Document:

<PAGE>

                                                                    Exhibit 10.1

                  LIMITED WAIVER TO LOAN AND SECURITY AGREEMENT
                  ---------------------------------------------

     This LIMITED WAIVER TO LOAN AND SECURITY AGREEMENT (this "WAIVER") dated as
of June 21, 2007 is by and among Hines Nurseries, Inc., a California
corporation, the parties hereto as lenders (each individually, a "Lender" and
collectively, "Lenders" as hereinafter further defined) and Bank of America,
N.A., in its capacity as agent for Lenders (in such capacity, "Agent").
Capitalized terms used and not otherwise defined herein shall have the meanings
assigned to them in the Loan Agreement (defined below).

                                R E C I T A L S:

     WHEREAS, Borrower, the Agent and the Lenders have entered into that certain
Loan and Security Agreement dated as of January 18, 2007 (as amended, the "LOAN
AGREEMENT"); and

     WHEREAS, Borrower, Agent and Lenders have agreed to extend the date for
providing unaudited financial statements and waive certain Events of Default
upon the terms and conditions contained herein;

     NOW, THEREFORE, in consideration of the premises contained herein, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

Section 1  LIMITED WAIVER TO THE LOAN AGREEMENT. Borrower acknowledges that a
certain Event of Default exists under Section 11.1 of the Loan Agreement as a
result of Borrower's failure to provide notice of default under the Indenture
for failure to provide the unaudited financial statements for the fiscal quarter
ending March 31, 2007 (and related public filings) as required by Section
10.1.3(c) of the Loan Agreement (the "Specified Event of Default"). Immediately
upon the satisfaction of each of the conditions precedent set forth in Section 2
below, the Agent and Required Lenders hereby waive the Specified Event of
Default; PROVIDED, that Borrower shall deliver the unaudited financial
statements for the fiscal quarter ending March 31, 2007 (and all related public
filings) required by the Indenture and cure any related defaults thereunder by
no later than July 20, 2007, the failure of which shall cause such waiver to be
terminated and result in such Specified Event of Default continuing to exist
under the Loan Agreement. The foregoing is a limited waiver and shall not
constitute a waiver of any other Default or Event of Default that may exist or
arise or constitute a waiver or modification to any other term or condition set
forth in the Loan Agreement.

Section 2  CONDITIONS TO EFFECTIVENESS. The effectiveness of the waiver set
forth in SECTION 1 above is subject to the satisfaction of each of the following
conditions:

          (a) Agent shall have received a duly executed counterpart of this
     Waiver from Borrower and the Required Lenders;

          (b) Agent shall have received a reaffirmation from Parent of its
     Guaranty; and

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          (c) In consideration of the waiver provided herein, Agent shall have
     received, for the ratable benefit of the Lenders signing this Waiver, a fee
     in the amount of $25,000 which fee shall be earned in full and payable on
     the date hereof.

Section 3  REPRESENTATIONS, WARRANTIES AND COVENANTS. Borrower represents,
warrants and covenants to Agent and Lenders, upon the effectiveness of this
Waiver that:

          (a) NO DEFAULT; ETC. No Default or Event of Default has occurred and
     is continuing after giving effect to this Waiver or would result from the
     execution or delivery of this Waiver or the consummation of the
     transactions contemplated hereby.

          (b) CORPORATE POWER AND AUTHORITY; AUTHORIZATION. Borrower has the
     power and authority to execute and deliver this Waiver.

          (c) EXECUTION AND DELIVERY. Borrower has duly executed and delivered
     this Waiver.

          (d) ENFORCEABILITY. This Waiver constitutes the legal, valid and
     binding obligations of Borrower, enforceable against Borrower in accordance
     with its terms, except as enforcement may be limited by bankruptcy,
     insolvency, reorganization, moratorium or similar laws affecting the
     enforcement of creditors' right generally, and by general principles of
     equity.

          (e) INDENTURE NOTICE. Borrower has not received any default notices
     under its Indenture in respect of its 10.25% Senior Notes due 2011 dated as
     of September 30, 2003, between Hines Nurseries, Inc., Hines Horticulture,
     Inc., the Subsidiary Guarantors named therein and the Bank of New York, as
     Trustee.

Section 4  MISCELLANEOUS.

          (a) EFFECT; RATIFICATION. Borrower acknowledges that all of the
     reasonable legal expenses incurred by Agent in connection herewith shall be
     reimbursable under SECTION 3.4 of the Loan Agreement. The waiver set forth
     herein is effective solely for the purposes set forth herein and shall be
     limited precisely as written, and shall not be deemed to (i) be a consent
     to any amendment, waiver or modification of any other term or condition of
     any Loan Document or (ii) prejudice any right or rights that any Lender may
     now have or may have in the future under or in connection with any Loan
     Document. This Waiver shall be construed in connection with and as part of
     the Loan Documents and all terms, conditions, representations, warranties,
     covenants and agreements set forth in the Loan Documents, except as herein
     amended are hereby ratified and confirmed and shall remain in full force
     and effect.

          (b) COUNTERPARTS; ETC. This Waiver may be executed in any number of
     counterparts, each such counterpart constituting an original but all
     together one and the same instrument. Delivery of an executed counterpart
     of this Waiver by fax shall have the same force and effect as the delivery
     of an original executed counterpart of this Waiver. Any party delivering an
     executed counterpart of this Waiver by fax shall also deliver an original
     executed counterpart, but the failure to do so shall not affect the
     validity, enforceability or binding effect of this Waiver.

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<PAGE>

          (c) GOVERNING LAW. This Waiver shall be deemed a Loan Document and
     shall be governed by, and construed and interpreted in accordance with the
     internal laws of the State of New York but excluding any principles of
     conflicts of law.

          (d) REAFFIRMATION. Parent hereby reaffirms all of its obligations as a
     guarantor of the Obligations pursuant to its Guaranty dated as of January
     18, 2007.

                            [SIGNATURE PAGES FOLLOW]

                                        3
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     IN WITNESS WHEREOF, Agent, Lenders and Borrower have caused this Limited
Waiver to Loan and Security Agreement to be duly executed as of the day and year
first above written.

                               BORROWER:
                               ---------

                               HINES NURSERIES, INC.

                               By:/S/ CLAUDIA PIEROPAN
                                  ----------------------------------------------
                               Title:   CFO
                                     -------------------------------------------
                               Name:    CLAUDIA PIEROPAN
                                    --------------------------------------------

                               PARENT:
                               -------

                               HINES HORTICULTURE, INC.

                               By:/S/ CLAUDIA PIEROPAN
                                  ----------------------------------------------
                               Title:   CFO
                                     -------------------------------------------
                               Name:    CLAUDIA PIEROPAN
                                    --------------------------------------------

                               AGENT AND LENDERS:
                               -----------------

                               BANK OF AMERICA, N.A., as Agent and a Lender

                               By:/S/ JASON RILEY
                                  ----------------------------------------------
                               Title:   VICE PRESIDENT
                                     -------------------------------------------
                               Name:    JASON RILEY
                                    --------------------------------------------

                               PNC BANK, NATIONAL ASSOCIATION, as a Lender

                               By:/S/ GREGORY J. HALL
                                  ----------------------------------------------
                               Title:   VICE PRESIDENT
                                     -------------------------------------------
                               Name:    GREGORY J. HALL
                                    --------------------------------------------

                               GMAC COMMERCIAL FINANCE LLC, as a Lender

                               By:/S/ ROBERT RICHARDSON
                                  ----------------------------------------------
                               Title:   DIRECTOR
                                     -------------------------------------------
                               Name:    ROBERT RICHARDSON
                                    --------------------------------------------

                                       S-1Share Purchase Agreement entered into as of June 21, 2007

    EXHIBIT
      10.38

     

    SHARE
      PURCHASE AGREEMENT

     

    This
      SHARE PURCHASE AGREEMENT entered into as of the 21st
      day of
      June, 2007 by and among BPO Management Services, Inc., a Delaware corporation
      (the “Buyer”),
      DOCUCOM IMAGING SOLUTIONS INC., an Ontario corporation (the “Company”)
      and
      MR. RAYMOND D. PATTERSON and MR. MARTIN E. MOLLOT (Mr. Patterson and Mr. Mollot
      together being hereinafter called the “Principals”), MR. RAYMOND D. PATTERSON,
      MRS. MAUREEN PATTERSON AND MR. MARTIN E. MOLLOT, as Trustees of the PATTERSON
      FAMILY TRUST and MR. MARTIN E. MOLLOT, MRS. JUDITH MOLLOT AND MR. RAYMOND D.
      PATTERSON, as Trustees of the MOLLOT FAMILY TRUST (collectively with the
      Principals referred to as the “Sellers”
and
      individually as a “Seller”).
      The
      Company, the Buyer and the Sellers are referred to collectively herein as the
      “Parties”.
      The
      Parties hereto agree as follows:

     

    RECITALS

     

    
      	
              A.

            	
              Certain
                holding companies controlled by Sellers own an aggregate of 400 Class
                B
                shares and 300 common shares of the Company, being all of the outstanding
                shares in the capital of the
                Company.

            

    

     

    
      	
              B.

            	
              This
                Agreement contemplates a transaction in which the Buyer will purchase
                from
                the Sellers, and the Sellers will sell to the Buyer, all of the
                outstanding shares in the capital of the Company in accordance with
                the
                terms herein.

            

    

     

    NOW,
      THEREFORE, in consideration of the premises and the mutual promises herein
      made,
      and in consideration of the representations, warranties, and covenants herein
      contained, the Parties agree as follows.

     

    
      	
              1.

            	
              Definitions.

            

    

     

    “Adverse
      Consequences”
means
      all actions, suits, proceedings, hearings, investigations, charges, complaints,
      claims, demands, injunctions, judgments, orders, decrees, rulings, damages,
      dues, penalties, fines, costs, amounts paid in settlement, Liabilities,
      obligations, Taxes, liens, losses, expenses, and fees, including court costs
      and
      reasonable legal counsel fees and expenses.

     

    “Affiliate”
has
      the
      meaning provided by the Ontario
      Business Corporations Act;
      

     

    “Amalgamation”
means
      the amalgamation of the Predecessors to be carried out immediately prior to
      Closing, as described in Annex III attached hereto.

     

    “Basis”
means
      any past or present fact, situation, circumstance, status, condition, activity,
      practice, plan, occurrence, event, incident, action, failure to act, or
      transaction that forms or could form the basis for any specified
      consequence.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Business”
means
      the sale of equipment, supplies, software and support contracts for the capture,
      storage, and retrieval of document images using micrographic and digital
      technologies throughout Canada.

     

    “Business
      Day”
means
      any day other than a Saturday, Sunday, statutory holiday or day on which banks
      in the cities of Toronto, Winnipeg or Los Angeles are not generally open for
      business. 

     

    “Buyer”
has
      the
      meaning set forth in the preface above, subject to the provisions of §11(e)
      hereof.

     

    “Closing”
has
      the
      meaning set forth in §2(f)
      below.

     

    “Closing
      Date”
has
      the
      meaning set forth in §2(f)
      below.

     

    “Company”
means,
      prior to the Amalgamation, Docucom Imaging Solutions Inc., and after the
      Amalgamation means the amalgamated corporation resulting from the
      Amalgamation.

     

    “Company
      Employee and Contractor Disclosure Document”
means
      that certain document dated the date hereof and delivered by the Company to
      the
      Buyer setting out the information described in §4(w)
      hereof.

     

    “Company
      Employees”
means
      individuals currently employed or retained by the Company on a full-time,
      part-time or temporary basis, including those employees on disability leave,
      parental leave or other absence.

     

    “Company
      Shares”
means
      the 400 issued and outstanding Class B shares and the 300 issued and outstanding
      common shares in the capital of the Company being sold by the Sellers and
      purchased by the Buyer hereunder.

     

    “Confidential
      Information”
means
      any information concerning the Business and affairs of the Company that is
      not
      already generally available to the public.

     

    “Consulting
      Agreements”
means
      agreements in the form of the draft agreement attached hereto as Exhibit
      B.

     

    “Disclosure
      Schedule”
has
      the
      meaning set forth in §4
      below.

     

    “Employee
      Benefit Plan”
means
      any benefit plan, program, agreement or arrangement maintained, contributed
      to
      or provided by the Company or any affiliate for the benefit of any of the
      Company’s employees, former employees or dependent or independent contractors or
      their respective dependents or beneficiaries, whether written or unwritten,
      including all bonus, deferred compensation, incentive compensation, share
      purchase, stock option, stock appreciation, phantom stock, savings, profit
      sharing, severance or termination pay, health or other medical, life, disability
      or other insurance (whether insured or self-insured), supplementary unemployment
      benefit, pension, retirement and supplementary retirement plans, programs,
      agreements and arrangements, except for any statutory plans to which the Company
      is obligated to contribute or comply, including the Canada Pension Plan or
      plans
      administered pursuant to applicable federal or provincial health, workers
      compensation and employment insurance legislation. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Environmental,
      Health, and Safety Requirements”
shall
      mean all federal, provincial, local and foreign statutes, regulations,
      ordinances and other provisions having the force or effect of law, all judicial
      and administrative orders and determinations, all contractual obligations and
      all common law concerning public health and safety, worker health and safety,
      and pollution or protection of the environment, including without limitation
      all
      those relating to the presence, use, production, generation, handling,
      transportation, treatment, storage, disposal, distribution, labelling, testing,
      processing, discharge, release, threatened release, control, or cleanup of
      any
      hazardous materials, substances or wastes, chemical substances or mixtures,
      pesticides, pollutants, contaminants, toxic chemicals, petroleum products or
      by-products, asbestos, polychlorinated biphenyls, noise or radiation, each
      as
      amended and as now or hereafter in effect.

     

    “Exception”
has
      the
      meaning provided by paragraph 4(a)(i)
      hereof.

     

    “Excluded
      Liabilities”
means
      (i) all guarantees by the Company of debts owing by the Sellers, (ii) all loans
      or other debt or any other obligations owed to Sellers, including, without
      limitation, bonus, dividends, accrued vacation, severance pay and other
      distributions, (iii) the liabilities and obligations in respect of all
      automobiles leased by the Company and used by the Principals or any members
      of
      their families, and (iv) all the debts, guarantees and obligations of the
      Company that were not incurred in the Ordinary Course Of Business. 

     

    “Financial
      Statements”
has
      the
      meaning set forth in §4(g)
      below.

     

    “Financing”
means
      a
      financing proposed to be carried out by the Buyer involving an investment by
      persons other than the current shareholders of the Buyer in an amount at least
      equal to the Purchase Price hereunder, on terms satisfactory to the Buyer in its
      sole discretion. 

     

    “GAAP”
means
      Canadian generally accepted accounting principles as in effect from time to
      time.

     

    “Holdcos”
means,
      collectively, 1205217 Ontario Limited and 1205218 Ontario Limited, which will
      amalgamate with the Company immediately prior to Closing. 

     

    “Indemnified
      Party”
has
      the
      meaning set forth in §9(e)
      below.

     

    “Indemnifying
      Party”
has
      the
      meaning set forth in §9(e)
      below.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

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

     

    “Interim
      Period”
means
      the period commencing on February 1, 2007 and terminating on the Closing Date.
      

     

    “January
      31, 2007 Balance Sheet”
means
      the balance sheet of the Company as of January 31, 2007.

     

    “Key
      Employees”
means
      the persons so designated in the Company Employee and Contractor Disclosure
      Document, as agreed by the Principals and the Buyer.

     

    “Knowledge”
of
      a
      certain matter means the actual knowledge of the Principals and the knowledge
      which the Principals would have if they conducted such reasonable inquiry that
      a
      prudent person in similar circumstances would consider necessary as to that
      matter; provided however in conducting such inquiries it is understood and
      agreed that the Principals will have no obligation to contact any customers,
      suppliers or other persons who are not employees of the Company.

     

    “Kodak”
means
      Kodak Canada Inc. 

     

    “Kodak
      Agreements”
      means
      the agreements made between the Company and Kodak which are listed in
§4(bb)(i)
      of the
      Disclosure Schedule.

     

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

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “Limited
      Partnership Agreement”
means
      the limited partnership agreement dated November 1, 1996 between BHC Documents
      Inc. (“BHC”) and Bell & Howell Ltd. (“B&H”), as amended whereby Kodak
      and the Company became the partners and the parties to the Limited Partnership
      Agreement, and as amended by an Amending Agreement made as of November 1, 2004
      whereby (among other things) Kodak’s partnership interest was acquired by the
      Company, complete copies of which are included in §4(a)(iii) of the Disclosure
      Schedule.

     

    “Material”
or
      “Material
      Adverse Effect”
with
      respect to any entity or group of entities means a material adverse effect
      on
      the business, assets (including intangible assets), financial condition,
      prospects, or results of operations of such entity and its subsidiaries, taken
      as a whole which is individually in excess of $25,000, or, in the aggregate
      with
      other individual items, in excess of $50,000.

     

    “Most
      Recent Balance Sheet”
means
      the balance sheet contained within the Most Recent Financial
      Statements.

     

    “Most
      Recent Financial Statements”
has
      the
      meaning set forth in §4(g)
      below.

     

    “Most
      Recent Fiscal Month End”
has
      the
      meaning set forth in §4(g)
      below.

     

    “Most
      Recent Fiscal Year End”
has
      the
      meaning set forth in §4(g)
      below.

     

    “NMSO”
means
      the National Master Standing Offer issued to Kodak, pursuant to which Kodak
      is
      appointed as a vendor to the Canadian Federal Government.

     

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

     

    “Partnership”
means
      Docucom Limited Partnership, which carried on the Business until the Partnership
      ceased to exist on October 31, 2006, after which the Business has been carried
      on by the Company. 

     

    “Party”
has
      the
      meaning set forth in the preface above.

     

    “Person”
means
      an individual, a partnership, a corporation, an association, a joint stock
      company, a trust, a joint venture, an unincorporated organization, or a
      governmental entity (or any department, agency, or political subdivision
      thereof).

     

    “Personal
      Information”
      means
      the type of information regulated by Privacy Laws and collected, used, disclosed
      or retained by the Company, including without limitation information about
      an
      identifiable individual, including, without limitation in Canada, information
      regarding the Company’s customers, suppliers, employees and agents, such as an
      individual’s name, address, age, gender, identification number, social insurance
      number, income, family status, citizenship, employment, assets, liabilities,
      source of funds, payment records, credit information, personal references and
      health records.

     

    “Predecessors”
means,
      collectively, the Holdcos and the Company.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    “Privacy
      Laws”
      means
      all applicable privacy laws of Canada governing the collection, use, disclosure
      and retention of Personal Information including, without limitation, the
Personal
      Information Protection and Electronic Documents Act
      (Canada).

     

    “Purchase
      Price”
has
      the
      meaning set forth in §2(b)
      below.

     

    “Reseller
      Agreements”
means
      the Integrated Imaging Elite Reseller Purchase Agreement and the Document
      Imaging Reseller Agreement, both made between Kodak and the Company, and copies
      of which have been delivered to the Buyer.

     

    “Securities
      Act”
means
      the Securities Act of 1933, as amended.

     

    “Security
      Interest”
means
      any mortgage, pledge, lien, encumbrance, charge, or other security interest,
      other than (a) mechanic’s, materialmen’s, and similar liens, (b) liens for Taxes
      not yet due and payable or for Taxes that the taxpayer is contesting in good
      faith through appropriate proceedings, (c) purchase money liens and liens
      securing rental payments under capital lease arrangements, and (d) other liens
      arising in the Ordinary Course of Business and not incurred in connection with
      the borrowing of money.

     

    “Seller”
or
      “Sellers”
has
      the
      meaning set forth in the preface above.

     

    “Service
      Agreement”
means
      the Agreement made October 10, 2001 between the Company and Kodak, as amended
      by
      amending agreements dated November 1, 2001, October 1, 2004 and November 1,
      2004.

     

    “Tax”
means
      any federal, provincial, local, or foreign income, goods and services tax (GST),
      gross receipts, license, payroll, employment, excise, severance, stamp,
      occupation, premium, windfall profits, environmental, customs duties, capital
      stock, franchise, profits, withholding, social security (or similar),
      unemployment, disability, real property, personal property, sales, use,
      transfer, registration, value added, alternative or add on minimum, estimated,
      or other tax of any kind whatsoever, including any interest, penalty, or
      addition thereto, whether disputed or not.

     

    “Tax
      Return”
means
      any return, declaration, report, claim for refund, or information return or
      statement relating to Taxes, including any schedule or attachment thereto,
      and
      including any amendment thereof.

     

    “Transaction”
means
      the purchase and sale of the Company Shares hereunder, including payment of
      the
      Purchase Price.

     

    
      	
              2.

            	
              Purchase
                and Sale of the Company
                Shares.

            

    

     

    
      	 	
              (a)

            	
              Basic
                Transaction.
                On and subject to the terms and conditions of this Agreement, the
                Buyer
                agrees to purchase from each of the Sellers, and each of the Sellers
                agrees to sell to the Buyer, all of his or its Company Shares for
                the
                consideration specified below in this §2.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	 	
              (b)

            	
              Purchase
                Price.
                In consideration for the sale of the Company Shares, the Buyer agrees
                to
                pay to the Sellers the following (the “Purchase
                Price”): 

            

    

     

    
      	 	
              (i)

            	
              Three
                Million Eight Hundred Thousand ($3,800,000.00) Canadian dollars subject
                to
                the adjustments referred to in paragraphs 2(b)(ii), (iii), and (iv),
                payable as follows: 

            

    

     

    
      	 	
              (A)

            	
              subject
                to such adjustments, $2,000,000.00 (Canadian dollars) (the “Closing
                Payment”),
                together with interest at the rate of 5% per annum from February
                1, 2007
                to the Closing Date on the Closing Payment, by wire transfer or delivery
                of other immediately available funds payable on Closing;
                

            

    

     

    
      	 	
              (B)

            	
              subject
                to such adjustments, $900,000 (Canadian dollars) (the “Second
                Instalment”)
                which will be due and payable three months after the date of Closing;
                and,
                

            

    

     

    
      	 	
              (C)

            	
              subject
                to paragraph (iv) of this section, $900,000 (Canadian dollars) (the
                “Third
                Instalment”)
                which will be due and payable nine months after the date of
                Closing;

            

    

     

    
      	 	
              (ii)

            	
              the
                Purchase Price shall be reduced, dollar for dollar, to the extent
                that
                

            

    

     

    
      	 	
              (A)

            	
              the
                sum of the deferred revenue, accounts payable (including any outstanding
                obligations regarding the termination of the employment of Jose Gomes),
                accrued expenses, accrued Tax liability, accrued vacation pay and
                bank and
                other indebtedness of the Company as of January 31, 2007, and any
                unpaid
                costs or expenses incurred by the Company and the Sellers in relation
                to
                or in preparation for the Transaction, and the cost of obtaining
                an audit
                of the financial statements of the Partnership referred to in paragraph
                4(g)(ii) and the cost of obtaining a review engagement of the financial
                statements of the Company referred to in paragraph 4(g)(iii) hereof,
                and
                the cost of the review by Horwath Orenstein LLP of the January 31,
                2007
                Balance Sheet (the “Current
                Liabilities”),
                

            

    

     

    is
      greater than 

     

    
      	 	
              (B)

            	
              the
                sum of the cash, cash equivalents, accounts receivable and prepaid
                expenses of the Company as of the January 31, 2007 (the “Current
                Assets”),
                

            

    

     

    both
      as
      determined in accordance with GAAP consistently applied and shown in the January
      31, 2007 Balance Sheet; and the Purchase Price shall be increased, dollar for
      dollar, if and to the extent that the Current Assets as of January 31, 2007
      exceed the Current Liabilities as of January 31, 2007; (provided however, for
      greater certainty, it is understood and agreed that the costs of preparing
      and
      auditing or obtaining a review engagement report on the financial statements
      as
      of and for the stub year period ending on the Closing Date will not be
      considered Closing Liabilities); 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
      	 	
              (iii)

            	
              if,
                prior to its current expiry date of September 30, 2007, the NMSO
                has not
                been renewed by the Canadian Federal Government, or if the Reseller
                Agreements have not been renewed by Kodak, in each case to at least
                March
                31, 2008 on terms which are at least as favourable to the Company
                as the
                current terms of the NMSO and Reseller Agreements, then:
                

            

    

     

    
      	 	
              (A)

            	
              the
                Purchase Price
                will be reduced by an amount equal to 1.2189 times the “FGM Shortfall”, if
                any (as hereafter defined); and

            

    

     

    
      	 	
              (B)

            	
              such
                reduction of the Purchase Price will be applied against the Third
                Instalment. 

            

    

     

    For
      purposes hereof, the “FGM Shortfall” means the amount, if any, by
      which:

     

    
      	 	
              (C)

            	
              the
                sum of $264,000, exceeds

            

    

     

    
      	 	
              (D)

            	
              the
                total gross margin amount realized by the Company on sales to the
                Canadian
                Federal Government during the 12-month period from February 1, 2007
                to
                January 31, 2008 of products (whether manufactured by Kodak or others)
                which are of the same type as those sold by the Company to the Canadian
                Federal Government under the NMSO and the Reseller Agreements during
                the
                12-month period ended October 31, 2006.

            

    

     

    A
      statement showing the calculation of any adjustment made pursuant to this
      paragraph 2(b) (iii) will be prepared and furnished by the Company to the
      Sellers and the Buyer on or before January 31, 2008 and if either Party disputes
      the adjustment, the matter will be resolved pursuant to paragraph 2(c)
      hereof;

     

    
      	 	
              (iv)

            	
              without
                duplicating any adjustment pursuant to paragraph 2(b)(ii) above,
                the
                Purchase Price shall also be decreased as mutually agreed upon by
                the
                Principals and the Buyer if the January 31, 2007 Balance Sheet of
                the
                Company, as determined in accordance with GAAP consistently applied,
                is
                not substantially similar to the balance sheet of the Company as
                of
                October 31, 2006 as referred to in paragraph 4(g) (iii) hereof and
                included in the Financial Statements attached hereto as Exhibit
                A.

            

    

     

    
      	 	
              (c)

            	
              Dispute
                Resolution.
                If
                either Party disputes the adjustment, if any, made pursuant to paragraph
                2(b)(iii) hereof, and if such Party gives notice of such dispute
                to the
                other Party within 20 Business Days of receipt of the statement
                calculating such adjustment and if the Parties cannot reach agreement
                within 10 Business Days after such notice of dispute is given, then
                the
                dispute shall be referred by the Parties to arbitration by a senior
                audit
                partner at the Toronto office of a national accounting firm chosen
                by the
                Buyer (such partner to be chosen by the managing partner of such
                office),
                and approved by the Sellers acting reasonably. Such referral to
                arbitration shall be made within 2 Business Days after the expiration
                of
                the 10 Business Day period referred to in the preceding sentence.
                The
                decision of such arbitrator will be made within 20 Business Days
                of such
                referral and will be final and binding on the Parties. The costs
                of the
                arbitrator will be born by the Party losing the majority of the amount
                at
                issue in the arbitration. 

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
      	 	
              (d)

            	
              Allocation.
                The Purchase Price shall be allocated among the Sellers as set forth
                in
                2(d) of the Disclosure Schedule.

            

    

     

    
      	 	
              (e)

            	
              Security.
                As security for the payment of the Second Instalment and Third Instalment
                of the Purchase Price, at Closing the Buyer will deliver to the Seller
                a
                bank letter of credit, or other security acceptable to the
                Sellers. 

            

    

     

    
      	 	
              (f)

            	
              Closing
                Date.
                The closing of the Transaction contemplated by this Agreement (the
                “Closing”
                or “Closing
                Date”)
                shall take place contemporaneously with the execution of this
                Agreement. 

            

    

     

    
      	 	
              (g)

            	
              Deliveries
                at the Closing.
                At the Closing, (i) the Sellers will deliver to the Buyer the various
                certificates, instruments, and documents referred to in §8(b)
                below, (ii) the Buyer will deliver to the Sellers the various
                certificates, instruments, and documents referred to in §8(c)
                below.

            

    

     

    (h) Withholding.

     

    
      	 	
              (A)

            	
              If
                the Buyer delivers to the Sellers a notice seeking indemnification
                (referred to as a “Claim
                Notice”
                in Article 9 herein) in accordance with Article 9 of this Agreement,
                then
                the Buyer may deduct from the Third Instalment of the Purchase Price
                such
                amount or amounts (which shall be specified in such notice(s) to
                the
                Sellers) as the Buyer reasonably determines may be necessary to satisfy
                the claim(s) set forth in such Claim Notice (including costs and
                legal
                counsel fees and disbursements in respect thereof). Provided however,
                such
                deduction shall not exceed the sum of $380,000 Canadian. The deducted
                amount will be deposited by the Buyer with its Canadian legal counsel
                in
                trust for the parties hereunder, to be held pending final resolution
                of
                such claim (“Claim”)
                (which shall mean, unless otherwise agreed among the parties hereto,
                a
                final judgment or order of a court of competent jurisdiction not
                subject
                to any further appeals). Any such amount deducted from the Third
                Instalment of the Purchase Price and paid to the Buyer’s legal counsel
                will be deposited by such legal counsel in an interest-bearing account
                with a Canadian chartered bank, with the accrued interest to be paid
                to
                the party or parties ultimately determined to be entitled to the
                deducted
                amount.

            

    

     

    
      	 	
              (B)

            	
              Upon
                the final resolution of a Claim: 

            

    

     

    
      	 	
              (i)

            	
              if
                the amount deducted by the Buyer pursuant to paragraph 2(h)(A) exceeds
                the
                aggregate amount of all Claims pending at such time, then the Buyer
                shall
                cause its Canadian legal counsel to pay to the Sellers (to an account
                or
                accounts designated in writing by the Sellers) any such excess plus
                accrued interest thereon, 

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
      	 	
              (ii)

            	
              and
                if, at such time, the aggregate amount deducted by the Buyer is less
                than
                or equal to the aggregate amount of all Claims pending at such time,
                then
                legal counsel for the Buyer will continue to hold the deducted amount
                until such pending Claims are
                resolved.

            

    

     

    
      	 	
              (C)

            	
              Nothing
                in this §2(h) shall impair the rights of the Buyer set forth in Article 9
                or any other provision of this
                Agreement.

            

    

     

    
      	
              3.

            	
              Representations
                and Warranties Concerning the
                Transaction.

            

    

     

    
      	 	
              (a)

            	
              Representations
                and Warranties of the Sellers.
                Each of the Sellers represents and warrants to the Buyer on a several
                basis (and not jointly) that the statements contained in this §3(a) are
                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 §3(a)),
                except as set forth in Annex I attached
                hereto.

            

    

     

    
      	 	
              (i)

            	
              Authorization
                of Transaction.
                Each Seller has full power and authority to execute and deliver this
                Agreement and to perform his obligations hereunder. This Agreement
                constitutes the valid and legally binding obligation of each Seller,
                enforceable in accordance with its terms and conditions, except that
                the
                enforceability of the Agreement (A) may be subject to or limited
                by
                bankruptcy, insolvency, reorganization, arrangement, moratorium or
                other
                similar laws relating to or affecting the rights of creditors and
                (B) is
                subject to general principles of equity (including the possibility
                of
                unavailability of specific performance or injunctive relief), regardless
                of whether considered in a proceeding in equity or at law. Each Seller
                need not give any notice to, make any filing with, or obtain any
                authorization, consent, or approval of any third party, including
                any
                government or governmental agency in order to consummate the transactions
                contemplated by this Agreement.

            

    

     

    
      	 	
              (ii)

            	
              Noncontravention.
                Neither the execution and the delivery of this Agreement, nor the
                consummation of the transactions contemplated hereby, will (A) violate
                any
                constitution, statute, regulation, rule, injunction, judgment, order,
                decree, ruling, charge, or other restriction of any government,
                governmental agency, or court to which any Seller is subject, or
                (B)
                conflict with, result in a breach of, constitute a default under,
                result
                in the acceleration of, create in any party the right to accelerate,
                terminate, modify, or cancel, or require any notice under any agreement,
                contract, lease, license, instrument, or other arrangement to which
                any
                Seller is a party or by which he is
                bound.

            

    

     

    
      	 	
              (iii)

            	
              Brokers’
                Fees.
                None of the Sellers has engaged or is obligated to pay any commissions
                or
                brokers fees in connection with the transactions contemplated by
                this
                Agreement.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
      	 	
              (iv)

            	
              Company
                Shares.
                

            

    

     

    
      	 	
              (A)

            	
              Each
                of the Sellers currently (prior to the Amalgamation) holds of record
                and
                owns beneficially the number of shares in the capital of the Holdcos
                set
                forth next to his or its name in §3(a)(iv)(A) of Annex I.
                The Holdcos currently (prior to the Amalgamation) hold of record
                and
                beneficially the number of shares in the capital of the Company set
                forth
                in §3(a)(iv)(A) of Annex I.

            

    

     

    
      	 	
              (B)

            	
              Following
                the Amalgamation, each of the Sellers will hold of record and own
                beneficially the number of Company Shares set forth next to his or
                its
                name in §3(a)(iv)(B) of Annex I. 

            

    

     

    
      	 	
              (C)

            	
              All
                such Holdco shares and Company Shares are and will be held by each
                of the
                Sellers free and clear of any restrictions on transfer (other than
                any
                restrictions under Canadian or provincial securities laws which are
                disclosed in Annex I attached hereto), Taxes, Security Interests,
                options,
                warrants, purchase rights, contracts, commitments, equities, claims,
                and
                demands. 

            

    

     

    
      	 	
              (D)

            	
              None
                of the Sellers is a party to any option, warrant, purchase right,
                or other
                contract or commitment that could require such Seller to sell, transfer,
                or otherwise dispose of any shares in the capital of the Company
                (other
                than this Agreement). 

            

    

     

    
      	 	
              (E)

            	
              None
                of the Sellers is a party to any shareholder agreement, voting trust,
                proxy, or other agreement or understanding with respect to the ownership
                or voting of any shares in the capital of the Holdcos or the
                Company.

            

    

     

    
      	 	
              (v)

            	
              Not
                a Non-Resident.
                None of the Sellers is a non-resident of Canada within the meaning
                of the
                Income
                Tax Act
                (Canada).

            

    

     

    
      	 	
              (b)

            	
              Representations
                and Warranties of the Buyer.
                The Buyer represents and warrants to the Sellers that the statements
                contained in this §3(b) are correct and complete as of the date of this
                Agreement.

            

    

     

    
      	 	
              (i)

            	
              Organization
                of the Buyer.
                The Buyer is a corporation duly organized, validly existing, and
                in good
                standing under the laws of the jurisdiction of its
                incorporation.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
      	 	
              (ii)

            	
              Authorization
                of Transaction.
                The Buyer has full power and authority (including full corporate
                power and
                authority) to execute and deliver this Agreement and to perform its
                obligations hereunder. This Agreement constitutes the valid and legally
                binding obligation of the Buyer, enforceable in accordance with its
                terms
                and conditions, except that the enforceability of the Agreement (A)
                may be
                subject to or limited by bankruptcy, insolvency, reorganization,
                arrangement, moratorium or other similar laws relating to or affecting
                the
                rights of creditors and (B) is subject to general principles of equity
                (including the possibility of unavailability of specific performance
                or
                injunctive relief), regardless of whether considered in a proceeding
                in
                equity or at law. Other than any required filings under the Securities
                Act
                and regulations thereunder and the Investment
                Canada Act,
                the Buyer need not give any notice to, make any filing with, or obtain
                any
                authorization, consent, or approval of any government or governmental
                agency in order to consummate the transactions contemplated by this
                Agreement.

            

    

     

    
      	 	
              (iii)

            	
              Noncontravention.
                Neither the execution and the delivery of this Agreement, nor the
                consummation of the transactions contemplated hereby, will (A) subject
                to
                making the requisite filing under the
                Securities Act
                and the Investment
                Canada Act,
                violate any constitution, statute, regulation, rule, injunction,
                judgment,
                order, decree, ruling, charge, or other restriction of any government,
                governmental agency, or court to which the Buyer is subject or any
                provision of its charter or bylaws , or (B) conflict with, result
                in a
                breach of, constitute a default under, result in the acceleration
                of,
                create in any party the right to accelerate, terminate, modify, or
                cancel,
                or require any notice under any agreement, contract, lease, license,
                instrument, or other arrangement to which the Buyer is a party or
                by which
                it is bound or to which any of its assets is
                subject.

            

    

     

    
      	 	
              (iv)

            	
              Investment.
                The Buyer understands that the Company Shares have not been, and
                will not
                be, registered under the Securities Act, or under any state or Canadian
                securities laws, and are being offered and sold in reliance upon
                Canadian
                exemptions for transactions not involving any public offering. The
                Buyer:
                (A) is acquiring the Company Shares solely for its own account for
                investment purposes, and not with a view to the distribution thereof,
                (B)
                is a sophisticated investor with knowledge and experience in business
                and
                financial matters, (C) has received certain information concerning
                the
                Sellers and the Company and has had the opportunity to obtain additional
                information as desired in order to evaluate the merits and the risks
                inherent in holding the Company Shares, and (D) is able to bear the
                economic risk and lack of liquidity inherent in holding the Company
                Shares.

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    
      	
              4.

            	
              Representations
                and Warranties Concerning the Company. 

            

    

     

    The
      Principals jointly and severally represent and warrant to the Buyer that the
      statements contained in this §4
      are
      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
§4),
      except
      as set forth in the disclosure schedule delivered by the Sellers to the Buyer
      on
      the date hereof and initialled by the Parties (the “Disclosure
      Schedule”).
      

     

    
      	 	
              (a)

            	
              Organization,
                Qualification, and Corporate Power.
                

            

    

     

    
      	 	
              (i)

            	
              Each
                of the Predecessors: (A) is a corporation duly organized, validly
                existing
                and in good standing under the laws of the jurisdiction of its
                incorporation; (B) is duly authorized to conduct business and is
                in good
                standing under the laws of each jurisdiction where such qualification
                is
                required; and (C) has full corporate power and authority and all
                licenses,
                permits, and authorizations necessary to carry on the businesses
                in which
                it is engaged and in which it presently proposes to engage and to
                own and
                use the properties owned and used by it. §4(a) of the Disclosure Schedule
                lists the directors and officers of each of the Predecessors. Correct
                and
                complete copies of the articles and bylaws and all other organizational
                documents of each of the Predecessors (as amended to date) are included
                in
                §4(a)(i) of the Disclosure Schedule. The minute books (containing
                the
                records of meetings of the stockholders, the board of directors,
                and any
                committees of the board of directors), the stock certificate books,
                and
                the stock record books the Predecessors are correct and complete
                in all
                material respects. None of the Predecessors is in default under or
                in
                violation of any provision of its articles or bylaws or any other
                organizational document. 

            

    

     

    
      	 	
              (ii)

            	
              The
                Company has full power and authority to execute and deliver this
                Agreement
                and to perform its obligations hereunder. This Agreement constitutes
                a
                valid and legally binding obligation of the Company, enforceable
                in
                accordance with its terms and conditions, except that the enforceability
                of the Agreement (A) may be subject to or limited by bankruptcy,
                insolvency, reorganization, arrangement, moratorium or other similar
                laws
                relating to or affecting the rights of creditors and (B) is subject
                to
                general principles of equity (including the possibility of unavailability
                of specific performance or injunctive relief), regardless of whether
                considered in a proceeding in equity or at law (the “Exception”).
                

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
      	 	
              (iii)

            	
              A
                complete copy of the Limited Partnership Agreement is included in
                §4(a)(iii) of the Disclosure Schedule. On October 31, 2006, the Company
                purchased all partnership interests in the Partnership other than
                those
                held by the Company itself and, at such time, the Partnership ceased
                to
                exist. The Limited Partnership Agreement has terminated and the Company
                has no outstanding obligations under or in respect of the Limited
                Partnership Agreement or the termination thereof. All agreements
                and other
                documents relating to the purchase of such partnership interests
                and the
                termination of the Partnership are listed in §4(a)(iii) of the Disclosure
                Schedule, and true and complete copies have been provided by the
                Principals to the Buyer. As a result thereof, the Business was, from
                and
                after October 31, 2006 carried on by the Company. All rights, benefits,
                liabilities and obligations of the Business were transferred from
                the
                Partnership to the Company effective October 31,
                2006.

            

    

     

    
      	 	
              (b)

            	
              Capitalization. 

            

    

     

    
      	 	
              (i)

            	
              The
                authorized and issued capital of the Company is as described in §4(b)(i)
                of the Disclosure Schedule. All of the issued and outstanding Company
                Shares have been duly authorized, are validly issued, fully paid,
                and
                non-assessable, and are currently (prior to the Amalgamation) held
                of
                record by the Holdcos as set forth in §4(b)(i) of the Disclosure Schedule.
                

            

    

     

    
      	 	
              (ii)

            	
              All
                the issued and outstanding shares in the capital of the Holdcos have
                been
                duly authorized, validly issued and are fully paid and non-assessable
                and
                are held by Sellers as set forth in §4(b)(ii) of the Disclosure
                Schedule.

            

    

     

    
      	 	
              (iii)

            	
              There
                are no outstanding or authorized options, warrants, purchase rights,
                subscription rights, conversion rights, exchange rights, or other
                contracts or commitments that could require the Company or the Holdcos
                to
                issue, sell, or otherwise cause to become outstanding any of their
                capital. There are no outstanding or authorized stock appreciation,
                phantom stock, profit participation, or similar rights with respect
                to the
                Company or the Holdcos. 

            

    

     

    
      	 	
              (c)

            	
              Non-contravention.
                Neither the execution and the delivery of this Agreement, nor the
                consummation of the transactions contemplated hereby, will (i) violate
                any
                statute, regulation, rule, injunction, judgment, order, decree, ruling,
                charge, or other restriction of any government, governmental agency,
                or
                court to which the Company or either of the Holdcos is subject or
                any
                provision of the articles or bylaws of the Company or either of the
                Holdcos or (ii) subject to obtaining the consents indicated in §4(p) of
                the Disclosure Schedule, conflict with, result in a breach of, constitute
                a default under, result in the acceleration of, create in any party
                the
                right to accelerate, terminate, modify or cancel, or require any
                notice
                under any agreement, contract, lease, license, instrument, or other
                arrangement to which the Company or either of the Holdcos is a party
                or by
                which it is bound or to which any of its assets is subject (or result
                in
                the imposition of any Security Interest upon any of its assets).
                The
                Company does not need to give any notice to, make any filing with,
                or
                obtain any authorization, consent, or approval of any government
                or
                governmental agency in order for the Parties to consummate the
                transactions contemplated by this
                Agreement.

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
      	 	
              (d)

            	
              Brokerage
                Fees. Neither
                the Company nor the Holdcos has engaged and is obligated to pay any
                commissions or brokers fees in connection with the transactions
                contemplated by this Agreement.

            

    

     

    
      	 	
              (e)

            	
              Title
                to Assets.
                The Company has good and marketable title to, or a valid leasehold
                interest in, the properties and assets used by it which are located
                on its
                premises or shown on the Most Recent Balance Sheet or acquired after
                the
                date thereof, free of all Security Interests except as disclosed
                in §4(e)
                of the Disclosure Schedule and except for properties and assets disposed
                of in the Ordinary Course of Business since the date of the Most
                Recent
                Balance Sheet.

            

    

     

    
      	 	
              (f)

            	
              Assets
                and Liabilities of the Holdcos.
                Neither of the Holdcos: has any assets whatsoever other than the
                shares
                they hold in the capital of the Company; has any liabilities whatsoever;
                or carries on any business or activity whatsoever other than holding
                shares in the Company and acting as shareholders of the
                Company.

            

    

     

    
      	 	
              (g)

            	
              Financial
                Statements; Books and Records; and 2007 Forecast.
                Attached hereto as Exhibit A are the following financial
                statements: 

            

    

     

    
      	 	
              (i)

            	
              unaudited,
                reviewed financial statements for each of the Predecessors as of
                and for
                their fiscal years ended September 30,
                2006;

            

    

     

    
      	 	
              (ii)

            	
              audited
                financial statements for Partnership as of and for the fiscal year
                ended
                October 31, 2006 (the “Most
                Recent Fiscal Year End”);
                

            

    

     

    
      	 	
              (iii)

            	
              audited
                financial statements for the Partnership as of and for the fiscal
                years
                ended October 31, 2005 and October 31,
                2004;

            

    

     

    
      	 	
              (iv)

            	
              unaudited,
                reviewed financial statements for each of the Predecessors for their
                fiscal years ended September 30, 2005 and September 30, 2004;
                

            

    

     

    
      	 	
              (v)

            	
              audited
                financial statements for the Company as of October 31, 2006 reflecting
                the
                termination of the Partnership and transfer of the Business and assets
                and
                liabilities of the Partnership into the
                Company;

            

    

     

    
      	 	
              (vi)

            	
              unaudited,
                compiled statement of income, balance sheet (the “January
                31, 2007 Balance Sheet”),
                changes in stockholders’ equity, and cash flow as of and for the 3 months
                ended January 31, 2007 for the Company, prepared on a pro forma basis
                to
                reflect the Amalgamation of the Company with the Holdcos;
                and

            

    

     

    
      	 	
              (vii)

            	
              unaudited,
                compiled statement of income, balance sheet, changes in stockholders
                equity and cash flow (the “Most
                Recent Financial Statements”)
                as of and for the 6 months ended April 30, 2007 (the “Most
                Recent Fiscal Month End”)
                for the Company, prepared on a pro forma basis to reflect the Amalgamation
                of the Company with the Holdcos.

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    (The
      financial statements referred to in paragraphs (i) to (vii) inclusive of this
      section are hereinafter called the “Financial
      Statements”.)

     

    The
      Financial Statements (including the notes thereto) have been prepared in
      accordance with GAAP, consistently applied. Each of the Financial Statements
      present fairly the financial condition of the Company, the Predecessors or
      the
      Partnership, as the case may be, as of such dates and the results of operations
      of the Company, the Predecessors or the Partnership, as the case may be, for
      such periods. The financial condition of the Company is now at least as good
      as
      the financial condition reflected in the financial statements for the Most
      Recent Fiscal Year End and as reflected in the January 31, 2007 Balance Sheet,
      when such financial condition is taken as a whole.

     

    The
      financial and other books, records, files and accounts of the
      Company:

     

    
      	 	
              (i)

            	
              have
                been maintained in accordance with GAAP (to the extent applicable)
                on a
                basis consistent with prior years, 

            

    

     

    
      	 	
              (ii)

            	
              are
                complete, in reasonable detail and accurately and fairly reflect
                the
                financial transactions of the Company, and

            

    

     

    
      	 	
              (iii)

            	
              are
                fairly reflected in the financial statements for the Most Recent
                Fiscal
                Year End, the statements as of January 31, 2007 and the statements
                for the
                Most Recent Fiscal Month End, as
                applicable.

            

    

     

    The
      Company has provided a copy of its 2007 forecast to the Buyer. Such forecast
      is,
      in the opinion of the Principals acting reasonably and based on their Knowledge
      of the circumstances affecting the Business, a fair and reasonable projection
      of
      the Company’s anticipated results for its fiscal year ending October 31, 2007.
      Provided however, no guarantee is made by the Principals that the Company will,
      in fact, realize the results shown in such forecast.

     

    
      	 	
              (h)

            	
              Events
                Subsequent to Most Recent Fiscal Year End.
                Except as indicated on the Disclosure Schedule, since the Most Recent
                Fiscal Year End, there has not been any Material adverse change in
                the
                business, financial condition, operations or results of operations
                of the
                Company. Without limiting the generality of the foregoing, since
                that
                date, except as indicated in §4(h) of the Disclosure Schedule, none of the
                following has occurred (and in this paragraph, all references to
                the
                Company include each of the
                Predecessors):

            

    

     

    
      	 	
              (i)

            	
              the
                Company has not sold, leased, transferred, or assigned any of its
                Material
                assets, tangible or intangible, other than for a fair consideration
                in the
                Ordinary Course of Business; without limiting the generality of the
                foregoing, the Company has not sold any inventory in bulk or at any
                extraordinary discount;

            

    

     

    
      	 	
              (ii)

            	
              the
                Company has not entered into any agreement, contract, lease, or license
                (or series of related agreements, contracts, leases, and licenses)
                either
                involving more than $25,000 or outside the Ordinary Course of
                Business;

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
      	 	
              (iii)

            	
              no
                party (including the Company) has accelerated, terminated, modified,
                or
                cancelled any agreement, contract, lease, or license (or series of
                related
                agreements, contracts, leases, and licenses) involving more than
                $25,000
                to which the Company is a party or by which it is
                bound;

            

    

     

    
      	 	
              (iv)

            	
              the
                Company has not imposed any Security Interest upon any of its assets,
                tangible or intangible;

            

    

     

    
      	 	
              (v)

            	
              the
                Company has not made any capital expenditure (or series of related
                capital
                expenditures) either involving more than $25,000 or outside the Ordinary
                Course of Business;

            

    

     

    
      	 	
              (vi)

            	
              the
                Company has not made any capital investment in, any loan to, or any
                acquisition of the securities or assets of, any other Person (or
                series of
                related capital investments, loans, and acquisitions) either involving
                more than $25,000 or outside the Ordinary Course of
                Business;

            

    

     

    
      	 	
              (vii)

            	
              the
                Company has not issued any note, bond, or other debt security or
                created,
                incurred, assumed, or guaranteed any indebtedness for borrowed money
                or
                capitalized lease obligation involving more than $25,000 either singly
                or
                in the aggregate;

            

    

     

    
      	 	
              (viii)

            	
              the
                Company has not delayed or postponed the payment of accounts payable
                and
                other Liabilities outside the Ordinary Course of
                Business;

            

    

     

    
      	 	
              (ix)

            	
              the
                Company has not cancelled, compromised, waived, or released any right
                or
                claim (or series of related rights and claims) either involving more
                than
                $25,000 or outside the Ordinary Course of
                Business;

            

    

     

    
      	 	
              (x)

            	
              the
                Company has not granted any license or sublicense of any rights under
                or
                with respect to any Intellectual
                Property;

            

    

     

    
      	 	
              (xi)

            	
              there
                has been no change made or authorized in the articles or bylaws of
                the
                Company, and there will be no such change between the date hereof
                and the
                Closing except in connection with the Amalgamation, as described
                in Annex
                III attached hereto;

            

    

     

    
      	 	
              (xii)

            	
              the
                Company has not issued, sold, or otherwise disposed of any of the
                shares
                in its capital, or granted any options, warrants, or other rights
                to
                purchase or obtain (including upon conversion, exchange, or exercise)
                any
                of the shares in its capital; 

            

    

     

    
      	 	
              (xiii)

            	
              the
                Company has not declared, set aside, or paid any dividend or made
                any
                distribution with respect to the shares in its capital (whether in
                cash or
                in kind) or redeemed, purchased, or otherwise acquired any of the
                shares
                in its capital; 

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    
      	 	
              (xiv)

            	
              the
                Company has not experienced any Material damage, destruction, or
                loss
                (whether or not covered by insurance) to its
                property;

            

    

     

    
      	 	
              (xv)

            	
              other
                than Excluded Liabilities, an accurate and complete list of which
                is
                attached hereto, and which Excluded Liabilities shall all be paid
                in full
                or otherwise satisfied by the Company or the Sellers prior to the
                Closing,
                the Company has not made any loan to, or entered into any other
                transaction with, any of its directors, officers, and employees outside
                the Ordinary Course of Business;

            

    

     

    
      	 	
              (xvi)

            	
              the
                Company has not hired any new employee, entered into any employment
                contract or collective bargaining agreement, written or oral, modified
                the
                terms of any existing such contract or agreement, or terminated the
                employment of any employee;

            

    

     

    
      	 	
              (xvii)

            	
              the
                Company has not granted any increase in the base compensation of
                any of
                its directors, officers, and employees outside the Ordinary Course
                of
                Business (which, for greater certainty, includes increases of
                approximately 2.8% to staff generally which were effective March
                1, 2007
                and which have been disclosed by the Principals and approved by the
                Buyer)
                but the Company may pay bonuses to the Sellers prior to the Closing,
                subject, however, to and without waiving any of the provisions of
                §2
                of
                this Agreement;

            

    

     

    
      	 	
              (xviii)

            	
              other
                than as disclosed pursuant to this Agreement, the Company has not
                adopted,
                amended, modified, or terminated any bonus, profit sharing, incentive,
                severance, or other plan, contract, or commitment for the benefit
                of any
                of its directors, officers, and employees (or taken any such action
                with
                respect to any other Employee Benefit
                Plan);

            

    

     

    
      	 	
              (xix)

            	
              the
                Company has not made any other change in employment terms for any
                of its
                directors, officers, and employees outside the Ordinary Course of
                Business; 

            

    

     

    
      	 	
              (xx)

            	
              the
                Company has not made or pledged to make any charitable or other capital
                contribution outside the Ordinary Course of
                Business;

            

    

     

    
      	 	
              (xxi)

            	
              there
                has not been any other Material occurrence, event, incident, action,
                failure to act, or transaction outside the Ordinary Course of Business
                involving the Company ; and

            

    

     

    
      	 	
              (xxii)

            	
              the
                Company has not committed to any of the
                foregoing.

            

    

     

    
      	 	
              (i)

            	
              Undisclosed
                Liabilities.
                The Company does not have any Liabilities except for (A) Liabilities
                set
                forth on the face of the Most Recent Balance Sheet (rather than in
                any
                notes thereto) and (B) Liabilities which have arisen after the Most
                Recent
                Fiscal Month End in the Ordinary Course of
                Business.

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    
      	 	
              (j)

            	
              Legal
                Compliance.
                The Predecessors and the Partnership have complied with all applicable
                laws (including rules, regulations, codes, plans, injunctions, judgments,
                orders, decrees, rulings, and charges thereunder) of federal, provincial,
                local, and foreign governments (and all agencies thereof), and no
                investigation, charge, complaint, claim, has been filed or commenced
                against any of them alleging any failure so to comply. Further, no
                action,
                suit, proceeding, hearing, demand, or notice has been filed or commenced
                against any of them alleging any failure so to
                comply.

            

    

     

    
      	
            	(k)	
              Tax
                Matters.
                

            

    

     

    
      	 	
              (i)

            	
              Each
                of the predecessors has filed all Tax Returns that it was required
                to
                file. All such Tax Returns were correct and complete in all material
                respects. All Taxes owed by the Predecessors (whether or not shown
                on any
                Tax Return) have been paid. None of the Predecessors is the beneficiary
                of
                any extension of time within which to file any Tax Return. No claim
                has
                ever been made by an authority in a jurisdiction where the Predecessors
                has not filed Tax Returns that any of them may be subject to taxation
                by
                that jurisdiction. There are no Security Interests on any of the
                assets of
                any of the Predecessors that arose in connection with any failure
                (or
                alleged failure) to pay any Tax.

            

    

     

    
      	 	
              (ii)

            	
              The
                Partnership and the Predecessors have withheld and remitted all Taxes
                required to have been withheld and paid in connection with amounts
                paid or
                owing to any employee or independent
                contractor.

            

    

     

    
      	 	
              (iii)

            	
              The
                Principals do not expect any authority to assess any of the Predecessors
                any additional Taxes for any period for which Tax Returns have been
                filed.
                There is no dispute or claim concerning any Tax Liability of any
                of the
                Predecessors either (A) claimed or raised by any authority in writing
                or
                (B) as to which the Principals have Knowledge. §4(k) of the Disclosure
                Schedule: lists all federal, provincial, local, and foreign income
                Tax
                Returns filed with respect to the Predecessors for taxable periods
                ended
                on or after September 30, 2004; indicates those Tax Returns that
                have been
                audited; and indicates those Tax Returns that currently are the subject
                of
                audit. The Principals have delivered to the Buyer correct and complete
                copies of all federal income Tax Returns, examination reports, and
                statements of deficiencies assessed against or agreed to by the
                Predecessors since September 30,
                2004.

            

    

     

    
      	 	
              (iv)

            	
              None
                of the Predecessors have waived any statute of limitations in respect
                of
                Taxes or agreed to any extension of time with respect to a Tax assessment
                or deficiency.

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    
      	
            	(l)	
              Real
                Property and Leases.
                The Company does not own any real property. §4(l) of the Disclosure
                Schedule contains a list of all leases for real property to which
                the
                Company is a party, the square footage leased with respect to each
                lease
                and the expiration date of each lease. These leases are valid and
                enforceable and are not in default. To the Knowledge of the Principals,
                the real property leased or occupied by the Company, the improvements
                located thereon, and the furniture, fixtures and equipment relating
                thereto (including plumbing, heating, air conditioning and electrical
                systems), conform to any and all applicable health, fire, safety,
                zoning,
                land use and building laws, ordinances and regulations and are in
                good
                working order. There are no outstanding contracts made by the Company
                for
                any improvements made to the real property leased or occupied by
                the
                Company that have not been paid for. The Principals have delivered
                to the
                Buyer correct and complete copies of the leases and subleases listed
                in
                §4(l) of the Disclosure Schedule (as amended to date). With respect
                to
                each lease and sublease listed in §4(l) of the Disclosure Schedule, the
                Principals warrant as follows (provided that these warranties, in
                relation
                to the lessors of the premises, are limited to the Knowledge of the
                Principals):

            

    

     

    
      	 	
              (i)

            	
              the
                lease or sublease is legal, valid, binding, enforceable, and in full
                force
                and effect, subject to the Exception;

            

    

     

    
      	 	
              (ii)

            	
              the
                lease or sublease will continue to be legal, valid, binding, enforceable,
                and in full force and effect on identical terms following the consummation
                of the transactions contemplated hereby, subject to the
                Exception;

            

    

     

    
      	 	
              (iii)

            	
              no
                party to the lease or sublease is in breach or default, and no event
                has
                occurred which, with notice or lapse of time, would constitute a
                breach or
                default or permit termination, modification, or acceleration
                thereunder;

            

    

     

    
      	 	
              (iv)

            	
              no
                party to the lease or sublease has repudiated any provision
                thereof;

            

    

     

    
      	 	
              (v)

            	
              there
                are no disputes, oral agreements, or forbearance programs in effect
                as to
                the lease or sublease;

            

    

     

    
      	 	
              (vi)

            	
              with
                respect to each sublease, the representations and warranties set
                forth in
                subsections (A) through (E) above are true and correct with respect
                to the
                underlying lease; and

            

    

     

    
      	 	
              (vii)

            	
              the
                Company has not assigned, transferred, conveyed, mortgaged, deeded
                in
                trust, or encumbered any interest in the leasehold or
                subleasehold.

            

    

     

    
      	 	
              (m)

            	
              Intellectual
                Property.
                 

            

    

     

    
      	 	
              (i)

            	
              The
                Company owns, or has the right to use pursuant to license, sublicense,
                agreement or other valid permission, all Intellectual Property used
                in the
                operation of the Business of the Company as presently conducted.
                Each item
                of Intellectual Property owned or used by the Company immediately
                prior to
                the Closing hereunder will be owned or available for use by the Company
                on
                identical terms and conditions immediately subsequent to the Closing
                hereunder. The Company has taken all necessary action to maintain
                and
                protect each item of Intellectual Property that it owns or
                uses.

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    
      	 	
              (ii)

            	
              (1)

            	
              To
                Principals’ Knowledge, the Company has not interfered with, infringed
                upon, misappropriated, or otherwise come into conflict with any
                Intellectual Property rights of third
                parties;

            

    

     

    
      	 	
              (B)

            	
              the
                Company has not received any charge, complaint, claim, demand, or
                notice
                alleging any such interference, infringement, misappropriation, or
                violation (including any claim that the Company must license or refrain
                from using any Intellectual Property rights of any third party).
                To the
                Knowledge of the Principals, no third party has interfered with,
                infringed
                upon, misappropriated, or otherwise come into conflict with any
                Intellectual Property rights of the
                Company.

            

    

     

    
      	 	
              (iii)

            	
              §4(m)
                of the Disclosure Schedule identifies each Intellectual Property
                registration which has been issued to the Company with respect to
                any of
                its Intellectual Property, identifies each pending application or
                application for registration which the Company has made with respect
                to
                any of its Intellectual Property, and identifies each license, agreement,
                or other permission which the Company has granted to any third party
                with
                respect to any of its Intellectual Property (together with any
                exceptions). The Principals have delivered to the Buyer correct and
                complete copies of all such registrations, applications, licenses,
                agreements, and permissions (as amended to date). §4(m) of the Disclosure
                Schedule also identifies and all other Intellectual Property used
                by the
                Company in connection with any of its businesses which has not been
                registered, including all unregistered trademarks, trade names and
                logos.
                With respect to each item of Intellectual Property required to be
                identified in §4(m) of the Disclosure
                Schedule:

            

    

     

    
      	 	
              (A)

            	
              the
                Company possess all right, title, and interest in and to the item,
                free
                and clear of any Security Interest, license, or other
                restriction;

            

    

     

    
      	 	
              (B)

            	
              the
                item is not subject to any outstanding injunction, judgment, order,
                decree, ruling, or charge;

            

    

     

    
      	 	
              (C)

            	
              no
                action, suit, proceeding, hearing, investigation, charge, complaint,
                claim, or demand is pending or, to the Knowledge of the Principals,
                is
                threatened which challenges the legality, validity, enforceability,
                use,
                or ownership of the item; and

            

    

     

    
      	 	
              (D)

            	
              the
                Company has not agreed to indemnify any Person for or against any
                interference, infringement, misappropriation, or other conflict with
                respect to the item.

            

    

     

    
      	
            	
              (iv)

            	
              §4(m)
                of the Disclosure Schedule identifies each item of Intellectual Property
                that any third party owns and that the Company uses pursuant to license,
                sublicense, agreement, or permission. The Principals have delivered
                to the
                Buyer correct and complete copies of all such licenses, sublicenses,
                agreements, and permissions (as amended to date). With respect to
                each
                item of Intellectual Property required to be identified in §4(m) of the
                Disclosure Schedule:

            

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    
      	 	
              (A)

            	
              The
                license, sublicense, agreement, or permission covering the item is
                legal,
                valid, binding, enforceable, and in full force and
                effect;

            

    

     

    
      	 	
              (B)

            	
              The
                license, sublicense, agreement, or permission will continue to be
                legal,
                valid, binding, enforceable, and in full force and effect on identical
                terms following the consummation of the transactions contemplated
                hereby
                (including the assignments and assumptions referred to in §2
                above);

            

    

     

    
      	 	
              (C)

            	
              No
                party to the license, sublicense, agreement, or permission is in
                breach or
                default, and no event has occurred which with notice or lapse of
                time
                would constitute a breach or default or permit termination, modification,
                or acceleration thereunder;

            

    

     

    
      	 	
              (D)

            	
              To
                the Principals’ Knowledge no party to the license, sublicense, agreement,
                or permission has repudiated any provision
                thereof;

            

    

     

    
      	 	
              (E)

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

            

    

     

    
      	 	
              (F)

            	
              the
                underlying item of Intellectual Property is not subject to any outstanding
                injunction, judgment, order, decree, ruling, or
                charge;

            

    

     

    
      	 	
              (G)

            	
              no
                action, suit, proceeding, hearing, investigation, charge, complaint,
                claim, or demand is pending or, to the Knowledge of the Principals,
                is
                threatened, which challenges the legality, validity, or enforceability
                of
                the underlying item of Intellectual Property;
                and

            

    

     

    
      	 	
              (H)

            	
              The
                Company has not granted any sublicense or similar right with respect
                to
                the license, sublicense, agreement, or
                permission.

            

    

     

    
      	 	
              (v)

            	
              To
                the Knowledge of the Principals, the Company will not interfere with,
                infringe upon, misappropriate, or otherwise come into conflict with,
                any
                Intellectual Property rights of third parties as a result of the
                continued
                operation of the Business as presently conducted and as presently
                proposed
                to be conducted.

            

    

     

    
      	 	
              (vi)

            	
              The
                Principals are not aware of any new products, inventions, procedures,
                or
                methods of manufacturing or processing that any competitors or other
                third
                parties have developed which reasonably could be expected to supersede
                or
                make obsolete any service, product or process of the Company
                .

            

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    
      	 	
              (n)

            	
              Tangible
                Assets.
                The Company owns or leases all buildings, machinery, equipment, and
                other
                tangible assets necessary for the conduct of its businesses as presently
                conducted. Each such tangible asset has been maintained in accordance
                with
                the Company’s normal practice, and is in good operating condition and
                repair (subject to normal wear and tear). §4(n) of the Disclosure Schedule
                sets out a list of all of the Company’s FF&E as of January 31, 2007,
                and the FF&E has not changed in any material respect since that date.
                (“FF&E”
                means all machinery, equipment, computer equipment, furniture, furnishings
                and similar tangible personal property owned or used in connection
                with
                the operation of the Business. 

            

    

     

    
      	 	
              (o)

            	
              Inventory.
                The current inventory of the Company, subject to a reasonable allowance
                for obsolete inventory consistent with the allowance reflected in
                the Most
                Recent Financial Statements, is good and usable and is capable of
                being
                sold in the Ordinary Course of Business at normal profit margins.
                The
                Company’s inventory level is consistent with past practice and is
                sufficient to satisfy the Company’s current sales
                forecasts.

            

    

     

    
      	 	
              (p)

            	
              Contracts.
                §4(p) of the Disclosure Schedule lists the following contracts and
                other
                agreements to which the Company is a
                party:

            

    

     

    
      	 	
              (i)

            	
              any
                agreement (or group of related agreements) for the lease of personal
                property (including without limitation software) to or from any Person
                providing for lease payments in excess of $25,000 per
                annum;

            

    

     

    
      	 	
              (ii)

            	
              any
                agreement (or group of related agreements) for the purchase or sale
                of
                supplies, products or other personal property, or for the receipt
                of
                services, the performance of which will extend over a period of more
                than
                one year, result in a material loss to the Company , or involve
                consideration in excess of $25,000;

            

    

     

    
      	 	
              (iii)

            	
              any
                agreement concerning a partnership or joint venture or arrangement
                to
                share profits;

            

    

     

    
      	 	
              (iv)

            	
              any
                agreement (or group of related agreements) under which it has created,
                incurred, assumed, or guaranteed any indebtedness for borrowed money,
                or
                any capitalized lease obligation, in excess of $25,000 or under which
                it
                has imposed a Security Interest on any of its assets, tangible or
                intangible;

            

    

     

    
      	 	
              (v)

            	
              any
                agreement concerning confidentiality or
                non-competition;

            

    

     

    
      	 	
              (vi)

            	
              any
                agreement with any of the Sellers and their Affiliates (other than
                the
                Company);

            

    

     

    
      	 	
              (vii)

            	
              any
                profit sharing, stock option, stock purchase, stock appreciation,
                deferred
                compensation, severance, or other plan or arrangement for the benefit
                of
                its current or former directors, officers, and
                employees;

            

    

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    
      	 	
              (viii)

            	
              any
                collective bargaining agreement;

            

    

     

    
      	 	
              (ix)

            	
              any
                agreement under which it has advanced or loaned any amount to any
                of its
                directors, officers, and employees;

            

    

     

    
      	 	
              (x)

            	
              any
                agreement under which the consequences of a default or termination
                could
                have a Material Adverse Effect on the business, financial condition,
                operations, results of operations, or future prospects of the Company
                ;
                or

            

    

     

    
      	 	
              (xi)

            	
              any
                other agreement (or group of related agreements) the performance
                of which
                involves consideration in excess of $25,000 (other than customer
                agreements described in the customer list delivered pursuant to paragraph
                4(q) hereof) or which was not entered into in the Ordinary Course
                of the
                Business.

            

    

     

    The
      Principals have delivered to the Buyer a correct and complete copy of each
      written agreement listed in §4(p) of the Disclosure Schedule (as amended to
      date), and a written summary of the terms of all oral agreements referred to
      in
§4(p) of the Disclosure Schedule. With respect to each such agreement: (A) the
      agreement is legal, valid, binding, enforceable, and in full force and effect,
      subject to the Exception; (B) subject to obtaining the consents indicated in
      §4(p) of the Disclosure Schedule, the agreement will continue to be legal,
      valid, binding, enforceable, and in full force and effect on identical terms
      following the consummation of the transactions contemplated hereby except for
      the Exception; (C) no party is in breach or default, and no event has occurred
      which with notice or lapse of time would constitute a breach or default, or
      permit termination, modification, or acceleration, under the agreement; and
      (D)
      no party has repudiated any provision of the agreement. Without limiting the
      generality of the foregoing, the Company is in compliance with all covenants
      under all agreements with its bank and other lenders.

     

    The
      Holdcos are not subject to any contracts or agreements whatsoever.

     

    
      	
            	(q)	
              Customers
                and Receivables.
                

            

    

     

    
      	 	
              (i)

            	
              The
                Company has delivered to the Buyer a true and complete list of all
                customers of the Business as of the date hereof. Such customer list
                accurately summarizes with respect to each customer all information
                required by §4(q) of the Disclosure Schedule. Except as disclosed in §4(q)
                of the Disclosure Schedule, neither the customer list nor any information
                relating to the customers of the Business have, within three (3)
                years
                prior to the date hereof, been made available to any person other
                than the
                Buyer. Each of the parties to whom such customer list and other
                information has been made available has executed a non-disclosure
                agreement in favour of the Company and, to the Knowledge of the
                Principals, has not breached such non-disclosure agreement, and has
                now
                returned such customer list and all such information to the
                Company.

            

    

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    
      	 	
              (ii)

            	
              The
                Principals have no Knowledge of any facts or circumstances arising
                outside
                the Ordinary Course of Business (and, in this respect, the Buyer
                acknowledges and accepts that the Company typically experiences
                approximately a 16% cancellation rate of annual service contracts)
                which
                could reasonably be expected to result in the loss of any customers
                or
                sources of revenue of the Business which, in the aggregate, could
                be
                Material to the Business. 

            

    

     

    
      	 	
              (iii)

            	
              All
                accounts receivable of the Company are fairly reflected on the Company’s
                books and records. All accounts receivable of the Company arose from
                bona
                fide transactions in the Ordinary Course of the Business and are
                valid,
                enforceable and fully collectable accounts (subject to a reasonable
                allowance, consistent with past practice for doubtful accounts as
                reflected in the Most Recent Financial Statements). Such accounts
                receivable are not subject to any set-off or counterclaim
                rights.

            

    

     

    
      	 	
              (r)

            	
              Powers
                of Attorney.
                There are no outstanding powers of attorney executed on behalf of
                the
                Company.

            

    

     

    
      	 	
              (s)

            	
              Insurance.
                §4(s) of the Disclosure Schedule sets forth the following information
                with
                respect to each insurance policy (including policies providing property,
                casualty, liability, and workers’ compensation coverage and bond and
                surety arrangements) to which the Company has been a party, a named
                insured, or otherwise the beneficiary of coverage at any time within
                the
                past 5 years:

            

    

     

    
      	 	
              (i)

            	
              the
                name, address, and telephone number of the
                agent;

            

    

     

    
      	 	
              (ii)

            	
              the
                name of the insurer, the name of the policyholder, and the name of
                each
                covered insured;

            

    

     

    
      	 	
              (iii)

            	
              the
                policy number and the period of
                coverage;

            

    

     

    
      	 	
              (iv)

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

            

    

     

    
      	 	
              (v)

            	
              a
                description of any retroactive premium adjustments or other loss
                sharing
                arrangements.

            

    

     

    With
      respect to each such insurance policy: (A) the policy is legal, valid, binding,
      enforceable, and in full force and effect; (B) the policy will continue to
      be
      legal, valid, binding, enforceable, and in full force and effect on identical
      terms following the consummation of the transactions contemplated hereby; (C)
      neither the Company nor any other party to the policy is in breach or default
      (including with respect to the payment of premiums or the giving of notices),
      and no event has occurred which, with notice or the lapse of time, would
      constitute such a breach or default, or permit termination, modification, or
      acceleration, under the policy; and (D) no party to the policy has repudiated
      any provision thereof. §4(s) of the Disclosure Schedule describes any self
      insurance arrangements affecting the Company.

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    
      	 	
              (t)

            	
              Litigation.
                §4(t) of the Disclosure Schedule sets forth each instance in which
                the
                Company: (i) is subject to any outstanding injunction, judgment,
                order,
                decree, ruling, or charge or (ii) is a party or, to the Knowledge
                of the
                Principals, is threatened to be made a party to any action, suit,
                proceeding, hearing, or investigation of, in, or before any court
                or quasi
                judicial or administrative agency of any federal, provincial, local,
                or
                foreign jurisdiction or before any arbitrator. There is presently
                no Basis
                for the commencement of any Material action, suit or proceeding against
                the Company with any reasonable likelihood of
                success.

            

    

     

    
      	 	
              (u)

            	
              Product
                Warranties.
                Each product or service sold, licensed or delivered by the Company
                has
                been in material conformity with all applicable contractual commitments
                and all express and implied warranties, and the Company does not
                have any
                Liability (and there is no Basis for any present or future action,
                suit,
                proceeding, hearing, investigation, charge, complaint, claim, or
                demand
                against the Company giving rise to any Liability) for replacement
                or
                repair of any product or re-performance of any service or other damages
                in
                connection therewith, subject only to the reserve for warranty claims,
                if
                any, set forth in the Most Recent Balance Sheet as adjusted for the
                passage of time through the Closing Date in accordance with the normal,
                past custom and practice of the Company. No product or service
                manufactured, sold, licensed or delivered by the Company is subject
                to any
                guaranty, warranty, or other indemnity beyond the warranties described
                in
                §4(u) of the Disclosure Schedule. §4(u) of the Disclosure Schedule
                describes the normal terms and conditions of sale or lease or licensing
                of
                or providing of services by or for the
                Company.

            

    

     

    
      	 	
              (v)

            	
              Product
                Liability.
                The Company does not have any Liability and there is no Basis for
                any
                Liability arising out of any injury to individuals or damage to property
                as a result of the ownership, possession, use or license of any product
                or
                service manufactured, sold, leased, licensed or delivered by the
                Company
                prior to the date hereof.

            

    

     

    
      	 	
              (w)

            	
              Employees.
                §4(w)
                of the Disclosure Schedule sets
                out:

            

    

     

    
      	 	
              (i)

            	
              a
                complete list of all Company Employees;
                and

            

    

     

    
      	 	
              (ii)

            	
              their
                position/title.

            

    

     

    The
      Company Employee and Contractor Disclosure Document also sets out with respect
      to the Company Employees as of the date when such document is provided, in
      a
      non-individually identifiable format:

     

    
      	 	
              (i)

            	
              their
                status (i.e. full time, part time, temporary, casual, seasonal, co-op
                student);

            

    

     

    
      	 	
              (ii)

            	
              their
                total annual remuneration, including a breakdown of (A) salary and
                (B)
                bonus or other incentive compensation, if
                any;

            

    

     

    
      	 	
              (iii)

            	
              other
                terms and conditions of their employment (other than Employee Benefit
                Plans), including accrued vacation, car allowance or lease;
                and

            

    

     

    
      	 	
              (iv)

            	
              their
                total length of employment including any prior employment that would
                affect the calculation of years of service for any
                purpose.

            

    

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    The
      Company has no written employment contract with any Company Employee other
      than
      letters of hire in the form of the Company’s standard offer letter, a copy of
      which is included in the Company Employee and Contractor Disclosure Document.
      The
      Company Employee and Contractor Disclosure Document sets out, as of the date
      when such document is provided, a
      list of
      all independent contractors and consultants who provide services to the Company
      in connection with the key business functions of the Company,
      including:

     

    (i) name;

     

    (ii) title;

     

    (iii) current
      compensation;

     

    (iv) eligibility
      to participate in any Employee Benefit Plans;

     

    (vi) length
      of
      relationship with the Company.

     

    Except
      as
      set out in the Company Employee and Contractor Disclosure Document, the Company
      is not a party to or bound by any contract or commitment to pay any management
      or consulting fee. Except as indicated in §4(w) of the Disclosure Schedule, to
      the Knowledge of the Principals, no executive, key employee, or group of
      employees has any plans to terminate employment with the Company. The Company
      is
      not a party to or bound by any collective bargaining agreement. The Company
      has
      not experienced any strikes, grievances, claims of unfair labour practices,
      or
      other collective bargaining disputes. The Company has not committed any unfair
      labour practice. The Company is in compliance with all workers compensation
      law
      and regulations. The Principals have no Knowledge of any organizational effort
      presently being made or threatened by or on behalf of any labour union with
      respect to employees of the Company.

     

    The
      Holdcos do not have any employees whatsoever.

     

    
      	
            	(x)	
              Employee
                Benefits.

            

    

     

    
      	 	
              (i)

            	
              §4(x)
                of the Disclosure Schedule lists each Employee Benefit Plan that
                the
                Company maintains, to which the Company contributes or has any obligation
                to contribute, or with respect to which the Company has any material
                Liability or potential Liability.

            

    

     

    
      	 	
              (A)

            	
              Each
                such Employee Benefit Plan (and each related trust, insurance contract,
                or
                fund) has been maintained, funded and administered in accordance
                with the
                terms of such Employee Benefit Plan and complies in form and in operation
                in all material respects with the applicable requirements of all
                applicable Canadian and provincial laws, rules and regulations and
                all
                other applicable laws, rules and regulations (collectively, “Benefit
                Laws”).

            

    

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    
      	 	
              (B)

            	
              All
                required reports and descriptions (including annual reports to the
                applicable governmental agency, summary annual reports, and summary
                plan
                descriptions) have been timely filed and/or distributed in accordance
                with
                the applicable requirements of all Benefit Laws with respect to each
                such
                Employee Benefit Plan.

            

    

     

    
      	 	
              (C)

            	
              All
                contributions (including all employer contributions and employee
                salary
                reduction contributions) which are due have been made within the
                time
                period prescribed by Benefit Laws to each such Employee Benefit Plan
                and
                all contributions for any period ending on or before the Closing
                Date
                which are not yet due have been made to each such Employee Benefit
                Plan or
                accrued in accordance with the past custom and practice of the Company.
                All premiums or other payments for all periods ending on or before
                the
                Closing Date have been paid with respect to each such Employee Benefit
                Plan.

            

    

     

    
      	 	
              (D)

            	
              Nothing
                has occurred since the date of approval of any Employee Benefit Plan
                by
                any governmental agency that could adversely affect the qualified
                status
                of any such Plan.

            

    

     

    
      	 	
              (E)

            	
              The
                Company has delivered to the Buyer correct and complete copies of
                the plan
                documents and summary plan descriptions, the most recent determination
                letter received from the applicable governmental agency, the most
                recent
                annual report filed with the applicable governmental agency if any
                with
                respect to all Employee Benefit Plans, and all related trust agreements,
                insurance contracts, and other funding arrangements which implement
                each
                such Employee Benefit Plan.

            

    

     

    
      	 	
              (ii)

            	
              With
                respect to each Employee Benefit Plan that the Company and any Affiliate
                maintains, to which any of them contributes or has any obligation
                to
                contribute, or with respect to which any of them has any Liability
                or
                potential Liability:

            

    

     

    
      	 	
              (A)

            	
              No
                such Employee Benefit Plan which is a pension plan has been completely
                or
                partially terminated. No proceeding by a government agency to terminate
                any such plan has been instituted or, to the Knowledge of the Principals,
                threatened.

            

    

     

    
      	 	
              (B)

            	
              There
                have been no transactions with respect to any such Employee Benefit
                Plan
                that is prohibited under any applicable Benefit Laws. No Fiduciary
                has any
                Liability for breach of fiduciary duty or any other failure to act
                or
                comply in connection with the administration or investment of the
                assets
                of any such Employee Benefit Plan. No action, suit, proceeding, hearing,
                or investigation with respect to the administration or the investment
                of
                the assets of any such Employee Benefit Plan (other than routine
                claims
                for benefits) is pending or, to the Knowledge of the Principals,
                threatened. There is no basis for any such action, suit, proceeding,
                hearing, or investigation.

            

    

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    
      	 	
              (C)

            	
              The
                Company has not incurred, and the Principals have no reason to expect
                that
                the Company will incur, any Liability to any government agency or
                otherwise under any applicable Benefit Law with respect to any such
                Employee Benefit Plan which is a pension
                plan.

            

    

     

    
      	 	
              (iii)

            	
              The
                Company does not maintain, contribute to or have an obligation to
                contribute to, or have any Liability or potential Liability with
                respect
                to, any Employee Benefit Plan providing medical, health, or life
                insurance
                or other welfare type benefits for current or future retired or terminated
                employees, their spouses, or their
                dependents.

            

    

     

    
      	 	
              (iv)

            	
              The
                Company does not have Liability to any of its employees for benefit
                entitlements beyond the coverage provided by the Employee Benefit
                Plans.

            

    

     

    
      	 	
              (y)

            	
              Guaranties.
                The Company is not a guarantor or otherwise is liable for any Liability
                or
                obligation (including indebtedness) of any other
                Person.

            

    

     

    
      	 	
              (z)

            	
              Environmental,
                Health, and Safety Matters.
                

            

    

     

    
      	 	
              (i)

            	
              The
                Predecessors and the Partnership have complied with all Environmental,
                Health, and Safety Requirements.

            

    

     

    
      	 	
              (ii)

            	
              Without
                limiting the generality of the foregoing, the Predecessors and the
                Partnership have obtained and complied with all permits, licenses
                and
                other authorizations that are required pursuant to Environmental,
                Health,
                and Safety Requirements for the occupation of its facilities and
                the
                operation of its business. A list of all such permits, licenses and
                authorizations is contained in the Disclosure Schedule, and copies
                of all
                such permits, licenses and authorizations have been provided by the
                Company to the Buyer.

            

    

     

    
      	 	
              (iii)

            	
              Neither
                the Predecessors nor the Partnership has received any written or
                oral
                notice, report or other information regarding any actual or alleged
                violation of Environmental, Health, and Safety Requirements, or any
                liabilities or potential liabilities (whether accrued, absolute,
                contingent, unliquidated or otherwise), including any investigatory,
                remedial or corrective obligations, relating to any of them or its
                facilities arising under Environmental, Health, and Safety
                Requirements.

            

    

     

    
      	 	
              (iv)

            	
              Except
                as described in the Disclosure Schedule, neither the Predecessors
                nor the
                Partnership has treated, stored, disposed of, arranged for or permitted
                the disposal of, transported, handled, or released any substance,
                including without limitation any hazardous substance, or owned or
                operated
                any property or facility (and no such property or facility is contaminated
                by any such substance) in a manner that has given or would give rise
                to
                liabilities, including any liability for response costs, corrective
                action
                costs, personal injury, property damage, natural resources damages
                or
                legal fees, pursuant to any other Environmental, Health, and Safety
                Requirements.

            

    

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    
      	 	
              (v)

            	
              Neither
                the Predecessors nor the Partnership has, either expressly or by
                operation
                of law, assumed or undertaken any liability, including without limitation
                any obligation for corrective or remedial action, of any other Person
                relating to Environmental, Health, and Safety
                Requirements.

            

    

     

    
      	 	
              (vi)

            	
              No
                facts, events or conditions relating to the past or present facilities,
                properties or operations of the Predecessors or the Partnership will
                prevent, hinder or limit continued compliance with Environmental,
                Health,
                and Safety Requirements, give rise to any investigatory, remedial
                or
                corrective obligations pursuant to Environmental, Health, and Safety
                Requirements, or give rise to any other liabilities (whether accrued,
                absolute, contingent, unliquidated or otherwise) pursuant to
                Environmental, Health, and Safety Requirements, including without
                limitation any relating to onsite or offsite releases or threatened
                releases of hazardous materials, substances or wastes, personal injury,
                property damage or natural resources
                damage.

            

    

     

    
      	 	
              (aa)

            	
              Licenses,
                Agency and Distribution Agreements.
                §4(aa) of the Disclosure Schedule lists all agreements to which the
                Company is a party or by which it is bound under which the right
                to
                manufacture, process, market or use any product, service or other
                property
                has been granted, licensed or otherwise provided by the Company to
                any
                other person. The Disclosure Schedule also lists all agreements to
                which
                the Company is a party or by which it is bound under which the right
                to
                market, manufacture, process or use any product, service or other
                product
                has been granted to the Company by any other person or by which the
                Company has been appointed as an agent, distributor, licensee or
                franchisee. Complete and correct copies of all of the agreements
                referred
                to in this paragraph have been provided by the Company to the Buyer.
                None
                of the agreements listed in the Disclosure Schedule grant to any
                third
                person any authority to incur any liability or obligation or enter
                into
                any agreement on behalf of the Company. The Principals have no Knowledge
                of the intention of the other parties to any of the agreements referred
                to
                in this paragraph to terminate such
                agreements.

            

    

     

    
      	 	
              (bb)

            	
              Kodak
                Agreements.
                In this paragraph 4(bb), all capitalized terms not defined elsewhere
                in
                this Agreement will have the same meanings as provided by the Service
                Agreement.

            

    

     

    
      	 	
              (i)

            	
              The
                Kodak Agreements are the only agreements in existence between the
                Company
                and Kodak. With respect to each of the Kodak Agreements: (A) the
                agreement
                is legal, valid, binding, enforceable, and in full force and effect,
                subject to the Exception; (B) the agreement will continue to be legal,
                valid, binding, enforceable, and in full force and effect on identical
                terms following the consummation of the transactions contemplated
                hereby
                except for the Exception; (C) no party is in breach or default, and
                no
                event has occurred which with notice or lapse of time would constitute
                a
                breach or default, or would permit termination, modification, or
                acceleration, under the agreement; and (D) no party has repudiated
                any
                provision of the agreement. 

            

    

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    
      	 	
              (ii)

            	
              The
                Company does not have any obligations to End-Users for maintenance,
                support, repair or otherwise which are not fully provided for by
                the
                Services provided by Kodak under the Kodak Agreements, except as
                described
                in §4(bb) of the Disclosure Schedule.

            

    

     

    
      	 	
              (iii)

            	
              Except
                to the extent described in §4(bb) of the Disclosure Schedule, Kodak has
                not assumed any of the Company’s contractual rights or responsibilities
                under the Kodak Agreements including, without limitation, the management
                of the relationship with any
                End-User.

            

    

     

    
      	 	
              (iv)

            	
              The
                Principals have no Knowledge of the intention of Kodak to terminate
                any of
                the Kodak Agreements (whether or not it is legally entitled to do
                so) or
                the intention of Kodak to discontinue Service of any specific Product
                pursuant to Section 3.25 or Section 3.25.1 of the Service Agreement,
                and
                Kodak has not, to date, terminated any Service for any specific
                Product.

            

    

     

    
      	 	
              (v)

            	
              All
                security interests and related rights granted by the Company to Kodak
                pursuant to Section 15.2 of the Service Agreement have terminated
                and such
                security interests have been fully released and
                discharged.

            

    

     

    
      	 	
              (vi)

            	
              Pursuant
                to the Service Agreement, Kodak is currently entitled to 72% and
                the
                Company is entitled to 28% of the Company’s current list price for
                Services as provided by Sections 3.1 and 3.2 of the Service Agreement.
                

            

    

     

    
      	 	
              (vii)

            	
              The
                Company has no obligations under the Kodak Agreements whatsoever
                with
                respect to the Partnership or Kodak’s Capital Account in the Partnership
                which have not been fully satisfied prior to the date hereof.
                

            

    

     

    
      	 	
              (viii)

            	
              The
                Principals have no Knowledge of any actions taken by Kodak which
                would or
                may constitute a breach of Kodak’s non-competition covenants under
                Sections 3.22 and 3.26 of the Service Agreement. The Company’s current
                forecast (a copy of which has been delivered to the Buyer) in respect
                of
                the Service Agreement is that, for the contract year commencing November
                1, 2006 and terminating October 31, 2007, the total annual product
                maintenance revenue from Existing Docucom Contracts and New Docucom
                Contracts will exceed $4,400,000 (Canadian), and such forecast is
                fair and
                reasonable considering the product maintenance revenue realized to
                date
                and the Company’s projected revenue for the balance of the contract year.
                The Principals have no Knowledge of any intention by Kodak to materially
                change the manner in which it does business with the Company or competes
                with the Company after the consummation of the Transaction hereunder.
                

            

    

     

    
      	 	
              (cc)

            	
              Non-Arm’s
                Length Matters.
                The Company is not a party to or bound by any agreement with, is
                not
                indebted to, and no amount is owing to the Company by, any of the
                Sellers
                or any officers, former officers, directors, former directors,
                shareholders, former shareholders, employees or former employees
                of the
                Company, the Predecessors, the Partnership or any person not dealing
                at
                arm’s length (within the meaning of the Income
                Tax Act
                (Canada)) with any of the
                foregoing.

            

    

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    
      	 	
              (dd)

            	
              Compliance
                with Privacy Laws.
                Except as disclosed in the Disclosure Schedule, the collection, use
                and
                retention of Personal Information by the Company and the disclosure
                or
                transfer of Personal Information by the Company to any third parties
                has
                complied with all Privacy Laws and is consistent with the Company’s own
                privacy policies. There are no restrictions on the Company’s collection,
                use, disclosure and retention of Personal Information except as provided
                by Privacy Laws.

            

    

     

    
      	 	
              (ee)

            	
              Disclosure.
                The representations and warranties contained in this §4 do not contain any
                untrue statement of a material fact or omit to state any material
                fact
                which is necessary in order to make the statements contained therein
                not
                misleading.

            

    

     

    
      	
              5.

            	
              Interim
                Period Covenants. 

            

    

     

    
      	 	
              (a)

            	
              During
                the Interim Period, the Principals have caused the Company to conduct
                its
                Business in the ordinary course as previously conducted and to use
                its
                commercially reasonable efforts to preserve intact its business
                organization and relationships with third parties. Without limiting
                the
                generality of the foregoing, during the Interim Period, except as
                otherwise contemplated by this Agreement, the Principals have caused
                the
                Company not to, without the prior written consent of the Buyer, undertake
                any of the matters set out in Annex II. The Buyer acknowledges and
                agrees
                that the Company and the Principals may undertake the matters set
                out in
                Annex
                III. 

            

    

     

    
      	 	
              (b)

            	
              During
                the Interim Period, the Principals have caused the Company to:
                (i) give to the Buyer, its counsel, financial advisors, auditors and
                other authorized representatives reasonable access to the offices,
                properties, books and records of the Company, including reasonable
                access
                to employees and suppliers of the Company, (ii) furnish, to the
                Buyer, its counsel, financial advisors, auditors and other authorized
                representatives such financial and operating data and other information
                relating to the Company as such persons may reasonably request, and
                (iii) instruct the employees, counsel and financial advisors of the
                Company to cooperate with the Buyer in its investigation of the Company.
                The
                Buyer’s rights pursuant to the representations, warranties and covenants
                in its favour in this Agreement shall not be reduced or adversely
                affected
                as a result of any access provided to it, or investigations or inspections
                conducted by it or knowledge which it has or
                acquires.

            

    

     

    
      	 	
              (c)

            	
              During
                the Interim Period, the Principals have provided to the Buyer, its
                counsel, financial advisors, auditors and other authorized representatives
                reasonable access to the books and records of the Principals relating
                to
                the Company.

            

    

     

    
      	 	
              (d)

            	
              The
                Principals shall, at their own expense, and shall cause the Company
                to,
                and, if required, with the full cooperation and assistance of the
                Buyer,
                use commercially reasonable efforts to obtain prior to the date of
                Closing, any consents or waivers of third parties which are required
                to
                sell and transfer the Company Shares to the Buyer and to allow the
                Buyer
                to conduct the Company’s Business as it is conducted as of the date
                hereof.

            

    

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    
      	
              6.

            	
              Post
                Closing Covenants. 

            

    

     

    The
      Parties agree as follows with respect to the period following the
      Closing.

     

    
      	 	
              (a)

            	
              General.
                In case at any time after the Closing any further action is necessary
                to
                carry out the purposes of this Agreement, each of the Parties will
                take
                such further action (including the execution and delivery of such
                further
                instruments and documents) as any other Party reasonably may request,
                all
                at the sole cost and expense of the requesting Party (unless the
                requesting Party is entitled to indemnification therefor under §9 below).
                

            

    

     

    
      	 	
              (b)

            	
              Litigation
                Support.
                In the event and for so long as any Party actively is contesting
                or
                defending against any action, suit, proceeding, hearing, investigation,
                charge, complaint, claim, or demand in connection with (i) any transaction
                contemplated under this Agreement or (ii) any fact, situation,
                circumstance, status, condition, activity, practice, plan, occurrence,
                event, incident, action, failure to act, or transaction on or prior
                to the
                Closing Date involving the Company , each of the other Parties will
                cooperate with him or it and his or its counsel in the contest or
                defense,
                make available their personnel, and provide such testimony and access
                to
                their books and records as shall be necessary in connection with
                the
                contest or defense, all at the sole cost and expense of the contesting
                or
                defending Party (unless the contesting or defending Party is entitled
                to
                indemnification therefor under §9
                below).

            

    

     

    
      	 	
              (c)

            	
              [reserved]

            

    

     

    
      	 	
              (d)

            	
              Confidentiality.
                Each of the Sellers will treat and hold as such all of the Confidential
                Information, refrain from using any of the Confidential Information
                except
                in connection with this Agreement, and deliver promptly to the Buyer
                all
                tangible embodiments (and all copies) of the Confidential Information
                which are in his possession. In the event that any of the Sellers
                is
                requested or required (by oral question or request for information
                or
                documents in any legal proceeding, interrogatory, subpoena, civil
                investigative demand, or similar process) to disclose any Confidential
                Information, that Seller will notify the Buyer promptly of the request
                or
                requirement so that the Buyer may seek an appropriate protective
                order or
                waive compliance with the provisions of this §6(d). If, in the absence of
                a protective order or the receipt of a waiver hereunder, any of the
                Sellers is, on the advice of counsel, compelled to disclose any
                Confidential Information to any tribunal or else stand liable for
                contempt, that Seller may disclose the Confidential Information to
                the
                tribunal; provided, however, that the disclosing Seller shall use
                his
                reasonable best efforts to obtain, at the request of the Buyer, an
                order
                or other assurance that confidential treatment will be accorded to
                such
                portion of the Confidential Information required to be disclosed
                as the
                Buyer shall designate. The foregoing provisions shall not apply to
                any
                Confidential Information which is generally available to the public
                immediately prior to the time of
                disclosure.

            

    

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    
      	 	
              (e)

            	
              Covenant
                Not to Compete.

            

    

     

    
      	 	
              (i)

            	
              Commencing
                on the Closing Date and for a period of five years from the Closing
                Date,
                none of the Sellers will engage directly or indirectly in any business
                competitive to the Business anywhere in Canada or in the United States;
                provided, however, that no owner of less than 1% of the outstanding
                stock
                of any publicly-traded corporation shall be deemed to engage solely
                by
                reason thereof in any of its
                businesses.

            

    

     

    
      	 	
              (ii)

            	
              Without
                limiting the provisions of paragraph 6(e)(i) hereof, commencing on
                the
                Closing Date and for a period of 5 years from the Closing Date, none
                of
                the Sellers will, directly or indirectly:

            

    

     

    
      	 	
              (A)

            	
              solicit,
                endeavour to solicit or gain the business of any person that is a
                customer, or has been within 5 years prior to the Closing Date, a
                customer
                of the Business or has been pursued as a prospective customer of
                the
                Business, for the purpose of selling to such customer or prospective
                customer any products or services which are competitive with those
                offered
                by the Company;

            

    

     

    
      	 	
              (B)

            	
              induce
                or endeavour to induce any employee of the Business to leave his
                or her
                employment;

            

    

     

    
      	 	
              (C)

            	
              employ
                or attempt to employ or assist any person in employing any employee
                of the
                Business (except that it is agreed that nothing will restrict either
                of
                the Principals from employing the other Principal after the expiration
                of
                their respective Consulting Agreements); or

            

    

     

    
      	 	
              (D)

            	
              solicit
                or endeavour to solicit any person that is a supplier or business
                partner
                of the Business at the time of
                Closing.

            

    

     

    
      	 	
              (iii)

            	
              If
                the final judgment of a court of competent jurisdiction declares
                that any
                term or provision of this §6(e) is invalid or unenforceable, the Parties
                agree that the court making the determination of invalidity or
                unenforceability shall have the power to reduce the scope, duration,
                or
                area of the term or provision, to delete specific words or phrases,
                or to
                replace any invalid or unenforceable term or provision with a term
                or
                provision that is valid and enforceable and that comes closest to
                expressing the intention of the invalid or unenforceable term or
                provision, and this Agreement shall be enforceable as so modified
                after
                the expiration of the time within which the judgment may be
                appealed.

            

    

     

    
      	 	
              (iv)

            	
              Sellers
                hereby expressly agree and acknowledge
                that:

            

    

     

    
      	 	
              (A)

            	
              in
                this section, the words “directly or indirectly” include any action taken
                by any of the Sellers for his own benefit or for the benefit of any
                person
                competing with the Business, either individually or in partnership
                or
                jointly or in conjunction with any other person as principal, agent,
                trustee, employee or shareholder (except for the holding of less
                than 1%
                of the stock of a corporation as referred to in paragraph 6 (e)(i)
                hereof
                ); 

            

    

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    
      	 	
              (B)

            	
              The
                Company has protectable business interests with respect to its suppliers,
                employees, customers and prospective customers, and that competition
                with
                and against such business interests would be harmful to the Company
                and
                Buyer;

            

    

     

    
      	 	
              (C)

            	
              the
                covenants contained in paragraph 6 (e) above are reasonable as to
                time and
                geographical area and do not place any unreasonable burden upon Sellers’
                ability to earn a livelihood;

            

    

     

    
      	 	
              (D)

            	
              the
                public will not be harmed as a result of enforcement of the covenants
                contained in this §6 (e);

            

    

     

    
      	 	
              (E)

            	
              the
                personal legal counsel for Sellers have reviewed the covenants contained
                in this §6(e);

            

    

     

    
      	 	
              (F)

            	
              the
                parties have entered into the covenants contained herein in connection
                with and as a condition precedent to the consummation of the Agreement,
                pursuant to which Buyer shall acquire the outstanding shares of the
                Company; the agreements, actions, covenants, and promises contained
                herein
                are intended to protect and ensure the value of the Company, including
                its
                goodwill, which actions, covenants, and promises are a material
                consideration to Buyer in connection with this Agreement; and, to
                the
                extent that the laws of any jurisdiction in which this Agreement
                shall be
                interpreted, construed, and/or enforced distinguish between covenants
                given in connection with the sale of a business and its goodwill
                and
                covenants given in connection with employment, this covenant will
                be given
                the broader interpretation customarily given to covenants in connection
                with the sale of a business and the transfer of goodwill to a buyer;
                and

            

    

     

    
      	 	
              (G)

            	
              Sellers
                understand and agree to each and every term and condition contained
                in
                §6(e) of this Agreement.

            

    

     

    
      	 	
              (v)

            	
              Sellers
                recognize and acknowledge that irreparable damage will result to
                Buyer in
                the event of a breach by Sellers of the provisions of this §6(e), and,
                accordingly, in the event of such a breach, Buyer will be entitled,
                in
                addition to any other legal or equitable damages and remedies to
                which it
                may be entitled or which may be available, to an injunction to restrain
                the violation thereof.

            

    

     

    
      	 	
              (f)

            	
              Preparation
                of Final Tax Returns and Financial Statements.
                The Buyer will be responsible for the preparation and filing of the
                Company’s final tax returns and financials statements required as a result
                of the change of control resulting from the Transaction.
                

            

    

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    
      	
              7.

            	
              Conditions

            

    

     

    
      	 	
              (a)

            	
              Conditions
                for the benefit of the Buyer.
                The purchase by the Buyer of the Company Shares is subject to the
                following conditions, which are for the exclusive benefit of the
                Buyer and
                which are to be performed or complied with at or prior to the time
                of
                Closing:

            

    

     

    
      	 	
              (i)

            	
              the
                representations and warranties set forth in Sections 3(a) and 4 will
                be true and correct in all material respects (and for this purpose
                all
                materiality qualifications in such representations and warranties
                will be
                disregarded) as at the time of Closing with the same force and effect
                as
                if made at and as of such time;

            

    

     

    
      	 	
              (ii)

            	
              the
                Sellers will have performed or complied with all of the terms, covenants
                and conditions of this Agreement to be performed or complied with
                by the
                Sellers at or prior to the time of
                Closing;

            

    

     

    
      	 	
              (iii)

            	
              the
                Buyer will be furnished with such certificates of officers of the
                Company
                and of the Sellers as the Buyer or the Buyer’s counsel may reasonably
                require in order to establish that the terms, covenants and conditions
                contained in this Agreement to have been performed or complied with
                by the
                Sellers at or prior to the time of Closing have been performed or
                complied
                with, in all material respects, and that the representations and
                warranties in Sections 3(a) and 4 are true and correct in all
                material respects as at the time of
                Closing;

            

    

     

    
      	 	
              (iv)

            	
              there
                will have been obtained from all appropriate governmental authorities
                such
                approvals or consents as are required to permit the change of ownership
                of
                the Company Shares contemplated hereby and to permit the Business
                of the
                Company to be carried on by the Buyer as now
                conducted;

            

    

     

    
      	 	
              (v)

            	
              the
                Sellers will have obtained any consents or waivers of third parties
                required to sell and transfer the Company Shares to the Buyer and
                to allow
                the Buyer to cause the Company to conduct the Company’s Business as it is
                conducted prior to the time of Closing; without limiting the generality
                of
                the foregoing, the Sellers shall have obtained consents to the change
                of
                control resulting from the Transaction under each of the contracts
                referred to in Section 4(p) of the Disclosure Schedule which specify
                that
                consent is required;

            

    

     

    
      	 	
              (vi)

            	
              no
                action or proceeding will be pending or threatened by any person
                or
                governmental authority to enjoin, restrict or prohibit
                the sale and purchase of the Shares contemplated hereby, or the right
                of
                the Buyer or the Company to conduct the Business of the
                Company;

            

    

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    
      	 	
              (vii)

            	
              no
                Material Adverse Effect will have occurred from January 31, 2007
                to the
                time of Closing;

            

    

     

    
      	 	
              (viii)

            	
              the
                Financing shall have been completed to the satisfaction of the Buyer
                in
                its sole discretion;

            

    

     

    
      	 	
              (ix)

            	
              the
                Principals shall have executed the Consulting
                Agreements;

            

    

     

    
      	 	
              (x)

            	
              all
                directors of the Company shall resign and the officers of the Company
                specified by the Buyer shall resign their respective
                offices;

            

    

     

    
      	 	
              (xi)

            	
              the
                Sellers and all directors and officers of the Company shall release
                the
                Company from any and all possible claims against the Company arising
                from
                any act, matter or thing arising at or prior to the time of Closing;
                provided, however, that no such release shall apply to indemnification
                by
                the Company of any third party claims that may be made against the
                Sellers
                in their capacity as former directors and officers (to the extent
                provided
                by the terms of indemnities previously provided by the
                Company);

            

    

     

    
      	 	
              (xii)

            	
              all
                necessary steps and proceedings will have been taken to permit the
                Company
                Shares to be duly and regularly transferred to and registered
                in the name of the Buyer;

            

    

     

    
      	 	
              (xiii)

            	
              the
                Company’s bank shall have agreed to continue the existing $500,000
                (Canadian) credit facility on the same terms and conditions as currently
                apply, except for the release of the guarantees of the Principals,
                and the
                Bank shall have waived the current defaults by the Company in respect
                of
                certain financial covenants for a period and on terms acceptable
                to the
                Buyer (or, alternatively, the Buyer shall have made arrangements
                to
                refinance the Company’s credit facility with another bank on terms
                acceptable to the Buyer);

            

    

     

    
      	 	
              (xiv)

            	
              the
                Amalgamation shall have been carried out pursuant to articles of
                amalgamation and other agreements and corporate proceedings which
                are
                consistent with those described in Annex III attached hereto and
                on terms
                acceptable to the Buyer; 

            

    

     

    
      	 	
              (xv)

            	
              all
                Excluded Liabilities shall have been fully discharged and the Company
                shall have been released therefrom to the satisfaction of the Buyer;
                

            

    

     

    
      	 	
              (xvi)

            	
              the
                Buyer shall be satisfied that the Company’s relationship with Kodak after
                Closing will continue for the foreseeable future in substantially
                the same
                manner as prior to Closing;

            

    

     

    
      	 	
              (xvii)

            	
              none
                of the Key Employees shall have resigned or indicated their intention
                to
                resign from employment with the Company;

            

    

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    
      	 	
              (xviii)

            	
              the
                Buyer will be satisfied with the terms of the sales support services
                agreements made between the Company and two former sales support
                staff,
                and will be satisfied that the change of such staff from employees
                to
                contractors will not likely have any Material Adverse Effect on the
                Business; and

            

    

     

    
      	 	
              (xix)

            	
              the
                Buyer will be satisfied with: (A) the audited financial statements
                of the
                Partnership and the audited financial statements of the Company for
                the
                Most Recent Fiscal Year End and the Most Recent Financial Statements
                for
                the Most Recent Fiscal Month End, as referred to in §4(g)(ii), (v) and
                (vi) hereof; (B) the 2007 forecast referred to in §4(g); (C) the results
                of any due diligence inquiries made by the Buyer arising out of such
                Financial Statements, financial forecast and the financial condition
                of
                the Company as reflected thereby; and (D) the form and substance
                of the
                Tax Returns for the Predecessors for the periods ended September
                30,
                2006.

            

    

     

    
      	 	
              (b)

            	
              Conditions
                for the Benefit of the Sellers.
                The sale by the Sellers and the purchase by the Buyer of the Company
                Shares is subject to the following conditions, which are for the
                exclusive
                benefit of the Sellers and which are to be performed or complied
                with at
                or prior to the time of Closing:

            

    

     

    
      	 	
              (i)

            	
              the
                representations and warranties of the Buyer set forth in Section 3(b)
                will be true and correct in all material respects (and for this purpose
                any materiality qualifications in such representations and warranties
                will
                be disregarded) as at the time of Closing with the same force and
                effect
                as if made at and as of such time;

            

    

     

    
      	 	
              (ii)

            	
              the
                Buyer will have performed or complied with all of the terms, covenants
                and
                conditions of this Agreement to be performed or complied with by
                the Buyer
                at or prior to the time of Closing;

            

    

     

    
      	 	
              (iii)

            	
              the
                Buyer shall have delivered to the Sellers the bank letter of credit
                or
                other security referred to in paragraph 2(e);

            

    

     

    
      	 	
              (iv)

            	
              the
                Company shall have executed the Consulting Agreements;
                

            

    

     

    
      	 	
              (v)

            	
              the
                Principals shall have been released from their personal guarantees
                of the
                Company’s bank debt; and 

            

    

     

    
      	 	
              (vi)

            	
              the
                Sellers will be furnished with such certificates of officers of the
                Buyer
                as the Sellers or the Sellers’ counsel may reasonably require in order to
                establish that the terms, covenants and conditions contained in this
                Agreement to have been performed or complied with by the Buyer at
                or prior
                to the time of Closing have been performed or complied with in all
                material respects, and that the representations and warranties of
                the
                Buyer herein given are true and correct in all material respects
                at the
                time of Closing.

            

    

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    
      	 	
              (c)

            	
              Waiver
                of Condition.
                The Buyer, in the case of a condition set out in Section 7(a), and
                the
                Sellers, in the case of a condition set out in Section 7(b), will
                have the
                exclusive right to waive the performance or compliance of such condition
                in whole or in part and on such terms as may be agreed upon without
                prejudice to any of its rights in the event of non-performance of
                or
                non-compliance with any other condition in whole or in part. Any
                such
                waiver will not constitute a waiver of any other conditions in favour
                of
                the waiving party. Such waiving party will retain the right to complete
                the sale and purchase of the Company Shares herein contemplated and
                will
                have the right to exercise all legal remedies against the other party
                in
                respect of any breach of the other party’s covenants, obligations or any
                inaccuracy or misrepresentation in a representation or warranty of
                the
                other party which gave rise to the non-performance of or non-compliance
                with the condition so waived.

            

    

     

    
      	 	
              (d)

            	
              Termination.
                This Agreement may be terminated, by notice given prior to or at
                the
                completion of the sale and purchase of the Company Shares herein
                contemplated:

            

    

     

    
      	 	
              (i)

            	
              by
                the Sellers or the Buyer if: (a) a material breach of any
                representation or warranty (and for this purpose any materiality
                qualifications in such representations and warranties will be
                disregarded), or (b) a breach of a covenant, obligation or other
                provision of this Agreement, has been committed by the other party
                and
                such breach has not been waived or cured within 10 days following
                the date
                on which the non-breaching party notifies the other party of such
                breach;

            

    

     

    
      	 	
              (ii)

            	
              by
                the Buyer if any of the conditions in Section 7(a) has not been satisfied
                as of the Closing Date or if satisfaction of such a condition is
                or
                becomes impossible (other than through the failure of the Buyer to
                comply
                with its obligations under this Agreement) and the Buyer has not
                waived
                such condition on or before the Closing Date; 

            

    

     

    
      	 	
              (iii)

            	
              by
                the Sellers if any of the conditions in Section 7(b) has not been
                satisfied as of the Closing Date or if satisfaction of such a condition
                is
                or becomes impossible (other than through the failure of the Sellers
                to
                comply with their obligations under this Agreement) and the Sellers
                have
                not waived such condition on or before the Closing
                Date;

            

    

     

    
      	 	
              (iv)

            	
              by
                written agreement of the Buyer and the Sellers.

            

    

     

    
      	 	
              (e)

            	
              Effect
                of Termination.
                If this Agreement is terminated pursuant to Section 7(d), all further
                obligations of the Parties under this Agreement will terminate, and
                each
                Party will release the others from any and all claims it may have
                arising
                out of this Agreement or the termination
                thereof.

            

    

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    
      	
              8.

            	
              Deliveries
                at Closing.

            

    

     

    
      	 	
              (a)

            	
              Closing.
                The sale and purchase of the Company Shares will be completed at
                10:00
                a.m. on the Closing Date at the offices of Aird & Berlis LLP, BCE
                Place, 181 Bay Street, Suite 1800, Toronto, Ontario M5J
                2T9.

            

    

     

    
      	 	
              (b)

            	
              Documents
                Delivered to Buyer.
                At Closing, Sellers shall deliver to Buyer the documents required
                by any
                provision of this Agreement, and the following
                documents:

            

    

     

    
      	 	
              (i)

            	
              all
                of the third party consents specified in §4(c) above;
                

            

    

     

    
      	 	
              (ii)

            	
              executed
                counterparts of the Consulting Agreements for the Sellers in form
                and
                substance as set forth in Exhibit B hereto;

            

    

     

    
      	 	
              (iii)

            	
              evidence
                reasonably satisfactory to the Buyer that the Excluded Liabilities
                have
                been fully satisfied or terminated and are no longer obligations
                of the
                Company;

            

    

     

    
      	 	
              (iv)

            	
              resignations,
                effective as of the Closing, of each director and officer of the
                Company;

            

    

     

    
      	 	
              (v)

            	
              releases
                in the form acceptable to the Buyer, as contemplated by paragraph
                7(a)(xi)
                hereof;

            

    

     

    
      	 	
              (vi)

            	
              Board
                of Director resolution of the Company authorizing the execution and
                performance of this Agreement;

            

    

     

    
      	 	
              (vii)

            	
              Evidence
                of satisfaction of the conditions referred to in paragraphs 7(a)(xiii),
                (xiv), (xvi) and (xvii); and

            

    

     

    
      	 	
              (viii)

            	
              The
                Sellers shall deliver to Buyer a legal opinion in form and substance
                as
                set forth in Exhibit D attached hereto, addressed to the Buyer, and
                dated
                as of the Closing Date.

            

    

     

    
      	 	
              (c)

            	
              Documents
                Delivered to Sellers.
                At Closing, Buyer shall deliver to the Sellers the payment contemplated
                by
                §2(b) and the following additional
                documents:

            

    

     

    
      	 	
              (i)

            	
              the
                bank letter of credit or other security acceptable to the Sellers
                referred
                to in §2(e) hereof;

            

    

     

    
      	 	
              (ii)

            	
              executed
                counterparts of the Consulting Agreements;

            

    

     

    
      	 	
              (iii)

            	
              Board
                of Director resolution of Buyer authorizing the execution and performance
                of this Agreement;

            

    

     

    
      	 	
              (iv)

            	
              evidence
                of satisfaction of the condition referred to in paragraph 7(b)(v);
                and

            

    

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    
      	 	
              (v)

            	
              the
                Buyer shall deliver to the Sellers a legal opinion in form and substance
                as set forth in Exhibit E attached hereto, addressed to the Sellers
                and
                dated as of the Closing Date.

            

    

     

    
      	
              9.

            	
              Remedies
                for Breaches of this Agreement.

            

    

     

    
      	 	
              (a)

            	
              Survival
                of Representations and Warranties.
                All representations and warranties of the Sellers contained in §3 shall
                survive the Closing and continue in full force and effect for the
                applicable statute of limitations. All of the representations and
                warranties of the Principals contained in §4 above shall, except as
                hereinafter provided, survive the Closing hereunder and continue
                in full
                force and effect for a period of three (3) years thereafter. In addition,
                any representation or warranty which is based upon or relates to
                the tax
                liability of the Company for a particular taxation year may be made
                or
                brought by the Buyer at any time prior to the expiration of the period
                during which an assessment, reassessment or other form of recognized
                document assessing the liability for Tax, interest or penalties in
                respect
                of such taxation year under applicable tax legislation could be issued,
                assuming that the Company does not file any waiver or similar document
                extending such period as otherwise determined. All of the representations
                and warranties of the Buyer contained in this Agreement shall survive
                the
                Closing hereunder and continue in full force and effect subject to
                the
                applicable statute of limitations.

            

    

     

    
      	 	
              (b)

            	
              Indemnification
                Provisions for Benefit of the Buyer.

            

    

     

    
      	 	
              (i)

            	
              In
                the event any of the Sellers breaches any of their representations,
                warranties, and covenants contained herein and, if there is an applicable
                survival period pursuant to §9(a) above, provided that the Buyer makes a
                written claim for indemnification against any of the Sellers pursuant
                to
                §9(e) by delivering a Claim Notice below within such survival period,
                then, subject to Article 10 hereof, each of the Sellers agrees to
                indemnify the Buyer from and against the entirety of any Adverse
                Consequences the Buyer may suffer resulting from, arising out of,
                relating
                to, in the nature of, or caused by the breach; provided, however,
                the
                Sellers’ liability for breaches of their representations and warranties in
                §3(a) hereof will be several as between them (and not joint or joint
                and
                several) and the liability of the Principals for breaches of their
                representations and warranties in §4 hereof will be joint and
                several.

            

    

     

    
      	 	
              (ii)

            	
              The
                Principals agree to indemnify the Company and the Buyer from and
                against
                the entirety of any Adverse Consequences which the Company or the
                Buyer
                may suffer resulting from, arising out of, relating to, in the nature
                of,
                or caused by any Liability of the Company (including any Liability
                of the
                Predecessor) for any Taxes (other than taxes which are accrued for
                in the
                Most Recent Financial Statements or incurred in the Ordinary Course
                of the
                Business of the Company after the date of the Most Recent Financial
                Statements and are accrued for in the January 31, 2007 Balance Sheet)
                with
                respect to any Tax year ending on or before January
                31, 2007.

            

    

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    
      	 	
              (iii)

            	
              The
                Principals agree to indemnify the Company and the Buyer from and
                against
                the entirety of any Adverse Consequences which the Company or the
                Buyer
                may suffer resulting from the Amending Agreements dated June 30,
                2004,
                September 30, 2004 and December 31, 2004 (which amended in certain
                respects the Integrated Imaging Elite Reseller Purchase Agreement
                made
                between the Company and Kodak dated October 21, 2001) containing
                any
                terms, conditions or restrictions which are adverse to the
                Company.

            

    

     

    
      	 	
              (c)

            	
              Indemnification
                Provisions for Benefit of the Sellers.
                In the event the Buyer breaches any of its representations, warranties,
                and covenants contained herein, and, if there is an applicable survival
                period pursuant to §9(a) above, provided that any of the Sellers makes a
                written claim for indemnification against the Buyer pursuant to §9(e)
                below within such survival period by delivering a Claim Notice, then
                the
                Buyer agrees to indemnify each of the Sellers from and against the
                entirety of any Adverse Consequences the Sellers may suffer resulting
                from, arising out of, relating to, in the nature of, or caused by
                the
                breach.

            

    

     

    
      	 	
              (d)

            	
              Determination
                of Adverse Consequences.
                All indemnification payments under this §9 shall be deemed adjustments to
                the Purchase Price.

            

    

     

    
      	 	
              (e)

            	
              Claim
                Notice; Notice of a Disputed Claim.

            

    

     

    
      	 	
              (i)

            	
              A
                Party hereto (the “Indemnified
                Party”)
                may deliver to the other Party (the “Indemnifying
                Party”)
                a written notice (“Claim
                Notice”)
                that the Indemnified Party has suffered Adverse Consequences and
                providing
                the facts alleged as the basis for such claim and the section or
                sections
                of this Agreement alleged to have been violated and the estimated
                total
                dollar amount of the Adverse Consequences claimed. In the event that
                the
                Indemnifying Party disputes liability for or the amount of the Adverse
                Consequences set forth in the Claim Notice, the Indemnifying Party
                shall
                notify the Indemnified Party in writing of such dispute (“Notice
                of a Disputed Claim”)
                and specify the amount disputed and basis therefor and the amount
                the
                Indemnifying Party believes to be the correct amount, if any, within
                thirty (30) days notice after receipt of the Claim Notice. The failure
                by
                the Indemnifying Party to deliver a Notice of a Disputed Claim to
                the
                Indemnified Party within thirty (30) days after receipt by the
                Indemnifying Party of the Claim Notice shall constitute the Indemnifying
                Party’s acceptance of the item(s) in the Claim
                Notice.

            

    

     

    
      	 	
              (ii)

            	
              If
                a written Notice of a Disputed Claim is sent pursuant to paragraph
                (i)
                above, the Parties shall during the thirty (30) days following the
                date of
                such delivery negotiate in good faith to resolve the Disputed Claim
                and
                reach a resolution of the matter on an expedited basis. If, during
                such
                resolution period, the Parties are unable to reach agreement, the
                Indemnified Party may pursue such Disputed Claim pursuant to legal
                remedies available to it.

            

    

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    
      	 	
              (f)

            	
              Other
                Indemnification Provisions.
                Each of the Sellers hereby agrees that he will not make any claim
                for
                indemnification against the Company by reason of the fact that he
                was a
                director, officer, employee, partner or agent of the Company or the
                Predecessors or the Partnership or was serving at the request of
                any such
                entity as a partner, trustee, director, officer, employee, or agent
                of
                another entity (whether such claim is for judgments, damages, penalties,
                fines, costs, amounts paid in settlement, losses, expenses, or otherwise
                and whether such claim is pursuant to any statute, charter document,
                bylaw, agreement, or otherwise) with respect to any action, suit,
                proceeding, complaint, claim, or demand brought by the Buyer against
                such
                Seller (whether such action, suit, proceeding, complaint, claim,
                or demand
                is pursuant to this Agreement, applicable law, or
                otherwise).

            

    

     

    
      	
              10.

            	
              Limitations
                on Indemnification.

            

    

     

    
      	 	
              (a)

            	
              The
                Buyer shall not be entitled to make any claim for indemnification
                against
                any of the Sellers pursuant to paragraph 9(b)
                unless and until the amount of the Adverse Consequences incurred
                by the
                Buyer as a result of all misrepresentations, breaches of warranties
                and
                breaches of covenants contained in this Agreement is equal to $50,000
                (the
                “Threshold
                Amount”);
                provided that, if the Buyer has incurred Adverse Consequences in
                an
                aggregate amount at least equal to the Threshold Amount, then the
                Sellers
                will be liable to the Buyer for the full amount of all Adverse
                Consequences that the Buyer may suffer resulting from or arising
                out of
                any such breaches, including the Threshold Amount. Furthermore, the
                limitation on indemnification in this paragraph 10(a) shall not apply
                in
                respect of any claim for indemnification pursuant to paragraph
                9(b)(ii).
                

            

    

     

    
      	 	
              (b)

            	
              Notwithstanding
                any other provision of this Agreement, the maximum aggregate liability
                of
                the Sellers for any and all claims by the Buyer for indemnification
                in
                respect of Adverse Consequences resulting from or arising out of
                any and
                all breaches of representations, warranties and covenants will be
                limited
                to an amount equal to the aggregate Purchase Price paid to the
                Sellers.

            

    

     

    
      	
              11.

            	
                 
                [reserved]

            

    

     

    
      	
              12.

            	
                 
                Miscellaneous.

            

    

     

    
      	 	
              (a)

            	
              [reserved]

            

    

     

    
      	 	
              (b)

            	
              Press
                Releases and Public Announcements.
                No Party shall issue any press release or make any public announcement
                relating to the subject matter of this Agreement prior to the Closing
                without the prior written approval of the Buyer and the Sellers.
                Provided
                however, the foregoing shall not apply to any press releases and
                public
                announcements which are required to be made by applicable law or
                any
                listing requirements of any securities
                exchanges.

            

    

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

    
      	 	
              (c)

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

            

    

     

    
      	 	
              (d)

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

            

    

     

    
      	 	
              (e)

            	
              Succession
                and Assignment.
                This Agreement shall be binding upon and inure to the benefit of
                the
                Parties named herein and their respective successors and permitted
                assigns. No Party may assign either this Agreement or any of his
                or its
                rights, interests, or obligations hereunder without the prior written
                approval of the Buyer and the Sellers; provided, however, that Buyer
                may
                assign this Agreement to an entity that is wholly owned by the Buyer
                or is
                controlled by the same persons that currently control the Buyer.
                In the
                event of such assignment, BPO Management Services, Inc. will guarantee
                all
                obligations of the entity which becomes the Buyer hereunder, and
                will
                execute a guarantee agreement in form acceptable to the Sellers,
                acting
                reasonably.

            

    

     

    
      	 	
              (f)

            	
              Counterparts.
                This Agreement may be executed in one or more counterparts and by
                facsimile, each of which shall be deemed an original but all of which
                together will constitute one and the same instrument. The Parties
                agree to
                deliver signed originals of this Agreement to each other within five
                business days after the Closing if this Agreement is executed by
                facsimile
                counterparts.

            

    

     

    
      	 	
              (g)

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

            

    

     

    
      	 	
              (h)

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

            

    

     

    If
      to the
      Sellers: 

    

    c/o
      Cummings Cooper Schusheim Berliner LLP

    Suite
      408

    4100
      Yonge Street

    Toronto,
      ON M2P 2B5

    Attention:
      Howard Cooper

    Tel:
      (416) 733-5288

    Fax:
      (416)512-9501

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

    With
      a
      copy to:                    Cummings
      Cooper Schusheim Berliner LLP

    Suite
      408

    4100
      Yonge Street

    Toronto,
      ON M2P 2B5

    Attention:
      Howard Cooper

    Tel:
      (416) 733-5288

    Fax:
      (416)512-9501

    

    If
      to the
      Buyer:

     

    BPO
      MANAGEMENT SERVICES, INC.

    Attention:
      Patrick Dolan and Jim Cortens

    c/o
      Jack
      T. Cornman, Esq.

    Cornman
      & Swartz

    19800
      MacArthur Blvd., Suite 820

    Irvine,
      CA 92612

    Fax: (949)
      224-1505

     

    padolan927@msn.com

     

    jcortens@cox.net

     

    With
      a
      copy
      to:                    Jack
      T.
      Cornman, Esq.

    Cornman
      & Swartz

    19800
      MacArthur Blvd., Suite 820

    Irvine,
      CA 92612

    Tel:
      (949) 224 1500

    Fax:
      (949) 224 1505

    

    And
      a
      second copy to:       D.L. West

    Aird
      & Berlis LLP

    1800
      -
      181 Bay Street

    Toronto,
      ON M5J 2T9

    Tel:
      (416) 865-7737

    Fax:
      (416) 863-1515

    

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

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

    
      	 	
              (i)

            	
              Governing
                Law.
                This Agreement shall be governed by and construed in accordance with
                the
                laws of the Province of Ontario without giving effect to any choice
                or
                conflict of law provision or rule that would cause the application
                of the
                laws of any jurisdiction. The parties agree that the jurisdiction
                for all
                legal proceedings arising out of this Agreement and the enforcement
                thereof shall be the courts located in the Province of Ontario, Canada.
                The parties hereby irrevocably waive, to the fullest extent it or
                they may
                effectively do so, the defense of an inconvenient forum to the maintenance
                of such action or proceeding. The parties also irrevocably and
                unconditionally consent to the service of any and all process in
                any such
                action or proceeding by the mailing of copies of such process by
                certified
                mail to the parties and their counsel at their respective addresses
                specified in Section 12(h). The parties further irrevocably and
                unconditionally agree that a final judgment in any such action or
                proceeding (after exhaustion of all appeals or expiration of the
                time for
                appeal) shall be conclusive and may be enforced in other jurisdictions
                by
                suit on the judgment or in any other manner provided by
                law.

            

    

     

    
      	 	
              (j)

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

            

    

     

    
      	 	
              (k)

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

            

    

     

    
      	 	
              (l)

            	
              Expenses.
                Buyer will bear its costs and expenses (including legal fees and
                expenses)
                incurred in connection with this Agreement and the transactions
                contemplated hereby. The Sellers may charge their costs and expenses
                (including legal fees and expenses) incurred in connection with this
                Agreement to the Company, but such expenses will be taken into account
                and
                form part of the adjustment to the Purchase Price pursuant to §2(b)(ii)
                hereof.

            

    

     

    
      	 	
              (m)

            	
              Construction.
                The Parties have participated jointly in the negotiation and drafting
                of
                this Agreement. In the event an ambiguity or question of intent or
                interpretation arises, this Agreement shall be construed as if drafted
                jointly by the Parties and no presumption or burden of proof shall
                arise
                favoring or disfavoring any Party by virtue of the authorship of
                any of
                the provisions of this Agreement. Any reference to any federal, provincial
                local, or foreign statute or law shall be deemed also to refer to
                all
                rules and regulations promulgated thereunder, unless the context
                requires
                otherwise. The word “including” shall mean including without
                limitation.

            

    

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (n)

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

            

    

     

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

     

    BPO
      MANAGEMENT SERVICES, INC.

    

     

    
      Per:
        /s/                                                                   

    

    

     

    
      Per:
        /s/                                                                   

    

    

     

    DOCUCOM
      IMAGING SOLUTIONS INC.

     

     

    Per:
      /s/                                                                   

     

    

    
       

      Per:
        /s/                                                                   

       

    

    SIGNED,
      SEALED AND
      DELIVERED,                           
)

    in
      the presence
      of                                                               
)

    )

    )             
      /s/ Raymond D. Patterson_______________

    ) 
Raymond
      D. Patterson

    )

    )

    )             
      /s/ Martin E. Mollot____________________

    ) 
Martin
      E. Mollot

    

     

       
      /s/ Raymond D.
      Patterson                                 
                 

       
Raymond
      D. Patterson, as trustee of the 

    Patterson
      Family Trust

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

    

     

    /s/
      Maureen Patterson____________________

    Maureen
      Patterson, as trustee of the 

    Patterson
      Family Trust

     

    

     

    /s/
      Martin E.
      Mollot                                                  

    Martin
      E. Mollot, as trustee of the 

    Patterson
      Family Trust

     

    

     

    /s/
      Martin E.
      Mollot                                                  

    Martin
      E. Mollot, as trustee of the 

    Mollot
      Family Trust

     

    

     

    /s/
      Judith Mollot_______________________

    Judith
      Mollot, as trustee of the 

    Mollot
      Family Trust

     

    

     

    /s/
      Raymond D.
      Patterson                                      

    Raymond
      D. Patterson, as trustee of the 

    Mollot
      Family Trust

    
 

    48

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