
(y)  such  other  instruments  of  assumption  as the  Seller  and  its  counsel
reasonably may request (collectively, the "Assumption Instruments"); and

The Seller and the Stockholders do hereby jointly and severally  unconditionally
covenant and agree that the Seller's  Business and all Acquired  Assets shall be
purchased  and  owned  solely  by the  Buyer  as of the  Closing  Date.  In such
connection,  following  the Closing  Date,  the Seller and the  Stockholders  do
hereby agree that they shall:

                  (i) fully  support  all of  Buyer's  efforts  to  operate  the
Seller's  Business  from and after the Closing,  including  without  limitation,
providing Buyer's  representatives with full and complete access to all Business
Data,  Personal Property and other Acquired Assets, full access to all employees
of the Seller who work in the Seller's Business  immediately after Closing,  and
full access to all order taking,  production,  shipping,  billing and collection
systems relating to the Seller's Business; and

                  (ii)  continue to deliver to the Buyer any and all  additional
Transfer  Instruments  as the Buyer or its legal counsel may require in order to
vest in the Buyer good and marketable title in and to all of the Acquired Assets
and the Seller's Business.

                                       18
<PAGE>

         (i) Capital  Equipment  Closing The Parties agree that the Seller shall
have the right to close the sale of the capital  equipment  ("Capital  Equipment
Closing")  prior to  Closing,  on May 22,  2006,  or some  other  date  prior to
Closing,  acceptable to the Parties.  Should the Seller elect to go forward with
the Capital  Equipment  Closing,  the Deposit  will be applied to the  Equipment
Payment  rather than to the Purchase  Price at Closing,  which shall result in a
payment of Five Hundred  Forty One Thousand  Dollars  ($541,000)  at the Capital
Equipment Closing.  Following the Equipment Closing, Buyer shall hold all right,
title,  and interest to the capital  equipment  shown as Exhibit K. Seller shall
continue to operate the business and shall have the right to operate the capital
equipment  until Closing,  at which time the operation of the business,  and all
the Acquired Assets, will be transferred to the Buyer.

Should the Seller elect to go forward with the Capital Equipment  Closing,  then
the only payment due at Closing shall be the Inventory Payment.

         (j) Allocation.  The Parties shall reasonably cooperate to allocate the
Purchase Price (and all other capitalizable costs) among the Acquired Assets for
all  purposes  (including  financial  accounting  and tax  purposes).  After the
Closing,  the Parties shall make consistent use of the  allocation,  fair market
value and useful lives for all Tax purposes and in all filings, declarations and
reports with the IRS in respect  thereof,  including the reports  required to be
filed  under  Section  1060 of the Code.  Buyer and Seller  shall  cooperate  in
preparing IRS Form 8594 within  forty-five  (45) days after the Closing Date. In
any Proceeding related to the determination of any Tax, neither Buyer nor Seller
shall contend or represent  that such  allocation  is not a correct  allocation.
Unless  reasonably  modified by consent of both Parties,  the Parties agree that
the allocation shall be as shown in Exhibit I.

3. REPRESENTATIONS AND WARRANTIES OF THE SELLER AND STOCKHOLDERS.

         The Seller and the  Stockholders  jointly and  severally  represent and
warrant to the Buyer that the statements  contained in this ss.3 are correct and
complete as of the date of this  Agreement,  except as set forth in the exhibits
accompanying this Agreement and initialed by the Parties (the "Exhibits").

         (a) Organization.  The Seller is a corporation organized under the laws
of Arizona.  Excepting  Al-Cor NPM, the Seller does not have any Subsidiaries or
Affiliates  which own or use any  Acquired  Assets or operate any portion of the
Seller's Business.

         (b)  Authorization  of  Transaction.  The  Seller  has full  power  and
authority  (including full corporate power and authority) to execute and deliver
this Agreement and to perform its obligations  hereunder.  Without  limiting the
generality of the foregoing,  the board of directors and the stockholders of the
Seller have duly  authorized the execution and delivery of this  Agreement,  and
the performance of this Agreement by the Seller. This Agreement  constitutes the
valid and legally  binding  obligation of the Seller,  enforceable in accordance
with its terms and conditions.

                                       19
<PAGE>

         (c)  Noncontravention.  Neither the  execution and the delivery of this
Agreement,  nor  the  consummation  of  the  transactions   contemplated  hereby
(including the Transfer  Instruments and the Assumption  Instruments referred to
in ss.2  above),  will (i)  violate in any respect  any  constitution,  statute,
regulation, rule, injunction,  judgment, order, decree, ruling, charge, or other
restriction of any government, governmental agency, or court to which the Seller
is subject or any  provision  of the  charter or bylaws of the  Seller,  or (ii)
conflict with, result in a breach of, constitute a default under,  result in the
acceleration of, create in any party the right to accelerate, terminate, modify,
or  cancel  any  agreement,  contract,  lease,  license,  instrument,  or  other
arrangement  to which the  Seller is a party or by which it is bound or to which
any of the Acquired  Assets is subject (or result in the  imposition of any Lien
other than Permitted Liens upon any of its assets).  The Seller does not need to
give any notice to, make any filing with, or obtain any authorization,  consent,
or approval of any government or governmental  agency in order for the Seller to
consummate  the  transactions  contemplated  by this  Agreement  (including  the
Transfer Instruments and Assumption Instruments referred to in ss.2 above).

         (d) Brokers'  Fees.  Neither the Seller nor the  Stockholders  have any
Liability or obligation to pay any fees or commissions to any broker, finder, or
agent with respect to the transactions  contemplated by this Agreement for which
the Buyer could become liable or obligated.

         (e) Title to and Possession of Acquired Assets. The Seller has good and
marketable  title to, or a valid  leasehold  interest  in,  all of the  Acquired
Assets,  wherever  located,  free and clear of all Liens,  except for  Permitted
Liens  and  Inventory  (if any)  sold in the  Ordinary  Course  of the  Seller's
Business between the date of this Agreement and the Closing. Only the Seller and
no other Affiliate of Seller or the  Stockholders is engaged in the operation of
the Seller's  Business.  All of the Acquired  Assets are owned or leased by, and
are in the  physical  possession  of,  only the  Seller,  and no  other  Person,
including any other Subsidiary or Affiliate of the Seller.

         (f) Liens and Adverse Agreements. There are (i) no outstanding Liens on
any of the Acquired Assets (other than Permitted Liens), and (ii) no outstanding
authorized options, warrants,  purchase rights,  subscription rights, conversion
rights,  exchange rights, or other contracts or commitments,  including proxies,
voting  trusts,  voting  agreements  or  stockholders  agreements,   that  could
adversely  affect the Seller's  ability to sell the Acquired Assets to the Buyer
or otherwise consummate the transactions contemplated by this Agreement.

         (g) Financial  Statements.  Prior to the Closing Date, the Seller shall
have delivered the audited balance sheets and statements of income (loss) of the
Seller for the fiscal  years  ended  October  31,  2005,  October  31, 2004 (the
"Fiscal  Year End  Financial  Statements"  or "Audited  Financial  Statements"),
audited in compliance  with GAAP.  Parties agree that Buyer shall be responsible
for the costs of such audits,  and shall hold all right,  title, and interest to
all workproduct of the auditors generated in connection  therewith.  Such Fiscal
Year  Financial  Statements  shall present  fairly in all material  respects the
financial condition of the Seller's Business as of such dates and the results of
operations  of the  Seller's  Business  for such  periods,  shall be correct and
complete in all material  respects,  and are consistent in all material respects
with the books and records of the Seller.

                                       20
<PAGE>

         (h) Absence of Certain  Adverse  Events . Since  October 31, 2005,  the
Seller has  conducted  the  Seller's  Business  only in the  Ordinary  Course of
Business and there has not been any:

                  (i) acceleration,  termination,  modification, or cancellation
         of any Accepted Contract  involving more than $50,000  (individually or
         in the  aggregate)  to which the Seller or the  Seller's  Business is a
         party or by which any of them is bound;

                  (ii) sale,  lease,  transfer or  assignment,  or  agreement to
         sell,  lease,  transfer  or  assign,  any  of its or  their  assets  or
         properties, tangible or intangible, that is material for the operations
         of the Seller's  Business,  other than for sales of Inventory  for fair
         consideration in the Ordinary Course of the Seller's  Business and such
         other  immaterial  assets  having a value  not in  excess  of  $25,000,
         individually or in the aggregate;

                  (iii) delay or  postponement  in the  payment of any  accounts
         payable  or  accrued  expense  outside  of the  Ordinary  Course of the
         Seller's Business;

                  (iv)  indication by any customer or supplier to discontinue or
         change the terms of its relationship with the Seller, apart from Seller
         no longer being a distributor for LEAF Products;

                  (v)  execution of (A) any License  Agreement or  sublicense of
         any rights  under or with  respect  to any  Tradename  Rights,  (B) any
         settlement regarding the breach or infringement of any Tradename Rights
         or similar rights affecting the Seller's Business, or (C) modification,
         or agreement to modify, any existing rights with respect thereto;

                  (vi)  damage  to,  or  destruction,  or loss  (whether  or not
         covered by insurance) of any of the Acquired Assets;

                  (vii) new written employment contract or collective bargaining
         agreement  entered  into with or  covering  employees  of the  Seller's
         Business, nor has any such agreement been modified, in any respect;

                  (viii) change in the basis for the prices charged for services
         or products  of Seller,  and Seller has not  changed  their  credit and
         collection policies;

                  (ix)  change  in  its  suppliers,   vendors,  distributors  or
         customers who  individually or in the aggregate  represented  more than
         one (1%) percent of the consolidated  revenues of the Seller's Business
         for the fiscal  year  ended  October  31,  2005 nor have  notified  the
         Stockholders,  the Seller or the Seller's Business been notified by any
         supplier, vendor, distributor, or customer of an intent to reduce their
         level of  business  with,  or to  discontinue  purchasing  products  or
         services from, the Seller's Business following the Closing Date;

                                       21
<PAGE>

                  (x) material  change in the accounting  methods used by Seller
         that is not otherwise disclosed in Seller's financial statements;

                  (xi) Lien  (other  than a  Permitted  Lien)  upon any of their
         assets, tangible or intangible;

                  (xii) amendment to the Seller's organizational documents; and

                  (xiii)  neither  the  Seller  nor the  Seller's  Business  has
         adopted,  amended or modified in any respect,  or terminated any bonus,
         profit-sharing,  incentive, severance, compensation,  Inventory option,
         retirement, deferred compensation,  collective bargaining agreement, or
         other  plan,  contract,  or  commitment  for the  benefit of any of the
         officers  or  employees  of the  Seller's  Business  (or taken any such
         action  with  respect  to any  other  Employee  Benefit  Plan  covering
         employees of the Seller's Business).

         (i)  Undisclosed  Liabilities.  Neither  the  Seller  nor the  Seller's
Business has any  Liability,  and to their  Knowledge  there is no basis for any
present or future action,  suit,  proceeding,  hearing,  investigation,  charge,
complaint,  claim,  or demand  against any of them giving rise to any Liability,
other than those  disclosed in the Fiscal Year End Statements or incurred in the
Ordinary  Course of Business since the date of the most recent of such financial
statements.

         (j) Legal  Compliance.  The operation of the Seller's  Business and the
sale and performance of all services by the Seller's  Business are in compliance
with all applicable laws, including statutes, rules, regulations,  codes, plans,
injunctions,  judgments, orders, decrees, rulings, and charges thereunder of all
Governmental  Bodies  (collectively  "Laws").  No  Proceeding  has been filed or
commenced against the Seller or the Seller's Business alleging any failure so to
comply,  and neither  the Seller nor the  Seller's  Business  has  received  any
written notice from any  Governmental,  Body that any investigation or review is
pending nor, to the  Knowledge of Seller,  is any  proceeding  threatened by any
such  Governmental  Body (i) with respect to any alleged violation by the Seller
or the  Seller's  Business  or any of their  representatives  of any Laws  which
relate to the Seller's  Business or the Acquired Assets, or (ii) with respect to
any  alleged  failure  to  have  all  licenses,   permits,   registrations   and
authorizations  required by Law in connection with the operation of the Seller's
Business.

         (k) Tax Matters.

                  (i) all Taxes and withholding amounts due and payable prior to
the Closing  relating to the Seller's  Business and the Acquired  Assets have or
will have been paid in full prior to the Closing;

                  (ii) no Tax  deficiencies  relating to the Acquired  Assets or
the Seller's  Business  have been  assessed or, to the  Knowledge of the Seller,
proposed against the Seller and there are no pending, or to the Knowledge of the
Seller,  threatened  audits,  investigations  or claims for or  relating  to any
liability in respect of Taxes  relating to the  Acquired  Assets or the Seller's
Business  that are  likely to result in an  obligation  by the Seller to pay any
material additional amount of Taxes;

                                       22
<PAGE>

                  (iii) no Liens  with  respect  to or on  account of Taxes have
been filed  against the Seller  relating to the Acquired  Assets or the Seller's
Business;

                  (iv)  none of the  Seller  are  parties  to any Tax  indemnity
agreement,  Tax sharing agreement, Tax allocation agreement or similar agreement
affecting or concerning the Seller's Business or the Acquired Assets; and

                  (v) none of the Seller has waived any  statute of  limitations
in respect  of Taxes or agreed to any  extension  of time with  respect to a Tax
assessment or deficiency  that affects or concerns the Seller's  Business or the
Acquired Assets.

         (l)      Intellectual Property.

                  (i) The Seller own or otherwise have the right to use pursuant
to license,  sublicense,  agreement,  or  permission  all common law trade names
necessary or desirable for the  operation of the Seller's  Business as presently
conducted  and as shall be set forth and listed on Exhibit E. Except as shall be
set forth in Exhibit E,  Seller have the  absolute  right to assign to the Buyer
all  Tradename  Rights owned or licensed by the Seller and used in the operation
of the Seller's  Business,  without seeking the approval or consent of any other
Person.  The  Seller  has taken all  reasonable  action  which is  necessary  to
maintain and protect all Tradename Rights that it owns or uses.

                  (ii)  Neither the Seller nor the  Seller's  Business  has been
found to infringe, or to have interfered with, infringed upon,  misappropriated,
or otherwise come into conflict with any Tradename Rights of third parties, and,
to the Knowledge of Seller, neither the Seller nor the Seller's Business has, at
any time during the last three (3) years, received any charge, complaint, claim,
demand,    or   notice   alleging   any   such    interference,    infringement,
misappropriation,  or  violation  (including  any claim  that the  Seller or the
Seller's Business must license or refrain from using any Tradename Rights of any
third party). Except as shall be set forth in Exhibit E, to the Knowledge of the
Seller, no third party has interfered with, infringed upon, misappropriated,  or
otherwise  come into  conflict  with any  Tradename  Rights of the Seller or the
Seller's Business.

                  (iii) Exhibit E identifies each Tradename Right that any third
party owns and that the Seller or the  Seller's  Business  uses  pursuant to any
license, sublicense,  agreement, or permission which is material to the Seller's
Business.  The Seller have made  available  to the Buyer  correct  and  complete
copies  of all such  licenses,  sublicenses,  agreements,  and  permissions  (as
amended to date). With respect to each Tradename Right required to be identified
in Exhibit E, except as otherwise indicated in Exhibit E:

                           (A) the license, sublicense, agreement, or permission
                  covering the item is currently in full force and effect;

                                       23
<PAGE>

                           (B) the Seller have the absolute right to assign such
                  license,  sublicense,  agreement, or permission,  and the same
                  will be in full force and effect on identical  terms following
                  the consummation of the transactions contemplated hereby;

                           (C) none of the Seller, and to Seller' Knowledge, any
                  other  party  to  the  license,   sublicense,   agreement,  or
                  permission is in breach or default,  and no event has occurred
                  which with notice or lapse of time would  constitute  a breach
                  or   default   or   permit   termination,   modification,   or
                  acceleration thereunder;

                           (D) none of the Seller, and to Seller' Knowledge, any
                  other  party  to  the  license,   sublicense,   agreement,  or
                  permission has repudiated any material provision thereof;

                           (E)  to  Seller'  Knowledge,  with  respect  to  each
                  sublicense,  the  representations  and warranties set forth in
                  subsections  (A) through  (D) above are true and correct  with
                  respect to the underlying license;

                           (F) to Seller' Knowledge,  the underlying item is not
                  subject  to  any  outstanding  injunction,   judgment,  order,
                  decree, ruling, or charge;

                           (G)   no   action,   suit,    proceeding,    hearing,
                  investigation,  charge, complaint, claim, or demand is pending
                  or, to the Seller'  Knowledge,  is threatened which challenges
                  the legality,  validity,  or  enforceability of the underlying
                  item; and

                           (H) none of the Seller has granted any  sublicense or
                  similar  right  with  respect  to  the  license,   sublicense,
                  agreement, or permission.

                  (iv)  Except  as  shall  be set  forth  in  Exhibit  E, to the
         Knowledge  of the  Seller,  the  continued  operation  of the  Seller's
         Business  as  presently  conducted  will not  cause  the  Seller or the
         Seller's Business to interfere with, infringe upon, misappropriate,  or
         otherwise  come  into  conflict  with,  any  Tradename  Rights of third
         parties.

         (m) Tangible  Assets.  The Seller own or lease all  Personal  Property,
consumables,  business data and other tangible assets  necessary for the conduct
of the Seller's Business as presently  conducted and as presently proposed to be
conducted.  Each item of such tangible  assets has been maintained in accordance
with  normal  industry  practice,  is in good  operating  condition  and  repair
(subject to normal wear and tear), and is suitable for the purposes for which it
presently is used.

         (n) Inventory.  The Inventory  included in the Acquired  Assets and set
forth on the  Inventory  Listing  shall  consist of raw  materials and supplies,
manufactured and purchased parts,  goods in process,  and finished goods, all of
which will be merchantable  and fit for the purpose for which it was produced or
manufactured,  and none of which Inventory are obsolete,  damaged, or defective,
subject only to the reserve for inventory writedown set forth on the Most Recent
Balance  Sheet,  as adjusted for the passage of time through the Closing Date in
accordance  with the past  custom and  practice  of the Seller and the  Seller's
Business. In addition to its owned inventory, Seller is in possession of certain
Inventory not owned by such Seller ("Consignment  Inventory").  This Consignment
Inventory shall be separately listed on the Inventory  Listing.  Buyer agrees to
assume responsibility for this Consignment Inventory in a manner consistent with
the prior practice of the Seller, as set forth in Exhibit C.

                                       24
<PAGE>

         (o) Contracts.  Seller has provided Buyer with true and complete copies
of all Contracts of the nature described in ss.1.2 of this Agreement as Accepted
Contracts.

Each  Accepted  Contract is currently  binding upon Seller and the other parties
thereto, and is in full force and effect and (i) there are no defaults or events
that with notice,  the lapse of time or both would constitute a material default
by the Seller or any other party to any of the  Contracts;  (ii) no other events
or  conditions  have occurred that would permit  termination,  modification,  or
acceleration,  under such Contract; and (iii) the Seller have not, and the other
party has not, repudiated any material provision of any such Contract.

         (p)  Insurance.  Exhibit F sets forth the  following  information  with
respect to each insurance  policy  (including all policies  providing  property,
casualty,  liability,  and workers' compensation coverage and guaranty, bond and
surety  arrangements)  which (i)  relates  in whole or in part to the Seller and
their Seller's  Business,  and (ii) to which the Seller or the Seller's Business
has been a party, a named insured,  or otherwise the  beneficiary of coverage at
any time within the past five years (collectively, the "INSURANCE POLICIES"):

                  (i) the name, address, and telephone number of the agent;

                  (ii) the name of the  insurer,  the name of the  policyholder,
         and the name of each covered insured;

                  (iii) the policy number and the period of coverage;

                  (iv)  the  scope  (including  an  indication  of  whether  the
         coverage was on a claims made,  occurrence,  or other basis) and amount
         (including a description of how deductibles and ceilings are calculated
         and operate) of coverage; and

                  (v) a description of any  retroactive  premium  adjustments or
         other loss-sharing arrangements.

To the Knowledge of the Seller:  (A) each such insurance policy is in full force
and effect;  (B) Neither the Seller nor the  Seller's  Business  nor (to Seller'
Knowledge) any other party to such  insurance  policy is in breach or default in
any respect  (including with respect to the payment of premiums or the giving of
notices),  and no event has  occurred  which,  with notice or the lapse of time,
would constitute such a breach or default, or permit termination,  modification,
or acceleration,  under the policy;  and (C) the Seller have not, and to Seller'
Knowledge, the other party to each such policy has not, repudiated any provision
thereof.  The Seller and the Seller's  Business has been covered during the past
five years by insurance in scope and amount  customary  and  reasonable  for the
Seller's Business in which it has engaged during the aforementioned period.

                                       25
<PAGE>

         (q)  Litigation.  Neither the Seller nor the  Seller's  Business (i) is
subject to any outstanding  injunction,  judgment,  order,  decree,  ruling,  or
charge or (ii) is a party or, is threatened  to be made a party,  to any action,
suit,  proceeding,  hearing, or investigation of, in, or before any Governmental
Body or before any  arbitrator,  in either case in connection  with the Seller's
Business,  the  Acquired  Assets,  or  the  transactions  contemplated  by  this
Agreement.

         (r) Product  Warranty.  Each product  manufactured,  sold,  leased,  or
delivered by the Seller and the Seller's  Business has been in  conformity  with
all applicable  contractual  commitments and all express and implied warranties,
and neither the Seller nor the Seller's Business has any Liability (and there is
no  basis  for  any  present  or  future  action,  suit,  proceeding,   hearing,
investigation,  charge,  complaint,  claim, or demand against any of them giving
rise to any  Liability)  for  replacement  or repair thereof or other damages in
connection  therewith,  subject  in each case only to the  reserve  for  product
warranty  claims as set  forth in  Exhibit  G. No  product  manufactured,  sold,
leased,  or delivered  by the Seller or the Seller's  Business is subject to any
guaranty,  warranty,  or other indemnity beyond the applicable standard warranty
terms and conditions of sale or lease,  apart from certain  extended  warranties
related to products in the ID  business.  The Seller  shall  furnish  Buyer with
copies or a summary of the standard  terms and  conditions  of sale or lease for
the Seller and the Seller's Business (containing applicable guaranty,  warranty,
and indemnity provisions), including those provided for within the express terms
of any Product Sales Agreements,  Dealer  Agreements or Distribution  Agreements
included  in  the  Accepted  Contracts.   Regarding  the  ID  business  extended
warranties,  Seller  agrees to furnish a list of such  extended ID warranties at
Closing,  as set  forth in  Exhibit  G,  and the  Parties  agree  to  reasonably
cooperate in the administration of such extended warranties.

         (s) Product Liability. Neither the Seller nor the Seller's Business has
any  Liability  (and there is no basis for any present or future  action,  suit,
proceeding, hearing, investigation,  charge, complaint, claim, or demand against
any of  them  giving  rise  to any  Liability)  arising  out  of any  injury  to
individuals or property as a result of the ownership,  possession, or use of any
product  manufactured,  sold, leased, or delivered by the Seller or the Seller's
Business.

                                       26
<PAGE>

         (t) Employees and Labor Matters.

                  (i) On or before the Closing Date, the Seller shall furnish or
make  available to the Buyer a list of all  employees of the Seller's  Business,
together with their job  descriptions,  rates of salary,  wages or  commissions,
dates of last  compensation  increase and the amount thereof,  vacation benefits
and accrual rates,  and each bonus,  deferred  compensation,  Inventory  option,
incentive  compensation,  severance or  termination  pay agreement or employment
benefit  applicable to each such  employee.  On or before the Closing Date,  the
Seller  shall  furnish  or make  available  to the Buyer a list of all  employee
handbooks  and/or  other  manuals  relating  to the  employees  of the  Seller's
Business, true and complete copies of which have been made available to Buyer.

                  (ii) No  executive,  supervisor,  key  employee,  or  group of
employees  of the  Seller's  Business  has given notice of any plan to terminate
employment with the Seller's Business.

                  (iii) All agreements and  arrangements  covering  employees of
the Seller  applicable to the Seller's Business are consistent and in compliance
with industry  standards  applicable to the specific  country or jurisdiction in
which they operate and are employed,  and none of the Seller has experienced any
strikes,  grievances,  claims of unfair labor  practices,  or other  disputes in
connection with the Seller's  Business for the past five (5) years.  Neither the
Seller nor the  Seller's  Business has been  determined  to have  committed  any
unfair labor practice. The Seller have no Knowledge of any organizational effort
presently  being made or  threatened  by or on behalf of any labor  organization
with respect to employees of the Seller's Business.

                  (iv) The Seller are in compliance,  in all respects,  with all
applicable  Laws relating to  employment  discrimination,  employee  welfare and
labor standards. The Seller have not received,  during the three (3) year period
immediately  prior to the date hereof,  any written claim by any past or present
employee of the Seller that such employee was subject to a wrongful discharge or
any employment  discrimination by the Seller or its management arising out of or
relating  to  such  employee's  race,  sex,  age,  religion,   national  origin,
ethnicity, handicap or any other protected characteristic under applicable Law.

                  (v) The Seller are in  compliance,  in all respects,  with all
applicable Laws relating to the safety of employees or the workplace or relating
to the  employment  of labor,  including,  without  limitation,  any  provisions
thereof relating to wages,  bonuses,  collective  bargaining,  equal pay and the
payment of social security and similar payroll taxes. No proceedings are pending
before any federal, state, municipal or other court, governmental, regulatory or
administrative body or agency, or private arbitration tribunal relating to labor
or  employment  matters,  and the Seller have not  received  any notice from any
governmental,  regulatory  or  administrative  body  or  agency  of any  pending
investigation  by any such body or agency,  or, to the  Knowledge of the Seller,
threatened  material  claim by any such  body or  agency  or other  third  party
relating to labor or employment matters or the Seller's Business.

                                       27
<PAGE>

                  (vi)  Seller  have not  violated  the  Worker  Adjustment  and
Retraining Notification Act (the "WARN Act") or any similar state or local Laws.

         (u)      Employee Benefits.

                  (i) Exhibit H lists each Employee Benefit Plan relating to the
Seller's Business that the Seller or the Seller's Business maintains or to which
the  Seller  or the  Seller's  Business  contributes  or has any  obligation  to
contribute.

                  (ii) There has been no prohibited transactions with respect to
any Employee  Benefit Pension Plan and no fiduciary has any Liability for breach
of fiduciary  duty or any other failure to act or comply in connection  with the
administration  or  investment  of the assets of such Pension  Plan.  No action,
suit,  proceeding,  hearing, or investigation with respect to the administration
or the investment of the assets of any Employee  Benefit Pension Plan is pending
or, to the Knowledge of the Seller, threatened.  None of the Seller's Affiliates
has any Knowledge of any basis for any Proceeding.

                  (iii)  There  are  no  pending  actions,   claims,   lawsuits,
arbitrations,  governmental or other  Proceedings or  investigations  which have
been  instituted  or pending,  or, to the  Knowledge  of the Seller,  threatened
against any Employee  Benefit Pension Plan or its assets or the trust under such
Pension  Plan,  or against any fiduciary of the Pension Plan with respect to the
operation of such plan (other than routine benefit claims).

                  (iv)  The  Buyer  shall  be  legally   entitled  (but  without
incurring any  Liabilities or obligations  included in Excluded  Liabilities) to
establish,  upon such terms and conditions as it shall reasonably  require,  new
Employee  Welfare  Benefit  Plans for benefits  that are required to be paid for
periods from and after the Closing  under any  collective  bargaining  agreement
included  in  Accepted  Contracts,  or  otherwise  that the  Buyer  may elect to
establish covering Hired Employees for the Seller's Business.

         (v) Disclosure.  The representations  and warranties  contained in this
ss.3 do not contain any untrue statement of a material fact or omit to state any
material  fact  necessary  in  order to make  the  representations,  warranties,
statements and information contained in this ss.3 not misleading. The Seller has
no Knowledge of the existence of any Material Adverse Effect with respect to the
Seller's  Business or the Acquired Assets that has not been set forth herein, in
the Exhibits, or in any information made available to the Buyer through the date
of this  Agreement in  connection  with the  transactions  contemplated  herein.
SELLER MAKES NO  REPRESENTATIONS  OR  WARRANTIES,  APART FROM THOSE MADE HEREIN,
REGARDING  THE  CONDITION OF THE  INDUSTRIES,  OR REGARDING THE FUTURE INCOME OR
EXPENSES.

         (w) Warranties Survive Closing.  The  representations and warranties of
the Seller  contained  herein and in any  document  delivered  pursuant  to this
Agreement  shall  survive the Closing  until  December  31, 2007 (the  "Warranty
Survival Period").  Any claim for  indemnification by reason of breach of any of
Seller'  representations and warranties under ss.8 of this Agreement made by the
Buyer in writing prior to the expiration of the Warranty  Survival  Period,  and
the rights of indemnity with respect  thereto,  shall survive such expiration of
the Warranty Survival Period until resolved by the Parties,  through arbitration
or otherwise  judicially  determined,  and any such claim not so made in writing
prior to the expiration of the Warranty  Survival Period shall be deemed to have
been waived.

                                       28
<PAGE>

         (x)      Environmental Matters.

                  (i) Seller is, and at all times has been,  in full  compliance
with,  and  has  not  been  and is not in  violation  of or  liable  under,  any
Environmental,  Health and Safety Laws.  The Seller has no basis to expect,  nor
has any of them or any other Person for whose conduct they are or may be held to
be  responsible  received,  any  actual  or  threatened  order,  notice or other
communication  from (A) any  Governmental  Body or private citizen acting in the
public interest or (B) the current or prior owner or operator of any facilities,
of  any  actual  or   potential   violation   or  failure  to  comply  with  any
Environmental,  Health and Safety Law, or of any actual or threatened obligation
to undertake or bear the cost of any Liabilities with respect to any Facility or
other property or asset  (whether  real,  personal or mixed) in which the Seller
has or had an  interest,  or with  respect to any  property or Facility at or to
which Hazardous  Substance was generated,  manufactured,  refined,  transferred,
imported,  used or processed by the Seller or any other Person for whose conduct
they are or may be held  responsible,  or from which  Hazardous  Substances have
been transported,  treated, stored, handled, transferred,  disposed, recycled or
received.

                  (ii)  There are no  pending  or, to the  Knowledge  of Seller,
threatened claims,  Liens or other restrictions of any nature resulting from any
Liabilities or arising under or pursuant to any Environmental, Health and Safety
Law with  respect to or affecting  any  Facility or any other  property or asset
(whether real, personal or mixed) in which the Seller has or had an interest.

                  (iii) The Seller has no  Knowledge  of or any basis to expect,
nor has any of them,  or any other  Person for whose  conduct they are or may be
held responsible,  received, any citation,  directive,  inquiry,  notice, order,
summons, warning or other communication that relates to any Hazardous Substance,
or any alleged,  actual,  or  potential  violation or failure to comply with any
Environmental,  Health and Safety Law, or of any alleged,  actual,  or potential
obligation to undertake or bear the cost of any Liabilities  with respect to any
Facility  or property or asset  (whether  real,  personal or mixed) in which the
Seller has or had an  interest,  or with  respect to any property or Facility to
which  Hazardous  Substances  generated,  manufactured,   refined,  transferred,
imported,  used or processed by the Seller or any other Person for whose conduct
they are or may be held  responsible,  have been transported,  treated,  stored,
handled, transferred, disposed, recycled or received.

                  (iv) Neither the Seller nor any other Person for whose conduct
they are or may be held  responsible  has any  Liabilities  with  respect to any
Facility or, to the Knowledge of the Seller,  with respect to any other property
or asset  (whether  real,  personal  or  mixed)  in  which  the  Seller  (or any
predecessor)  has  or  had  an  interest  or at  any  property  geologically  or
hydrologically adjoining any Facility or any such other property or asset.

                                       29
<PAGE>

                  (v) There are no  Hazardous  Substances  present  on or in the
Environment at any Facility or at any geologically or  hydrologically  adjoining
property,  including any Hazardous Substances contained in barrels,  aboveground
or  underground  storage  tanks,  landfills,  land  deposits,  dumps,  equipment
(whether movable or fixed) or other  containers,  either temporary or permanent,
and  deposited  or  located  in land,  water,  sumps,  or any other  part of the
Facility or such adjoining property,  or incorporated into any structure therein
or thereon.  Neither  Seller nor any Person for whose conduct they are or may be
held  responsible,  or to the  Knowledge of the Seller,  any other  Person,  has
permitted or conducted,  or is aware of, any hazardous  activity  conducted with
respect to any Facility or any other property or assets (whether real,  personal
or mixed) in which the Seller has or had an interest  except in full  compliance
with all applicable Environmental, Health and Safety Laws.

                  (vi) There has been no  release  or, to the  Knowledge  of the
Seller,  threat of release, of any Hazardous  Substances at or from the Facility
or at  any  other  location  where  any  Hazardous  Substances  were  generated,
manufactured,  refined, transferred, produced, imported, used, or processed from
or by any Facility,  or from any other property or asset (whether real, personal
or mixed) in which the Seller has or had an interest, or to the Knowledge of the
Seller any geologically or  hydrologically  adjoining  property,  whether by the
Seller or any other Person.

                  (vii) Seller have delivered to Buyer true and complete  copies
and results of any reports, studies, analyses, tests, or monitoring possessed or
initiated  by Seller  pertaining  to Hazardous  Substances  in, on, or under the
facilities,  or concerning  compliance,  by Seller or any other Person for whose
conduct it is or may be held responsible, with Environmental,  Health and Safety
Laws.

                  (viii) The facilities do not contain any wetlands,  as defined
in the Clean Water Act and regulations promulgated thereunder,  or similar legal
requirements,  or other  especially  sensitive or protected  areas or species of
flora or fauna.

                  (y) Solvency.  (i) The Seller is not insolvent and will not be
rendered  insolvent  by any of the  contemplated  transactions.  As used in this
section,  "insolvent"  means  that  the  sum of the  debts  and  other  probable
Liabilities  of Seller  exceeds  the  present  fair  saleable  value of Seller's
assets.

                    (ii) Immediately  after giving effect to the consummation of
the  contemplated  transactions:  (i) the  Seller  will  be  able  to pay  their
respective  Liabilities  as they become due in the usual course of its business;
(ii) nor will the Seller have  unreasonably  small capital with which to conduct
its present or proposed business;  (iii) the Seller will have assets (calculated
at fair market value) that exceed their respective Liabilities;  and (iv) taking
into account all pending and threatened litigation,  final judgments against the
Seller in  actions  for  money  damages  are not  reasonably  anticipated  to be
rendered at a time when, or in amounts such that,  such Seller will be unable to
satisfy any such judgments  promptly in accordance with their terms (taking into
account the maximum  probable  amount of such  judgments in any such actions and
the earliest  reasonable time at which such judgments might be rendered) as well
as all other  obligations  of such  Seller.  The cash  available to such Seller,
after  taking  into  account  all other  anticipated  uses of the cash,  will be
sufficient to pay all such debts and judgments promptly in accordance with their
terms.

                                       30
<PAGE>

4. REPRESENTATIONS AND WARRANTIES OF THE BUYER.

         The Buyer  represents  and  warrants to the Seller that the  statements
contained in this ss.4 are correct and complete as of the date of this Agreement
and will be correct and complete as of the Closing.

         (a)  Organization  of the Buyer.  DCS is a corporation  duly organized,
validly existing,  and in good standing under the laws of the State of Delaware,
respectively,  with full corporate power and authority to conduct their business
as it is now conducted.

         (b)  Authorization  of  Transaction.  The Buyer has the full  power and
authority  (including full corporate power and authority) to execute and deliver
this  Agreement and to perform its  respective  obligations  hereunder.  Without
limiting the generality of the  foregoing,  the Board of Directors DCS, has duly
authorized  the  execution  and  delivery  of  this  Agreement.  This  Agreement
constitutes the valid and legally binding  obligation of the Buyer,  enforceable
in accordance with its terms and conditions, except (i) as limited by applicable
bankruptcy,  insolvency,  reorganization,  moratorium  or other  laws of general
application   effecting  enforcement  of  creditors'  rights  and  (ii)  general
principles of equity that restrict the availability of equitable remedies.

         (c)  Noncontravention.  Neither the  execution and the delivery of this
Agreement,  nor  the  consummation  of  the  transactions   contemplated  hereby
(including the Transfer  Instruments and the Assumption  Instruments referred to
in ss.2 above), will (i) violate any constitution,  statute,  regulation,  rule,
injunction, judgment, order, decree, ruling, charge, or other restriction of any
government,  governmental  agency, or court to which the Buyer is subject or any
provision of its charter or bylaws or (ii) conflict with, result in a breach of,
constitute a default under,  result in the  acceleration of, create in any party
the right to accelerate,  terminate,  modify,  or cancel,  or require any notice
under any agreement,  contract, lease, license, instrument, or other arrangement
to which  Buyer is a party  or by  which  Buyer is bound or to which  any of its
assets is  subject.  Buyer does not need to give any notice to,  make any filing
with, or obtain any  authorization,  consent,  or approval of any  government or
governmental  agency in order for the  Parties to  consummate  the  transactions
contemplated  by this  Agreement  (including  the  assignments  and  assumptions
referred to in ss.2 above).

         (d) Brokers'  Fees.  DCS has no Liability or obligation to pay any fees
or commissions to any broker,  finder, or agent with respect to the transactions
contemplated  by this  Agreement  for which the Seller  could  become  liable or
obligated.

                                       31
<PAGE>

         (e) Capital  Resources.  At the Closing the Buyer will have  sufficient
capital  resources  to enable it to comply with the  provisions  of ss.2 of this
Agreement.

         (f) Warranties Survive Closing.  The  representations and warranties of
the Buyer  contained  herein  and in any  document  delivered  pursuant  to this
Agreement,  shall  survive the Closing  until  December 31, 2007.  Any claim for
indemnification  by  reason  of breach  of any of  Buyer's  representations  and
warranties  under ss.8 of this  Agreement made by the Seller in writing prior to
the expiration of the Warranty Survival Period, and the rights of indemnity with
respect thereto,  shall survive such expiration of the Warranty  Survival Period
until  resolved by the Parties,  through  arbitration  or  otherwise  judicially
determined, and any such claim not so made in writing prior to the expiration of
the Warranty Survival Period shall be deemed to have been waived.

5. COVENANTS AND AGREEMENTS OF THE PARTIES.

         The Parties do hereby mutually covenant and agree as follows:

         (a) General.  Each of the Parties will use its commercially  reasonable
Best  Efforts  to take all action and to do all  things  necessary,  proper,  or
advisable  in  order  to  consummate   and  make   effective  the   transactions
contemplated by this Agreement (including  satisfaction,  but not waiver, of the
closing conditions set forth in ss.6 below).

         (b) Assignment,  Benefits and Performance of Accepted Contracts. In the
event and to the extent that any Contract included in the definition of Accepted
Contracts  cannot, by its stated terms or by operation of Law, be transferred or
assigned by the Seller to the Buyer at the Closing Date,  the Seller does hereby
covenant and agree that each of them shall use their Best Efforts, following the
Closing Date, to assist the Buyer in obtaining the written  consent of the other
Person(s) to such Accepted Contracts  (including,  without limitation,  Purchase
Orders,  Supply  Agreements,  License  Agreements,  Distribution  Agreements and
Dealer  Agreements)  to the  assignment  to Buyer  of all  rights  and  benefits
thereunder from and after the Closing Date. In such  connection,  the Seller and
the Buyer shall  jointly  notify (in writing or as  otherwise  agreed  among the
Parties) each Person who is a party to any Accepted Contract of the consummation
of the transactions  contemplated by this Agreement,  that Buyer has assumed the
ownership  and  operation  of the  Seller's  Business  and that the Buyer  shall
continue to observe all Post-Closing Obligations under any and all such Accepted
Contracts.  For all  periods  from and after the  Closing  Date,  all  benefits,
payments,  rights and Claims under all such Accepted  Contracts (whether consent
to transfer or  assignment  shall be obtained)  shall be for the sole benefit of
the Buyer, and all payments, if any, received or receivable by Seller (or any of
them) in respect of any goods or services  provided after the Closing Date under
an Accepted Contract shall be immediately remitted and turned over to the Buyer.

                                       32
<PAGE>

         (c) Payment of Expenses and Liabilities; Bulk Sales Laws.

                  Each  Party  agrees  to pay  its own  costs  and  expenses  in
connection with the transactions  contemplated hereby. Any stamp or other duties
incurred in connection  with the transfer of the Acquired  Assets shall be borne
by the Seller.  Seller will comply with the  provisions  of the Arizona  Uniform
Commercial  code - Bulk Transfers that are applicable to them in connection with
the contemplated Transaction.

         (d) Covenant Not to Compete. For a period equal to three years from and
after the Closing Date, neither the Seller or the Principal  Stockholder nor any
of  their  respective   Subsidiaries  or  Affiliates  will  engage  directly  or
indirectly in any business,  whether as owner, operator, joint venture, partner,
equity owner, or otherwise, that is in competition with the Seller's Business as
conducted as of the Closing Date in any  geographic  area in which such Seller's
Business is conducted as at the Closing Date;  provided,  that, the ownership of
less than 5% of the  outstanding  Inventory of any publicly  traded  corporation
shall not be deemed to be  engaged in  competition  with the  Seller's  Business
solely  by  reason  thereof.  If the  final  judgment  of a court  of  competent
jurisdiction  declares  that any term or provision of this ss.5(d) is invalid or
unenforceable,  the Parties  agree that the court  making the  determination  of
invalidity  or  unenforceability  shall  have the  power to  reduce  the  scope,
duration, or area of the term or provision, to delete specific words or phrases,
or to replace  any invalid or  unenforceable  term or  provision  with a term or
provision that is valid and enforceable and that comes closest to expressing the
intention of the invalid or unenforceable term or provision,  and this Agreement
shall be  enforceable  as so modified  after the  expiration  of the time within
which the judgment may be appealed.

         (e) Employee  Matters.  The Buyer shall offer  employment to certain or
all of the  employees  of the Seller's  Business at the Closing,  subject to the
following:

                  (i) Seller shall  furnish to Buyer a list of all  employees of
the Seller who are  currently  performing  services for the  Seller's  Business,
their dates of hire, current job duties and salary or wage compensation  levels.
No employee of the Seller  shall be deemed to be hired by the Buyer,  unless and
until each such employee shall be offered  employment with the Buyer,  elects to
accept  employment  with the  Buyer,  and  agrees in writing to waive any claims
against Buyer for severance pay, employee benefits or other  "Compensation"  (as
defined in clause (ii) below) received or receivable from Seller, other than the
payment of accrued wages and other benefits resulting from his or her performing
of services for Buyer from and after the Closing Date.  Subject to the foregoing
conditions, such employee shall be deemed to be a "Hired Employee" of the Buyer.

                  (ii)  In no  event  shall  Buyer  be  liable  for  any  wages,
severance pay,  vacation pay,  pension,  unemployment,  retirement,  disability,
medical  or  sick  leave,  or  other  benefits  or  obligations   (collectively,
"Compensation")  owed to any employee of the Seller or the Seller's Business who
is not a Hired Employee.

                  (iii)  Nothing in this  ss.5(e)  shall  obligate  the Buyer to
continue  to employ any Hired  Employee  for any  specific  period of time.  For
purposes  of  vacation  and  other  benefits  provided  by the  Buyer  to  Hired
Employees, the Buyer shall give such employees service credit for all periods of
employment with the Seller.

                                       33
<PAGE>

                  (iv) Any  employee  of the Seller that does not become a Hired
Employee of the Buyer may be dismissed by the Seller at any time;  provided that
all  Compensation  obligations  payable  to  such  employee  shall  be the  sole
Liability and responsibility of the Seller.

          (f) Real Estate Lease.

                  Beginning on the Closing Date, the Seller or its Affiliate and
the Buyer  hereby  agree to execute  and  deliver to each other the Real  Estate
Lease, pursuant to which the Seller or its Affiliate shall lease the Facility to
the Buyer, upon terms and conditions  reasonably negotiated by the Parties prior
to the Closing date, and for the period  specified in the Real Estate Lease,  as
set forth in Exhibit A.

(g) Due Diligence.

         Seller  agrees to allow  Buyer,  at Buyer's  sole  expense,  to conduct
whatever  due  diligence  that  Buyer  requires,   including  right  to  examine
financial,  accounting and business records and other legal documents  affecting
the  business of the Seller and  generally to conduct an  accounting,  and legal
investigation of the Seller.

         The time and requirements of the due diligence shall be accomplished in
a manner  acceptable  to the Seller so as to cause the least  disruption  to the
ongoing business activities of the Seller, but shall not be so restrictive as to
prevent the Buyer from performing its necessary due diligence.

         (h) Accounts Receivable and Accounts Payable.

         Unless otherwise  agreed to in writing by the Parties,  Buyer shall not
have any responsibility for collection of Accounts Receivable  ("A/R"),  nor the
payment of Accounts  Payable ("A/P")  related to operations  prior to the Close.
However Buyer agrees to offer reasonable  efforts to logistically  assist Seller
in the  collection  and payment of these  monies.  Should it receive any,  Buyer
agrees to remit  weekly all monies to Seller  relative to Seller's  A/R,  and to
reasonably assist Seller in accounting for these monies.

         (i) PRO.

         Seller is a stockholder in a professional  organization called PRO. The
Parties  acknowledge  that  Buyer,  should it elect to do so,  will need to make
application  to PRO.  Should  Buyer be  accepted  by PRO,  the PRO stock held by
Seller will be transferred to the Buyer at a price set by PRO. Transfer shall be
made to the Buyer,  by Buyer  making six equal  monthly  payments  to Seller for
value of the PRO  stock,  as  valued by PRO,  beginning  30 days  following  the
approval of the Buyer by PRO, should such approval be granted.  Unless otherwise
agreed to in writing by the Parties, any dividends received from PRO, continuing
until ninety days  following  receipt by Seller of the full purchase  price from
Buyer for such shares of PRO held by Seller,  shall  belong to the  Seller.  The
Seller makes no  representation to the Buyer that PRO will accept the Buyer as a
new  member,  but  Seller  will  use its  best  efforts  to  facilitate  Buyer's
acceptance by PRO. Should PRO elect not to accept Buyer, Seller shall be free to
sell its stock to PRO.

                                       34
<PAGE>

         (j) Adjustments at Closing.

         At  Closing   Parties  agree  to  make   reasonable   adjustments   for
work-in-progress,  deposits,  and  lay-a-way,  and for such other  issues as the
Parties may reasonably agree to address.

         (k) Best Efforts. The Parties shall use their best efforts to cause the
conditions in Article 6 to be satisfied.

6. CONDITIONS TO OBLIGATIONS.

         (a)  Conditions to  Obligations  of the Buyer.  The  obligations of the
Buyer to consummate the  transactions  to be performed by it in connection  with
the Closing,  including the payments of the Purchase  price in  accordance  with
ss.2 above, is subject to satisfaction, or waiver by the Buyer, of the following
conditions:

                  (i) All of  Seller'  representations  and  warranties  in this
Agreement  (considered  collectively),  and  each of these  representatives  and
warranties (considered  individually),  shall have been accurate in all material
respects as of the date of this Agreement, and shall be accurate in all material
respects as of the time of the Closing as if then made;

                  (ii) The Seller shall have  performed and complied with all of
their respective  covenants and obligations  hereunder in all material  respects
through the Closing;

                  (iii) The Seller shall have  obtained  all required  approvals
and consents;

                  (iv) there  shall not be in effect any  injunction,  judgment,
order, decree, ruling or charge of any Governmental Body or any arbitrator which
(A)  prohibits  consummation  of any of the  transactions  contemplated  by this
Agreement, or (B) materially and adversely affects the right of the Buyer to own
the  Acquired  Assets,  to operate  the  Seller's  Business,  and to control the
Seller's Business;

                  (v) the absence of any Material  Adverse Effect since the date
of this Agreement;

                  (vi) The Seller and its applicable  Affiliate  shall have each
duly executed and delivered  this  Agreement and Real Estate Lease to the Buyer;
and

                  (vii) all other actions  required to be taken by the Seller in
connection with  consummation of the  transactions  contemplated  hereby and all
material agreements,  instruments,  and other documents (other than the Exhibits
hereto) as are required to effect the transactions contemplated hereby will have
been executed and delivered in form and substance reasonably satisfactory to the
Buyer.

                                       35
<PAGE>

                  The Buyer may waive any  condition  specified in this ss.6(a),
either in writing prior to Closing or if the  transactions  contemplated  hereby
shall be consummated at the Closing.

         (b)  Conditions to  Obligations  of the Seller.  The  obligation of the
Seller to consummate the  transactions  to be performed by it in connection with
the  Closing  is  subject  to  satisfaction,  or  waiver by the  Seller,  of the
following conditions:

                  (i) All of  Buyer's  representations  and  warranties  in this
Agreement  (considered  collectively),  and  each of these  representatives  and
warranties (considered  individually),  shall have been accurate in all material
respects as of the date of this Agreement, and shall be accurate in all material
respects as of the time of the Closing as if then made;

                  (ii) the Buyer  shall have paid the  Purchase  Price and shall
have  performed  and complied with all of its other  covenants  hereunder in all
material respects through the Closing;

                  (iii) there shall not be in effect any  injunction,  judgment,
order, decree, ruling or charge of any court or quasi-judicial or administrative
agency of any federal,  state,  local or foreign  jurisdiction or any arbitrator
which  prohibits  consummation of any of the  transactions  contemplated by this
Agreement;

                  (iv) the Seller  shall have  received the consent and approval
of this Agreement and the transactions contemplated hereby;

                  (v) all  actions to be taken by the Buyer in  connection  with
consummation of the  transactions  contemplated  hereby,  including  payment and
delivery of the Purchase Price and all other material  documents (other than the
Exhibits hereto) required to effect the  transactions  contemplated  hereby will
have been executed and delivered in form and substance  reasonably  satisfactory
to the Seller.

The Seller may waive any condition specified in this ss.6(b),  either in writing
prior to Closing or by consummation of the transactions  contemplated  hereby at
the Closing.

7. TERMINATION.

         (a) Termination of Agreement. Certain of the Parties may terminate this
Agreement as provided below:

                  (i) the Buyer and the Seller may terminate  this  Agreement by
         mutual written consent at any time prior to the Closing; and

                                       36
<PAGE>

                  (ii) any Party may terminate  this Agreement by giving written
         notice to the other  Parties if the Closing  shall not have occurred by
         June 5, 2006, and such termination  shall be without  liability,  apart
         from the $50,000 deposit referenced herein.

         (b)  Effect of  Termination.  If any Party  terminates  this  Agreement
pursuant to ss.7(a) above,  all rights and obligations of the Parties  hereunder
shall  terminate  without any  Liability of any Party to any other Party,  apart
from the $50,000 deposit referenced herein.

8. INDEMNIFICATION

         (a)  Indemnification  Provisions  for  Benefit  of  DCS,  and/or  their
nominee.

                  (i) In the event that the Seller or the Stockholders  breaches
(or in the event any third party alleges  facts that,  if true,  would mean that
the Seller or the Stockholders have breached) any of their  representations  and
warranties  contained  in this  Agreement,  for the  duration of the  applicable
Warranty  Survival  Period set forth in ss.3(w)  above,  provided that the Buyer
makes a timely  written  claim for  indemnification  against  the Seller and the
Stockholders  pursuant to ss.8(c)  below within such Warranty  Survival  Period,
then the Seller and the  Stockholders  shall  (subject to the provisions of this
Agreement)  jointly  and  severally  indemnify  the Buyer from and  against  the
entirety of any and all Liabilities,  judgments,  claims, demands, losses, costs
or  expenses,   including  the  costs  of  defense,  settlement  and  reasonable
attorneys' fees (collectively, "Adverse Consequences") which the Buyer may incur
or suffer through and after the date of the claim for indemnification (including
any Adverse  Consequences  the Buyer may suffer after the end of any  applicable
Warranty  Survival Period)  resulting from,  arising out of, relating to, in the
nature  of,  or  caused  by  the  breach  (or  the   alleged   breach)  of  such
representations or warranties of the Seller or the Stockholders.

Notwithstanding the foregoing,  the Seller shall only be liable to indemnify the
Buyer pursuant to this ss.8(a)(i),

                    (A) if and to the extent the aggregate amount of all Adverse
Consequences  which the  Buyer may  suffer  or incur  shall  exceed  twenty-five
thousand ($25,000) in the aggregate (the "Seller' Indemnity Basket") , and

                    (B) for any such  Adverse  Consequences  which the Buyer may
suffer or incur in excess of the  Seller'  Indemnity  Basket and up to a maximum
amount equal to the amount of the aggregate  Purchase Price  previously  paid to
the Seller under this Agreement (the "Seller's Indemnity Cap").

This indemnification shall only extend for so long as the statute of limitations
on any underlying claim.

                  (ii) In addition  to (and not in lieu of) the  indemnification
provisions of ss.8(a)(i)  above, the Seller and the  Stockholders  shall jointly
and  severally  indemnify the Buyer from and against the entirety of any Adverse
Consequences which the Buyer may suffer resulting from, arising out of, relating
to, in the nature of, or caused by:

                                       37
<PAGE>

                    (A) any  Liability  of the Seller or the  Seller's  Business
which is an Excluded  Liability  (including any Liability that is not an Assumed
Liability but becomes a Liability of the Buyer under any  applicable  Law of any
jurisdiction,  under any common law  doctrine  of de facto  merger or  successor
liability,  under  Environmental,  Health,  and Safety  Laws,  or  otherwise  by
operation of law);

                    (B) any breach or failure  to perform  any of the  covenants
and agreements on the part of the Seller to be performed under this Agreement or
any Transfer Instrument; or

                    (C) to the extent not an Assumed Liability, any Liability of
the Seller or the  Seller's  Business  for unpaid  Taxes with respect to any Tax
year or portion  thereof  ending on or before the  Closing  Date (or for any Tax
year beginning before and ending after the Closing Date) to the extent allocable
to the portion of such period  beginning  before and ending on the Closing Date;
such allocation  being made by closing the books of the relevant  taxpayer as of
the Closing or if the Closing represented the end of a Tax Year.

         The  indemnification  provisions of this ss.8(a)(ii)  shall survive the
Closing  and the  Closing  Date  indefinitely,  and shall not be  subject to the
Seller's Indemnity Basket or Seller's Indemnity Cap.

         (b)   Indemnification   Provisions   for  Benefit  of  the  Seller  and
Stockholders.

                  (i) In the event the Buyer breaches (or in the event any third
party alleges facts that, if true, would mean the Buyer has breached) any of its
representations and warranties contained in this Agreement,  for the duration of
the applicable  Warranty  Survival  Period set forth in ss.4(f) above,  provided
that  the  Seller  or  the   Stockholders   make  a  timely  written  claim  for
indemnification against the Buyer pursuant to ss.8(c) below within such Warranty
Survival  Period,  then DCS shall  indemnify  the Seller  from and  against  the
entirety of any Adverse  Consequences  the Seller or the Stockholders may suffer
through  and  after the date of the claim  for  indemnification  (including  any
Adverse  Consequences the Seller or Stockholders may suffer after the end of any
applicable  Warranty Survival Period)  resulting from,  arising out of, relating
to, in the nature of, or caused by the breach (or the alleged  breach) of any of
the Buyer's or DCS' representations and warranties.

Notwithstanding the foregoing,  the Buyer shall only be liable to make indemnify
the Seller pursuant to this ss.8(b)(i),

                    (A) if and to the extent the Adverse  Consequences which the
Seller or the Stockholders may suffer or incur shall exceed Twenty-Five Thousand
Dollars ($25,000) in the aggregate (the "BUYER'S INDEMNITY BASKET") , and

                                       38
<PAGE>

                    (B) for any such  Adverse  Consequences  which the Seller or
the Stockholders  may suffer or incur in excess of the Buyer's  Indemnity Basket
and up to a maximum  amount equal to the amount of the aggregate  Purchase Price
under this Agreement (the "Buyer's Indemnity Cap").

This indemnification shall only extend for so long as the statute of limitations
on any underlying claim.

         (c)       Matters Involving Third Parties.

                  (i)  If  any  third   party   shall   notify  any  Party  (the
"Indemnified  Party")  with  respect to any matter in respect of a Claim by such
third  party  (a  "Third  Party  Claim")  which  may  give  rise to a Claim  for
indemnification  against any other Party (the  "Indemnifying  Party") under this
ss.8, then the Indemnified Party shall promptly notify each  Indemnifying  Party
thereof  in  writing  with  respect  to  such  potential  Adverse  Consequences;
provided,  however,  that no  delay  on the  part of the  Indemnified  Party  in
notifying any Indemnifying  Party shall relieve the Indemnifying  Party from any
obligation  hereunder  unless (and then  solely to the extent) the  Indemnifying
Party thereby is prejudiced.

                  (ii) Any Indemnifying  Party will have the right to defend the
Indemnified  Party  against  the Third  Party  Claim with  counsel of its choice
reasonably satisfactory to the Indemnified Party so long as (A) the Indemnifying
Party  notifies the  Indemnified  Party in writing within thirty (30) days after
the  Indemnified  Party has  given  notice of the  Third  Party  Claim  that the
Indemnifying  Party will  indemnify the  Indemnified  Party from and against the
entirety of any Adverse  Consequences the Indemnified Party may suffer resulting
from,  arising  out of,  relating  to, in the  nature of, or caused by the Third
Party Claim,  and (B) the  Indemnifying  Party conducts the defense of the Third
Party Claim actively and diligently.

                  (iii)  So long as the  Indemnifying  Party is  conducting  the
defense of the Third Party Claim in accordance with  ss.8(c)(ii)  above, (A) the
Indemnified  Party may retain  separate  co-counsel at its sole cost and expense
and  participate in the defense of the Third Party Claim,  and the  Indemnifying
Party  shall  have no  liabilities  or  obligations  in respect of the costs and
expenses  of such  counsel,  (B) the  Indemnified  Party will not consent to the
entry of any  judgment or enter into any  settlement  with  respect to the Third
Party Claim without the prior written consent of the Indemnifying  Party (not to
be withheld or delayed  unreasonably),  and (C) the Indemnifying  Party will not
consent to the entry of any judgment or enter into any  settlement  with respect
to the Third Party Claim  without the prior written  consent of the  Indemnified
Party (not to be withheld or delayed unreasonably), unless an unconditional term
of such  judgment or  settlement  is a complete  release of all Liability of the
Indemnified Party.

                                       39
<PAGE>

                  (iv)  Notwithstanding  the foregoing,  if an Indemnified Party
determines in good faith that there is a reasonable  probability that an adverse
judgment  with respect to the Third Party Claim may  adversely  affect it or its
Affiliates  other  than as a result of  monetary  damages  for which it would be
entitled to indemnification  under this Agreement,  or if the Indemnifying Party
does not, within thirty (30) days after the Indemnified Party's notice is given,
give notice to the  Indemnifying  Party of its  intention  to assume the defense
thereof, such Indemnified Party may, by notice to the Indemnifying Party, assume
the  exclusive  right to conduct the defense of such Third Party Claim,  but the
Indemnifying  Party shall not bound by (i) any compromise or settlement  thereof
unless the  Indemnifying  Party has given its prior written  consent  thereto or
(ii) any determination of any such defense of such third Party Claim.

         (d)  Limitation  on Liability.  This ss.8 shall  represent the sole and
exclusive  remedy for each of the Parties for the breach of any  representation,
warranty, covenant or agreement of the Parties in this Agreement.

         (e) Consequential and Other Damages.  No Party hereto will be liable to
any other Parties for indirect, incidental,  consequential,  punitive or special
damages including,  but not limited to, lost profits arising from or relating to
any breach of this  Agreement,  regardless of any notice of the  possibility  of
such damages.

9. RESOLUTION OF DISPUTES, BINDING ARBITRATION.

         (a) In the event of any  dispute  with  respect to or  pursuant to this
Agreement,  including  but not limited to (i) any dispute or Claim in respect of
any Adverse  Consequences,  Third Party Claims or otherwise  for which the Buyer
shall seek indemnification under this Agreement,  the Disclosure Schedule hereto
or any other Transfer Instrument or Assumption Instrument,  and (ii) any dispute
or Claim for which the Seller, or any of them, shall seek indemnification  under
this  Agreement,  the Disclosure  Schedule or any other  Transfer  Instrument or
Assumption  Instrument,  the  Parties  shall in good  faith  seek to  settle  or
compromise  such  dispute or Claim.  In the event that any such dispute or Claim
cannot be settled or compromised,  as aforesaid,  within thirty (30) days of the
other  Party's  receipt of written  notice of the subject  Claim,  any Party may
promptly  thereafter submit the dispute for final and binding arbitration before
a three-person  panel of arbitrators  who shall be appointed in accordance  with
the then prevailing Rules of Arbitration of the American Arbitration Association
(the "AAA Rules") (the  "Arbitration").  In the event that it may  reasonably be
assumed  that a  dispute  or Claim  shall  not be  settled  or  compromised,  as
aforesaid,  or in the event  that it may not  reasonably  be  expected  that the
claiming   Party  wait  thirty  (30)  days  before   submitted  the  dispute  to
Arbitration,  then a dispute or Claim may be submitted as foresaid  immediately.
Any such Arbitration shall be held in accordance with the AAA Rules and shall be
conducted  in Phoenix,  AZ. The panel of  arbitrators  shall be selected  within
sixty (60) days of submission of such dispute to Arbitration.  The Parties shall
use their collective Best Efforts to promptly  schedule and conduct the hearings
before  such  arbitrators,  with  a  view  toward  concluding  such  arbitration
proceedings  not later than  ninety (90) days from the first  submission  of the
dispute to arbitration.

         (b) In  connection  with any  Arbitration  pursuant  to this ss.9,  the
arbitrators shall, as part of their award,  allocate the fee of the Arbitration,
including  all fees of the  arbitrators,  the cost of any  transcripts,  and the
parties'  reasonable  attorneys'  fees,  based upon and taking into  account the
arbitrators'  determination  of the merits and good faith of the parties' claims
and defenses in the subject proceeding.

                                       40
<PAGE>

         (c) The  decision  and  award of the  arbitrators  shall  be final  and
binding  upon the  parties  hereto  and  shall be  enforceable  in any  court of
competent jurisdiction,  including any court in Phoenix, Arizona. Any process or
other papers  hereunder may be served by registered  or certified  mail,  return
receipt requested,  or by personal service,  provided that a reasonable time for
appearance or response is allowed.

10. MISCELLANEOUS.

         (a) Press Releases and Public  Announcements.  No Party shall issue any
press release or make any public announcement  relating to the subject matter of
this Agreement  prior to the Closing  without the prior written  approval of the
other Party; provided, however, that any Party may make any public disclosure it
believes in good faith is required by  applicable  law or any listing or trading
agreement   concerning  its  publicly-traded   securities  (in  which  case  the
disclosing  Party will use its Best  Efforts to advise the other  Party prior to
making the disclosure).

         (b) No Third-Party  Beneficiaries.  This Agreement shall not confer any
rights or remedies  upon any Person other than the Parties and their  respective
successors and permitted assigns.

         (c) Entire Agreement.  This Agreement (including the documents referred
to  herein),  the  Transfer  Instruments,   the  Assumption  Agreement  and  the
Disclosure  Schedule,  constitutes the entire agreement  between the Parties and
supersedes  any  prior  understandings,  agreements,  or  representations  by or
between the Parties,  written or oral,  to the extent they related in any way to
the subject matter hereof and thereof.

         (d) Succession and Assignment. This Agreement shall be binding upon and
inure to the benefit of the Parties named herein and their respective successors
and permitted  assigns.  No Party may assign either this Agreement or any of its
rights,  interests,  or obligations hereunder without the prior written approval
of the other Party; provided,  however, that the Buyer may (i) assign all of its
rights  and  interests  hereunder  to one or more  of its  Affiliates  and  (ii)
designate one or more of its Affiliates to perform its obligations hereunder; in
any or all of which cases the Buyer nonetheless shall remain responsible for the
performance of all of its obligations hereunder,  unless the Buyer shall provide
the Seller with assurances reasonably  satisfactory to Seller that such assignee
will be able to satisfy any and all of Buyer's obligations under this Agreement.
Notwithstanding the foregoing, the Buyer shall not assign all or any substantial
portion of the Acquired Assets to any Affiliate unless it simultaneously assigns
all or substantially all of the Assumed Liabilities to such Affiliate.

         (e)  Counterparts.  This  Agreement  may be  executed  in  one or  more
counterparts,  each of  which  shall  be  deemed  an  original  but all of which
together will constitute one and the same instrument.

                                       41
<PAGE>

         (f)  Headings.  The section  headings  contained in this  Agreement are
inserted  for  convenience  only and shall not affect in any way the  meaning or
interpretation of this Agreement.

         (g)  Notices.  All  notices,  requests,   demands,  claims,  and  other
communications hereunder will be in writing. Any notice, request, demand, claim,
or other  communication  hereunder shall be deemed duly given if (and then three
business days after) it is sent by registered or certified mail,  return receipt
requested, postage prepaid, and addressed to the intended recipient as set forth
below:

If to the Buyer:

Digital Card Systems, Inc.:

                  6 Strawberry Hill Road
                  Acton, MASS 01720
                  Attn; Charles Benz, CEO
                  Tel: (508) 574-4390
                  Fax: (978) 263-2985

         With respect to communications to DCS a copy to:

                  Vincent J. McGill, Esq.
                  Eaton & Van Winkle LLP
                  3 Park Avenue, 16th Flr.
                  New York, NY 10016
                  Tel: (212) 561-3600
                  Fax: (212) 779-9928

If to Stockholders or the Seller:        Chairman & Chief Executive Officer
                                         Markow Photo Properties, Inc.
                                         2222 East McDowell Road
                                         Phoenix, AZ 850006
                                         Telephone:  (602) 244-1133
                                         Facsimile:  (602) 244-0343
                                         Email: beabobpgt@yahoo.com
                                                -------------------
Copies to:

                                         Robert Markow home address:

                                         2601 East Mitchell Dr.
                                         Phoenix, AZ  85016
                                         Home Telephone: (602) 955-3039

                                         Attorney for Seller:

                                         Barry Becker, P.C.
                                         2516 North Third Street
                                         Phoenix, AZ  85004-1308
                                         Telephone: (602) 252-1822
                                         Facsimile: (602) 256-0070

                                       42
<PAGE>

Any Party may send any notice,  request,  demand,  claim, or other communication
hereunder  to the  intended  recipient  at the address set forth above using any
other means (including personal delivery,  expedited courier, messenger service,
telecopy,  telex,  ordinary  mail,  or  electronic  mail),  but no such  notice,
request, demand, claim, or other communication shall be deemed to have been duly
given  unless and until it actually is received by the intended  recipient.  Any
Party may change the address to which notices,  requests,  demands,  claims, and
other  communications  hereunder  are to be  delivered by giving the other Party
notice in the manner herein set forth.

         (h) Governing Law. This Agreement shall be governed by and construed in
accordance  with the laws of the State of Arizona  without  giving effect to any
choice or conflict of law provision or rule that would cause the  application of
the laws of any jurisdiction other than the State of Arizona.

         (i)  Amendments  and Waivers.  No  amendment  of any  provision of this
Agreement  shall be valid  unless the same shall be in writing and signed by the
Buyer and the Seller. No waiver by any Party of any default,  misrepresentation,
or breach of warranty or covenant  hereunder,  whether intentional or not, shall
be deemed to extend to any prior or subsequent  default,  misrepresentation,  or
breach of warranty or covenant hereunder or affect in any way any rights arising
by virtue of any prior or subsequent such occurrence.

         (j)  Severability.  Any term or  provision  of this  Agreement  that is
invalid or unenforceable  in any situation in any jurisdiction  shall not affect
the validity or  enforceability  of the remaining terms and provisions hereof or
the validity or  enforceability  of the offending term or provision in any other
situation or in any other jurisdiction.

                                       43
<PAGE>

         (k)  Construction.   The  Parties  have  participated  jointly  in  the
negotiation  and  drafting  of this  Agreement.  In the  event an  ambiguity  or
question of intent or interpretation  arises,  this Agreement shall be construed
as if drafted jointly by the Parties and no presumption or burden of proof shall
arise  favoring or  disfavoring  any Party by virtue of the authorship of any of
the provisions of this Agreement. Any reference to any federal, state, local, or
foreign  statute  or law  shall  be  deemed  also  to  refer  to all  rules  and
regulations promulgated thereunder,  unless the context requires otherwise.  The
word "including"  shall mean including  without  limitation.  The Parties intend
that each  representation,  warranty,  and covenant  contained herein shall have
independent  significance.   If  any  Party  has  breached  any  representation,
warranty,  or  covenant  contained  herein in any  respect,  the fact that there
exists  another  representation,  warranty,  or  covenant  relating  to the same
subject matter  (regardless  of the relative  levels of  specificity)  which the
Party has not  breached  shall not detract  from or  mitigate  the fact that the
Party is in breach of the first representation, warranty, or covenant.

         (l) Incorporation of Exhibits and Schedules. The Exhibits and Schedules
identified  in this  Agreement are  incorporated  herein by reference and made a
part hereof.

         (m) Specific  Performance.  Each of the Parties acknowledges and agrees
that the  other  Party  would be  damaged  irreparably  in the  event any of the
provisions of this Agreement are not performed in accordance with their specific
terms or otherwise are breached.  Accordingly,  each of the Parties  agrees that
the other Party shall be entitled to an  injunction  or  injunctions  to prevent
breaches of the  provisions of this Agreement and to enforce  specifically  this
Agreement and the terms and  provisions  hereof in any action  instituted in any
state or federal court sitting in the State of Arizona having  jurisdiction over
the Parties and the matter,  in addition to any other  remedy to which it may be
entitled, at law or in equity.

              [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       44
<PAGE>

         IN WITNESS WHEREOF,  the Parties hereto have executed this Agreement on
the date first above written.

BUYER

DIGITAL CARD SYSTEMS, INC.

By: /s/ Charles Benz
--------------------
       Name: Charles Benz, Chairman and CEO                   date

SELLER

MARKOW PHOTO PROPERTIES, INC.

BY: /S/ Robert Markow
---------------------
     Name:  Robert Markow, Chairman and CEO                   date

PRINCIPAL STOCKHOLDER:

/S/ ROBERT MARKOW
-----------------
     ROBERT MARKOW                                            date

STOCKHOLDERS:

/S/ BEATRICE MARKOW
-------------------
     BEATRICE MARKOW                                          date

/S/ BEATRICE MARKOW
-------------------
     MARKOW FAMILY TRUST                                      date

/S/ PAUL TAYLOR
---------------
     PAUL TAYLOR                                              date

/S/ PAUL MARKOW
---------------
     PAUL MARKOW                                              date

                                       45
<PAGE>

EXHIBIT A

REAL ESTATE LEASE

                                       46
<PAGE>

EXHIBIT B

TAYLOR EMPLOYMENT AGREEMENT

                                       47
<PAGE>

EXHIBIT C

CONSIGNMENT AGREEMENTS

         1)       CONDITIONS RELATIVE TO INVENTORY OVER ONE YEAR OLD OWNED BY
                  SELLER

         2)       CONDITIONS RELATIVE TO INVENTORY OWNED BY THIRD PARTIES

                                       48
<PAGE>

EXHIBIT D

LIABILITIES TO BE ASSUMED

                                       49
<PAGE>

EXHIBIT E

TRADENAMES

OTHER DISCLOSURES RELATIVE TO TRADENAME RIGHTS

                                       50
<PAGE>

EXHIBIT F

INSURANCE POLICIES

                                       51
<PAGE>

EXHIBIT G

PRODUCT WARRANTY

                                       52
<PAGE>

EXHIBIT H

EMPLOYEE BENEFITS

                                       53
<PAGE>

EXHIBIT I

ALLOCATION
RELATED TO IRS FORM 8594, UNDER SECTION 1060

1) CLASS IV ASSETS (FMV INVENTORY)
         INVENTORY PAYMENT PRICE                     $

2) CLASS V ASSETS (FMV CAPITAL EQUIPMENT)            $ 491,000

3) CLASS VI ASSETS (INTANGIBLES)                     $ 100,000

                                       54
<PAGE>

EXHIBIT J

OTHER DISCLOSURES

                                       55
<PAGE>

EXHIBIT K

CAPITAL EQUIPMENT

                                       56Exhibit
      10.1

     

    CONSULTING
      AGREEMENT

     

    THIS
      AGREEMENT
      made
      with effect from the 1st day of September, 2005 (the “Effective
      Date”)

     

    BETWEEN:

    MGG
      Consulting

    10691
      Rosecroft Crescent

    Richmond,
      BC V7A 2H9

     

    (the
      “Consultant”)

     

    AND:

    Triangle
      Petroleum Corporation

    Suite
      1110, 521- 3rd Avenue SW

    Calgary,
      AB T2P 3T3

     

    (the
      “Company”)

     

    RECITALS:

     

    

    A.  The
      Company has requested MGG Consulting's (the “Consultant”) assistance to perform
      the functions and work as defined in 2.1 for the Company; and

     

    B.  The
      Company has agreed to pay the fees for work undertaken on behalf of the Company,
      on the terms and conditions contained herein.

     

     

    WITNESSES
      THAT in
      consideration of the premises, and other good and valuable consideration, the
      receipt and sufficiency of which is hereby acknowledged, the parties agree
      as
      follows:

     

    ARTICLE
      1

    DEFINITIONS
      AND INTERPRETATION

     

    1.1  Entire
      Agreement

     

    This
      Agreement supersedes all previous invitations, proposals, letters,
      correspondence, negotiations, promises, agreements, covenants, conditions,
      representations and warranties with respect to the subject matter of this
      Agreement. There is no representation, warranty, collateral term or condition
      affecting this Agreement for which any party can be held responsible in any
      way,
      other than as expressed in writing in this Agreement.

     

    1.2  Amendments

     

    No
      change
      or modification of this Agreement will be valid unless it is in writing and
      signed by each party to this Agreement. 

     

    1.3  Invalidity
      of Particular Provision

     

    It
      is
      intended that all of the provisions of this Agreement will be fully binding
      and
      effective between the parties. In the event that any particular provision or
      provisions or a part of one or more is found to be void, voidable or
      unenforceable for any reason whatsoever, then the particular provision or
      provisions or part of the provision will be deemed severed from the remainder
      of
      this Agreement. The other provisions of this Agreement will not be affected
      by
      the severance and will remain in full force and effect.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.4   
      Governing
      Law

     

    This
      Agreement will be governed by and construed in accordance with the laws of
      the
      Province of Alberta and the laws of Canada applicable in such
      Province.

     

    ARTICLE
      2

    SERVICES
      AND REMUNERATION

     

    2.1   Services

     

    The
      Consultant agrees to use its reasonable efforts to:

     

    (a)  Perform
      the functions of President; and,

     

    (b)  Assist
      management and the Board of Directors of the Company as requested. 

     

    2.2   Remuneration

     

    For
      providing the services set out in 2.1 above, the Company agrees to pay the
      Consultant the following:

     

    (a)
      $10,000 (plus GST) per month payable monthly in arrears and commencing on the
      effective date of September 1, 2005. Remuneration to be paid in US Funds.

     

    2.3   Consultant
      Not Employee

     

    The
      parties agree that the Consultant is not an employee of the Company and, as
      such, save as required by law; there shall be no deductions for any statutory
      withholdings such as income tax, Canada Pension Plan, Unemployment Insurance
      or
      Worker’s Compensation.

     

    2.4   Statutory
      Withholdings

     

    The
      Consultant agrees to make and remit all statutory withholdings as may be
      required to be made by the Consultant in connection with the performance of
      its
      services for the Company.

     

    ARTICLE
      3

    GENERAL
      OBLIGATIONS OF THE CONSULTANT

     

    3.1  
      The
      Company’s Ownership of Rights

     

    The
      Consultant acknowledges and agrees as follows with respect to the ownership
      of
      rights by the Company and the limitation of the Consultant’s
      rights:

     

    
      	(a)  	
              The
                Consultant acquires no rights in any inventions or developments or
                work
                products, including, but not limited to, documents, written materials,
                programs, discs and tapes (the “Work Products”) resulting from, derived
                from or otherwise related to the performance of the Services by the
                Consultant or the Confidential Information. All such inventions,
                developments and Work Products are the property of the Company. The
                Consultant will promptly and duly execute and deliver to the Company
                such
                further documents and assurances and take such further action as
                the
                Company may from time to time request in order to more effectively
                carry
                out the intent and purpose of this section, and to establish and
                protect
                the rights, interests and remedies of the
                Company.

            

    

     

    
      	(b)  	
              The
                Consultant will not at any time apply for any copyright, trade mark,
                patent, or other intellectual property protection which would affect
                the
                ownership by the Company of any rights in the intellectual property
                associated with the Work Products or file any document with any government
                authority anywhere in the world or take any other action which could
                affect such ownership of any intellectual property associated with
                the
                Work Products or aid or abet anyone else in doing
                so.

            

    

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    ARTICLE
      4

    TERM

     

    
      
        4.1  This
          Agreement will take effect on the Effective Date and will continue in full
          force
          and effect for a period of two years with automatic one year renewals unless
          terminated by one of the parties in accordance with this
          Agreement.

      

    

     

    
      
        4.2  Notwithstanding
          any other provision of this Agreement, the Consultant or the Company may,
          at any
          time, give 30 days advance written notice to the other of its intention
          to
          terminate this Agreement and on the expiration of such period this Agreement
          shall be terminated. Such notice may expire on any day of the month and
          any
          remuneration payable hereunder shall be proportioned to the date of such
          termination.

      

    

     

    ARTICLE
      5

    UNAUTHORIZED
      DISCLOSURE 

    

     

    5.1 
      The consultant acknowledges that:

     

    
      	 	
              (a)   
                

            	
              The
                Consultant will be provided with access to confidential and proprietary
                information and knowledge relating to the business of the Company
                and the
                affairs of industry partners and prospective industry partners of
                the
                Company; and 

            

    

     

    
      	(b)  	
              The
                Consultant will be advanced and promoted by the Company to industry
                partners and prospective industry partners of the Company as a person
                of
                special competence in the fields comprising the business of the
                Company.

            

    

     

    The
      information and knowledge referred to in paragraph (a) above collectively
      comprises an important and valuable asset of the Company and the parties hereto
      agree and acknowledge that any disclosure or unauthorized use of any such
      information or knowledge by the Consultant will cause damage to the Company.
      

     

    The
      Consultant covenants and agrees that, save and except in the pursuit of the
      business and affairs of the Company:

     

    
      	(a)  	
              It
                will not, either during the term of this Agreement or within the
                period of
                one (1) year thereafter, directly or indirectly, use or disclose
                to any
                person, firm, or corporation, any information relating to the finances
                of
                the Company or finances of industry partners of the Company financial
                status, the identity of existing or prospective industry
                partners of
                the Company or business methods of the Company, which the Consultant
                may
                have acquired in the course of, or as incidental to, its providing
                consulting services to the Company or the Company’s industry
                partners;

            

    

     

    
      	(b)  	
              It
                will not, either during the term of this Agreement or at any time
                thereafter, remove originals or copies of any reports, records, memoranda
                or data of any kind or description concerning the business and affairs
                of
                the Company, or any industry partners or prospective industry partner
                of
                the Company, even where such reports or memoranda have been furnished
                to
                or prepared by the Consultant during the term of this Agreement,
                nor shall
                the Consultant make copies or notes thereof, of any kind or description,
                for its own use or the use of others; and

            

    

     

    
      	(c)  	
              Upon
                the termination of this Agreement by either party for any reason
                whatsoever, the Consultant shall immediately turn over to the Company,
                all
                such documents and data referred to in paragraph (b) above, which
                may be
                in its possession.

            

    

    
 

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      6

    ASSIGNMENT
      AND SUBCONTRACTING

    

    6.1  The
      Consultant shall not assign this Agreement in whole or in part. The Consultant
      shall not subcontract all or any portion of the services to be performed under
      this Agreement without the prior written consent of the Company, which consent
      the Company may withhold in its absolute discretion.

    

     

    ARTICLE
      7

    UNDERTAKINGS
      BINDING ON EMPLOYEES AND/OR SUBCONTRACTORS

    

    7.1  The
      Consultant shall ensure that any of its employees and/or permitted
      subcontractors performing the services agreed to by the Consultant under this
      Agreement are bound by this agreement. 

     

    

     

    ARTICLE
      8

    LIABILITIES
      AND INDEMNITIES OF THE CONSULTANT
      AND
      THE COMPANY

    

    8.1   Liability
      and Indemnity of the Consultant

    

    
      	(a)  	
              The
                Consultant shall be liable to the Company for any loss or damage
                arising
                out of or attributable to negligence of the Consultant, its employees,
                subcontractors or agents.

            

    

    

    
      	(b)  	
              The
                Consultant shall indemnify and hold harmless the Company, its directors,
                officers, employees and agents from and against all claims, demands,
                losses, costs, damages, suits or proceedings whatsoever (collectively
                referred to as “Claims”) that arise out of or are attributable to
                negligence of the Consultant or its employees, subcontractors or
                agents,
                and the costs thereof, including, without limitation, all legal expenses
                on a solicitor and client basis, except where such Claims are caused
                by
                the negligence of the Company.

            

    

    

    
      	(c)  	
              The
                Consultant shall be liable for and shall indemnify and save harmless
                the
                Company and each of its representatives, directors, officers, employees
                and agents, with respect to any income taxes payable by the Consultant
                as
                a result of this Agreement, or for any contributions and penalties
                imposed
                on the Company by any governmental or other public authority having
                jurisdiction, for failure by the Consultant to comply with payment
                and
                contribution requirements pursuant to the Workers’ Compensation Act,
                Canada Pension Plan Act, Unemployment Insurance Act and Income Tax
                Act.
                

            

    

    

    8.2  
      Liability
      and Indemnity of the Company

    

    
      	 	
              (a)
                

            	
              The
                Company shall be liable to the Consultant and its employees for any
                loss
                or damage arising out of or attributable to negligence of the Company,
                or
                its employees. 

            

    

    

    (b)         
      The Company shall indemnify and hold harmless the Consultant and each of its
      directors, officers, and employees, from and against all Claims that arise
      out
      of or are attributable to negligence of the Company or its employees or agents,
      and the cost thereof, including, without limitation, all legal expenses on
      a
      solicitor and client basis, except where such Claims are caused by the
      negligence of the Consultant.

    

    (c)         
      The Company shall be liable for and shall indemnify and save harmless the
      Consultant, its directors, officers, employees and sub-contractors, with respect
      to any income taxes payable by the Company or for any contributions and
      penalties imposed on the Consultant by any governmental or other public
      authority having jurisdiction, for failure by the Company to comply with payment
      and contribution requirements pursuant to the Workers’ Compensation Board Act,
      Canada Pension Plan Act, Unemployment Insurance Act and Income Tax Act.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      9

    CONFIDENTIALITY
      AND COOPERATION

     

    9.1  
      Confidentiality

     

    The
      Consultant shall keep in confidence and shall not disclose or make available
      to
      third parties or in any other way make use of any materials or information
      the
      Company provides to the Consultant pursuant to this Agreement, other than to
      the
      extent necessary to provide its services set out herein. Upon termination of
      this Agreement, the Consultant will return to the Company all materials that
      have been provided to the Consultant by the Company. This duty of
      confidentiality shall not extend to knowledge and information which is know
      to
      the Consultant or is known to the public at the date of this
      Agreement.

     

    ARTICLE
      10

    GENERAL

     

    10.1  
      Arbitration

     

    All
      disputes arising out of or in connection with this contract, or in respect
      of
      any defined legal relationship associated therewith or derived therefrom, shall
      be referred to and finally resolved by arbitration pursuant to the provisions
      of
      the Arbitration Act of Alberta.

     

    10.2  
      Notices

     

    Any
      notice, direction, request or other communication required or contemplated
      by
      any provision of this Agreement shall be given in writing and shall be given
      by
      delivering or faxing same to the Company or the Consultant, as the case may
      be,
      as follows:

     

    

    To
      the
      Consultant at:

    10691
      Rosecroft Crescent

    Richmond,
      BC V7A 2H9

    Attention:
      Mark G. Gustafson

    

    To
      the
      Company at:

    Triangle
      Petroleum Corporation

    Suite
      1110, 521 - 3rd Avenue SW

    Calgary,
      AB T2P 3T3

    Attention:
      Ron Hietala, Director

     

    Any
      such
      notice, direction, request or other communication shall be deemed to have been
      given or made on the date on which it was delivered or, in the case of fax,
      on
      the next business day after receipt of transmission. Either party may change
      its
      fax number or address for service from time to time by notice in accordance
      with
      the foregoing.

     

    10.3  
      Maintenance
      of Records

     

    The
      Consultant agrees to keep records and books of account with supporting vouchers,
      invoices and other documentation showing expenditures made by it in the
      performance of the services. The Consultant also agrees to maintain adequate
      and
      proper time records with respect to time expended in the performance of the
      services contemplated by this Agreement. The Company has the right to examine,
      at all reasonable times, the records and books of account of the Consultant
      to
      the extent necessary to verify amounts claimed by the Consultant pursuant to
      this Agreement. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    10.4  
      Laws

     

    This
      Agreement is governed by the laws of the Province of Alberta. 

     

    10.5  
      Waiver

     

    No
      failure or delay on the part of any party in exercising any power or right
      under
      this Agreement will operate as a waiver of such power or right, nor will any
      single or partial exercise of any such right or power preclude any further
      or
      other exercise of such right or power under this Agreement. No modification
      or
      waiver of any provision of this Agreement and no consent to any departure by
      any
      party from any provision of this Agreement will be effective unless it is in
      writing. Any such waiver or consent will be effective only in the specific
      instance and for the specific purpose for which it was given. No notice to
      or
      demand on any party in any circumstances will entitle such party to any other
      or
      further notice or demand in similar or other circumstances.

     

    10.6  
      Enurement

     

    This
      Agreement shall enure to the benefit of and be binding on the parties and their
      respective heirs, executors, administrators, successors and
      assigns.

     

    IN
      WITNESS WHEREOF
      the
      parties have executed this Agreement.

    

    
      	 	
              Per
                authorized signatory

               

              /s/
                MARK GUSTAFSON

              Mark
                Gustafson

              MGG
                Consulting 

            

    

    

    
      	 	
              Per
                authorized signatory:

               

              /s/
                RON HIETALA

              Triangle
                Petroleum Corporation

              Ron
                Hietala, Director

            

    

     

    

    

    
      
        
        

      

      
        6

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