Document:

LOCK-UP
      AGREEMENT

    

    THIS
      LOCK-UP AGREEMENT (the "Lock-up Agreement") is entered into effective as of
      January 31, 2007, by and between Sean
      Slipchuk
      (the
      "Shareholder"), a shareholder of Smart Kids Group, Inc., a Florida corporation
      (the ("Company"), and the Company;

    

    WHEREAS,
      Shareholder beneficially owns 4,400,000
      shares
      of common stock, $.0001 par value per share of the Company (the "Common
      Stock");

    

    WHEREAS,
      Shareholder understands that the Company needs additional financing, is in
      the
      process of applying for a listing with the National Association of Securities
      Dealers (“NASD”), and believes that a lock-up on transfer of the Shareholder's
      shares will improve the Company's prospects for obtaining additional financing
      as well as for a listing;

    

    WHEREAS,
      for valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, the Shareholder has agreed to enter into this Lock-up
      Agreement.

    

    NOW,
      THEREFORE, in consideration of the foregoing, the parties hereto agree as
      follows:

    

     1.
      Lock-up on Transfer of Shares

    

    (a)
      The
      Shareholder agrees not, directly or indirectly, to sell, offer to sell, contract
      to sell, assign, pledge, hypothecate, encumber or otherwise transfer, or enter
      into any contract, option or other arrangement or understanding with respect
      to
      the sale, assignment, pledge or other disposition of (collectively, "Transfer")
      any rights with respect to (i)
      4,400,000
      shares
      of the Common Stock currently owned by Shareholder for a period commencing
      on
      the date hereof and continuing through January 31, 2009 (the "Lock-up Period")
      except as expressly provided herein. The foregoing restriction has been
      expressly agreed to preclude Shareholder from engaging in any hedging or other
      transaction during the Lock-up Period that
      is
      designed to or reasonably expected to lead to or result in a Transfer
      of the Common Stock. Such prohibited hedging or other transaction would include,
      without limitation, any short sale (whether or not against the box) or any
      purchase, sale, or grant of any right (including, without limitation, any put
      or
      call option) with respect to the Common Stock or with respect to any security
      (other than a broad-based market basket or index) that includes, relates to
      or
      derives any significant part of its value from the Common Stock.

    

    (b)
      The
      Shareholder also agrees and consents to the entry of stop transfer instructions
      with the Company's Transfer Agent against the Transfer of Common Stock held
      by
      Shareholder except in compliance with the terms and conditions of this Lock-up
      Agreement.

    

    (c)
      The
      restrictions contained in this Lock-up Agreement shall apply to Shareholder
      with
      respect to any and all Transfers of any of the Company's Common Stock with
      the
      exception of that Common Stock acquired by the Shareholder on the open market.
      Any and all other transfers are prohibited by this Agreement.

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

     2.
      Early Termination of Lock-Up Period.

     

    (a)
      In
      the event any Common Stock of Shareholder is subject to any involuntary
      transfer, whether by reason of death, bankruptcy or divorce proceedings or
      otherwise, the transferee of such Common Stock shall take such Common Stock
      subject to this Lock-up Agreement. Any purported transfer of any Common Stock
      of
      Shareholder that is not in accordance with this Lock-Up Agreement shall be
      null
      and void, and shall not operate to transfer any right, title or interest in
      such
      Common Stock to the purported transferee. The Shareholder agrees that the
      Company shall not cause or permit the transfer of any Common Stock of
      Shareholder to be made on its books unless the transfer is permitted by this
      Lock-up Agreement and has been made in accordance with its terms.

    

    (b)
      The
      restrictions contained in this Lock-up Agreement shall not apply to any Transfer
      by Shareholder with respect to transfers of any Common Stock acquired on the
      open market.

    

     3.
      Representations, Warranties and Covenants of the Shareholder.

    

    Shareholder
      represents and warrants to, and agrees with, the Company that:

    

    (a)
      this
      Lock-up Agreement has been duly executed and delivered by Shareholder and
      constitutes a valid and binding obligation of Shareholder enforceable in
      accordance with its terms;

    

    (b)
      neither the execution and delivery of this Lock-up Agreement nor the
      consummation of the transactions contemplated hereby will result in any breach
      or violation of, be in conflict with or constitute a default under any agreement
      or instrument to which Shareholder is a party or by which Shareholder may be
      affected or is bound;

    

    (c)
      Shareholder is not subject to or obligated under any provisions of any law,
      regulation, order, judgment or decree which would be breached or violated by
      the
      execution, delivery and performance of this Lock-up Agreement by Shareholder
      and
      the consummation of the transactions contemplated hereby; and

    

    (d)
      Shareholder is now, and will be at all times up to the termination of this
      Lock-up Agreement, the record and beneficial owner of the Common Stock which
      at
      such time is subject to Transfer restrictions pursuant to the terms hereof,
      free
      and clear of any pledge, lien, security interest, mortgage, charge, claim,
      equity, option, proxy, voting restriction, right of first refusal, limitation
      on
      disposition, adverse claim of ownership or use or encumbrance of any kind,
      other
      than pursuant to this Lock-up Agreement.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     4.
      Miscellaneous.

    

    (a)
      Specific Performance. Shareholder acknowledges that damages would be an
      inadequate remedy for any breach of the provisions of this Lock-up Agreement
      and
      agrees that the obligations of Shareholder hereunder shall be specifically
      enforceable and Shareholder shall not take any action to impede the Company
      from
      seeking to enforce such right of specific performance. Shareholder agrees that
      monetary damages may not be adequate compensation for any loss incurred by
      reason of any breach of their obligations in this Lock-up Agreement and hereby
      agrees to waive in any action for specific performance of any such obligation,
      the defense that a remedy at law would be adequate.

    

    (b)
      Notices. All notices, demands and other communications to be given or delivered
      under or by reason of the provisions of this Lock-up Agreement shall be in
      writing and shall be given and shall be deemed to have been given when
      personally delivered or three days after being mailed, if mailed by first class
      mail, return receipt requested, or one day after being sent by reputable
      overnight delivery service, or when receipt is acknowledged, if sent by
      facsimile, telecopy or other electronic transmission device. Notices, demand
      and
      communications to Shareholder and the Company will, unless another address
      is
      specified in writing, be sent to the address indicated below, except that
      notices of change of address shall only be effective upon receipt:

    

    
      	
              If
                to Shareholder:

            	 
	 	 
	
              9328
                - 107 Avenue

            	 
	
              Edmonton,
                Alberta

            	 
	
              T5H
                0T5 Canada

            	 
	 	 
	
              If
                to the Company:

            	 
	
              United
                States:

            	
              Canada
                (Head Office):

            
	
              Smart
                Kids Group, Inc.

            	
              Smart
                Kids Group, Inc.

            
	
              44
                Coyote Mountain Road

            	
              Suite
                542, 9768 - 170 Street

            
	
              Santa
                Fe, New Mexico 87505

            	
              Edmonton,
                Alberta T5T 5L4

            

    

    

    (c)
      Assignment. This Lock-up Agreement and all the provisions hereof will be binding
      upon and inure to the benefit of the parties hereto and their respective
      successors and permitted assigns, except that neither this Lock-up Agreement
      nor
      any of the rights, interests or obligations hereunder may be assigned by the
      Shareholder hereto without the prior written consent of the
      Company.

     

    (d)
      Governing Law. The internal law, without regard for conflicts of law principals,
      of the State of Florida will govern all questions concerning the construction,
      validity and interpretation of this Lock-up Agreement and the performance of
      the
      obligations imposed by this Lock-up Agreement.

    

    (e)
      Counterparts. This Lock-up Agreement may be executed in one or more
      counterparts, any one of which need not contain the signatures of more than
      one
      party, but all such counterparts taken together shall constitute one and the
      same instrument.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (f)
      Severability. Whenever possible, each provision of this Lock-up Agreement will
      be interpreted in such manner as to be effective and valid under applicable
      law,
      but if any provision of this Lock-up Agreement is held to be prohibited by
      or
      invalid under applicable law, such provision will be ineffective only to the
      extent of such provision or invalidity, without invalidating the remainder
      of
      such provision or the remaining provisions of this Lock-up
      Agreement.

    

    (g)
      Amendment Waiver. This Lock-up Agreement may not be amended or waived except,
      (i) in a writing executed by the party against which such amendment or waiver
      is
      sought to be enforced, and (ii) without the expressed written consent of the
      Company. No course of dealing between or among any persons having any interest
      in this Lock-up Agreement will be deemed effective to modify or amend any part
      of this Lock-up Agreement or any rights or obligations of any person under
      or by
      reason of this Lock-up Agreement.

    

    (h)
      Review by Shareholder. The Shareholder has had the opportunity to review this
      Lock-up Agreement with legal counsel and other advisors as the Shareholder
      deemed advisable, prior to the Shareholder's execution of this Agreement, and
      the Shareholder has not relied on any advice other than from his own legal
      counsel.

    

    (i)
      Complete Agreement. This Lock-up Agreement contains the complete agreement
      between the parties hereto and supersedes any prior understandings,
      agreements or representations by or between the parties, written or oral, which
      may have related to the subject matter hereof in any way.

    

    IN
      WITNESS WHEREOF, the parties hereby have executed this Lock-up Agreement as
      of
      the date first written above.

    

    
      	
              Smart
                Kids Group, Inc.

            
	 
	
              

            
	
              Richard
                Shergold

            
	
              Chief
                Executive Officer

            
	 
	
              /s/
                Sean Slipchuk

	
              (Shareholder)

            

    

     

    
      
        
        

      

      
        4Unassociated Document

    
      	
                  

            
	
               

               

              ASSET
                PURCHASE AGREEMENT

               

              between

               

              CENTERSTAGING
                MUSICAL PRODUCTIONS, INC.

              DEBTOR
                AND DEBTOR IN POSSESSION

               

              and

               

              POINT.360

               

              DATED
                AS OF SEPTEMBER 29, 2008

               

            

    

    

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ASSET
      PURCHASE AGREEMENT

     

    THIS
      ASSET PURCHASE AGREEMENT (the “Agreement”)
      is
      made and entered into as of September __, 2008 (the “Execution
      Date”)
      by and
      between CENTERSTAGING MUSICAL PRODUCTIONS, INC., a California corporation,
      as
      debtor and debtor in possession (“Seller”)
      under
      Case No.2:08-bk-13019-VZ (the “Bankruptcy
      Case”)
      in the
      United States Bankruptcy Court for the Central District of California (the
      “Bankruptcy
      Court”),
      and
      POINT.360, a California corporation or its assignee (“Purchaser”).
      Capitalized terms used herein but not otherwise defined shall have the meanings
      set forth in Section 15.15 of this Agreement.

     

    R
      E C I T A L S

     

    WHEREAS,
      on March 10, 2008 (the “Petition
      Date”),
      Seller commenced the Bankruptcy Case by filing a voluntary petition for relief
      under Chapter 11 of the Bankruptcy Code with the Bankruptcy Court;
      and

     

    WHEREAS,
      Seller is primarily engaged in the business of (i) providing production and
      support services for live musical performances for major television programs;
      (ii) renting its studio and soundstage facilities, and (iii) renting musical
      instruments and related equipment for use at its studios and other venues (such
      businesses as presently conducted by Seller, collectively, the “Business”)
      as
      debtor and debtor in possession pursuant to Sections 1107(a) and 1108 of the
      Bankruptcy Code; and

     

    WHEREAS,
      Seller wishes to sell, transfer, convey, assign and deliver to Purchaser, in
      accordance with Sections 363 and 365 and the other applicable provisions of
      the
      Bankruptcy Code, all of the Purchased Assets, together with the Assumed
      Liabilities of Seller upon the terms and subject to the conditions set forth
      in
      this Agreement (hereinafter collectively referred to as the “Transaction”);

     

    WHEREAS,
      Purchaser wishes to purchase and take delivery of such Purchased Assets and
      Assumed Liabilities upon such terms and subject to such conditions;

     

    WHEREAS,
      the Purchased Assets will be sold pursuant to a Sale Order of the Bankruptcy
      Court approving such sale under Section 363 of the Bankruptcy Code and such
      Sale
      Order will include the assumption and assignment of certain executory contracts,
      unexpired leases and liabilities thereunder under Section 365 of the Bankruptcy
      Code and the terms and conditions of this Agreement; and

     

    WHEREAS,
      all of the obligations of the parties under this Agreement are conditioned
      upon
      the approval of the Bankruptcy Court in accordance with Article 3
      hereof.

     

    NOW,
      THEREFORE, in consideration of the premises and mutual covenants and agreements
      herein set forth and for other good and valuable consideration, the receipt
      and
      adequacy of which are hereby acknowledged, the parties hereto hereby agree
      as
      follows:

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

     

    ARTICLE
      1

    PURCHASE
      AND SALE

     

    Except
      as
      otherwise provided and subject to the terms and conditions set forth in this
      Agreement and subject to Bankruptcy Court approval, Seller agrees to sell,
      convey, assign, transfer and deliver to Purchaser, and Purchaser agrees to
      purchase from Seller at the Closing, all of Seller’s right, title and interest
      in and to the Purchased Assets, free and clear of all Liens, claims or interests
      of any type or nature, whether known or unknown, of Seller or any other party,
      other than the Assumed Liabilities.

     

    ARTICLE
      2

    DESCRIPTION
      OF PURCHASED ASSETS; EXCLUDED ASSETS; ASSUMPTION OF
      LIABILITIES

     

    Section
      2.1. Purchased
      Assets.
      Upon the
      terms and subject to the conditions set forth in this Agreement, at the Closing,
      Seller shall sell, convey, transfer, assign and deliver to Purchaser, and
      Purchaser shall purchase, acquire and take assignment and delivery from Seller,
      all of Seller’s right and title to and interest in and to Seller’s business
      assets, properties, rights (contractual or otherwise) and its affirmative
      claims, but excluding the Excluded Assets (the assets so included, the
“Purchased Assets”). The Purchased Assets shall include, without limitation, all
      of Seller’s right, title and interest in and to the following:

     

    (a) All
      equipment, machinery or other tangible personal property owned by Seller
      including, without limitation, the equipment, machinery and personal property
      listed on Schedule
      2.1(a)
      hereto;

     

    (b) All
      of
      Seller’s rights, titles and interests in and to the any and all intellectual
      property owned or utilized by the Seller, including, without limitation,
      patents, patent rights, patent applications, inventions, trade secrets,
      processes, formulas, customer lists, proprietary rights, proprietary knowledge,
      computer software, websites, URLs, domain names, trademarks, names, service
      marks, brand marks, brand names, trade names, source or object code, copyrights,
      trade secrets relating to or arising from any proprietary process, symbols
      and
      logos related to the Business and all applications therefor, registrations
      thereof and licenses and sublicenses or agreements in respect thereof, which
      Seller owns or has the right to use or to which Seller is a party and all
      filings, registrations or issuances of any of the foregoing with or by any
      federal, state, local or foreign regulatory, administrative or governmental
      office, as listed on Schedule
      2.1(b)
      (excluding the Retained Intellectual Property, collectively, the “Transferred
      Intellectual Property”);

     

    (c) All
      leases of equipment,
      machinery or other tangible personal property to which Seller is a
      party,
      as
      listed on Schedule
      2.1(c)
      hereto
      (the “Personal
      Property Leases”);

     

    (d) All
      contracts, agreements, contract rights, license agreements, customer contracts,
      distribution agreements, franchise rights and agreements, purchase and sales
      orders (if any), quotations and executory commitments, instruments, royalty
      agreements, third party guaranties, indemnifications, arrangements and
      understandings, whether oral or written, to which Seller is a party (whether
      or
      not legally bound thereby), as listed on Schedule
      2.1(d)
      hereto
      (the “Assumed
      Contracts”);

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

     

    (e) All
      franchises, licenses, permits, consents, authorizations, approvals and
      certificates of any regulatory, administrative or other Governmental Authority,
      as listed on Schedule
      2.1(e)
      hereto
      (the “Permits”);

     

    (f) All
      of
      Seller’s rights under leases of real property set forth on Schedule
      2.1(f)
      hereto,
      together with all buildings, structures, installations, fixtures and all other
      leasehold improvements, appurtenant thereto or situated thereon and all other
      rights, interests and appurtenances of Seller pertaining thereto; provided,
      however, that such leases shall be subject to further negotiation and agreement
      by and between Purchaser and any lessor following execution of this Agreement
      (the “Assumed
      Leases”);

     

    (g) Seller’s
      marketing and sales materials relating to the Business; 

     

    (h) Seller’s
      backlog (i.e.,
      lease
      and sales (if any) orders, and orders for production and support services that
      have not been processed); 

     

    (i) All
      of
      Seller’s customer or client lists, files, documentation, records and related
      documentation related to the Business, including, without limitation, those
      listed on Schedule
      2.1(i)
      hereto,
      relating to the Purchased Assets; 

     

    (j) All
      of
      Seller’s security deposits, prepaid expenses and other miscellaneous assets, as
      listed on Schedule
      2.1(j)
      hereto; 

     

    (k) All
      of
      Seller’s other tangible and intangible assets, other than the Excluded
      Assets.

     

    Section
      2.2. Excluded
      Assets.
      Notwithstanding the provisions of Section 2.1, the Purchased Assets shall not
      include any of the following assets, properties and/or rights of Seller,
      (collectively, the “Excluded
      Assets”)
      and
      liens, claims or encumbrances against such Excluded Assets shall not be altered
      by virtue of this Agreement:

     

    (a) Any
      Contracts that are not Assumed Contracts (the “Excluded
      Contracts”);

     

    (b) Any
      items
      excluded pursuant to the provisions of Section 2.1 above;

     

    (c) All
      cash,
      bank accounts, certificates of deposit, commercial paper, annuities, treasury
      notes and bills and other marketable securities;

     

    (d) All
      accounts receivable;

     

    (e) All
      claims for refunds and/or credits by the Seller of any kind, including for
      Taxes; and

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

     

    (f) all
      Employee Plans, including, without limitation, all of Seller’s severance,
      pension, retirement and other employee benefit plans; and

     

    (g) All
      of
      Seller’s insurance policies relating to the Business or the Purchased Assets,
      subject to any claims of co-insureds, including, without limitation, all
      credits, cash or surrender value, all rights to any refunds, all rights to
      receive proceeds of insurance policies, any outstanding claims thereunder and
      all rights of offset, counterclaims and insurance coverage thereunder
      (collectively, the “Insurance
      Policies”),
      which
      such Insurance Policies are as set forth in Schedule
      2.1(k)
      hereto
      (showing as to each policy or binder the carrier, policy or binder the carrier,
      policy number, coverage limits, expiration dates, annual premiums and a general
      description of the type of coverage provided).

     

    (h) All
      of
      Seller’s right, title and interests in and to high definition and other content,
      stored on digital video cassettes or other electronic mediums, available for
      multi-platform distribution (the “Content
      Library”)
      and
      all copyrights, contract rights, content licenses or other general intangibles
      associated with the Content Library (the “Retained
      Intellectual Property”);
      provided
      however, it is contemplated and understood that Purchaser will be entering
      into
      a management contract with respect to the Content Library upon Closing, which
      contract will be subject to further negotiations by the Parties and which
      contract shall not preclude the sale of the Content Library at any
      time.
      It is
      understood that Seller has the right to refuse to enter into any management
      contract proposed by Purchaser.

     

    (i) Any
      and
      all tax refunds due to Seller prior to the effective date of the sale, and
      any
      and all NOLs in favor or Seller.

     

    (j) All
      known
      and unknown, liquidated or unliquidated, contingent or fixed, claims, rights
      or
      causes of action which Seller may have against any third party for avoidance
      and
      recovery of any preferential or fraudulent transfer.

     

    (k) All
      of
      Seller’s corporate minute books and organizational documents

     

    (l) Any
      interest of the Seller in any affiliate.

     

    Section
      2.3. Assumed
      Liabilities; Non-Assumed Liabilities. 

     

    (a) At
      the
      Closing, Purchaser shall assume and agree to perform and discharge the following
      Liabilities of Seller to the extent not previously performed or discharged,
      and
      no others: (i) all Liabilities of Seller under the Personal Property Leases
      in
      an aggregate amount not to exceed $1,300,000, (ii) all Liabilities of Seller
      which first accrue and are to be performed from and after the Closing under
      the
      Assumed Contracts, the Assumed Leases and the Personal Property Leases, which
      relate to periods of time on or after the Closing Date, and (iii) liabilities
      and obligations relating to and arising from Purchaser’s operation of the
      Purchased Assets after the Closing (items (i), (ii) and (iii) are collectively
      referred to herein as the “Assumed
      Liabilities”). 

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

     

    (b) Other
      than the Assumed Liabilities, Purchaser shall not assume or be bound by or
      be
      obligated or responsible for any duties, responsibilities, commitments,
      expenses, obligations or liabilities of Seller or relating to the Purchased
      Assets or the Business (or which may be asserted against or imposed upon
      Purchaser as a successor or transferee of Seller as an acquirer of the Purchased
      Assets or the Business or otherwise as a matter of law) of any kind or nature,
      fixed or contingent, known or unknown, including, without limitation, the
      following (collectively, the “Non-Assumed
      Liabilities”):

     

    
      	 	
              (i)

            	
              any
                Liability of Seller in respect of any Taxes arising or accruing prior
                to
                the Closing Date;

            

    

     

    
      	 	
              (ii)

            	
              any
                Liability of Seller under any contract or lease that is not an Assumed
                Contract, Assumed Lease or Personal Property
                Lease;

            

    

     

    
      	 	
              (iii)

            	
              any
                Liability of Seller arising out of or resulting from its compliance
                or
                noncompliance with any Law;

            

    

     

    
      	 	
              (iv)

            	
              any
                Liability of Seller arising out of or related to any Legal Proceeding
                against it or any Legal Proceeding which has an adverse effect on
                the
                Purchased Assets or the Business and which was or could have been
                asserted
                on or prior to the Closing Date or to the extent the basis of which
                arose
                or accrued on or prior to the Closing
                Date

            

    

     

    
      	 	
              (v)

            	
              any
                Liability of Seller for any indemnification obligations pursuant
                to any
                claim or notice received or required to be received prior to the
                Closing
                Date with respect to any Transferred Intellectual
                Property;

            

    

     

    
      	 	
              (vi)

            	
              any
                Liabilities arising under or in connection with any Employee Plans
                of, or
                maintained or required to be maintained by, Seller;
                

            

    

     

    
      	 	
              (vii)

            	
              any
                Liability pursuant to any personal guaranty or indemnity provided
                by any
                officer, director, principal, owner or other party related to Seller;
                and

            

    

     

    
      	 	
              (viii)

            	
              any
                Liability that is not an Assumed
                Liability.

            

    

     

    ARTICLE
      3

    BANKRUPTCY
      COURT APPROVAL

     

    Section
      3.1. Entry
      of Sale Procedures Order.
      No
      later than October 1, 2008 or two (2) business days after execution of this
      Agreement, whichever is earlier by the parties hereto, Seller shall file a
      motion in form and substance reasonably satisfactory to Purchaser (the
“Sales
      Procedures Motion”)
      with
      the Bankruptcy Court seeking entry of an order in form and substance
      satisfactory to Purchaser which shall include all of the following provisions
      (the “Sale
      Procedures Order”):

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

     

    

    (a) Competing
      offers to acquire the Purchased Assets shall:

     

    

    
      	 	
              (i)

            	
              be
                submitted in writing to Seller and its counsel on or before 4:00
                p.m.
                (Pacific Time) on the business day that is no later than five days
                prior
                to the Sale Hearing (as defined below);

            

    

     

    
      	 	
              (ii)

            	
              provide
                for total cash consideration that exceeds the Cash Payment and Tax
                Escrow
                Funds as defined herein by at least Three Hundred Thousand Dollars
                ($300,000.00); 

            

    

     

    
      	 	
              (iii)

            	
              be
                accompanied by a signed asset purchase agreement in form and substance
                substantially identical to this Agreement, except with respect to
                the
                payment on account of tax claims as set forth in Section 5.2 below
                and
                with respect to the Key Employment agreements set forth in Section
                9.10
                below, together with a redlined, marked copy showing all changes
                to this
                Agreement (the “Competing
                Agreement”);
                

            

    

     

    
      	 	
              (iv)

            	
              must
                not be subject to due diligence contingencies or other conditions
                beyond
                those imposed by Purchaser; any bidder other than Purchaser shall
                have an
                opportunity to review the books and records of the Seller, provided
                that
                such bidder shall execute a non-disclosure agreement in form and
                substance
                acceptable to Seller in Seller’s sole discretion (notwithstanding the
                foregoing, all due diligence must be completed by all qualified bidders
                prior to Auction (as defined below);

            

    

     

    
      	 	
              (v)

            	
              remain
                open until the conclusion of the Sale Hearing (as defined below);
                

            

    

     

    
      	 	
              (vi)

            	
              contain
                terms and conditions no less favorable to Seller than the terms and
                conditions of this Agreement; 

            

    

     

    
      	 	
              (vii)

            	
              be
                accompanied by admissible evidence in the form of affidavits or
                declarations establishing the bidder’s good faith, within the meaning of
                Section 363(m) of the Bankruptcy Code;

            

    

     

    
      	 	
              (viii)

            	
              be
                accompanied by admissible evidence in the form of affidavits or
                declarations establishing that the bidder is capable and qualified,
                financially, legally, and otherwise, of unconditionally performing
                all
                obligations under the Competing Agreement;

            

    

     

    
      	 	
              (ix)

            	
              for
                no less than substantially all of the Purchased Assets;
                

            

    

     

    
      	 	
              (x)

            	
              contain
                a proposed closing date that is not later than the Closing Date hereunder;
                and

            

    

     

    
      	 	
              (xi)

            	
              contain
                a condition to closing which requires the payment of the total
                indebtedness, including principal, interests, fees, costs and other
                allowable charges, of Pacific Western Bank (formerly the secured
                debt of
                Community National Bank) through or prior to Closing either directly
                by a
                proposed Overbidder or through a refinance of such indebtedness
                .

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

     

    (b) If
      any
      bidders have submitted a qualifying competing bid in accordance with Section
      3.1(a) hereof (each such bid, a “Qualified
      Bid”),
      then
      a public auction of the Purchased Assets (the “Auction”)
      shall
      be held at the Sale Hearing at the United States Bankruptcy Court for the
      Central District of California . The Auction shall be governed by the following
      procedures:

     

    
      	 	
              (i)

            	
              All
                bidders shall be deemed to have consented to the core jurisdiction
                of the
                Bankruptcy Court and to have waived any right to jury trial in connection
                with any disputes relating to the Auction or the sale of the Purchased
                Assets;

            

    

     

    
      	 	
              (ii)

            	
              Bidding
                will commence at the amount of the highest Qualified
                Bid;

            

    

     

    
      	 	
              (iii)

            	
              Each
                subsequent bid shall be in increments of no less than $100,000;
                and

            

    

     

    
      	 	
              (iv)

            	
              For
                the Purchaser, the Breakup Fee shall be taken into account in the
                bidding
                process, such that if the bid is $8,000,000 the Purchaser may bid
                such
                amount in cash plus the value of the Breakup Fee to match the $8,000,000
                bid. 

            

    

     

    (c) A
      hearing
      to approve the successful bid at the Auction, or, if no auction is held, to
      approve this Agreement, shall be scheduled for no later than November 15, 2008
      (the “Sale
      Hearing Date”);
      

     

    (d) The
      Breakup Fee in the amount of reasonable costs and fees incurred by Buyer not
      to
      exceed $200,000 is approved and shall be paid to Purchaser in the event that
      the
      Bankruptcy Court enters an order approving an offer to purchase the Purchased
      Assets submitted by a party other than Purchaser or enters an order confirming
      a
      plan of reorganization of Seller (other than a plan under which Purchaser
      acquires the Purchased Assets) no later than the closing of the sale of the
      Purchased Assets to a third party;

     

    (e) No
      other
      bidder for the Purchased Assets shall be entitled to payment of any breakup
      fee;

     

    (f) Any
      entity that fails to submit a timely, conforming Qualified Bid, as set forth
      above, shall be disqualified from bidding for the Purchased Assets at the
      Auction or the Sale Hearing; and

     

    (g) If
      no
      timely, conforming Qualified Bid is submitted, Seller shall request at the
      Sale
      Hearing that the Court approve the proposed sale of the Purchased Assets to
      Purchaser under this Agreement.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

     

    Section
      3.2. Entry
      of Order Approving Sale.
      Seller
      shall use its best efforts to obtain entry of on order of the Bankruptcy Court
      approving the terms of this Agreement (the “Sale
      Order”)
      as
      soon as practicable following the mutual execution and delivery of this
      Agreement and approval of the Sale Procedures, but no later than November 15,
      2008 (“Sale
      Order Date”).
      The
      Sale Order shall be in accordance with the terms of this Agreement, shall be
      in
      a form reasonably satisfactory to Purchaser and Seller, and shall:

     

    
      	 	
              (i)

            	
              approve
                and direct the sale and assignment of the Purchased Assets to Purchaser
                and approve and direct the assumption and assignment of the Assumed
                Leases
                and Assumed Contracts to Purchaser free and clear of all Liens, claims
                or
                interests except those expressly assumed in this Agreement, based
                on
                appropriate findings and rulings pursuant to, inter
                alia,
                Sections 363(b), (f) and (m) and 365 of the Bankruptcy Code, including
                but
                not limited to Sections 365(h), (i), (l) and (n) and the release
                of
                Purchaser to any rights otherwise associated with and which may otherwise
                be to the benefit of any third parties; provided that notwithstanding
                anything to the contrary in this Agreement, Purchaser shall not be
                entitled to disapprove the Sale Order by reason of, and Purchaser’s (or a
                successful overbidder’s) obligation to consummate the transactions
                provided for herein shall not be conditioned upon the assumption
                and
                assignment of, any Assumed Leases with respect to which the Bankruptcy
                Court determines that Purchaser (or a successful overbidder) has
                failed to
                provided adequate assurance of future performance pursuant to Section
                365
                of the Bankruptcy Code; 

            

    

     

    
      	 	
              (ii)
                

            	
              include
                a direction that Seller allocate in any Chapter 11 plan of reorganization,
                including a plan of liquidation, the Consideration in the manner
                established by Section 5.3(a);

            

    

     

    
      	 	
              (ii)

            	
              include
                a direction that Seller and Purchaser consummate the transactions
                contemplated hereby in accordance with the terms hereof, including
                all
                payments required hereunder, on or before the Outside Date;
                

            

    

     

    
      	 	
              (iii)

            	
              include
                a finding that Purchaser is a good faith purchaser pursuant to Section
                363(m) of the Bankruptcy Code; 

            

    

     

    
      	 	
              (iv)

            	
              include
                a finding that Purchaser is not deemed to be a successor to Seller,
                to
                have, de
                facto
                or
                otherwise, merged with or into Seller or to be a mere continuation
                of
                Seller;

            

    

     

    
      	 	
              (v)

            	
              include
                a finding that the Consideration is a fair and reasonable price for
                the
                Purchased Assets; 

            

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

     

    
      	 	
              (vi)

            	
              include
                a finding confirming the adequacy of notice to all creditors and
                parties
                in interest and parties to any executory contract, unexpired lease
                or
                right of entry; 

            

    

     

    
      	 	
              (vii)

            	
              include
                a finding that the Cure Costs are final and binding upon the applicable
                counterparty and Seller is authorized and directed to pay such Cure
                Costs
                directly from the sale proceeds;

            

    

     

    
      	 	
              (viii)

            	
              include
                a direction that Purchaser shall be provided with the Qualified Bid
                and
                supporting documentation and evidence that such Qualified Bid satisfies
                the requirements of the Sale Order;
                and

            

    

     

    
      	 	
              (ix)

            	
              include
                provisions for the retention of jurisdiction in the Bankruptcy Court
                over
                matters relating to the transactions contemplated in this Agreement
                including matters relating to title to the Purchased Assets and claims
                against the Purchased Assets which arose or were based on facts or
                occurrences prior to the Closing. Furthermore, the Sale Order shall
                not
                have been reversed, stayed, modified or
                amended.

            

    

     

    (b) Seller
      shall provide notice of any hearing on the motion to approve the Sale Order
      or
      any other matter before the Bankruptcy Court relating to this Agreement or
      the
      Transaction Documents, in each case as required by the Bankruptcy Code, the
      Federal Rules of Bankruptcy Procedure and the Local Bankruptcy Rules for the
      Central District of California or as otherwise ordered by the Bankruptcy
      Court.

     

    (c) Notwithstanding
      anything to the contrary in this Section 3.1 or any other provision of this
      Agreement, in the event that a Qualified Bid of a third party (an “Alternative
      Buyer,”
and
      the
      underlying agreement between the Alternative Buyer and Seller, the “Alternative
      APA”)
      is
      approved by the Bankruptcy Court at the hearing on the Sale Motion, this
      Agreement, shall become an approved “back-up bid” which may, if exercised by
      written election by Purchaser and delivered to Seller with twenty four (24)
      hours of the completion of the Sale hearing, remain open for acceptance by
      Seller for a period of thirty (30) days following the date upon which such
      hearing is concluded, but subject and subordinate in all respects to the rights
      of the Alternative Buyer under the Alternative APA. 

     

    Section
      3.3. Certain
      Bankruptcy Undertakings by Seller.

     

    (a) Seller
      shall, in good faith, using its commercially reasonable efforts, seek entry
      of
      the Sale Order no later than November 15, 2008 (the “Outside Date”) and take
      such actions following the Execution Date as are necessary to consummate the
      Transactions contemplated by this Agreement in accordance with Sale
      Order.

     

    (b) Recognizing
      that the transaction contemplated herein is subject to overbid, from and after
      the date hereof, except as ordered by the Bankruptcy Court and as is reasonably
      necessary to adequately market the Assets for overbid, Seller shall neither
      take
      any action, nor fail to take any action, which action or failure to act would
      reasonably be expected to (i) prevent or impede the consummation of the
      transactions contemplated by this Agreement in accordance with the terms of
      this
      Agreement; or (ii) result in (A) the reversal, avoidance, revocation, vacating
      or modification (in any manner that would reasonably be expected to materially
      and adversely affect Purchaser’s rights hereunder), or (B) the entry of a stay
      pending appeal.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

     

    (c) Seller
      shall, in good faith, using its commercially reasonable efforts and with the
      cooperative efforts of Purchaser, attempt to obtain in the Sale Order an
      exemption from Transfer Taxes pursuant to Section 1146(c) of the Bankruptcy
      Code. 

     

    (d) If
      the
      Sale Procedures Order, the Sale Order or any other order of the Bankruptcy
      Court
      relating to this Agreement shall be appealed by any Person (or a petition for
      certiorari
      or
      motion for rehearing or reargument shall be filed with respect thereto), Seller,
      with the cooperation and support of Purchaser, shall take all steps as may
      be
      reasonable and appropriate to defend against such appeal, petition or motion,
      and shall endeavor to obtain an expedited resolution of such
      appeal.

     

    ARTICLE
      4

    INSTRUMENTS
      OF TRANSFER AND ASSUMPTION

     

    Section
      4.1. Transfer
      Documents.
      At the
      Closing, Seller will deliver to Purchaser (a) one or more Bills of Sale in
      substantially the form attached hereto as Exhibit
      B
      (the
“Bill
      of Sale”),
      and
      (b) all such other good and sufficient instruments of sale, transfer and
      conveyance consistent with the terms and provisions of this Agreement,
      including, without limitation, assignments of leases and the Transferred
      Intellectual Property, and any other assignments as shall be reasonably
      necessary to vest in Purchaser all of Seller’s right and title to, and interest
      in, the Purchased Assets.

     

    Section
      4.2. Assignment
      and Assumption Documents.
      At the
      Closing, Purchaser and Seller will execute and deliver an Assignment and
      Assumption Agreement in substantially the form attached hereto as Exhibit
      C
      (the
“Assumption
      Agreement”)
      in
      order to effect the assignment and assumption of the Assumed
      Liabilities.

     

    ARTICLE
      5

    CONSIDERATION;
      ALLOCATION

     

    Section
      5.1. Consideration.
      In
      exchange for the sale, assignment, transfer, conveyance and delivery from Seller
      of the Purchased Assets, at Closing Purchaser shall:

     

    (a) assume
      the Assumed Liabilities pursuant to this Agreement;

     

    (b) pay
      by
      wire transfer to an account designated by Seller (which account shall be
      designated at least three (3) business days prior to the Closing) the amount
      of
      Two Million Dollars ($2,000,000) (the “Cash
      Payment”);
      and

     

    (c) pay
      no
      less than $1,000,000 into escrow which shall be set aside and used to pay
      payroll taxes due and owing by Seller as set forth in section 5.2 below (the
      “Tax Escrow Funds”).

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

     

    (d) Items
      (a)
      through (c) of this Section 5.1 are referred to collectively as the
“Consideration.”
      

     

    (e) The
      Cash
      Payment and Tax Escrow Funds shall be paid to Seller at the Closing in
      immediately available, good funds of the United States of America (“Good
      Funds”).
      

     

    Section
      5.2. Allocation
      of Consideration. 

     

    (a) The
      Seller agrees that the Tax Escrow Funds shall be applied to the payment of
      that
      portion of the pre-petition priority Tax obligations of Seller which may be
      personally asserted against Jan Parent and/or Johnny Caswell (the “Personal Tax
      Obligation”), or such lesser amount as necessary to satisfy such Personal Tax
      Obligation in full and shall be held in a segregated interest bearing account
      pending final determination of such Personal Tax Obligation. To the extent
      all
      of the Tax Escrow Funds are not necessary to satisfy the Personal Tax
      Obligation, then any remaining portion o f the Tax Escrow Funds shall be paid
      to
      secured creditors and/or the Seller’s bankruptcy estate to be distributed in
      accordance with their priorities.

     

    (b) Prior
      to
      Closing, Purchaser shall deliver to Seller Purchaser’s proposed allocation (the
“Allocation
      Statement”)
      of the
      Consideration (including, without limitation, the Assumed Liabilities) among
      the
      Purchased Assets. The Allocation Statement shall allocate the Consideration
      and
      any item required to be treated as an adjustment to the Consideration among
      the
      various assets comprising the Purchased Assets in accordance with Treasury
      Regulation 1.1060-1 (or any comparable provisions of state or local tax law)
      or
      any successor provision. If Seller agrees with the Allocation Statement and
      the
      allocation among the Purchased Assets set forth therein, Purchaser and Seller
      shall report and file all tax returns (including any amended tax returns and
      claims for refund) consistent with such mutually agreed Consideration
      allocation, and shall take no position contrary thereto or inconsistent
      therewith (including in any audits or examinations by any taxing authority
      or
      any other proceedings). Purchaser and Seller shall file or cause to be filed
      any
      and all forms (including U.S. Internal Revenue Service Form 8594), statements
      and schedules with respect to such allocation, including any required amendments
      to such forms. If, on the other hand, Seller objects to, or otherwise disagrees
      with the Allocation Statement, Purchaser and Seller shall use their commercially
      reasonable efforts to agree upon the allocation of the Consideration among
      the
      Purchased Assets. In any event, Seller agrees to take no position in its tax
      returns, which are inconsistent with the Purchaser’s allocations of the
      Consideration for tax purposes. Seller shall be responsible for all fees
      associated with the preparation of tax returns. Notwithstanding any other
      provisions of this Agreement, Purchaser’s and Seller’s obligations under this
      Section 5.2 shall survive Closing.

     

    Section
      5.3. Prorations.
      The
      following prorations relating to the Business and the Purchased Assets will
      be
      made as of the Closing Date, with Seller liable to the extent that such items
      can be determined relate to any time period up to and including the Closing
      Date
      and Purchaser liable to the extent that such items can be determined relate
      to
      periods subsequent to the Closing Date; provided,
      however,
      that
      for periods of time which straddle the Closing Date and for which the amounts
      attributable to any item cannot be readily allocable to a particular date,
      the
      obligations and liabilities shall be prorated between the Purchaser and the
      Seller based upon the total amount of days in any allocable period and the
      amount of days which precede the Closing (allocable to the Seller) and the
      amount of days during such period which are on or are on or after the Closing
      (allocable to the Purchaser):

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

     

    (a) Real,
      sales, ad valorem, personal property and all similar taxes and assessments
      relating to the Property and the Business;

     

    (b) Water,
      sewer and other similar types of taxes, and installments on special benefit
      assessments;

     

    (c) Electric,
      gas, telephone and utility charges;

     

    (d) Charges
      under maintenance and service contracts and fees under licenses transferred
      to
      or assumed by Purchaser;

     

    (e) Any
      and
      all payments due under Assumed Contracts, Assumed Leases or Personal Property
      Leases; subject to any payment restructurings with Bankruptcy Court approvals,
      and

     

    (f) Prepaid
      expenses of Seller to the extent that the benefit thereof will be available
      to
      Purchaser after the Closing Date.

     

    Seller
      shall be responsible for all sales, transfer and documentary Taxes and recording
      fees and Taxes applicable to the transactions contemplated hereby or imposed
      by
      reason of the transfers of the Purchased Assets provided under this Agreement
      and any deficiency, interest or penalty asserted with respect thereto
      (collectively, the “Transfer
      Taxes”).
      Purchaser shall pay the fees and costs of recording or filing all applicable
      conveyance instruments contemplated hereunder. Purchaser shall pay all costs
      of
      applying for new Permits and obtaining the transfer of existing Permits which
      may be lawfully transferred.

     

    ARTICLE
      6

    CLOSING

     

    Section
      6.1. Closing
      Date.
      Subject
      to the terms and conditions hereof, the closing of the transactions contemplated
      by this Agreement (the “Closing”)
      shall
      take place at the offices of Point.360 or such other location as may be mutually
      agreed upon between the Parties on the date which is the third (3rd) business
      day following the date on which all conditions to Closing set forth in Articles
      10 and 11 hereof have been satisfied or waived (the “Closing
      Date”).
      The
      Closing shall be effective as of 2:00 a.m. Pacific Time on the day after the
      Closing Date.

     

    ARTICLE
      7

    SELLER’S
      REPRESENTATIONS AND WARRANTIES

     

    Seller
      represents and warrants to Purchaser that the statements contained in this
      Article 7 are, to Seller’s Knowledge, true, correct and complete as of the date
      of this Agreement and will, to Seller’s Knowledge, be correct and complete as of
      the Closing Date (as though made then and as though the Closing Date were
      substituted for the date of this Agreement throughout this Article 7).

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

     

    Section
      7.1. Organization,
      Qualification and Corporate Power.
      Seller
      is a corporation duly organized, validly existing and in good standing under
      the
      Laws of the state of California and has all necessary power and authority to
      own
      and operate its properties and to carry on its business as it is now being
      conducted and is in good standing under the Laws of each jurisdiction where
      such
      qualification is required, except where the lack of such qualification would
      not
      have a Material Adverse Effect and, subject to obtaining Bankruptcy Court
      approval of this Agreement as contemplated herein, to carry out the transactions
      contemplated by this Agreement and the other Transaction Documents. Seller
      has
      the power and authority to execute and deliver and, subject to entry of the
      Sale
      Order, perform its obligations under this Agreement and the other Transaction
      Documents, and to undertake the transactions contemplated hereby and thereby.
      As
      used herein, the term “Transaction
      Documents”
means
      this Agreement and all other agreements, documents and instruments executed
      in
      connection herewith or required to be executed and/or delivered by the parties
      or any one or more of them in accordance with the provisions of this
      Agreement.

     

    Section
      7.2. Authorization,
      Execution and Delivery of Agreement and Transaction Documents.
      The
      execution, delivery and performance of this Agreement and the other Transaction
      Documents by Seller and the transfer or assignment of the Purchased Assets
      to
      Purchaser have been duly and validly authorized and approved by all necessary
      corporate action. Subject to obtaining the Sale Order and pursuant thereto,
      Seller will have full power, right and authority to sell and convey to Purchaser
      the Purchased Assets owned by Seller. The Sale Order to be entered by the
      Bankruptcy Court shall provide that this Agreement is, and each of the other
      Transaction Documents when so executed and delivered will be, a valid and
      binding obligation of Seller, enforceable against such Seller in accordance
      with
      its terms.

     

    Section
      7.3. Title
      to and Condition of Assets.
      Except
      as set forth in Schedule
      7.3
      hereto,
      Seller has good and marketable title to, or a valid leasehold interest in,
      all
      of the properties and assets included in the Purchased Assets, and upon the
      consummation of the transactions contemplated hereby and by the Transaction
      Documents, Purchaser will acquire good and marketable title to all of the
      Purchased Assets, free and clear of all Liens other than the Assumed
      Liabilities. The Purchased Assets include, without limitation, all assets,
      tangible or intangible, of any nature whatsoever, necessary for the conduct
      of
      the Business and are sufficient for the continued conduct of the Business after
      the Closing in substantially the same manner as conducted prior to the
      Closing.

     

    Section
      7.4.  Liabilities.
      Other
      than the Non-Assumed Liabilities, and except as set forth in Schedule
      7.4
      hereto,
      Seller has no Liabilities relating to the Purchased Assets or the Business
      due
      or to become due except the Assumed Liabilities.

     

    Section
      7.5. Corporate
      Records.
      Seller
      has maintained the Corporate Records, which, in reasonable detail, accurately
      and fairly reflect the activities of Seller pertaining to the Business. Seller
      has not, in any manner that pertains to, or could affect, the Business or the
      Purchased Assets, engaged in any transaction, maintained any bank account or
      used any corporate funds except for transactions, bank accounts and funds which
      have been and are reflected in the normally maintained Corporate
      Records.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

     

    Section
      7.6. Legal
      Proceedings.
      Except
      as set forth on Schedule
      7.6
      hereto,
      there is no Legal Proceeding (a) pending or, to the Knowledge of Seller,
      threatened or anticipated against or affecting Seller, the Business or the
      Purchased Assets (or to the Knowledge of Seller, pending or threatened, against
      any of the officers, directors or employees of Seller with respect to their
      business activities related to or affecting the Business); (b) that challenges
      or that may have the effect of preventing, making illegal, delaying or otherwise
      interfering with any of the transactions contemplated by this Agreement; or
      (c)
      related to the Business or the Purchased Assets to which Seller is otherwise
      a
      party. To the Knowledge of Seller, there is no reasonable basis for any such
      Legal Proceeding. 

     

    Section
      7.7. Real
      Property.
      Except
      as set forth in Schedule
      7.7
      hereto,
      Seller does not own any or leased real property. 

     

    Section
      7.8. No
      Violation of Laws or Agreements.
      The
      Sale Order shall contain findings by the Bankruptcy Court that the execution
      and
      delivery by Seller of this Agreement and the Transaction Documents contemplated
      hereby, the performance by Seller of its obligations hereunder and thereunder
      and the consummation by Seller of the transactions contemplated herein and
      therein will not violate in any material respect, (i) any statute or Law or
      any
      judgment, decree, order, regulation or rule of any court or Governmental
      Authority to which Seller is subject; (ii) result in any breach of, or
      constitute a default (or event which with the giving of notice or lapse of
      time,
      or both, would become a default) under, or give to any Person any rights of
      termination, amendment, acceleration or cancellation of, or result in the
      creation of any Lien on any of the Purchased Assets, any note, bond, mortgage,
      indenture, contract, agreement, lease, license, Permit, franchise or other
      instrument to which Seller is a party or by which any of the Purchased Assets
      are bound; and (iii) contravene, conflict with or result in a violation of
      any
      provision of any organizational documents of Seller. 

     

    Section
      7.9. Employee
      Benefits; ERISA Matters. 

     

    (a) Schedule
      7.9
      hereto
      contains a complete list of all Employee Plans (i) covering employees, directors
      or consultants or former employees, directors or consultants in, or related
      to,
      the Business and/or (ii) with respect to which Purchaser may incur any Liability
      (“Business
      Employee Plans”).
      Seller has made available to Purchaser true and complete copies of all Employee
      Plans, including written interpretations thereof and written descriptions
      thereof which have been distributed to Seller’s employees and for which Seller
      has copies, all annuity contracts or other funding instruments relating thereto,
      and a complete description of all Employee Plans which are not in
      writing.

     

    (b) Neither
      Seller nor any ERISA Affiliate sponsors, maintains, contributes to or has an
      obligation to contribute to, or has sponsored, maintained, contributed to or
      had
      an obligation to contribute to, any Pension Plan subject to Title IV of ERISA,
      any Multiemployer Plan.

     

    (c) Each
      Welfare Plan which covers or has covered employees or former employees of Seller
      or of its Affiliates in the Business and which is a “group health plan,” as
      defined in Section 607(1) of ERISA, has been operated in compliance with
      provisions of Part 6 of Title I, Subtitle B of ERISA and Section 4980B of the
      Code at all times.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

     

    (d) There
      is
      no Legal Proceeding outstanding, relating to or seeking benefits under any
      Business Employee Plan that is pending, threatened or anticipated against
      Seller, any ERISA Affiliate or any Employee Plan.

     

    (e) Neither
      Seller nor any ERISA Affiliate has any liability for unpaid contributions under
      Section 515 of ERISA with respect to any Welfare Plan (i) covering employees,
      directors or consultants or former employees, directors or consultants in,
      or
      related to, the Business and (ii) with respect to which Purchaser may incur
      any
      Liability.

     

    (f) There
      are
      no liens arising under the Code or ERISA with respect to the operation,
      termination, restoration or funding of any Business Employee Plan or arising
      in
      connection with any excise tax or penalty tax with respect to any Business
      Employee Plan.

     

    (g) Each
      Business Employee Plan has at all times been maintained in all material
      respects, by its terms and in operation, in accordance with all applicable
      laws,
      including, without limitation, ERISA and the Code.

     

    (h) Seller
      and its ERISA Affiliates have made full and timely payment of all amounts
      required to be contributed under the terms of each Business Employee Plan and
      applicable Law or required to be paid as expenses or as Taxes under applicable
      Laws, under such Employee Plan, and Seller and its ERISA Affiliates shall
      continue to do so through the Closing Date.

     

    (i) Seller
      has no Business Employee Plan intended to qualify under Section 401 of the
      Code.

     

    (j) Neither
      the execution and delivery of this Agreement or other related agreements by
      Seller nor the consummation of the transactions contemplated hereby or thereby
      will result in the acceleration or creation of any rights of any person to
      benefits under any Employee Plan (including, without limitation, the
      acceleration of the vesting or exercisability of any stock options, the
      acceleration of the vesting of any restricted stock, the acceleration of the
      accrual or vesting of any benefits under any Pension Plan or the acceleration
      or
      creation of any rights under any severance, parachute or change in control
      agreement).

     

    (k) Neither
      Seller nor any ERISA Affiliate has incurred any liability with respect to any
      Employee Plan, which may create, or result in any liability to
      Purchaser.

     

    (l) No
      amounts payable under the Business Employee Plans will fail to be deductible
      for
      federal income tax purposes by virtue of Section 280G of the Code. 

     

    Section
      7.10. Labor
      Matters. 

     

    (a) Except
      as
      set forth on Schedule
      7.10
      hereto,
      there are no employment, consulting, severance or indemnification contracts
      between the Seller and any of its employees. Seller is not a party to any union
      contract or collective bargaining agreement.

     

    
      
         

      

      
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    (b) Except
      as
      set forth on Schedule
      7.10
      hereto,
      (i) Seller is not party to or bound by any collective bargaining or similar
      agreement with any labor organization; (ii) no employees of Seller are
      represented by any labor organization; (iii) Seller has no Knowledge of any
      union organizing activities among the employees of the Seller; and (iv) during
      the past year, there has been no actual or, to the Knowledge of Seller,
      threatened strikes, slowdowns, work stoppages or lockouts affecting the
      Seller.

     

    (c) Except
      as
      set forth on Schedule
      7.10
      hereto,
      Seller is and has been in compliance with all notice and other requirements
      under the WARN Act.

     

    (d) Except
      as
      set forth on Schedule
      7.10
      hereto, to
      Seller’s Knowledge (i) there are no material claims (i.e., claims not covered by
      insurance) by any or on behalf of any of the employees of the Business pending
      with respect to their employment or benefits incident thereto with respect to
      sexual harassment and discrimination claims and claims arising under workers’
compensation laws which are not ordinary course of business claims for a
      business such as the Business (collectively, “Employee
      Claims”),
      and
      (ii) there have been no organizational efforts known to Seller during the past
      five years involving any of such employees to organize into a collective
      bargaining unit. 

     

    Section
      7.11. Transferred
      Intellectual Property.
      Seller
      is the sole owner of the Transferred Intellectual Property. Except as set forth
      on Schedule
      7.11
      hereto,
      no claims have been asserted or threatened nor has any Seller received notice
      of
      any such claim that (i) the operations of Seller infringe upon or misappropriate
      the rights of any other person in respect of any Transferred Intellectual
      Property, or (ii) any Transferred Intellectual Property or the use by Seller
      of
      such Transferred Intellectual Property is invalid or unenforceable. To the
      Knowledge of Seller, (i) no third party is engaging in any activity that
      infringes or misappropriates the Transferred Intellectual Property and (ii)
      Seller has not granted any material license or other right to any third party
      with respect to the Transferred Intellectual Property.

     

    Section
      7.12. Defaults.
      Seller
      filed for Chapter 11 on March 10, 2008, and had numerous leases, contracts
      and
      agreements in default as set forth on Schedule 7.12 hereto.

     

    Section
      7.13. Environmental
      Matters.
      Except
      as set forth on Schedule
      7.13
      hereto,
      (A) Seller is in compliance with all applicable Environmental Laws, except
      where
      failure to be in compliance would not have a Material Adverse Effect; (B) there
      is no Environmental Claim pending against Seller; (C) Seller has obtained all
      material permits, approvals, identification numbers, licenses or other
      authorizations required under any applicable Environmental Laws (the
“Environmental
      Permits”)
      and is
      and has been in compliance with their requirements; (D) to the Knowledge of
      the
      Seller there are no underground or aboveground storage tanks or any surface
      impoundments, septic tanks, pits, sumps or lagoons in which Hazardous Materials
      are being or have been treated, stored or disposed of on any real property
      currently owned or leased by Seller other than in compliance with Environmental
      Laws; (E) Seller has not undertaken or completed any investigation or assessment
      or remedial or response action relating to any such release, discharge or
      disposal of or contamination with Hazardous Materials at any site, location
      or
      operation of the Business, either voluntarily or pursuant to the order of any
      Governmental Entity or the requirements of any Environmental Law; and (F) except
      as set forth on Schedule
      7.13,
      there
      have been no Environmental Claims against the Seller. 

     

    
      
         

      

      
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    Section
      7.14. Brokers.
      Except
      as set forth on Schedule 7.14 hereto, Seller has not engaged any agent, broker
      or other Person acting pursuant to the express or implied authority of Seller
      which is or may be entitled to a commission or broker or finder’s fee in
      connection with the transactions contemplated by this Agreement or otherwise
      with respect to the sale of the Purchased Assets.

     

    Section
      7.15. Permits.
      The
      Permits constitute all of the Permits necessary for Seller to lawfully conduct
      and operate the Business, as applicable, as they are presently conducted and
      to
      permit Seller to own and use the Purchased Assets to own and use its assets,
      in
      each case, in the manner in which they are presently owned and used. Except
      as
      set forth on Schedule
      7.15
      hereto,
      Seller is and at all times has been in compliance with all material Permits
      applicable to it or to the conduct and operations of the Business or relating
      to
      or affecting the Purchased Assets. Seller has not received any notice to the
      effect that, or otherwise been advised of (i) any actual, alleged, possible
      or
      potential violation of, or failure to comply with, any such Permits or (ii)
      any
      actual, alleged, possible or potential revocation, withdrawal, suspension,
      cancellation or termination of, or any modification to, any Permit. No event
      has
      occurred, and to Seller’s Knowledge no circumstance exists, that (with or
      without notice or lapse of time) (i) may constitute or result directly or
      indirectly in a violation by Seller of, or a failure on the part of Seller
      to
      comply with, any such Permits or (ii) result directly or indirectly in the
      revocation, withdrawal, suspension, cancellation or termination of, or any
      modification to, any Permit. All applications for or renewals of all Permits
      have been timely filed and made and no Permit will expire or be terminated
      as a
      result of the consummation of the transactions contemplated by this Agreement.
      No present or former shareholder, director, officer or employee of Seller or
      any
      Affiliate thereof, or any other Person, owns or has any proprietary, financial
      or other interest (direct or indirect) in any Permit that Seller owns, possesses
      or uses.

     

    Section
      7.16. Insurance.
      Except
      as set forth on Schedule
      7.16
      hereto,
      all of the Insurance Policies are in full force an effect. Seller is not in
      default under any of such policies or binders, and Seller has not failed to
      give
      any notice or to present any claim under any such policy or binder in a due
      and
      timely fashion.

     

    Section
      7.17. Taxes;
      Tax Returns.
      Except
      as set forth on Schedule
      7.17
      hereto,
      and Tax Returns for Transfer Taxes in connection with the transactions
      contemplated by this Agreement, which will be filed promptly after the Closing
      Date, Seller has (A) filed with the appropriate taxing authorities all Tax
      Returns relating to the Business required to be filed for any period ending
      on
      or before the Closing Date (or are properly on extension), and all such filed
      Tax Returns are true, correct and complete in all material respects, and (B)
      except as set forth on Schedule
      7.17,
      paid in
      full all Taxes shown to be due on such Tax Returns, together with any penalties
      or fines due in connection therewith. Except as set forth on Schedule
      7.17
      hereto,
      there are no Liens for Taxes upon the Business or the Purchased Assets except
      for statutory liens for current Taxes not yet due and payable. Seller will
      file
      appropriate Tax Returns for any period ending on or before the Closing Date,
      and
      pay any Taxes for such periods when due. Except as set forth on Schedule
      7.17
      hereto,
      Seller has not received any outstanding notice of audit, and is not undergoing
      any audit, of Tax Returns relating to the Business and has never received any
      notice of deficiency or assessment from any taxing authority with respect to
      liability for Taxes relating to the Business which has not been fully paid
      or
      finally settled. There have been no waivers of statutes of limitations by Seller
      with respect to any Tax Returns relating to the Business. Except as set forth
      on
Schedule
      7.17
      hereto,
      Seller has complied in all material respects with all applicable laws, rules
      and
      regulations relating to the payment and withholding of Taxes and has withheld
      all amounts required by law to be withheld from the wages or salaries of
      employees and independent contractors of the Business, and is not liable for
      any
      Taxes with respect to the employees and independent contractors of the Business
      for failure to comply with such laws, rules and regulations.

     

    
      
         

      

      
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    Section
      7.18. Financial
      Statements.

     

    (a) Attached
      hereto as Annex
      I
      are the
      unaudited and unreviewed, Year End Financial Statements, respectively. The
      Year
      End Financial Statements have been prepared from the Corporate Records and
      fairly and accurately present the financial condition and the results of
      operations, income, expenses, assets, Liabilities (including all reserves),
      and
      changes in shareholders’ equity and of Seller as of the respective dates of, and
      for the periods referred to in, such Year End Financial Statements

     

    (b) Except
      as
      set forth on Schedule
      7.18
      hereto,
      Seller maintains a standard system of accounting established and administered
      in
      accordance with GAAP. 

     

    Section
      7.19. Related
      Party Transactions.
      Except
      as set forth on Schedule
      7.19
      hereto,
      none of Seller, any Affiliate thereof, Seller’s shareholders or any Affiliate or
      Family Member thereof is presently or has, since the most recent Year End
      Financial Statements, and Interim Financial Statements, borrowed any moneys
      from
      or has any outstanding debt or other obligations to Seller or is presently
      a
      party to any transaction with Seller relating to the Business. Except as set
      forth on Schedule
      7.19
      hereto,
      none of Seller, any Affiliate thereof, or any director, officer or key employee
      of any such Persons (a) owns any direct or indirect interest of any kind in
      (except for ownership of less than 1% of any public company, provided, that
      such
      owner’s role is that solely of a passive investor), or controls or is a
      director, officer, employee or partner of, consultant to, lender to or borrower
      from, or has the right to participate in the profits of, any Person which is
      (i)
      a competitor, supplier, customer, landlord, tenant, creditor or debtor of
      Seller, (ii) engaged in a business related to the Business or (iii) a
      participant in any transaction to which Seller is a party or (b) is a party
      to
      any Contract with Seller. Except as set forth on Schedule
      7.19
      hereto,
      Seller has no Contract or understanding with any officer, director or key
      employee of Seller or any of Seller’s shareholders or any Affiliate or Family
      Member thereof with respect to the subject matter of this Agreement, the
      consideration payable hereunder or any other matter.

     

    Section
      7.20. Compliance
      with Law. 

     

    (a) Except
      as
      set forth on Schedule
      7.20
      hereto,
      Seller, to its Knowledge, and the conduct of the Business are and at all times
      have been in compliance with all Laws applicable to them or to the conduct
      and
      operations of the Business or relating to or affecting the Purchased Assets.
      Seller has not received any notice to the effect that, or otherwise been advised
      of (i) any actual, alleged, possible or potential violation of, or failure
      to
      comply with, any such Laws, or (ii) any actual, alleged, possible or potential
      obligation on the part of Seller to undertake, or to bear all or any portion
      of
      the cost of, any remedial action of any nature. No event has occurred or
      circumstance exists that (with or without notice or lapse of time) (i) may
      constitute or result in a violation by Seller of, or a failure on the part
      of
      Seller, any such Laws or (ii) may give rise to any obligation on the part of
      Seller to undertake, or to bear all or any portion of the cost of, any remedial
      action of any nature, except, in either case separately or the cases together,
      where such violation or failure to comply could not reasonably be expected
      to
      have a Material Adverse Effect.

     

    
      
         

      

      
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    (b) Except
      as
      set forth on Schedule
      7.20
      hereto,
      none of Seller, or any of its directors, officers, or to the Knowledge of
      Seller, any employee or other Person affiliated with or acting for or on behalf
      of Seller, has, directly or indirectly, (i) made any contribution, bribe,
      rebate, payoff, influence payment, kickback or other payment to any Person,
      private or public, regardless of form, whether in money, property or services
      (A) to obtain favorable treatment in securing business, (B) to pay for favorable
      treatment for business secured, (C) to obtain special concessions or for special
      concessions already obtained, for or in respect of Seller or any of its
      Affiliates or (D) in violation of any Laws of the United States (including,
      without limitation, the Foreign Corrupt Practices Act of 1977, as amended (15
      U.S.C. Sections 78dd-1 et seq.)) or any laws of any other country having
      jurisdiction; or (ii) established or maintained any fund or asset that has
      not
      been recorded in the Corporate Records of Seller.

     

    Section
      7.21. No
      Other Agreements.
      Neither
      Seller, nor any of its shareholders, officers, directors or Affiliates has
      any
      legal obligation, absolute or contingent, to any other Person to sell, assign
      or
      transfer any part of the Purchased Assets, to sell any stock of or other equity
      interest (other than warrants or options in favor of Seller’s officers,
      directors or employees) in Seller or to effect any merger, consolidation or
      other reorganization of Seller or to enter into any agreement with respect
      thereto.

     

    Section
      7.22. Material
      Misstatements Or Omissions.
      To the
      Knowledge of the representing parties, no representation or warranty made by
      Seller in this Agreement or the Disclosure Schedules hereto omits or will omit
      to state any material fact necessary to make the statements or facts contained
      therein not misleading.

     

    ARTICLE
      8

    PURCHASER’S
      REPRESENTATIONS

     

    Purchaser
      represents and warrants (and as to Section 8.5, acknowledges) to Seller that
      the
      statements contained in this Article 8 are true, correct and complete as of
      the
      date of this Agreement and will be correct and complete as of the Closing Date
      (as though made then and as though the Closing Date were substituted for the
      date of this Agreement throughout this Article 8).

     

    Section
      8.1. Organization;
      Qualification and Corporate Power.
      Purchaser is a corporation duly organized, validly existing and in good standing
      under the Laws of the State of California. Purchaser has all necessary power
      and
      authority to (a) own and operate its properties, (b) carry on its business
      as it
      is now being conducted, (c) perform its obligations under this Agreement and
      the
      other Transaction Documents, and to undertake and carry out the transactions
      contemplated hereby and thereby, and (d) own and operate the Purchased Assets
      and Business.

     

    
      
         

      

      
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    Section
      8.2. Authorization,
      Execution and Delivery of Agreement and Transaction Documents.
      All
      necessary consents and approvals have been obtained by Purchaser for the
      execution and delivery of this Agreement and the Transaction Documents. The
      execution, delivery and performance of this Agreement and the other Transaction
      Documents in accordance with their terms by Purchaser have been duly and validly
      authorized and approved by all necessary corporate action. Purchaser has full
      power, right and authority to acquire the Purchased Assets. This Agreement
      is,
      and each of the other Transaction Documents when so executed and delivered
      will
      be, a valid and binding obligation of Purchaser, enforceable against it in
      accordance with its terms.

     

    Section
      8.3. Brokers.
      Except
      as set forth on Schedule
      8.3
      hereto
      Purchaser has not engaged any agent, broker or other Person acting pursuant
      to
      the express or implied authority of Purchaser which is or may be entitled to
      a
      commission or broker or finder’s fee in connection with the transactions
      contemplated by this Agreement or otherwise with respect to the sale of the
      Purchased Assets.

     

    Section
      8.4. Funding.
      Purchaser has available to it all of the required cash or financing to pay
      the
      Consideration at Closing and to otherwise perform all of Purchaser’s obligations
      pursuant to this Agreement. Purchaser’s financial ability to consummate the
      transaction under this Agreement is therefore not subject to any financing
      contingency.

     

    ARTICLE
      9

    SELLER’S
      AND PURCHASER’S COVENANTS AND AGREEMENTS

     

    Section
      9.1. Conduct
      of Business.
      Subject
      to any restrictions and obligations imposed by the Bankruptcy Court, Seller
      will
      not, without Purchaser’s consent, engage in any practice, take any action, or
      enter into any transaction outside the Ordinary Course of Business, including,
      without limitation, any amendment or change to its employee retention program,
      or any employment agreements between Seller and its employees. Without limiting
      the generality of the foregoing (but subject to the express limitation set
      forth
      in the immediately preceding sentence), Seller will, other than in the Ordinary
      Course of Business, refrain from doing any of the following in respect of the
      Purchased Assets: (i) disposing of, or transferring, any material Purchased
      Asset, (ii) transferring any tangible Purchased Asset to any other location
      to
      the extent that such other location is not among the locations which is the
      subject of an Assumed Lease or otherwise part of the Purchased Assets, (iii)
      except as otherwise provided or required in this Agreement, terminating,
      amending or modifying the material terms of any of the Assumed Contracts,
      Assumed Leases or Personal Property Leases; or (iv) making any change in the
      compensation payable or to become payable to the employees of the Business,
      other than increases or promotions in the Ordinary Course of Business or
      compensation provided for in Seller’s key employee retention or similar program
      or employment agreements, approved by the Bankruptcy Court; provided,
      however,
      notwithstanding anything to the contrary in the preceding sentence, Seller
      may,
      upon prior written notice to Purchaser in their reasonable discretion take
      such
      actions in connection with or as a result of the consequences (adverse or
      otherwise) of filing the Chapter 11 Case, if any, to cure defaults in respect
      of
      the Assumed Contracts, Assumed Leases or Personal Property Leases.

     

    Section
      9.2. Mutual
      Covenants.
      The
      parties hereto mutually covenant (and subject to the other terms of this
      Agreement):

     

    
      
         

      

      
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    (a) from
      the
      date of this Agreement to the Closing Date, to cooperate with each other in
      determining whether filings are required to be made or consents required to
      be
      obtained in any jurisdiction in connection with the consummation of the
      transactions contemplated by this Agreement and in making or causing to be
      made
      any such filings promptly and in seeking to obtain timely any such consents
      (each party hereto shall furnish to the other and to the other’s counsel all
      such information as may be reasonably required in order to effectuate the
      foregoing action), which consents shall not, in any event, include any consent
      the need for which is obviated by the Sale Order or otherwise by the provisions
      of the Bankruptcy Code;

     

    (b) after
      the
      Closing Date, each of the parties hereto will give, or cause to be given, to
      the
      other and/or the other’s representatives, during normal business hours: (i)
      reasonable access, to the extent permitted by applicable law, to its personnel,
      properties, titles, contracts, books, records, files and documents
      (collectively, the “Documentation”);
      provided,
      however,
      Seller
      shall only be entitled to such reasonable access from Purchaser as required
      in
      connection with the transactions contemplated hereby or as is otherwise
      necessary or appropriate in connection with Seller’s ongoing administration
      and/or closing of the Bankruptcy Case; and (ii) at the requesting party’s
      expense, copies of such Documentation, as necessary to allow the requesting
      party to obtain information in connection with any claims, demands, other
      audits, suits, actions or proceedings by or against such requesting party as
      the
      owner and operator of the Purchased Assets and the Business or otherwise in
      furtherance of the purposes described in clause (i) above, including, without
      limitation, in connection with Seller’s bankruptcy proceedings. In connection
      with access to the records of a party’s accountants, the requesting party shall
      execute and deliver such “hold harmless” agreements as the other party’s
      accountants may reasonably request; and

     

    (c) from
      the
      date of this Agreement to the Closing Date, to advise the other parties promptly
      if such party determines that any condition precedent to its obligations
      hereunder will not be satisfied in a timely manner.

     

    Section
      9.3. Filings
      and Authorizations.
      The
      parties hereto shall, as promptly as practicable, cause to be made all such
      filings and submissions as may be required to consummate the terms of this
      Agreement. Seller and Purchaser shall keep each other apprised of the status
      of
      any communications with, and inquiries or requests for additional information
      from, any Governmental Authority, and shall comply promptly with any such
      inquiry or request. Seller shall not make any filings or submissions without
      the
      prior approval of Purchaser, which approval shall not be unreasonably
      withheld.

     

    Section
      9.4. Access
      to Information.

     

    (a) Prior
      to
      and through the date on which the Sale Order is entered by the Bankruptcy Court,
      Seller shall, so long as such cooperation and access are not materially
      disruptive of Seller’s operation of the Business, cooperate with Purchaser and
      shall give Purchaser and its representatives (including Purchaser’s accountants,
      consultants, counsel and employees), upon reasonable notice and during normal
      business hours, full access to the properties (including any Leased Real
      Property), contracts, leases, equipment, employees, affairs, books, documents,
      records and other information of Seller to the extent relating to the Business,
      the Purchased Assets, Assumed Liabilities, and any other aspect of this
      Agreement and shall cause their respective officers, employees, agents and
      representatives to furnish to Purchaser all available documents, records and
      other information (and copies thereof), to the extent relating to the Business,
      the Purchased Assets, Assumed Liabilities, and any other aspect of this
      Agreement as Purchaser may reasonably request. Purchaser expressly acknowledges
      and agrees that nothing in this Section 9.4 is intended to give rise to a
      condition or contingency of any kind to Purchaser’s obligation to consummate the
      transactions contemplated in this Agreement.

     

    
      
         

      

      
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    (b) Seller
      agrees to use commercially reasonable efforts to obtain consent from any third
      party with respect to a restriction against allowing Purchaser to receive and
      review any contract, agreement or lease of Seller.

     

    Section
      9.5. Public
      Announcement.
      Subject
      to the provisions of the Bankruptcy Code and Seller’s right to make such filings
      and disclosures as it in good faith deems necessary or appropriate in connection
      with the Bankruptcy Case, no party hereto shall make or issue, or cause to
      be
      made or issued, any public announcement or written statement concerning this
      Agreement or the transactions contemplated hereby without the prior written
      consent of the other party hereto (which will not be unreasonably withheld
      or
      delayed), unless counsel to such party advises that such announcement or
      statement is required by law (such as an obligation to disclose under federal
      securities laws of the United States) (in which case the parties hereto shall
      make reasonable efforts to consult with each other prior to such required
      announcement).

     

    Section
      9.6. Taxes.

     

    (a) Seller
      shall be responsible for all Taxes in connection with, relating to or arising
      out of the Business or the ownership of the Purchased Assets, or the Assumed
      Liabilities attributable to taxable periods, or portions thereof, ending on
      or
      before the Closing, which Taxes shall be a Non-Assumed Liability. Subject to
      the
      terms of Section 5.4, Purchaser shall be responsible for all Taxes in connection
      with, relating to or arising out of the Purchased Assets attributable to taxable
      periods, or portions thereof, from and after the Closing. All state and local
      sales and use Taxes, to the extent attributable to periods prior to the Closing,
      shall be paid or otherwise discharged by Seller, including any and all sales
      taxes incurred or owed as a result of the transactions contemplated by this
      Agreement. 

     

    (b) If
      Seller
      is unable to obtain an exemption, pursuant to Section 1146(c) of the Bankruptcy
      Code in the Sale Order, from all sales, transfer and documentary Taxes and
      recording fees and Taxes applicable to the transactions contemplated hereby
      (collectively, the “Transfer
      Taxes”),
      such
      Transfer Taxes shall be borne and paid 100% by Seller. 

     

    (c) Seller
      and Purchaser shall (i) provide the other with such assistance as may reasonably
      be requested by either of them in connection with the preparation of any
      Tax Return,
      any audit or other examination by any taxing authority or any judicial or
      administrative proceeding with respect to Taxes, (ii) retain and provide the
      other with any records or other information which may be relevant to such
      return, audit, examination or proceeding, and (iii) provide the other with
      any
      final determination of any such audit or examination proceeding or determination
      that affects any amount required to be shown on any Tax Return of the other
      for
      any period (which shall be maintained confidentially).

     

    
      
         

      

      
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    Section
      9.7. Consents.
      Each
      party hereto will use its reasonable commercial efforts and will cooperate
      with
      the other party hereto to obtain all consents required from third persons,
      whose
      consent or approval is required pursuant to any Assumed Contract, Assumed Lease,
      Personal Property Leases, Permit, or otherwise, in order to consummate the
      transaction contemplated hereby; provided it shall be the responsibility of
      Seller to obtain any necessary such consents; and further provided that
      Purchaser and Seller agree that Seller shall not be required to obtain any
      consent the need for which is obviated by the entry of the Sale Order or
      otherwise by any provision of the Bankruptcy Code or where the failure to obtain
      such consent would have a Material Adverse Effect. In connection with the
      foregoing the Purchaser and the Seller agree that the only consents and waivers
      necessary for the consummation of the Transactions are those consents and
      waivers listed in Schedule
      9.7
      hereto
      (the “Required
      Consents”).

     

    Section
      9.8. Good
      Faith Efforts.
      Without
      limiting the specific obligations of any party hereto under any covenant or
      agreement hereunder, each party hereto shall use its good faith efforts to
      take
      all action and do all things necessary to consummate the transactions
      contemplated in this Agreement on or before the Outside Date.

     

    Section
      9.9. Employees. 

     

    (a) Subject
      to and in accordance with the provisions of this Section 9.9, Purchaser shall,
      effective upon the Closing, offer full-time employment to the employees who
      are
      employed by Seller as of the Closing and are listed on Schedule
      9.9
      hereto
      (such employees other than the Key Employees, the “Employees”)
      on
      terms and conditions substantially equivalent to the terms and conditions of
      employment and benefits for current employees of Purchaser in similar job
      classifications and grades. Purchaser shall hire all of the Employees who accept
      such offer. Employees who accept such offers and become either full-time or
      part-time employees of Purchaser upon the Closing are hereinafter referred
      to as
“Transferred
      Employees.”
Seller
      shall use reasonable efforts to assist Purchaser in securing the employment
      of
      the Employees.

     

    (b) The
      employment of each Transferred Employee by Seller shall end effective as of
      the
      close of business on the day before the Closing and the employment of the
      Transferred Employees by Purchaser shall commence at or after 12:01 a.m. on
      the
      day of the Closing. 

     

    (c) Coverage
      for Transferred Employees under Purchaser’s benefit plans and programs shall
      commence as of 12:01 a.m. on the Closing. Purchaser shall give each Transferred
      Employee credit for such Transferred Employee’s years of most recent continuous
      service (including time during approved leaves of absences of less than
      twenty-six (26 weeks)) with Seller for purpose of determining participation
      and
      benefit levels under all of Purchaser’s vacation policies and benefit plans and
      programs, unless otherwise prohibited by law or the terms of any of Purchaser’s
      benefit plans and programs. Transferred Employees shall also receive credit
      for
      any unused vacation accrued since March 11, 2008.

     

    
      
         

      

      
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    Section
      9.10. Key
      Employees. 

     

    (a) Key
      Employee Agreements.
      As soon
      as practicable following the execution of this Agreement, but in any event
      prior
      to the Closing Date, Purchaser shall execute and enter into employment
      agreements with those Key Employees of Seller listed on Schedule
      9.10
      hereto
      (such employees, the “Key
      Employees”),
      subject to the terms and conditions set forth in each such Key Employee
      agreements.

     

    Section
      9.11. Further
      Assurances.
      From
      time to time after the Closing and without further consideration, Purchaser
      and
      Seller, at the request of the other, will execute and deliver such other
      instruments of conveyance and transfer or other instruments or documents, and
      take or arrange for such other actions, as may reasonably be required to effect
      any of the transactions contemplated by this Agreement or to provide any party
      hereto with the benefits intended to be conferred and conveyed by this
      Agreement; provided that, notwithstanding anything to the contrary in this
      Section 9.11 or any other provision of this Agreement, neither Purchaser nor
      Seller shall be required to execute any document or take any action that would
      (i) increase the liability or obligation of the party of whom such document
      or
      action is requested beyond that such party would have pursuant to the other
      provisions of this Agreement, (ii) require or cause the party of whom such
      action or document is requested to initiate, join in or otherwise become a
      party
      to any litigation, action or other proceeding, (iii) cause such party to incur
      any material cost or expense that is not already imposed upon it by another
      provision of this Agreement. The parties undertake, for a period of two (2)
      years (or the applicable statute of limitations) after the Closing Date (or,
      as
      to Seller, until the Bankruptcy Case is closed if that occurs sooner), to retain
      at their own expense all records and documents relating to the Purchased Assets
      and to make such records and documents available for inspection and copying
      at
      reasonable times and upon reasonable notice, at the expense of the requesting
      party; provided, however, no party shall be required to make available records
      and documents which it is prohibited to make available by law.

     

    Section
      9.12. Survival
      of Representations and Warranties.
      None of
      the representations and warranties of Seller to Purchaser contained in this
      Agreement or made in any other documents or instruments delivered pursuant
      to
      this Agreement shall survive the Closing hereunder. The representations and
      warranties of the Purchaser shall survive the Closing. 

     

    Section
      9.13.  “AS
      IS” Transaction; Disclaimer of Implied Warranties.
      Except
      as expressly provided in Article 7 above, Purchaser hereby acknowledges and
      agrees that Seller makes no representations or warranties whatsoever, express
      or
      implied, with respect to any matter relating to the Purchased Assets (including
      income to be derived or expenses to be incurred in connection with the Purchased
      Assets, the physical condition of any personal property comprising a part of
      the
      Purchased Assets or which is the subject of any Assumed Contract or Personal
      Property Leases, the environmental condition or other matter relating to the
      physical condition of any real property or improvements which are the subject
      of
      any Assumed Leases, the zoning of any such real property or improvements, the
      value of the Purchased Assets (or any portion thereof), the transferability
      of
      the Purchased Assets, the terms, amount, validity, collectibility or
      enforceability of any Assumed Liabilities, Assumed Contracts, Assumed Leases
      or
      Personal Property Leases, the title of the Purchased Assets (or any portion
      thereof), the merchantability or fitness of the personal property comprising
      a
      portion of the Purchased Assets or any other portion of the Purchased Assets
      for
      any particular purpose, or any other matter or thing relating to the Purchased
      Assets (or any portion thereof). Without in any way limiting the foregoing,
      except as otherwise expressly provided in Article 7 above, Sellers hereby
      disclaim any warranty (express or implied) of merchantability or fitness for
      any
      particular purpose as to any portion of the Purchased Assets. Purchaser further
      acknowledges that Purchaser has conducted an independent inspection and
      investigation of the physical condition of all portions the Purchased Assets
      and
      all such other matters relating to or affecting the Purchased Assets as
      Purchaser deemed necessary or appropriate and that in proceeding with the
      consummation of its acquisition of the Purchased Assets, except for the
      representations and warranties set forth in Article 7 above, Purchaser is doing
      so based solely upon such independent inspections and investigations.
      Accordingly, and in light of the fact that the representations and warranties
      set forth in Article 7 will lapse and terminate and be of no further force
      or
      effect following the Closing, Purchaser will accept the Purchased Assets at
      the
      Closing “AS
      IS,” “WHERE IS,” and “WITH ALL FAULTS.”

     

    
      
         

      

      
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    ARTICLE
      10

    CONDITIONS
      PRECEDENT TO PURCHASER’S OBLIGATION TO CLOSE

     

    The
      obligation of Purchaser under this Agreement with respect to the purchase and
      sale of the Purchased Assets shall be subject to the fulfillment on or prior
      to
      the Closing of each of the following conditions, any of which may be waived
      in
      writing by Purchaser:

     

    Section
      10.1. Accuracy
      of Representations and Warranties; Performance of this Agreement.
      Each of
      the representations and warranties made by Seller shall, to the best of Seller’s
      knowledge, be true and correct in all material respects on and as of the date
      hereof (unless such representation or warranty is given as of a particular
      date
      in which case such representation or warranty will be considered only as of
      such
      particular date) and at and as of the Closing Date, except to the extent that
      such representations and warranties are qualified by terms such as “material”
and “Material Adverse Effect,” in which case such representations and warranties
      shall be true and correct in all respects at and as of the Closing Date. Seller
      shall have complied with and performed in all material respects all of the
      agreements and covenants required by this Agreement and each other Transaction
      Document to be performed or complied with by it on or prior to the
      Closing.

     

    Section
      10.2. Authorizing
      Resolutions.
      Seller
      shall have delivered to Purchaser copies of the authorizing resolutions of
      the
      Board of Directors of Seller authorizing the execution, delivery and performance
      of this Agreement and the other Transaction Documents and all instruments and
      documents to be delivered in connection herewith and the transactions
      contemplated hereby or thereby.

     

    Section
      10.3. Officer’s
      Certificate.
      Seller
      shall have delivered to Purchaser a certificate executed by an executive officer
      of Seller (including incumbency certificates) as Purchaser may reasonably
      request in order to evidence compliance with the conditions set forth in this
      Article 10.

     

    
      
         

      

      
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    Section
      10.4. Bill
      of Sale; Assumption Agreement.
      Seller
      shall have delivered to Purchaser an executed Bill of Sale and Assumption
      Agreement pursuant to Sections 4.1 and 4.2 hereof.

     

    Section
      10.5. Bankruptcy
      Matters.
      The
      Sale Procedures Order and the Sale Order shall have been entered by the
      Bankruptcy Court by no later than the Sale Order Date. All such orders must
      be
      in effect, and must not have been reversed or stayed or modified in any material
      respect.

     

    Section
      10.6. Consents.
      Purchaser shall have received all required consents.

     

    Section
      10.7. No
      Material Adverse Change or Destruction of Property.
      Between
      the date hereof and the Closing and except as otherwise provided in this
      Agreement, there shall have been no Material Adverse Change to the Purchased
      Assets or the Assumed Liabilities which would continue to affect the Purchaser’s
      utilization of the Purchased Assets following the Closing. 

     

    Section
      10.8. Outside
      Date.
      The
      Closing shall have occurred no later than the Outside Date, unless such date
      is
      extended in writing by Purchaser.

     

    Section
      10.9. Key
      Employee Agreements.
      The Key
      Employees shall have executed and delivered to Purchaser the Key Employment
      Agreements.

     

    Section
      10.10. Real
      Property Leases.
      Purchaser shall have entered into new real property leases with Jan &
Johnny, Inc. with respect to the real property located at 2820 Hollywood Way,
      Burbank, California. Purchaser shall also have entered into a new lease with
      Two
      Bills, LLC with respect to the real property located at 3350, 3400, 3402, 3410
      Winona Avenue, Burbank, California on terms and conditions as are acceptable
      to
      Purchaser and TwoBills. Purchaser shall provide notice to Seller of the
      satisfaction of this condition no later than ten (10) days prior to the Sale
      Hearing Date. In addition the foregoing, Seller shall have exercised the option
      to extend the term of the so called “Alpert Lease” of the real property located
      at 3407 Winona Avenue, Burbank, California, which lease is contemplated to
      be
      one of the Assumed Leases hereunder so long as such option is exercised and
      the
      term of such lease are acceptable to Purchaser. Purchaser shall also have
      entered into a new lease or have assumed the lease at 2600 Bristol Pike,
      Bensalem, PA. Notwithstanding any other provision of this Agreement, including
      this section 10.10 and section11.6 below, any obligations between Purchaser
      and
      any lessor of real property are subject to further negotiation and agreement
      by
      and between Purchaser and any such lessor.

     

    Section
      10.11  Personal
      Tax Obligation.
      The
      Personal Tax Obligation shall be fixed and resolved.

     

    

     

    
      
         

      

      
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    ARTICLE
      11

    CONDITIONS
      PRECEDENT TO SELLER’S OBLIGATION TO CLOSE

     

    The
      obligations of Seller under this Agreement with respect to the purchase and
      sale
      of the Purchased Assets shall be subject to the fulfillment on or prior to
      the
      Closing of each of the following conditions, any of which, other than the
      condition set forth in section 11.6 below, may be waived in writing by
      Seller:

     

    Section
      11.1. Accuracy
      of Representations and Warranties; Performance of this Agreement.
      Each of
      the representations and warranties made by Purchaser in this Agreement shall,
      to
      be best of Purchaser’s knowledge, be true and correct in all material respects
      on and as of the date hereof (unless such representation or warranty is given
      as
      of a particular date in which case such representation or warranty will be
      considered only as of such particular date) and at and as of the Closing
      Date.

     

    Section
      11.2. Authorizing
      Resolutions.
      Purchaser shall have delivered to Seller copies of the authorizing resolutions
      of its Board of Directors authorizing the execution, delivery and performance
      of
      this Agreement and the other Transaction Documents and all instruments and
      documents to be delivered in connection herewith and the transactions
      contemplated hereby or thereby together with copies of all other documents
      that
      the Seller may reasonably request relating to the existence of the Purchaser
      and
      the authority of the purchaser to execute the agreement, all in form and
      substance reasonably satisfactory to the Seller.

     

    Section
      11.3. Assumption
      Agreement.
      The
      Purchaser shall have executed and delivered to the Seller this Agreement and
      all
      ancillary agreements hereto, including an executed Assumption Agreement pursuant
      to Section 4.2 hereof.

     

    Section
      11.4. Bankruptcy
      Matters.
      The
      Sale Order shall have been entered by the Bankruptcy Court by no later than
      the
      Outside Date, respectively. The Sale Order must be in effect, and must not
      have
      been reversed or stayed or modified in any material respect.

     

    Section
      11.5. Outside
      Closing Date. The
      Closing shall have occurred no later than the Outside Date, unless such date
      is
      extended by Seller

     

    Section
      11.6. The
      total
      indebtedness, including principal, interests, fees, costs and other allowable
      charges, shall be paid to Pacific Western Bank (formerly the secured debt of
      Community National Bank) through or prior to Closing either by the Seller or
      otherwise through new financing. In addition, any pre-petition debt owed to
      or
      asserted by Two Bills may only be paid with consideration other than the Cash
      Payment. Notwithstanding any other provision of this Agreement, this condition
      set forth in section 11.6 may not be waived by the Seller.

     

    Section
      11.7. The
      Purchaser shall have performed in all material respects all of its obligations
      hereunder required to be performed by it at or prior to the Closing Date,
      including payment of the Consideration in accordance with Article 5 of this
      Agreement

     

    

     

    
      
         

      

      
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    ARTICLE
      12

    INDEMNIFICATION

     

    [This
      Article intentionally omitted.]

     

    ARTICLE
      13

    TERMINATION

     

    Section
      13.1. Breaches
      and Defaults; Opportunity to Cure.
      Prior
      to the exercise by a party of any termination rights afforded under this
      Agreement, if either party (the “Non-Breaching
      Party”)
      believes the other (the “Breaching
      Party”)
      to be
      in breach hereunder, the Non-Breaching Party shall provide the Breaching Party
      with written notice specifying in reasonable detail the nature of such breach,
      whereupon if such breach is curable the Breaching Party shall have ten (10)
      calendar days from the receipt of such notice to cure such breach to the
      reasonable satisfaction of the Non-Breaching Party; provided,
      however,
      that
      the cure period for a breach shall in no event extend beyond the Outside Date.
      If the breach is not cured within such time period, then the Non-Breaching
      Party
      shall be entitled to terminate this Agreement if the breach is such that the
      condition set forth in Section 10.1 or 11.1, as applicable, shall not be
      satisfied (as provided in Section 13.2). This right of termination shall be
      in
      addition to, and not in lieu of, any rights of the Non-Breaching Party under
      Article 12 of this Agreement. Upon any termination with respect to which
      Purchaser is a Non-Breaching Party, among other equitable and legal rights
      and
      remedies available to purchaser, Seller shall cause the Consideration Deposit
      to
      be promptly returned to Purchaser.

     

    Section
      13.2. Termination.
      This
      Agreement may be terminated and the transactions contemplated herein may be
      abandoned, by written notice given to the other party hereto, at any time prior
      to the Closing:

     

    (a) by
      mutual
      written consent of Seller and Purchaser;

     

    (b) by
      Seller
      or Purchaser if (i) the Bankruptcy Court enters an Order approving the sale
      of
      the Purchased Assets to a third-party purchaser following the hearing on the
      Sale Order, or (ii) the Sale Procedures Order and the Sale Order are for any
      reason (other than a breach or default hereunder by the party seeking to
      terminate) not entered on or before the Outside Sale Order Date;

     

    (c) subject
      to the right to cure set forth in Section 13.1 at any time prior to the Closing
      Date, by Purchaser if Seller alters, amends or breaches any of the covenants
      in
      Section 9.1, is in breach of any material covenant, representation, undertaking
      or warranty, or if it appears that a condition set forth in Article 10 is
      impossible (other than through the failure of Purchaser to comply with its
      obligations under this Agreement) to satisfy and Purchaser has not waived such
      condition in writing on or before the Closing Date;

     

    (d) subject
      to the right to cure set forth in Section 13.1, at any time prior to the Closing
      Date by Seller if Purchaser is in breach of any material covenant,
      representation or warranty or if it appears that a condition set forth in
      Article 11 is impossible (other than through the failure of Seller to comply
      with their obligations under this Agreement) to satisfy and Seller has not
      waived such condition in writing on or before the Closing Date;

     

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

    

     

    (e) at
      or
      prior to the Bankruptcy Court hearing regarding approval of this Agreement,
      by
      either Seller or Purchaser, if an Alternative Bid is accepted and approved
      by
      the Bankruptcy Court, and (ii) Purchaser’s right to terminate this Agreement
      pursuant to this Section 13.2(e) is subject to the “back-up bid” provisions of
      Section 3.1(d) above;

     

    (f) by
      Purchaser if Seller refuses to close for any reason whatsoever, other than
      a
      breach or default by Purchaser of Purchaser’s obligations under this Agreement;
      or

     

    (g) by
      Seller
      or Purchaser if the Closing shall not have occurred on or before the Outside
      Date, unless the failure to have the Closing shall be due to the failure of
      the
      party seeking to terminate this Agreement to perform in any material respect
      its
      obligations under this Agreement required to be performed by it at or prior
      to
      the Closing.

     

    Upon
      entry of the Sale Order, the mutual termination right set forth in Section
      13.2(b) above shall cease.

     

    ARTICLE
      14

    BROKERS’
      FEES

     

    Each
      party represents and warrants to the other that it shall be solely responsible
      for the payment of any fee or commission due to any broker or finder it has
      engaged with respect to this transaction, if any, and the other party hereto
      shall be indemnified for any liability with respect thereto.

     

    ARTICLE
      15

    MISCELLANEOUS

     

    Section
      15.1. Additional
      Instruments of Transfer.
      From
      time to time after the Closing, each party shall, if requested by another party,
      make, execute and deliver such additional assignments, bills of sale, deeds
      and
      other instruments and documents, as may be reasonably necessary or proper to
      carry out the specific provisions of this Agreement, including, without
      limitation, transfer to Purchaser of all of Seller’s right, title and interest
      in and to the Purchased Assets and any right, title or interest that Seller
      may
      have in any asset used or held for use in Business, other than an Excluded
      Asset. 

     

    Section
      15.2. Notices.
      All
      notices and other communications required or permitted to be given hereunder
      shall be in writing and shall be deemed to have been duly given if delivered
      personally, sent by telecopier, recognized overnight delivery service or
      registered or certified mail, return receipt requested, postage prepaid, to
      the
      following addresses:

     

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    

     

    If
      to
      Purchaser:

    

    Alan
      Steel

    Executive
      Vice President, 

    Finance
      & Administration and 

    Chief
      Financial Officer

    Point.360

    2777
      North Ontario Street

    Burbank,
      California 91504

    Facsimile:
      (818) 847-2503

    Email:
      asteel@POINT360.com

    

    with
      a
      required copy to:

    

    James
      C.
      Bastian, Jr.

    Shulman
      Hodges & Bastian LLP

    26632
      Towne Centre Drive, Suite 300

    Foothill
      Ranch, California 92610

    Facsimile:
      (949) 340-3000

    Email:
      jbastian@shbllp.com

    

    If
      to
      Seller:

    

    Johnny
      Caswell

    President,

    Center
      Staging Musical Productions, Inc.

    3407
      Winona Avenue

    Burbank,
      CA 91504

    Facsimile:
      818.848.4016

    Email:
      Johnny@centerstaging.com

    

    with
      required copies to:

    

    Lewis
      Landau

    Attorney
      at Law

    23564
      Calabasas Road, Suite 104

    Calabasas,
      CA 91302

    Voice
      and
      Fax: (888)822-4340

    Email:
      lew@landaunet.com

    

    Notices
      delivered personally shall be effective upon delivery against receipt. Notices
      transmitted by telecopy shall be effective when received, provided that the
      burden of proving notice when notice is transmitted by telecopy shall be the
      responsibility of the party providing such notice. Notices delivered by
      overnight mail shall be effective when received. Notices delivered by registered
      or certified mail shall be effective on the date set forth on the receipt of
      registered or certified mail, or 72 hours after mailing, whichever is
      earlier.

     

    Section
      15.3. Expenses.
      Except
      as provided in the second sentence of this Section 15.3, and, to the extent
      that
      Purchaser is otherwise entitled thereto in accordance with the provisions of
      this Agreement, each party shall bear its own expenses and costs, including
      the
      fees of any attorney retained by it, incurred in connection with the preparation
      of this Agreement and the consummation of the transactions contemplated hereby.
      In the event either party shall bring any action or proceeding in connection
      with the performance, breach or interpretation of this Agreement or any
      Transaction Document, the prevailing party in such action or proceeding shall
      be
      entitled to recover from the losing party all court costs reasonable costs
      and
      expenses of such action, including, without limitation, attorneys’
fees.

     

    
      
         

      

      
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    Section
      15.4. Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of California (without application of principles of conflicts of law).
      In
      connection with any controversy arising out of or related to this Agreement,
      Seller and Purchaser hereby irrevocably consent to the exclusive jurisdiction
      of
      the Bankruptcy Court, or if, and only if, the Bankruptcy Case has been closed,
      the courts of the State of California. Seller and Purchaser each irrevocably
      consents to service of process out of the aforementioned courts and waives
      any
      objection which it may now or hereafter have to the laying of venue of any
      action or proceeding arising out of or in connection with this Agreement brought
      in the aforementioned courts.

     

    Section
      15.5. Assignment.
      This
      Agreement binds and benefits the parties and their respective successors and
      assignees. Purchaser shall have the right to freely assign any of its rights
      under this Agreement provided, however, Seller will not assign any of its rights
      under this Agreement prior to the Closing without the prior written
      discretionary consent of Purchaser. No party may delegate any performance of
      its
      obligations under this Agreement, except that Purchaser may at any time delegate
      the performance of its obligations to any Affiliate of Purchaser so long as
      Purchaser remains fully responsible for the performance of the delegated
      obligation.

     

    Section
      15.6. Successors
      and Assigns.
      All
      agreements made and entered into in connection with this transaction shall
      be
      binding upon and inure to the benefit of the parties hereto, their successors
      and permitted assigns.

     

    Section
      15.7. Amendments;
      Waivers.
      No
      alteration, modification or change of this Agreement shall be valid except
      by an
      agreement in writing executed by the parties hereto. Except as otherwise
      expressly set forth herein, no failure or delay by any party hereto in
      exercising any right, power or privilege hereunder (and no course of dealing
      between or among any of the parties) shall operate as a waiver of any such
      right, power or privilege. No waiver of any default on any one occasion shall
      constitute a waiver of any subsequent or other default. No single or partial
      exercise of any such right, power or privilege shall preclude the further or
      full exercise thereof.

     

    Section
      15.8. Entire
      Agreement.
      This
      Agreement merges all previous negotiations and agreements between the parties
      hereto, either verbal or written, and constitutes the entire agreement and
      understanding between the parties with respect to the subject matter of this
      Agreement.

     

    Section
      15.9. Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which when so
      executed shall be an original, but all of which together shall constitute one
      agreement. Facsimile and/or PDF signatures shall be deemed original
      signatures.

     

    Section
      15.10. Severability.
      If any
      provision of this Agreement or the application thereof to any person or
      circumstance shall be invalid or unenforceable to any extent, the remainder
      of
      this Agreement and the application of such provision to other persons or
      circumstances shall not be affected thereby and shall be enforced to the
      greatest extent permitted by law, but only as long as the continued validity,
      legality and enforceability of such provision or application does not materially
      (a) alter the terms of this Agreement, (b) diminish the benefits of this
      Agreement or (c) increase the burdens of this Agreement, for any
      person.

     

    
      
         

      

      
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    Section
      15.11. Section
      Headings.
      The
      section headings contained in this Agreement are solely for the purpose of
      reference, are not part of the agreement of the parties and shall not in any
      way
      affect the meaning or interpretation of this Agreement.

     

    Section
      15.12. Interpretation.
      As both
      parties have participated in the drafting of this Agreement, any ambiguity
      shall
      not be construed against either party as the drafter. Unless the context of
      this
      Agreement clearly requires otherwise, (a) “or” has the inclusive meaning
      frequently identified with the phrase “and/or,” (b) “including” has the
      inclusive meaning frequently identified with the phrase “including, but not
      limited to” and (c) references to “hereof,” “hereunder” or “herein” or words of
      similar import relate to this Agreement.

     

    Section
      15.13. Reasonable
      Access to Records and Certain Personnel.
      For a
      period of six (6) months following the Closing (or until the closing of the
      Bankruptcy Case, if the Bankruptcy Case is closed sooner): (i) Purchaser shall
      permit Seller’s counsel and other professionals and counsel for any successor to
      Seller and its respective professionals (collectively, “Permitted
      Access Parties”)
      reasonable access to the financial and other books and records relating to
      the
      Purchased Assets or the Business, which access shall include (xx) the right
      of
      such Permitted Access Parties to copy, at such Permitted Access Parties’
expense, such documents and records as they may request, and (yy) Purchaser’s
      copying and delivering to the relevant Permitted Access Parties such documents
      or records as they may request, but only to the extent such Permitted Access
      Parties furnish Purchaser with reasonably detailed written descriptions of
      the
      materials to be so copied and the applicable Permitted Access Party reimburses
      Purchaser for the reasonable costs and expenses thereof, and (ii) Purchaser
      shall provide the Permitted Access Parties (at no cost to the Permitted Access
      Parties) with reasonable access during regular business hours to assist Seller
      and the other Permitted Access Parties in their post-Closing activities
      (including, without limitation, preparation of tax returns), provided that
      such
      access does not materially interfere with Purchaser’s business operations and
      does not require access to Purchaser documents which are covered by a duty
      of
      confidentiality or impact protection of such documents under attorney-client
      privilege.

     

    Section
      15.14. Third
      Parties.
      Nothing
      herein, expressed or implied, is intended to or shall confer on any person
      other
      than the parties hereto any rights, remedies, obligations or liabilities under
      or by reason of this Agreement.

     

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

    

     

    Section
      15.15. Definitions.
      For
      purposes of this Agreement (including the Disclosure Schedules hereto) the
      terms
      defined in this Agreement shall have the respective meanings specified herein,
      and, in addition, the following terms shall have the following
      meanings:

     

    “Advances”
shall
      have the meaning ascribed to it in the Credit Facility Agreement.

     

    “Affiliate”
means,
      as to any Person, any other Person, which, directly or indirectly, is in control
      of, is controlled by, or is under common control with, such Person. The term
      “control” (including, with correlative meanings, the terms “controlled by” and
“under common control with”), as applied to any Person, means the possession,
      direct or indirect, of (i) 20% or more of the then outstanding voting securities
      of such Person, or (ii) the power to direct or cause the direction of the
      management and policies of such Person, whether through the ownership of voting
      securities or other direct or indirect ownership interest, by Contract or
      otherwise.

     

    “Bankruptcy
      Code”
means
      11 U.S.C. Section 101, et. seq., and any amendments thereof.

     

    “Bankruptcy
      Case”
shall
      mean the case commenced by Seller under chapter 11 of the Bankruptcy
      Code.

     

    “Benefit
      Arrangement”
means
      any employment, consulting, severance or other similar contract, plan,
      arrangement or policy, and each plan, arrangement (written or oral), program,
      agreement or commitment providing for insurance coverage (including any
      self-insured arrangements), workers’ compensation, disability benefits,
      supplemental unemployment benefits, vacation benefits, retirement benefits,
      life, health, disability or accident benefits or for deferred compensation,
      profit-sharing bonuses, stock options, stock purchases or other forms of
      incentive compensation or post-retirement insurance, compensation or benefits
      which (A) is not a Welfare Plan, Pension Plan or Multi-employer Plan, and (B)
      is
      entered into, maintained, contributed to or required to be contributed to,
      by
      Seller or an ERISA Affiliate or under which Seller or any ERISA Affiliate may
      incur any liability.

     

    “Code”
means
      the Internal Revenue Code of 1986, as amended.

     

    “Contract”
means
      any written or oral contract, agreement, lease, license, instrument, or other
      document or commitment, arrangement, undertaking, practice or authorization
      that
      is binding on any Person or its property under any applicable Law.

     

    “Cure
      Costs”
shall
      have the meaning ascribed to such term under the Bankruptcy Code.

     

    “Disclosure
      Schedule”
means
      the schedule executed and delivered by Seller to Purchaser as of the Closing
      Date setting forth the exceptions to the representations and warranties
      contained in Article 7 and certain other information called for by this
      Agreement. Unless otherwise specified, each reference in this Agreement to
      any
      numbered schedule is a reference to the corresponding numbered schedule that
      is
      included in the Disclosure Schedule.

     

    “Employee
      Plans”
means
      all Benefit Arrangements, Pension Plans and Welfare Plans.

     

    “Environmental
      Claim”
shall
      mean any claim, action, demand, order, or notice by or on behalf of, any
      Governmental Authority or person alleging potential liability arising out of,
      based on or resulting from the violation of any Environmental Law or permit
      or
      relating to any Hazardous Materials.

     

    “Environmental
      Laws”
shall
      mean all Laws that are applicable to the Business o relating to Releases or
      threatened Releases of Hazardous Materials or otherwise relating to pollution
      or
      protection of the environment, health, safety or natural resources, including,
      without limitation, those relating to (A) the Releases or threatened releases
      of
      Hazardous Materials or materials containing Hazardous Materials or (B) the
      manufacture, generation, handling, treatment, storage, transport, disposal
      or
      handling of Hazardous Materials or materials containing Hazardous
      Materials.

     

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

    

     

    “ERISA”
means
      the Employee Retirement Income Security Act of 1974, as amended, or any
      successor law, and regulations and rules issued pursuant to that Act or any
      successor law.

     

    “Family
      Member”
means,
      with respect to any individual (i) the individual, (ii) the individual’s spouse,
      (iii) any other natural Person who is related to the individual or the
      individual’s spouse within the second degree (including adopted children) and
      (iv) any other natural Person who resides with such individual.

     

    “Financial
      Statements”
means
      the Year-End Financial Statements and the Interim Financial
      Statements.

     

    “GAAP”
means
      generally accepted accounting principles as used in the United States, as in
      effect from time to time.

     

    “Governmental
      Authority”
means
      any federal, state, provincial, municipal and foreign governmental entity,
      authority, or agency, or any other political subdivision, or any entity
      exercising executive, legislative, judicial, regulatory or administrative
      functions of government.

     

    “Hazardous
      Materials”
means
      all substances, matters and other particles defined or listed as "hazardous"
      or
      "toxic" under Environmental Laws or are otherwise subject to or regulated by
      Environmental Laws.

     

    “Interim
      Balance Sheet”
means
      the unaudited consolidated balance sheet of Seller dated the Interim Balance
      Sheet Date, together with notes thereon.

     

    “Interim
      Balance Sheet Date”
means
      September 1, 2008.

     

    “Interim
      Financial Statements”
means
      the Interim Balance Sheet and the unaudited statements of operations, changes
      in
      members’ equity and cash flow for the period ended on the Interim Balance Sheet
      Date.

     

    “Laws”
means
      any federal, state, provincial, local or foreign statute, law, ordinance,
      regulation, rule, code, order or other requirement or rule of law. 

     

    “Leased
      Real Property”
means
      all leasehold or subleasehold estates and other rights to use or occupy any
      land, buildings, structures, improvements, fixtures, or other interest in real
      property which is used in Seller’s business pursuant to the Assumed
      Leases.

     

    “Legal
      Proceeding”
means
      any action, arbitration, audit, hearing, investigation, litigation or suit
      (whether civil, criminal, administrative, investigative or informal) commenced,
      brought, conducted or heard by or before, or otherwise involving, any
      Governmental Authority or arbitrator.

     

    “Liability”
means
      any liability, indebtedness, obligation, expense, claim, loss, cost, damage,
      obligation, responsibility, guaranty or endorsement of or by any Person,
      absolute or contingent, accrued or unaccrued, known or unknown, due or to become
      due, liquidated or unliquidated, whether or not secured.

     

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

    

     

    “Liens”
      means
      any security interests, mortgages, interests, liens, pledges, charges, defects
      of title, options and other rights of third parties, rights of first refusal,
      claims (as defined in Section 101 of the Bankruptcy Code), or any other
      encumbrance or restriction on ownership provided such encumbrance or restriction
      on ownership can be overridden by Section 363 of the Bankruptcy Code. “Liens”
shall not include liens for current taxes not yet due and payable.

     

    “Material
      Adverse Effect”
or
      “Material
      Adverse Change”
means
      a
      change in or effect on the Purchased Assets or the Assumed Liabilities that
      is
      or could reasonably be expected to materially and adversely affect the
      Purchaser’s ability to utilize the Purchased Assets taken as a whole.  
Material Adverse Change does not include any change or effect caused by war,
      acts of nature, general strike, acts of terror, general economic changes or
      conditions or changes in Laws; unless such Laws or conditions apply solely
      or
      principally to the Business or the Company.

     

    “Multiemployer
      Plan”
means
      any “multiemployer plan” as defined in Section 3(37) of ERISA.

     

    “Ordinary
      Course of Business”
means
      the ordinary course of business consistent with past custom and practice
      (including with respect to quantity and frequency).

     

    “Pension
      Plan”
means
      any “employee pension benefit plan” as defined in Section 3(2) of ERISA (other
      than a Multiemployer Plan) which Seller or any ERISA Affiliate maintains,
      administers, contributes to or is required to contribute to, or has maintained,
      administered, contributed to or was required to contribute to, or under which
      Seller or any ERISA Affiliate may incur any liability.

     

    “Person”
means
      any corporation, partnership, limited liability company, joint venture, business
      association, entity or individual.

     

    “Release”
shall
      mean any release, spill, emission, leaking, pumping, pouring, injection,
      escaping, deposit, disposal, discharge, dispersal, dumping, leaching or
      migration of Hazardous Materials into the indoor or outdoor environment,
      including the movement of Hazardous Materials through the air, soil, surface
      water or groundwater.

     

    “Sale
      Motion”
means
      the motion to be filed with the Bankruptcy Court by Seller seeking (a) approval
      of the terms and conditions of the Transaction Documents, and (b) authorization
      for (i) the sale of the Purchased Assets pursuant to Section 363 of the
      Bankruptcy Code and the assumption and assignment of the Purchased Assets that
      are executory contracts pursuant to Section 365 of the Bankruptcy Code, free
      and
      clear of all Liens. 

     

    “Sale
      Order”
means
      the order of the Bankruptcy Court granting the relief requested in the Sale
      Motion and authorizing the sale of the Purchased Assets pursuant to Section
      363
      of the Bankruptcy Code and the assumption and assignment of the Purchased Assets
      that are executory contracts pursuant to Section 365 of the Bankruptcy Code,
      free and clear of all Liens, claims and interests.

     

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

    

     

    “Sale
      Procedures Motion”
means
      the motion to be filed with the Bankruptcy Court seeking approval of the bidding
      procedures as contemplated pursuant to Article 3 hereof.

     

    “Sale
      Procedures Order”
means
      the order entered by the Bankruptcy Court with respect to the Overbid Procedures
      Motion and more fully described in Section 3.3 hereof.

     

    “Taxes”
means
      taxes, charges, fees, levies, penalties or other assessments imposed by any
      federal, state, territorial, local or foreign taxing authority, including
      income, gross receipts, excise, property, sales, transfer, franchise, payroll,
      withholding, social security and other taxes, and shall include any interest,
      penalties or additions attributable thereto.

     

    “Tax
      Return”
means
      any return, report, information return or other document (including any related
      or supporting information).

    

    “Welfare
      Plan”
means
      any “employee welfare benefit plan” as defined in Section 3(1) of ERISA which
      Seller or any ERISA Affiliate maintains, administers, contributes to or is
      required to contribute to, or under which Seller or any ERISA Affiliate may
      incur any Liability.

     

    “Year-End
      Financial Statements”
means
      the Balance Sheet and the related audited statements of operations, changes
      in
      members’ equity and cash flow for the fiscal years ended June 30, 2007 and
      2006.

    

     

    [Remainder
      of Page Intentionally Left Blank]

     

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      each of
      the parties hereto has caused this Asset Purchase Agreement to be executed
      by
      its duly authorized representative as of the day and year first above
      written.

     

    SELLER:

    

    CENTERSTAGING
      MUSICAL PRODUCTIONS, INC., Debtor and

    Debtor
      in
      Possession

    

    

    By: /s/
      Jan Parent      

    Name:
      Jan
      Parent

    Title:
      EVP

    

    

    PURCHASER:

    

    POINT.360

    

    

    By: /s/
      Alan Steel   

    Name:
      Alan Steel

    Title:
      CFO

    

    

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

    

    

    

    Exhibit
      A

    

    Sale
      Procedures Order

    

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    Exhibit
      B

    

    Bill
      of Sale

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    Exhibit
      C

    

    Assumption
      Agreement

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    Exhibit
      D

    

    Key
      Employee Agreements

    

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    Annex
      I

    

    Year
      End Financial Statements

    

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    Annex
      II

    

    Interim
      Financial Statements

    

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    TABLE
      OF CONTENTS

       

      ARTICLE
        1 PURCHASE AND SALE2

       

      ARTICLE
        2 DESCRIPTION OF PURCHASED ASSETS; EXCLUDED ASSETS; ASSUMPTION OF
        LIABILITIES                2

       

      
        	 	
                Section
                  2.1.

              	
                Purchased
                  Assets

              	
                2

              

      

      
        	 	
                Section
                  2.2.

              	
                Excluded
                  Assets 

              	
                3

              

      

      
        	 	
                Section
                  2.3.

              	
                Assumed
                  Liabilities; Non-Assumed Liabilities.

              	
                4

              

      

       

      ARTICLE
        3 BANKRUPTCY COURT APPROVAL5

       

      
        	 	
                Section
                  3.1.

              	
                Entry
                  of Sale Procedures Order

              	
                5

              

      

      
        	 	
                Section
                  3.2.

              	
                Entry
                  of Order Approving Sale

              	
                8

              

      

      
        	 	
                Section
                  3.3.

              	
                Certain
                  Bankruptcy Undertakings by Seller.

              	
                9

              

      

       

      ARTICLE
        4 INSTRUMENTS OF TRANSFER AND ASSUMPTION10

       

      
        	 	
                Section
                  4.1.

              	
                Transfer
                  Documents

              	
                10

              

      

      
        	 	
                Section
                  4.2.

              	
                Assignment
                  and Assumption Documents .

              	
                10

              

      

       

      ARTICLE
        5 CONSIDERATION; ALLOCATION10

       

      
        	 	
                Section
                  5.1.

              	
                Consideration

              	
                10

              

      

      
        	 	
                Section
                  5.2.

              	
                Allocation
                  of Consideration.

              	
                11

              

      

      
        	 	
                Section
                  5.3.

              	
                Prorations

              	
                11

              

      

       

      ARTICLE
        6 CLOSING12

       

      
        	 	
                Section
                  6.1.

              	
                Closing
                  Date

              	
                12

              

      

      

       

      ARTICLE
        7 SELLER’S REPRESENTATIONS AND WARRANTIES12

       

      
        	 	
                Section
                  7.1.

              	
                Organization,
                  Qualification and Corporate Power.

              	
                13

              

      

      
        	 	
                Section
                  7.2.

              	
                Authorization,
                  Execution and Delivery of Agreement and Transaction
                  Documents

              	
                13

              

      

      
        	 	
                Section
                  7.3.

              	
                Title
                  to and Condition of Assets.

              	
                13

              

      

      
        	 	
                Section
                  7.4.

              	
                Liabilities

              	
                13

              

      

      
        	 	
                Section
                  7.5.

              	
                Corporate
                  Records.

              	
                13

              

      

      
        	 	
                Section
                  7.6.

              	
                Legal
                  Proceedings

              	
                14

              

      

      
        	 	
                Section
                  7.7.

              	
                Real
                  Property

              	
                14

              

      

      
        	 	
                Section
                  7.8.

              	
                No
                  Violation of Laws or Agreements.

              	
                14

              

      

      
        	 	
                Section
                  7.9.

              	
                Employee
                  Benefits; ERISA Matters.

              	
                14

              

      

      
        	 	
                Section
                  7.10.

              	
                Labor
                  Matters.

              	
                15

              

      

      
        	 	
                Section
                  7.11.

              	
                Transferred
                  Intellectual Property

              	
                16

              

      

      
        	 	
                Section
                  7.12.

              	
                Defaults

              	
                16

              

      

      
        	 	
                Section
                  7.13.

              	
                Environmental
                  Matters

              	
                16

              

      

      
        	 	
                Section
                  7.14.

              	
                Brokers

              	
                17

              

      

      
      

       

      
        
           

        

        
          -i-

          
            

          

        

        
           

        

      

       

      TABLE
        OF CONTENTS
(continued)

       

      
        	 	
                Section
                  7.15.

              	
                Permits.

              	
                17

              

      

      
        	 	
                Section
                  7.16.

              	
                Insurance.

              	
                17

              

      

      
        	 	
                Section
                  7.17.

              	
                Taxes;
                  Tax Returns

              	
                17

              

      

      
        	 	
                Section
                  7.18.

              	
                Financial
                  Statements.

              	
                18

              

      

      
        	 	
                Section
                  7.19.

              	
                Related
                  Party Transactions

              	
                18

              

      

      
        	 	
                Section
                  7.20.

              	
                Compliance
                  with Law.

              	
                18

              

      

      
        	 	
                Section
                  7.21.

              	
                No
                  Other Agreements.

              	
                19

              

      

      
        	 	
                Section
                  7.22.

              	
                Material
                  Misstatements Or Omissions

              	
                19

              

      

       

      ARTICLE
        8 PURCHASER’S REPRESENTATIONS19

       

      
        	 	
                Section
                  8.1.

              	
                Organization;
                  Qualification and Corporate Power

              	
                19

              

      

      
        	 	
                Section
                  8.2.

              	
                Authorization,
                  Execution and Delivery of Agreement and Transaction
                  Documents.

              	
                19

              

      

      
        	 	
                Section
                  8.3.

              	
                Brokers

              	
                20

              

      

      
        	 	
                Section
                  8.4.

              	
                Funding.

              	
                20

              

      

       

      ARTICLE
        9 SELLER’S AND PURCHASER’S COVENANTS AND AGREEMENTS20

       

      
        	 	
                Section
                  9.1.

              	
                Conduct
                  of Business

              	
                20

              

      

      
        	 	
                Section
                  9.2.

              	
                Mutual
                  Covenants

              	
                20

              

      

      
        	 	
                Section
                  9.3.

              	
                Filings
                  and Authorizations

              	
                21

              

      

      
        	 	
                Section
                  9.4.

              	
                Access
                  to Information.

              	
                21

              

      

      
        	 	
                Section
                  9.5.

              	
                Public
                  Announcement

              	
                22

              

      

      
        	 	
                Section
                  9.6.

              	
                Taxes.

              	
                22

              

      

      
        	 	
                Section
                  9.7.

              	
                Consents

              	
                23

              

      

      
        	 	
                Section
                  9.8.

              	
                Good
                  Faith Efforts.

              	
                23

              

      

      
        	 	
                Section
                  9.9.

              	
                Employees.

              	
                23

              

      

      
        	 	
                Section
                  9.10.

              	
                Key
                  Employees.

              	
                24

              

      

      
        	 	
                Section
                  9.11.

              	
                Further
                  Assurances

              	
                24

              

      

      
        	 	
                Section
                  9.12.

              	
                Survival
                  of Representations and Warranties

              	
                24

              

      

      
        	 	
                Section
                  9.13.

              	
                “AS
                  IS” Transaction; Disclaimer of Implied Warranties

              	
                24

              

      

      

       

      ARTICLE
        10 CONDITIONS PRECEDENT TO PURCHASER’S OBLIGATION TO CLOSE25

       

      
        	 	
                Section
                  10.1.

              	
                Accuracy
                  of Representations and Warranties; Performance of this
                  Agreement.

              	
                25

              

      

      
        	 	
                Section
                  10.2.

              	
                Authorizing
                  Resolutions.

              	
                25

              

      

      
        	 	
                Section
                  10.3.

              	
                Officer’s
                  Certificate.

              	
                25

              

      

      
        	 	
                Section
                  10.4.

              	
                Bill
                  of Sale; Assumption Agreement.

              	
                26

              

      

      
        	 	
                Section
                  10.5.

              	
                Bankruptcy
                  Matters.

              	
                26

              

      

      
        	 	
                Section
                  10.6.

              	
                Consents.

              	
                26

              

      

      
        	 	
                Section
                  10.7.

              	
                No
                  Material Adverse Change or Destruction of Property.

              	
                26

              

      

      
      

       

      
        
           

        

        
          -ii-

          
            

          

        

        
           

        

      

      TABLE OF CONTENTS
(continued)

       

      
        	 	
                Section
                  10.8.

              	
                Outside
                  Date.

              	
                26

              

      

      
        	 	
                Section
                  10.9.

              	
                Key
                  Employee Agreements

              	
                26

              

      

      
        	 	
                Section
                  10.10.

              	
                Real
                  Property Leases

              	
                26

              

      

       

      ARTICLE
        11 CONDITIONS PRECEDENT TO SELLER’S OBLIGATION TO CLOSE27

       

      
        	 	
                Section
                  11.1.

              	
                Accuracy
                  of Representations and Warranties; Performance of this
                  Agreement

              	
                27

              

      

      
        	 	
                Section
                  11.2.

              	
                Authorizing
                  Resolutions

              	
                27

              

      

      
        	 	
                Section
                  11.3.

              	
                Assumption
                  Agreement.

              	
                27

              

      

      
        	 	
                Section
                  11.4.

              	
                Bankruptcy
                  Matters

              	
                27

              

      

      
        	 	
                Section
                  11.5.

              	
                Outside
                  Closing Date

              	
                27

              

      

      

       

      ARTICLE
        12 INDEMNIFICATION28

       

      ARTICLE
        13 TERMINATION28

       

      
        	 	
                Section
                  13.1.

              	
                Breaches
                  and Defaults; Opportunity to Cure.

              	
                28

              

      

      
        	 	
                Section
                  13.2.

              	
                Termination

              	
                28

              

      

       

      ARTICLE
        14 BROKERS’ FEES29

       

       

      ARTICLE
        15 MISCELLANEOUS29

       

      
        	 	
                Section
                  15.1.

              	
                Additional
                  Instruments of Transfer

              	
                29

              

      

      
        	 	
                Section
                  15.2.

              	
                Notices

              	
                29

              

      

      
        	 	
                Section
                  15.3.

              	
                Expenses

              	
                30

              

      

      
        	 	
                Section
                  15.4.

              	
                Governing
                  Law.

              	
                31

              

      

      
        	 	
                Section
                  15.5.

              	
                Assignment.

              	
                31

              

      

      
        	 	
                Section
                  15.6.

              	
                Successors
                  and Assigns

              	
                31

              

      

      
        	 	
                Section
                  15.7.

              	
                Amendments;
                  Waivers

              	
                31

              

      

      
        	 	
                Section
                  15.8.

              	
                Entire
                  Agreement

              	
                31

              

      

      
        	 	
                Section
                  15.9.

              	
                Counterparts

              	
                31

              

      

      
        	 	
                Section
                  15.10.

              	
                Severability

              	
                31

              

      

      
        	 	
                Section
                  15.11.

              	
                Section
                  Headings.

              	
                32

              

      

      
        	 	
                Section
                  15.12.

              	
                Interpretation

              	
                32

              

      

      
        	 	
                Section
                  15.13.

              	
                Reasonable
                  Access to Records and Certain Personnel..

              	
                32

              

      

      
        	 	
                Section
                  15.14.

              	
                Third
                  Parties

              	
                32

              

      

      
        	 	
                Section
                  15.15.

              	
                Definitions

              	
                32

              

      

    

     

     

    
      
         

      

      
        -iii-

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